Association wants full financial assessment of all municipalities

Apr 30, 2018 News

The President of the Guyana Association of Municipalities (GAM), Carwyn Holland has issued a call for a full assessment of all financial operations of municipalities across Guyana as part of efforts to ensure full accountability and transparency.
Holland has noted the efforts of the Ministry of Communities to build capacity and strengthen financial administration within the municipalities.
“I believe that a full assessment of the financial operations of all municipal administration should be undertaken immediately. The good practices found in this assessment should be exported across municipalities and the bad practices should be red flagged,” Holland stated.
He said this will also aid in a single blueprint for the financial administrators and the sustainable development of local organs.

Carwyn Holland, President of GAM

Holland, a former Mayor of Linden, said there have been too many cries from municipal organs of financial shortcomings and if one is to closely examine the reasons, they may find that prioritizing personal interests over community needs often takes precedence.
“In some cases, defaulting vendors, staff or contractors are given a pass or the blind eye even when their shortcomings, or in some cases malpractices, are clear as day, but they have political connections and are allies of some administrators,” Holland stated.
He attributed this behaviour to the years of neglect of the local government system with disinterest for its sustainable development.
He explained that some municipal administrative actors remain bent in old custom and practice and this hinders positive changes to the way business is done.
According to Holland, calls for administrators to get in line with prudent financial accountability have often been rejected by the actions of some in charge, who are bent in the customs of yesteryear.
“It is time this stops. I recall refusing what I call municipal perks that derived from loopholes in the system which allows for profiteering in an almost legal way. This would have led to my rejection in some quarters, but at the end of the day, one’s conscience must be his guide,” Holland noted.
He also pointed out that signatories to accounts holding local government funds must have the approval of a higher authority outside of the organization.
According to Holland, this is the case in some municipalities, but not so in all.
Last week, the Ministry of Communities held a two-day action roundtable at Tower Hotel last Thursday on municipal financial management that targeted municipal treasurers, town clerks and finance committee.
Accountant General Jennifer Chapman addressed the event and identified the continued absence of financial regulations to govern municipalities and district councils.
According to Chapman, authorities are legally guided by the Municipal and District Council Act (Ch. 28:01) to perform in a fiscal responsible manner.
She stated that Part 4, Section 148 of the Act states that the Minister may make financial regulations for controlling and managing financial business of councils.
“To date, financial regulations for the Municipal and District Council Act 28:01 have not been enacted. It should be noted that financial regulations will outline the system of financial control to ensure the proper administration of the councils’ financial affairs aimed at ensuring the effective and efficient use in compliance with the law and regulation as the basis of improved service delivery,” Chapman stated.