GTT gets 25% waiver from M&CC on outstanding rates

Nov 13, 2024 News

Mayor of Georgetown, Alfred Mentore

Kaieteur News- The Georgetown Mayor and City Council (M&CC) has granted a 25% waiver on outstanding rates owed by the former Guyana Telephone and Telegraph Company (GTT), now rebranded as ONE Communications.

In a statement on Monday evening, Minister of Local Government and Regional Development, Sonia Parag called the decision by the Mayor of Georgetown, Alfred Mentore, and the City Council “alarming and unlawful.”

Firstly, she highlighted that Section 215(3) of the Municipal and District Councils Act, Cap. 28:01 clearly stipulates that any discount on rates due must not exceed 10%. “By approving more than double this legally mandated limit, the Mayor and his council have blatantly disregarded the rule of law and their fiduciary duty to the citizens of Georgetown,” the minister said.

Minister Parag criticised the Council’s financial choices and argued that the decision comes at a time when the Council continuously laments its financial woes and requests bailouts from Central Government, claiming to be cash-strapped.

“It is baffling that while pleading poverty, the Council finds it prudent to forgo significant revenue that could have been utilised to improve vital services such as garbage collection, market management, and overall sanitation – all areas in which they have consistently, and miserably failed,” Minister Parag stated. Moreover, she underscored that this legally questionable and fiscally irresponsible decision, warrants an urgent review to ensure compliance with the law.

However, in his response to the minister’s criticism, Mentore defended the City Council’s decision to grant the 25% tax waiver on accrued interest to the GTT. He contends that the waiver was within the Council’s authority, aimed at enabling the company to settle outstanding taxes.

The mayor accused Minister Sonia Parag of overstepping boundaries and misrepresenting the situation.

Minister of Local Government and Regional Development, Sonia Parag

According to Mayor Mentore, “The waiver was aimed at allowing the company to settle its outstanding taxes, an initiative that was both pragmatic and potentially beneficial to the city’s revenue stream.” He asserted that discussions with GTT on the matter have been ongoing since 2016, spanning both the current and former administrations.

Mentore argued that Parag’s condemnation of the Council’s decision demonstrates a concerning trend in the government’s handling of local government issues. He added that her statements reflect “a direct, very crude assault on the principles of separation of powers.”

Mentore emphasized that the Council, as an elected body, has the constitutional right to make decisions about city governance without interference. Citing Section 228 of the Municipal and District Councils Act, Mayor Mentore claimed the Council has the authority to review and adjust property rating statuses within its jurisdiction. He further defended the relationship with GTT, noting the company’s longstanding role as “a good corporate citizen to the city.”

Mentore went on to criticize what he described as a pattern of interference from the central government, saying that it speaks volumes about the wider political intentions.

In his statement, Mayor Mentore also questioned the government’s approach to foreign and local businesses, arguing that the government often provides significant concessions to foreign corporations, particularly in the oil and gas sector, while local businesses are made to struggle.

Moreover, the mayor argued that true democracy requires respect for the independence of local governance, stating, “Local governments must have freedom to make decisions that best serve the interests of their constituents without fear of retribution or interference from the central government.”

He suggested that the central government’s actions threaten local bodies’ independence, raising concerns about their commitment to democratic principles.

(GTT gets 25% waiver from M&CC on outstanding rates)

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25% waiver, Georgetown Mayor and City Council, rates owed, Sonia Parag

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