No financial statements from City Hall for 9 years

Feb 10, 2017 News

-parliamentary committee told

The Ministry of Communities is to get support from the Office of the Auditor General (AG) to help make the financial management procedures of local government councils more effective.

Permanent Secretary (PS) Emil McGarrell appearing before the Public Accounts Committee (PAC) this morning.

This was disclosed by Permanent Secretary (PS) in the Ministry of Communities, Emil McGarrell to the Public Accounts Committee (PAC), Monday morning.
McGarrell, supported by staff of the ministry and of the Georgetown Mayor and City Council, appeared before the watchdog, PAC, based on information revealed in the Auditor General’s 2015 report, relating to the Ministry of Communities. Among issues addressed was the outstanding Financial Statements of the municipalities.
According to the government report on the Parliamentary meeting, the Municipal and District Councils Act, Chapter 28:01 of the laws of Guyana, requires all accounts of the Municipal and District Councils to be made up yearly to the end of the financial year by the Treasurer of the council.
These accounts are to be made up no later than four months after the end of the financial year to which they are related, for auditing by the Auditor General soon after.
According to the Municipal and District Councils Act, Chapter 28:01 of the laws of Guyana, Section 176, the responsibility of submitting Financial Statements for the councils lies solely with the Treasurer of the councils.
Despite this legal requirement, a number of councils are in violation, it was disclosed. The Georgetown Mayor and City Council for instance, has not submitted Financial Statement for 2006-2013 and 2015.
The city was during the period under Mayor Hamilton Green. During this period also, Central Government under the previous Government, has been releasing monies to City Council.
McGarrell explained that the failure of the council to submit these statements is a problem of poor financial management. He explained that this is a challenge that has several root causes including the financial standing of the councils to employ the necessary skills, needed for effective management.
“If you do an analysis of the officers holding position (of) Treasurer in most of the councils, it will let you know that you need to do more work to attract greater skills,” McGarrell said. He noted that the issue is further exacerbated by the fact that the councils, not the ministry, have the responsibility for appointing these officers.
The ministry has started discussions with the Auditor General’s Office on the development of a strategy to empower the councils to improve their financial management capabilities, McGarrell said.
Resolving the financial management challenges of the council is also a core component of the ministry’s plan for 2017 and will also be address through several workshops and seminars, McGarrell said.

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