Noonu Naturally > Roadmaps > plans > Enhancing Local Governance (LDP-1)

Establish and strengthen Noonu Atoll Local Authority Company

Recognizing the potential of a strong Noonu Atoll Company to drive economic development and improve service delivery in atoll is crucial. This initiative will involve ensuring proper registration and a solid legal framework. It will also define the company's share capital structure and establish sound financial management practices. The council will play a guiding role by directing the company's corporate governance policies. To foster collaboration, council will sign Memorandums of Understanding (MOUs) with key stakeholders. Additionally, council will provide the company with necessary office space and infrastructure. To ensure efficient operations, it will introduce a direct procurement policy and strong corporate governance practices. Finally, close collaboration between council staff and the LAC will be crucial for its success.

From:: May 2022
To:: October 2024

100%

Completed

Chronology

Leading Team

Corporate Affairs Team

8. Decent Work and Economic Growth

1.6 Atoll Economic Development

#localgovernance

Registration and Legal Framework

To establish a Local Authority Company under the Decentralization Act, it is essential to consult with legal counsel to ensure compliance with all relevant regulations and procedures. The necessary documents, including the Memorandum of Association and Articles of Association, should be prepared to outline the company's objectives, share structure, governance, and operations. Qualified individuals with relevant expertise and business acumen should be appointed as directors and shareholders. Finally, the completed registration application, along with the required fees, must be submitted to the Ministry of Economic Development & Trade.

Share Capital and Financial Management

To establish the Local Authority Company (LAC), it is essential to determine the initial share capital by analyzing potential business ventures and financial needs. The council, as the sole shareholder, should issue shares with transparent record-keeping. Clear financial management policies, including budgeting, accounting, reporting, and internal controls, must be established. Additionally, exploring funding options through grants, loans, or partnerships can support the LAC's operations and expansion.

Setting Up the Local Authority Company Office

To establish a functional office for the Local Authority Company (LAC), a suitable location with reliable internet access and adequate space must be secured. The office should be equipped with necessary furniture, technology, and equipment to facilitate efficient operations and service delivery. A secure IT infrastructure, including financial management systems, project management tools, and communication platforms, should be implemented. Establishing clear communication channels, such as phone lines, email addresses, and online platforms, will ensure effective interaction with stakeholders and residents.

Establishing a Direct Procurement Policy

To streamline procurement processes, Atoll Council should draft a clear direct procurement policy outlining criteria and procedures for acquiring goods and services. This policy must be approved by the council. Staff should be trained on the policy to ensure its effective implementation. Additionally, monitoring and evaluation mechanisms should be established to track compliance and assess the policy's effectiveness in achieving desired outcomes.

Enforcing Corporate Governance

To ensure the effectiveness and accountability of Local Authority Company, it is crucial to enforce strict adherence to corporate governance policies. This involves establishing clear guidelines for board and management responsibilities, financial reporting, conflict of interest management, and ethical conduct. Regular monitoring and evaluation of compliance with these policies are essential to identify and address any deviations. Implementing a robust internal audit function can also contribute to maintaining high standards of corporate governance. By prioritizing corporate governance, LAC can enhance their credibility, attract investment, and ultimately better serve the communities.

Collaborative Resource Sharing MOU

To foster collaboration and optimize resource utilization, a Memorandum of Understanding (MOU) will be signed between the Local Authority Company (LAC) and the Atoll Council. This MOU will outline the terms and conditions for sharing resources, such as equipment, facilities, expertise, and financial support. By formalizing this collaborative arrangement, both parties will leverage each other's strengths, reduce costs, and enhance the overall effectiveness of their operations in serving the atoll community.

Establish and strengthen Noonu Atoll Local Authority Company

Chronology

Registration and Legal Framework

Share Capital and Financial Management

Setting Up the Local Authority Company Office

Establishing a Direct Procurement Policy

Enforcing Corporate Governance

Collaborative Resource Sharing MOU

Points of Discussion

Polls & Discussions

Efforts

2025

Invitation for Bids - Re-Tender: Provision of External Audit Services

Invitation for Bids - Re-Tender: Provision of External Audit Services

Seeking a Environmental Specialist

Service Contract Opportunity – Legal Consultant (Retainer)

39th Noonu Atoll Council Sitting

2024

Seeking Administrative Public Relations Officer

Noonu Atoll Development Mid-term Review and Business Planning Workshop for 2025-2027

Collective Administration Through a Collaborative and Resources Sharing Structure with Atoll Council and Company

Seeking a Chief Sustainability Officer (CSO)

Seeking a Visionary Chief Operations Officer (COO)

35th Noonu Atoll Council Sitting

Seeking Multi-Talented Admin Officers

Seeking a Chief Financial Officer (CFO)

2023

32nd Noonu Atoll Council Sitting

31st Noonu Atoll Council Sitting