News In Brief
12
WedAug 2026

NGOs object, dollar forum and fuel loan

News in brief from Wednesday, August 12.

NGOs object, dollar forum and fuel loan

The Maldives Local Councils Association and seven civil society organisations called for the withdrawal of the bill giving the president and cabinet power to take land from council jurisdiction. They said islands' land, lagoons and sea areas are their economic and social lifeblood, that taking them by discretionary decision removes the constitutional right of people to decide their own island's affairs, and that losing the income leaves communities more dependent on central government. They cited the removal of Savaaheli and Hankede from Addu City's jurisdiction as the most recent example.

Galolhu North MP Mohamed Ibrahim 'Kudu' submitted an alternative amendment, drafted with the Local Councils Association, requiring formal consultation with councils, published LGA procedures, a public meeting to gather residents' views, and a published statement of the public interest served, before any land or sea area is taken.

Parliament extended its second session to 20 August. Speaker Abdul Raheem Abdulla said it was for important work; the session was due to end on 15 August.

Malé City Council voted to lead a joint protest with other councils against the bill.

Economists appearing on a joint Sangu TV-Adhadhu forum said the rising black market dollar rate reflects the government's failure to secure foreign financing through any of the three available channels: capital markets (where the Maldives lost access after two credit rating downgrades), bilateral partners (where foreign policy failures left the government unable to secure budget support or project funding) and multilateral institutions (where no reform programme was agreed). Former chief budget executive Ahmed Saruvash said the government was left drawing down reserves and the Sovereign Development Fund to service debts, including the US$524.68 million sukuk repayment made in April, leaving insufficient dollars for domestic needs.

ADB approved a US$50 million emergency loan for the Maldives to finance critical diesel imports for electricity generation, drinking water desalination, transport and other essential services, as Middle East conflict-related fuel price rises and declining tourist arrivals strain the government's ability to fund fuel imports. The loan complements a separate US$40 million World Bank package for the same purpose.

Fisheries Minister Ahmed Shiyam told parliament that MVR250 million (US$16.2 million) owed to fishermen by the previous government has been paid in full, and that fishermen are now paid within 48 hours of landing their catch as promised, adding that he no longer hears of outstanding payments from either MIFCO or private companies buying tuna. He also said the government will increase subsidised fuel limits for fishermen if current restrictions prevent them from going to sea, acknowledging ongoing complaints about rationing while maintaining that affordable fuel remains available nationwide despite Middle East conflict-related pressures that had pushed fishing trip costs above viable levels. Shiyam also said Noonu Lhohi's ice plant is still not producing at full capacity despite equipment upgrades, and that a new ice plant will now be built there, blaming years of neglect and the transfer of ice plants from MIFCO to Fenaka without staff who knew how to operate them.

The government is working to open Maanagalaa in Gaafu Alif as a bait breeding and distribution centre in December, Shiyam told parliament, after missing two earlier dates. He said trials off Maniyafushi in Kaafu have been running eight months and appear successful, and a second centre is planned for the north.

The Funaddu fish factory in Thaa, which the state bought after BML advertised it for sale over an unpaid loan, has been handed to a private company and is due to open in December after repairs, Shiyam said. He said the company has given an assurance it will start buying fish on Fishermen's Day this year, but did not name it.

The Food and Drug Authority warned that a falsified batch of Opdivo (nivolumab), a cancer treatment injection, has been imported into the Maldives and ordered healthcare providers, distributors and the public not to import, sell or use batch number 8081399 of the 40mg/4ml injection, directing anyone with information to contact the authority's hotline on 7200321.

State Pharmaceuticals signed an agreement with Healthcare Pharmaceuticals Limited of Bangladesh to import medicine. The company said the agreement would strengthen its network of international suppliers and the country's pharmaceutical supply chain. HPL was founded 30 years ago, holds certification from regulators including the EU, Australia and Malaysia, and exports to more than 32 countries. State Pharmaceuticals also held talks with AstraZeneca last week.

Kulhudhuffushi City Council appealed to the High Court after the Civil Court ruled against its case seeking to compel Fenaka to sign a formal electricity service agreement. The lower court found that Fenaka operates in the city on government orders rather than by its own choice and that any legal dispute over the decentralisation law must be taken up against the state, not Fenaka, with the Attorney General's office involved.

Mahibadhoo Council introduced a paid entry system for the popular Mahibadhoo Finolhu sandbank, charging tourists MVR50–150 depending on accommodation type, residents MVR10, and non-resident Maldivians MVR25, with children under five admitted free. Saturdays are reserved for Maldivians only, and the council is also renting the three-hectare sandbank for private events at MVR8,000–15,000 for four hours.

MDP said 16 health projects it awarded in government were stopped on the health ministry's instruction, among them hospital projects at Ihavandhoo, Kelaa and Funadhoo and health centres at Kanditheemu, Inguraidhoo, Feeali, Foddhoo and Kudafari. It said the contracts were cancelled while work was at various stages and that contractors' bills for work already done went unpaid. Contracts for the Kuwait Fund hospital projects at Thulusdhoo, Velidhoo and Milandhoo were cancelled on 11 March 2025, and the Indian contractor has claimed more than MVR70 million in compensation. Work on the Laamu Gan tertiary hospital and Gaddhoo hospital, financed through Spain's Exim Bank via MTCC, was also stopped. Of three hospitals to be built with US$50 million from the Saudi Fund for Development, two locations have been changed: Nilandhoo in Faafu in place of Rasdhoo, and Fonadhoo in Laamu in place of Manadhoo. MDP said the projects have since been given to state companies and others at higher prices than it awarded them, and that its own awards went through the National Tender Board.

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