Tag: abdulla sodiq

Equatorial Convention Centre’s unpaid bills approach MVR8 million

The unpaid electricity bills for Addu City’s Equatorial Convention Centre (ECC) have reached MVR 7.9 million (US$512,000) local media has reported.

Local director for the state-owned FENAKA utilities company told Sun Online that the constant supply of electricity needed for the three-year-old facility had not been paid since its construction.

Built on reclaimed marsh land for the for the hosting of the 17th SAARC summit in 2011, the ECC has become somewhat of a white elephant, with current responsibility for its upkeep falling to the Housing Ministry.

Addu City Mayor Abdulla Sodig has previously expressed concern that the neglect of the convention centre could cause irreparable damage to the premises.

Earlier this year the Housing Ministry also reclaimed oversight of the country’s other major convention centre, Dharubaaruge in Malé. On this occasion the ministry accused Malé City Council of failing to maintain the facility, to which the council responded that it had not been granted the promised funds.

Both Malé City and Addu City councils are heavily dominated by the opposition Maldivian Democratic Party.

Zuhair told Sun today that requests to secure payment for the ECC’s bills had been unsuccessful.

Previous plans to lease the centre to private companies were shelved after the fall of the MDP government in February 2012, the same month the winning bidder was to take over operations.

Likes(0)Dislikes(0)

“Right now decentralisation in this country is just for show”: Addu City mayor

Mayor of Addu City Abdulla Sodig has suggested the financial difficulties facing his council are a result of the failure to implement the decentralisation act properly.

“Right now decentralisation in this country is just for show,” Sodig told Minivan News.

“The government and Majlis need to resolve these issues if the citizens are to benefit from decentralisation in a meaningful way.”

Addu City will be hit hard by the government’s proposed budget cuts, said Sodig, expressing concerns that the proposed budget for the city is insufficient to adequately provide essential services.

From the MVR421.4million budget requested by the council for 2014, only MVR45.6million was allocated in the budget proposed by Ministry of Finance to the People’s Majlis.

According to the mayor, the initial amount proposed in July 2013 was MVR54.8 million, in response to which the council informed the ministry that MVR123.1 million would be required for recurrent and capital expenditure – excluding Public Sector Investment Programmes (PSIPs).

When the council again requested a minimum of MVR85 million, the ministry proposed a reduced amount of MVR45.6 million. Of this amount, MVR35.2 million was allocated for salaries, MVR5.7 million for pre-schools, and MVR3.7 million for council office administrative costs.

Sodig says this amount would not cover the expenses of repairing mosques and roads.

“Addu City roads are badly in need of repair, whenever it rains most roads are flooded” he said. No funds were allocated for road reconstruction and repair in 2012 or 2013, he added.

Funds for some services in the council’s mandate, such as maintenance of roads and mosques, are included in the budgets of the relevant state departments, Sodig noted.

“It is very difficult, time consuming and costly to carry out our obligations like this.”

The MVR45.6 million budget currently proposed by the ministry does not include any additional projects, for which the council had requested MVR291.9 million.

“The amount we requested includes money needed for land reclamation projects in Hithadhoo, Maradhoo, Maradhoo-Feydhoo and Feydhoo. It was initially included in the budget, but has been removed now” Sodig explained.

In 2013 MVR6 million was proposed for PSIP projects, but the council received no money when the budget was finalised. The land reclamation projects were first proposed in 2008 but have been repeatedly delayed.

The actual budget allocation for the council in 2013 was MVR33.7 million, though it reached MVR55 million by the end of the year. The council still has pending electricity bills and up to MVR3 million and MVR186,000 in phone bills.

“At the budget committee we requested at least MVR25 million to pay our pending bills and for other existing contracts such as security and legal services, and they said anything that is absolutely essential will be included” Sodig said.

In 2014 the Council will earn an estimated MVR12.9 million in land lease payments and other fees collected for services provided by the council. A number of issues with financial independence of local councils, however, makes it difficult for the money to be properly utilised.

In 2012, the Finance Ministry requested all local councils to deposit all their revenues with Maldives Inland Revenue Authority (MIRA) – a decision which Sodiq believes has discouraged local councils from investing in income generating programmes. Fees collected for public services provided with the council’s own resources are also collected by the central ministries.

Sodig blamed laws contravening the ‘Decentralisation Act’ as a primary cause for these issues.

Article 81 of the act requires national authorities to allocate an amount (decided by Ministry of Finance) from state facilities in which the council does not have any participation but are within it’s administrative area.

The mayor noted that no such payments have been made so far, and that some of the natural resources currently utilised by the state were sources of income for locals through traditional economic activity prior to their development for other purposes.

Likes(0)Dislikes(0)