Local councils can no longer hire new staff without prior written authorization from the Local Government Authority (LGA), as part of strict new cost-cutting measures ordered by the state.
The directive, signed by LGA Chief Executive Officer Mohamed Nimal and issued directly to council presidents, took effect on September 1. Under the mandatory instructions, local authorities are explicitly blocked from recruiting employees funded by either the state budget or a council’s own generated revenue unless the LGA grants formal written permission.
The hiring freeze applies across the board to all municipal employment categories. Councils must secure LGA approval before filling newly created or vacant permanent positions, as well as hiring temporary workers under contract, wage, or consultancy agreements for specific projects or short-term tasks. Even issuing public notices to recruit wage laborers or contract staff is now strictly prohibited without the authority’s prior clearance.
“The steps are being implemented under the government’s broader policy to curb state expenditure,” Nimal stated in the letter sent to local councils.
The LGA’s mandate tightening administrative control comes directly on the heels of major legislative changes targeting local governance. Yesterday, amendments to the Decentralization Act were officially signed into law, granting the government authority to reclaim land under local council jurisdiction whenever needed for state projects. Under the new legal framework, a site automatically shifts out of council ownership once the Cabinet decides to allocate it for government development initiatives.
Further proposed revisions to the Decentralization Act include establishing a strict code of conduct for local officials, introducing provisions that legally obligate councilors to maintain full cooperation with the governmemt.