Local Government Authority (LGA) Chief Executive Officer Mohamed Nimal has said complaints have emerged that some councils are hiring employees dismissed from state-owned companies under the Government's redundancy policy without publicly announcing the vacancies.
CEO Nimal made the remarks while responding to questions submitted by members of the public on PSM's "Ahaashey Bunaanan" programme.
The issue arose in connection with a letter sent to councils instructing them to seek LGA approval when recruiting employees. Responding to a question about the letter, CEO Nimal said the instruction was not intended to reduce councils' authority to recruit staff.
He explained that the LGA had been receiving complaints that councils were hiring employees dismissed from state-owned companies at a time when the Government is implementing measures to reduce state expenditure. The authority introduced the measure to stop such practices and has now begun reviewing the cases brought to its attention.
Among the complaints, CEO Nimal cited a Fenaka employee who allegedly began working at a council office the day after being dismissed, having received three months' salary. He also referred to an RDC employee who allegedly started a new job on the 10th of the following month after being dismissed the previous month. The complaints also alleged that councils had made such appointments without publicly announcing the vacancies.
In light of these concerns, CEO Nimal said it was his responsibility as LGA CEO to issue the necessary instructions to ensure councils followed the proper procedures and rules.
Despite the new requirement, he stressed that councils would face no obstacle to recruiting the employees they need, provided they follow the rules.
The Government is dismissing employees from state-owned companies under its policy to right-size companies and reduce state expenditure. Under the policy, employees who lose their jobs receive three months' salary. The Government has also arranged easier access to loans for those who wish to start their own businesses.
However, residents of the islands have expressed concern that the objective of reducing state expenditure may not be achieved if council offices employ workers dismissed under the policy.