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City Hall owes over $1B to GRA, NIS and GWI
Kaieteur News – City Hall currently owes over $1B debt to the National Insurance Scheme (NIS); Guyana Revenue Authority (GRA) and the Guyana Water Inc. (GWI). This was revealed by Town Clerk (ag) Candace Nelson last week during an engagement with the press. Nelson was at the time addressing concerns over what she called irresponsible spending.
City Hall, Avenue of the Republic and Regent Street, Georgetown.
In this regard, Nelson pointed to a bill of $600,000 which was requested by a lawyer after he drafted a letter on behalf of the former Town Clerk.
Nelson noted, “The core of an ongoing contention is a payment of $600,000 to an Attorney-at-Law for one letter written on behalf of former Town Clerk Sherry Jerrick to the Local Government Commission. When the matter was brought to my attention, I expressed profound concern at what appears to be imprudent spending. Further, I wrote the Mayor and explained that while I have no difficulty with lawyers charging their fees for their work, the sum in question does appear to be exorbitant.”
She also pointed out that while the municipality is at its wit’s end trying to sustain basic services, such as garbage collection, maternal and child welfare, public health, environmental and other services, “We have all of this but the Mayor is insisting with great urgency that I pay this money – $600,000 for a single letter.
I sought and obtained legal advice on this matter and I have since written the Auditor General asking for pre-emptory advice on it,” the Town Clerk said noting that, in addition, to the maintenance services, the council has a massive debt, which includes the monies owed to GRA, NIS and GWI.
Nelson has also denied allegations made by City Mayor, Ubraj Narine that she has been signing cheques without appropriate approval.
“Truth is that that allegation is simply not true. I have been following the systems and procedures that deal with such matters. However, the nature of the allegation and the potential implications it could have on my personal and professional life have influenced my decision to consult with my lawyer. I am taking the utterances of His Worship very seriously,” she added.
In a previous comment on the issue of City Hall’s massive debt, Mayor Narine had revealed the outstanding amounts owed date as far back to 1994.
“We owe like $100M to garbage collection contractors; $400M to the National Insurance Scheme (NIS) and over $20M in retroactive salaries among the liabilities,” the Mayor said.
He also said the reports about City Hall asking Government for a bailout of $500M in debts is inaccurate.
“That report is not accurate because I never asked Government for a bailout on $500M debt when we have such a huge debt of $5B. I asked government to let us go through the liabilities together, so that they can have their input in the situation to help better manage the liabilities of the municipality,” Narine added.
According to the Mayor, the Mayor and City Council (M&CC) is struggling to pay staffers because of the COVID-19 pandemic. The City has recorded a 78 percent decrease in revenue earnings.
Speaking on the issue, Mayor Narine said, “Our revenue drop here is about 78 percent. We are actually struggling to pay staffers. Our salary and wages scale is $120M per month. We owe NIS over $400M since 1993. I am dealing with that issue now.”
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