Wednesday
24th Apr 2024
Dhivehi Edition
MP Dhonbilaiy Haleem.
While local councils are being given the opportunity to acquire loans, Bilehdhoo MP Ahmed Haleem (Dhonbiley) has expressed concern as extremists in local councils may finance terrorism.
Parliament today debated on the government’s amendment to the Public Finance Act, in accordance with amendments to the Decentralization Act, presented by Dhaandhoo MP Yaugoob Abdulla. The amendment will allow local councils to obtain loans from banks and financial institutions, and dictates policies for councils to provide loans to other councils.
In order to obtain loans, council members must pass a motion and present it to the minister. The motion must include the loan’s benefits for the island’s economy and development, the loan’s interest, duration, amount, details of how the loan is to be expended, and the cash flow plan for the council requesting the loan.
The document must also include an assessment of the loan issuer’s financial capability, the reason for requesting a loan from a specific bank or financial institution, the agreement, and all other documents relevant to the agreement.
The ministry must judge the project’s feasibility, benefits to the country and council administration, the council’s ability to repay the loan, and the state’s total debt.
During the parliament debate, Dhonbiley acknowledged that it is important to allow councils to obtain loans. However, the widespread financing of terrorism must be considered, as there are extremists within the councils.
The Bilehdhoo MP further stated he believes that only registered banks and institutions should be authorized to issue the loans. Loans provided to councils by wealthy people may be attempts to finance terrorism or launder money, said Dhonbiley.