The Local Government Authority (LGA) has published a compensation policy for investments made by local councils in cases where such investments are expropriated by the central government. Investments covered under this policy include properties and goods under local councils.
This policy has been developed pursuant to Section 56-2 (d) of the Decentralization Act of 2010.
The purpose of the policy is to guarantee compensation for the investments made by the local councils when the central government expropriates for its own purposes property or goods owned by the councils.
The policy requires an independent auditor or an individual who has the license to valuate, to determine the value of the property or the good that will be expropriated by the central government. The policy also requires both the central government and the local council to come to a compensation agreement prior to any expropriation. Any dispute regarding the terms of such compensation agreement is required to be first resolved amicably. The Ministry of Finance is mandated with the task of initiating dispute resolution and discussion meetings with the concerned parties. If the parties fail to reach an agreement at this stage, the policy states that the dispute can be resolved by a court of law in the Maldives.
Read the full policy at: https://www.gazette.gov.mv/gazette/6222
