The Ministry of Finance and Public Enterprises has deducted MVR 74 million from Male City Council’s approved block grant over the past three months, according to Mayor Adam Azim.
Azim made the announcement at a formal council meeting, calling the reductions a form of harassment aimed at disrupting municipal services. He said the council, which delivers major services to nearly half the country’s population living in the capital, would continue operating within the remaining funds but warned that the cuts directly affect residents.
The deductions were linked to outstanding payments owed by the council to the state-owned Waste Management Corporation (WAMCO). The council had earlier written to Finance Minister Hassan Zareer, cautioning that the reductions would interfere with salary payments and day-to-day operations.
Azim also noted that recruitment restrictions have been imposed, limiting the council’s ability to hire staff. In addition to the grant cuts, the central government has reclaimed 14 plots of land previously under council control, including some that generated revenue, and has altered arrangements so that certain vehicle-fee income no longer flows to the council.
The dispute forms part of ongoing friction between the central government and the Male City Council. Azim has repeatedly argued that fragmented responsibilities and reduced resources make it harder for the local authority to respond effectively to issues such as flooding and infrastructure maintenance.
Council officials have said they will keep delivering services to the extent the remaining budget allows while seeking clarification on the deductions.
