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Revaluation of properties

Mar 22, 2025 Letters

Dear Editor,

The recent remarks by Vice President Bharrat Jagdeo on February 27, 2025, dismissing the need for property revaluation in local government authority areas are deeply concerning. His outright refusal to support city councils, particularly Georgetown, in revaluing properties not only stifles their financial autonomy but also undermines the spirit of local democracy.

Most properties in Guyana have not been valued since 1995, when the exchange rate was approximately GYD $140 to USD $1. Since then, the cost of maintaining and managing local government areas has risen by nearly 300%. Yet, councils are expected to provide essential services on a revenue base that has barely changed. This financial constraint forces local government authorities into a state of dysfunction, leaving residents frustrated with deteriorating infrastructure and poor services.

It is essential to remind the Vice President that the Constitution of the Cooperative Republic of Guyana was amended in 2001 to ensure the autonomy of local democratic organs. Article 75 clearly mandates that decisions made by elected councils are binding within their jurisdictions. Furthermore, it explicitly prevents the President, Vice President, or any minister from overturning these decisions. Only the judiciary has the authority to review and determine the legality of a council’s actions. Therefore, any existing or proposed laws granting the Minister of Local Government the power to interfere in council decisions are unconstitutional.

With all due respect, the Vice President’s stance appears to disregard the principles of good governance. Restricting councils from generating adequate revenue through proper property valuation suggests an intent to keep local governments financially dependent on the state. This approach not only cripples their ability to serve the public effectively but also raises concerns about political control and centralization of power.

 

As a former Finance Minister, Vice President Jagdeo is well aware that current property tax revenues cover less than 30% of the actual costs required for councils to fulfill their legal mandates. While property taxes alone should not bear the entire burden of local development, a fair and reasonable valuation is essential for councils to meet their responsibilities. Any remaining financial shortfall should be addressed through equitable government support, ensuring residents receive the quality services they deserve.

Additionally, the Fiscal Transfer Act No. 16 of 2013 further erodes local government autonomy by granting the Minister of Local Government authority over grant applications from councils. Section 3(2)(a) of this Act is inconsistent with Article 75 of the Constitution. Local councils should be empowered to seek funding from local or international donors without needing ministerial approval. This barrier stifles innovation and discourages self-reliance.

On April 29, 2024, I formally brought this matter to the attention of the Clerk of the National Assembly, Mr. Sherlock E. Isaacs, urging Parliament to address the unconstitutional nature of the Fiscal Transfer Act. As the legal advisor to the Assembly, Mr. Isaacs has a duty to ensure that our laws uphold constitutional principles. I strongly recommend that Parliament urgently review this legislation to restore the financial independence of local councils.

Local government authorities are accountable to the people who elected them, not to central government. True democracy demands that councils have the freedom to make decisions in the best interest of their communities. It is time for the government to respect constitutional mandates and provide councils with the financial resources necessary for effective governance.

Sincerely,

Michael Carrington

Vice Chairman, Alliance For Change

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