Govt. will support waivers by M&CC to households not businesses—Jagdeo says

Apr 07, 2025 News

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Kaieteur News- Vice President Bharrat Jagdeo said that government is in support of waivers of interest by the Mayor and City Council (M&CC) being given to households, but not businesses.

His comments come after the Mayor of Georgetown Alfred Mentore said that he is prepared to defend his position on waiving the interest on rates and taxes for property owners in Georgetown, should the matter be taken to the court. In an invited comment, Mentore told the Kaieteur News that, “I am talking to my lawyers on the matter and looking at options, what other methods in terms of the Act to assist tax payers but if the matter goes to court, I am prepared to defend the decision.”

At his weekly press conference at Freedom House on Robb Street, last week Jagdeo said that, “I see the mayor is saying he will go to court on the minister’s order not to pursue this scam scheme that they are hoping to implement at the City Council, where they will, you know, rip people off, take some money for themselves, and then collect money for the party.”

He said that he wants the citizens of Georgetown to know that he would be in support of the waivers if they are given to the ordinary people, across the board. Jagdeo said that he can see himself saying to the councillors of the People’s Progressive Party “let us find a transparent way to assist people, households in the city… households, but let us do it in a manner where they don’t have to come in and give bribe or something to anyone.”

He stressed that the City Council had given a huge waiver to GT&T, now One Communications and it was revealed that the said waiver was never requested, yet they have failed to pursue the People’s National Congress Reform for the $6.7B in taxes owed to the Council. The VP highlighted that looking at the budget of the council, which is about $3B, the taxes owed by the APNU could fund it for two years, and he was not aware when he was president that they were not paying their taxes.

“So let me make it clear that we will not support a scheme that APNU wants to put in City Hall to rip people off again,” he said. On April 02, this publication reported that Minister of Local Government and Regional Development Sonia Parag issued a warning to the Georgetown Mayor and City Council (M&CC) over its move to implement what she deemed an “unlawful and unauthorised” financial regulation to waive interest on outstanding rates and taxes owed by property owners in the city.

In a letter sent to the council, Minister Parag noted that it came to her attention that the Mayor along with the APNU+AFC- aligned councillors have unlawfully passed and are now seeking to implement a purported financial regulation which will allow for the waiver of interest on rates and taxes owed by property owners in the city.

The Local Government Minister who in her letter urged the council to “cease and desist” from such unlawful actions, noted that the Municipal and District Councils Act, Cap. 28:01 of the Laws of Guyana, “expressly and exclusively” vests the authority to make financial regulations in the Minister.

“Section 146(1) of the Act is unambiguous. That power lies with the Minister, not with you…” Parag said adding that “Section 146 (1) states: The Minister may make financial regulations for controlling and managing financial business of councils.”

According to the minister, the legislation goes on to outline the scope including matters related to accounting, borrowing, tendering and the receipt of revenue. Parag noted that “Subsidiary legislation by its nature must be made by the authority designated by statute. You are not the authority designated by statute. Any attempts to do otherwise are ultra vires and legally void.”

In response to the letter, Mentore, cited Section 146(1) of the Municipal and District Councils Act, Chapter 28:01. He noted while the letter grants the Minister the authority to make financial regulations for controlling and managing the financial business of councils, it must be noted that there has been a misapplication of this section in your correspondence.

Further, he said the City Council has not enacted any new financial regulations or by-laws in relation to the waiver of interest accrued on outstanding taxes. Rather, the decision was made as part of our ongoing efforts to address the financial hardship being experienced by many property-owners/rate payers in the city whom are struggling with the burden of accumulated interest on outstanding rates,” Mentore said, adding that the decision was taken after thorough deliberations, feedback and appeal by citizens and in full compliance with the established financial procedures of the City.

Additionally, he noted that the City Council’s authority to take such steps is not limited by Section 146(1) of the Municipal and District Councils Act. Mentore explained that the decision to grant relief to property-owners is a part of the Council’s broader responsibility to ensure the well-being of our constituents and to ensure that vital municipal services continue to be funded in a manner that takes into account the financial challenges faced by our residents.

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• businesses, court, Jagdeo, M&CC, waivers

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