Local Government and Regional Development Minister, Sonia Parag has issued a blistering rebuke of the Georgetown Mayor and City Council (M&CC)’s apparent move to waive interest on taxes for select businesses in the capital.
Minister Parag in a missive citing the Municipal and District Councils Act, was unwavering in her position that she – not the Mayor, Alfred Mentore – has the exclusive right to make such decisions.
Parag said that she was prompted to issue the statement after it came to her attention that the Mayor and opposition-aligned Councillors “unlawfully passed” and are now seeking to implement a purported ‘financial regulation’ aimed at waiving interest on outstanding rates and taxes owed by property owners within the municipality.
“You claim that the legal authority for such a financial regulation is grounded in the Municipal and District Councils Act, Cap. 28:01 of the Laws of Guyana, along with ‘any other relevant provision’. That assertion is without legal merit. It is in fact that very law which expressly and exclusively vests the authority to make financial regulations in the Minister of Local Government and Regional Development,” the Minister noted.
She added that Section 146(1) of the Act is unambiguous; that the power lies with the Minister, not with the Mayor.
Parag said that Section 146 (1) goes on say that “the Minister may make financial regulations for controlling and managing financial business of councils.”
Additionally, Section 146(2) goes on to outline the scope of such regulations, including matters related to accounting, borrowing, tendering and the receipt of revenue.
“Nowhere does it authorise the Mayor or City Council to draft, enact or implement financial regulations,” the Minister penned.
She added that subsidiary legislation, by its nature, must be made by the authority designated by statute.
“You are not that authority. Any attempt to do otherwise is ultra vires and legally void. Furthermore, before any such subsidiary legislation can take effect, it must be published in the Official Gazette in accordance with established legal procedure. This is not a function you are authorised to perform or to cause to be done,” Parag said.
She went on to noted her deep concern about the Mayor seeking to “manipulate the language of the law while ignoring its meaning”.
“You did not consult me as the Minister, demonstrating complete disregard for the relevant authority. Instead, you acted unilaterally under a false claim of legal entitlement and have attempted to frame this act as one rooted in public interest. The law does not empower you to waive interest, nor does it empower you to pass financial regulations,” Parag stressed.
She also pointed the Mayor to ruling of the High Court in The Mayor and Councillors of the City of Georgetown v The Attorney General and the Local Government Commission (2022-HC-DEM-CIV-FDA-294), where it was held that local democratic organs do not enjoy unfettered autonomy under Article 75 of the Constitution and remain bound by the statutory limits set out in the Municipal and District Councils Act and Local Government Commission Act.
Minister Parag also stated that she has sought the advice of the Attorney General and is “prepared to take this matter as far as is necessary”.
She added that any attempt to apply or enforce this “so-called” financial regulation will result in immediate legal action.
Furthermore, she said that any sums due and owing to the treasury that are unlawfully waived under this measure will be recovered through civil proceedings against the mayor and the responsible parties personally, and the matter will be reported to the police for appropriate action.
“You are hereby requested to cease and desist this course of action with immediate effect,” the Minister warned.
