Govt, Mayor Green at odds over Congress Place debt – Green

Nov 17, 2009 News

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Mayor of Georgetown, Hamilton Green, believes that there is a sustained campaign by the present administration to destabilise the management of the city.

The statement comes as Government over the weekend announced intentions not lend any more financial assistance to the cash-strapped Mayor and City Councillors of Georgetown (M&CC) until a massive $100M in back taxes is collected from the People’s National Congress Reform (PNCR).

In a strongly worded statement Saturday, the Ministry of Local Government pointed out that the fact that Mayor Hamilton Green is sitting on the PNCR Executive Committee and not collecting the rates and taxes is a glaring case of conflict of interest.

According to the Mayor, the assessment of PNCR’s properties, like any other, cannot just happen like that— it has to be processed.

Yesterday also, the Guyana Power and Light Inc. (GPL), a state-owned entity, cut power to several of M&CC facilities across the city after the council failed to make payment arrangements for more than $600M said to be owing for electricity supplied. Green said, yesterday, that it was puzzling that a statement by the Ministry was first issued and hours later, GPL acted and disconnected power.

He claimed that over time, government has stymied the growth of M&CC with the resistance of rates increases which would have broadened the revenue base of the council.

“It is clear that there is an organised attempt to destabilise the Mayor, who speaks out forcefully on issues, and the Councillors.”

On Saturday, the Ministry of Local Government in a statement said that “it has become a matter of great concern to the Ministry of Local Government that the Georgetown City Council has shown no inclination to collect the rates and taxes owed to the city by the People’s National Congress Reform, PNCR.”

In response yesterday, the Mayor noted that the city’s management was seeking advice on the PNCR Sophia headquarters, specifically on the classification of property. This classification would depend on whether the property is for the purposes of business, institutional or business.

“Classes are being held there, so obviously it is not a business property. The valuation officer has already offered his advice. So we are processing the information.”

The classification would be key to determining how much the PNCR headquarters will be assessed for.

At the same time, Sophia is still to fall under the tax net. All of Sophia is still to be assessed, the City Council said. However, the rates and taxes are said to be owed by properties owned by the PNCR in various parts of the city.

“This injection of political consideration in the administration of the City Council, especially in the collection of rates and taxes is a significant contributory factor to the decline and decay of the City.”

According to the release, the records show that the city has not collected rates and taxes for the Sophia property, where the PNCR’s headquarters is located, for over a decade.

“The PNCR has several other properties in the City for which no rates and taxes have been collected for more than 15 years. The partial records available to the Ministry show outstanding amounts totaling some $100 million.”

According to the Ministry, the main opposition party has so far shown an unwillingness to meet its obligation in spite of the amnesty being granted on interest on debts owed to the Council. “Now that Mayor Green has been embraced once again by the PNCR and now sits on the Executive Committee of that party, the non-collection of rates and taxes must be seen as a conflict of interest on his part.”

Responding specifically on the conflict of interest accusation yesterday, the Mayor said that the PNCR is preparing a statement.

He claimed that there are a number of cases where the Ministry has intervened to exempt a few organisations from rates and taxes.

The Ministry pointed out that situation remains the case even though the M&CC is aware of the precarious situation with the finances of the City. “City treasury often without money to pay employees wages and salaries, contractors are owed huge sums and now the GPL is making demands for payments of hundreds of millions owed to it by City Hall.”

It is becoming quite clear that the Mayor’s strategy is to allow the situation to deteriorate in order to embarrass the government and hope that the government will bail it out as it has done so often, the statement argued.

“The Ministry of Local Government has repeatedly made representation to the Central Government for assistance to the City. Recently, the Ministry has had to lobby for the Ministry of Finance to pay rates and taxes in advance of the time they are due. The Ministry has been successful in getting the Ministry of Finance to co-operate.”

However, the Ministry said that it is unwilling now to assist the council and “wishes to let the public, especially the citizens of Georgetown, know that it is finding it more and more difficult to assist the City, given the glaring exhibition of political bias in the collection of rates and taxes.”

The Ministry said that it will not be involved in making any representation for assistance until the City collects rates and taxes owed by the PNCR.

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