TOWN Clerk Royston King had announced that the Mayor and City Council (M&CC) has accounts to settle with a number of agencies, including the GRA to which it owes over $100M.

Speaking at Monday’s statutory meeting, King said arrangements are in place for the liquidation of debt owed to the revenue authority
GRA Commissioner General Godfrey Statia has made it clear that these actions should not affect M&CC’s employees.

“I don’t know what used to happen in the past but it would be the City Hall that would be held liable. It would be unfair for the employees to be held liable. Don’t forget that if the GRA does not zealously proceed to collect its outstanding taxes, they (the employees) will also be negligent in their affairs. And the taxpayer, the ordinary taxpayer should not be the one to suffer because of the negligence either on the part of the GRA or the negligence on behalf of the employer,” he said.

Statia added that the M&CC communicated with the revenue authority on the matter but until a clear plan has been identified, the commissioner general does not find further meetings necessary
“City Hall has written us and has asked to meet but I don’t want to meet with any taxpayer unless they decide and they come with a plan as to how they will liquidate their liabilities,” he said.

Apart from these debts, the council has accounts to the tune of $1B to settle with the Guyana Power and Light (GPL) as well as statutory payments to the National Insurance Scheme (NIS) and the Credit Union.

“Because street lighting is a function of national security, perhaps I would recommend to this council that we open talks either with the Ministry of (Public) Security or the appropriate ministry so that we can share that burden, that responsibility,” he said on Monday.
However, King said progress is being made with regard to payments and account management in relation to NIS and the Credit Union.

CRISIS
Meanwhile, it was also revealed that while the council’s monthly revenue stands between $78M and $80M, its monthly wages bill stands at $112M, which means that its monthly wages bill exceeds its revenue collection.
The town clerk said that the issue ought to be looked into to determine whether there may be an issue with the number of staff employed.
“It is becoming increasingly challenging for us to sustain current staff levels and at the same time … to provide certain basic municipal services. I’m recommending that the council look at an approach that will allow us to properly and carefully rationalise current staff,” he told the council.

He recommended that the body move ahead with revenue earning projects such as the collection of container fees, littering fees and the revaluation of properties.
“We need to move ahead with this, Your Worship, because we really need added sources of revenue. We are managing this council on a ‘shoestring’ budget. I am appealing to you, Your Worship, and the council, for us to go forward with new revenue-earning projects so that we can have the kind of money we need to manage this city,” King said.
Mayor Patricia Chase-Green responded by stating that past efforts to organise discussions on the matter of container fees were unsuccessful but the council will be making further attempts to formulate meetings with the private sector and the Chamber of Commerce.
In addition, she said when looking into issues relating to staffing, the council must do so carefully as opposed to the erratic dismissal of workers.
“It has to be carefully thought out, has to have proper planning on how to move forward with that … so I know that’s going to take some time. Let us tread cautiously,” she cautioned.

She said, too, that to assist with the financial challenges, the council should increase its appeal to the business community to pay their taxes and to do so on time.