LGA Probes Councils for Hiring Redundant State Employees Without Public Advertisements

The Local Government Authority (LGA) is investigating reports that several local councils are hiring employees dismissed from state-owned companies without publicly announcing vacancies. This practice has raised concerns that it undermines the government's broader strategy to reduce public expenditure. LGA Chief Executive Officer Mohamed Nimal revealed the issues during the PSM programme "Ahaashey Bunaanan," while addressing public queries regarding a recent directive. The directive requires councils to seek LGA approval before recruiting new staff, a move Nimal clarified is intended to ensure procedural transparency rather than diminish the autonomy of local councils. According to CEO Nimal, the LGA received multiple complaints alleging that individuals dismissed under the government's redundancy policy—which aims to right-size state-owned enterprises—were immediately absorbed into council payrolls. In one instance, a former Fenaka employee allegedly began working at a council office the day after their dismissal, having already received a three-month salary severance package. Another case involved a former RDC employee who secured a council position shortly after leaving their state job. These appointments are particularly contentious because they were reportedly made without public job announcements, bypassing fair recruitment processes. Island residents have voiced concerns that the government's goal of lowering state spending is being neutralized if employees are simply shifted from one state-funded entity to another. Under the current redundancy policy, employees losing their jobs receive three months' salary and are offered easier access to loans to encourage entrepreneurship. The LGA maintains that councils remain free to recruit the personnel they need, provided they adhere to established rules and transparency requirements. CEO Nimal emphasized that it is his responsibility to ensure all councils follow proper administrative procedures to maintain public trust and fiscal discipline across the atolls.