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President authorises:
$40M bail out for City Council
By Mark Ramotar
PRESIDENT Bharrat Jagdeo yesterday directed the Ministry of Finance to immediately transfer $40M to the crisis-plagued and cash-strapped City Council to help bail it out of its current financial woes.

Mayor Hamilton Green - 'another assassin'

He indicated that shortly after his arrival home yesterday morning from a highly successful working visit to Japan, and the Conference on the Caribbean in Washington, DC, he told Finance Minister Dr. Ashni Singh to transfer $40M to the Georgetown Mayor and City Council (M&CC).

Town Clerk Beulah Williams told reporters Thursday that, because workers and contractors have not been paid, garbage collection in Georgetown will cease from tomorrow.

It is a reflection of the municipality’s serious financial crisis which the council is working to curb, she told a press conference.

Ms. Williams also appealed to defaulters to pay up their rates and taxes “as we try to steer our way out of this problem.”

She could not say when City Hall would be able to pay its employees but, once there are funds, garbage collection will resume.

President Jagdeo, at a news conference yesterday at the Presidential Secretariat, declared that “it’s the same old story with the City Council” and suggested that “only a major overhaul of the City Council” might help the situation.

This is a recurring issue, it is a big problem (and) rather than the Mayor and the others politicking, they should focus on the better management of the resources (at City Hall),” the Guyanese Head of State lashed out.

Nevertheless, since I got back, I have asked the Minister of Finance to transfer $40M to the City Council,” he told reporters.

I don't know how we are going to resolve this (issue) unless we have a major overhaul at the City Council. We are sometime away from local government elections because we have just agreed now to do the house to house registration and to complete that before local government elections (but) I wish we could have gotten it over early so that we could have had a replenishment there at the City Council.”

According to the President, it is “quite unfortunate” that local government elections are a year away, since it would be much better to get rid of those incompetent officials at the M&CC who are finding it extremely difficult to manage their budget, as early as possible.

He recalled mooting the idea of having an Interim Management Committee installed in the city and replace the council but the “idea generated a lot of controversy”.

Some people said they did not want it. Now maybe some of them will have to bear the consequences of that too,” the President asserted.

Stressing the importance attached to the city, Mr. Jagdeo said it is for this reason that the government has been spending billions of dollars in the city itself on fixing things that the City Council should be fixing.

I always note this talk about how much money they (M&CC) will collect from parking meters or some container tax on the private sector – a few million dollars (but) last year alone we (Government) spent over $800M on roads alone in the city and they keep complaining that if we give them permission they will collect a few million dollars.”

Noting that roads and drainage in the city fall under the jurisdiction of the City Council, the President told reporters the government has been doing both, in addition to assisting in garbage collection.

So when we add all of this up, it goes way beyond the subvention that we (give the M&CC),” he argued.

The President was also asked to comment on statements attributed to Opposition Leader Mr. Robert Corbin during a news conference at his party’s Congress Place headquarters on Thursday, that the council’s financial crisis has been compounded as a result of the government owing the M&CC ‘ huge sum’ in taxes.

Could Mr. Corbin tell you how much money we owe the City Council and could the City Council say why they are selectively going after some people and the huge outstanding bill that Congress Place has they have never tacked that?”

I know how much money in taxes is owed to the City Council but that is taxes for the whole year (and) the year has not expired as yet.”

According to him, the Government owes the M&CC a little more than $120M in taxes.

I know how much money we owe in taxes but I also know how much money we are spending on roads, and traffic lights and drainage and irrigation and new pumps which runs into billions of dollars, so Mr. Corbin need not be so short-sighted.”