Local Govt. organs flouting laws

Dec 22, 2023 News

…several failed to submit financial statements

Kaieteur News – Municipalities continue to breach the Municipal and District Councils Act, Chapter 28:01 of the Laws of Guyana.

The law stipulates that all accounts of Municipal and District Councils be made up yearly to the end of the financial year by the treasurer of the Council and shall be so made up not later than four months after the end of such year to which they relate and for those accounts to be audited by the Auditor as soon as practicable.

According to the Auditor General’s report for 2022, several of the municipalities are in violation of Section 177 of the Municipal and District Councils Act Chapter 28:01. In accordance with the Act, it is the responsibility of the Treasurer to submit all Financial Statements to the Audit Office but the councils continue to flout the law. As a result, it was noted that the Ministry of Local Government and Regional Development continues to advise the Local organs to submit their Financial Statements and that they must do so in the required period.

“All municipalities were written to as a reminder to submit all Financial Statements to Audit Office.” As a recommendation, the Audit Office urged the Head of the Budget at the Ministry follow-up with the municipalities to have the proper and complete financial statements submitted for audit. Section 134 (1) of the Act, stipulates that the Auditor General may at any time audit the accounts of the Councils.

It should be noted that while the Ministry transferred sums totalling $338.120M to the Councils in 2022, the Georgetown Mayor and City Council (M&CC) was one of the primary offenders. Despite receiving $30 million last year, the M&CC still had outstanding financial statements for 2006, 2008 to 2011, 2017 and 2020 to 2022. The last time Georgetown was audited was in 2004. The Linden Town Council has not submitted financial statements for 1985 to 2007, 2011 and 2013. However, it has been compliant with the law since and received $15.7 million last year.

Mabaruma and Bartica meanwhile did not submit statements from 2015 to 2022, receiving $17.4 million and $13.8 million respectively. Mahdia and Lethem did not submit statements for 2019-2022 and 2021 to 2022, respectively. Only the New Amsterdam Town Council and Rose Hall Town Council have generally complied with the law. The Anna Regina Town Council was meanwhile last audited in 2017, submitting statements from 2018 to 2020. Corriverton was last audited in 2018 and received $15.6 million.

Meanwhile, the AG report said the Neighbourhood Democratic Councils (NDCs) also continue to be in breach of the Local Government Act, Chapter 28:02 of the Laws of Guyana, which stipulates that “…the accounts of Neighbourhood Democratic Councils (NDC’s) to be made up annually”. In Region One, there was a 27-year gap where no financial statements were received. There were also gaps in Regions Two, Three, Four, Five, Six, Nine and 10. According to the Ministry, all NDCs were written to reminding them to submit their financial statements.

“The Head of Budget Agency indicated that in accordance with the Act, it is the responsibility of the Overseer to submit all Financial Statements to the Audit Office. The Ministry continues to advise the Local Organs to submit their Financial Statements and that they must do so in the required period. The Audit Office recommends that the Head of Budget Agency follow-up with the agencies to have the outstanding Financial Statements submitted for audit,” the report states.

Chapter 28:01, District Councils Act, Guyana, Laws, Municipalities

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…several failed to submit financial statements

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