… as 2nd municipal action roundtable opens

EVEN as government takes critical steps to strengthen the revenue base of Local Government Organs to address the vexing issue of inadequate finance, it is expected that Town Councils display prudent financial management, and according to the Minister of Communities Ronald Bulkan his ministry will provide no shelter for municipalities that act outside of the law.

Minister Bulkan issued the warning during the opening ceremony of the 2nd Annual Action Roundtable for Municipal Financial Management at Tower Suites on Thursday, in the presence of Chairman of the Local Government Commission, Mortimer Mingo; Accountant General of the Finance Ministry, Jennifer Chapman; and President of the Guyana Association of Municipalities (GAM), Carwyn Holland, town clerks, and other municipal officers from across the country.

From the outset, Minister Bulkan noted that the government is fully aware of the financial standing of councils and the difficulties they face in fulfilling their responsibilities, such as the provision of important services and even the payment of salaries.

To remedy the situation, the government is moving to strengthen the revenue base of the nine town councils. Cabinet, the minister of communities reported, has approved engagement with the Municipal Property Assessment Corporation (MPAC)/Axilogic of Canada for the modernisation of Guyana’s property assessment system.

“This initiative is designed to ensure that Guyana achieves a complete national property inventory and effects a national mass appraisal within 18 months, thus making good on the promise to assist in the strengthening of LDOs revenue base and financial sustainability. MPAC/Axilogic will provide technical support to the Valuation Division in this regard,” Minister Bulkan explained.

For decades, municipalities across the country have been advocating for the outdated land values to be addressed, pointing out that some home-owners are paying as little as $1,000 on their properties.

Now that the issue is being addressed, it is expected that municipalities display greater financial management.

As he turned his attention to the statutory office-holders – the town clerks as the chief administrative officers and the treasurers as the chief financial officers, Minister Bulkan underscored the importance of transparency and accountability.

GOOD GOVERNANCE
“With this (financial) autonomy comes greater responsibility not only on the council as a unit but on the incumbent office-holders. It is your duty to ensure that the principles of good governance – accountability and transparency – prevail which is crucial to the realisation of the capital town vision.”

While there is a misconception that financial management refers only to expenditure and procurement of goods and services, Minister Bulkan explained that it includes elements of planning and budgeting, assets management, reporting – preparation and submission of annual financial statements as mandated by Section 177 of the Municipal and District Councils Act, and oversight.

He emphasised that the council’s accounts with all other records ought to be in good order in keeping with Section 178 of the Municipal and District Councils Act.
“The ministry will provide no shelter nor will we condone this or any act that is contrary to the law. We must get it right,” Minister Bulkan clearly stated.

The Finance Ministry’s general accountant said long-term, financial and asset management planning is paramount, but she, like Minister Bulkan, took note of the challenges plaguing municipalities. Chapman said despite the challenges, good financial management remains important.

“Notwithstanding that, without good financial management practices there is an increased risk of fiscal imbalances, weak accountability and deterioration in the quality of public services,” she pointed out, noting too that financial accountability in local government administration is not just about providing financial information statements.

IMPERATIVE
Chapman told the municipal officers present that knowledge of financial responsibility is very important; noting that lack thereof can act as a barrier in the quest for transparency and accountability in Local Government Financial Administration.

“Not until local government authorities, especially the elected representatives of the local residents show interest in knowing who is doing what in the financial chain, the fight for transparency and accountability in Local Government Administration would be a lost battle,” the accountant general said.

The Local Government Commission Chairman echoed similar sentiments. Mingo said the two-day Action Roundtable forum, which is being held under the theme: “Improving Municipal Financial Management System for Sustainable Development of Capital Towns,” will steer municipal officers in a direction that will allow them to be more accountable in the execution of their functions.

Mingo noted that while the Municipal and District Councils Act speaks “broadly” about the functions of municipal officers such as the town clerk and treasurer, the time has come now for uniformity across the municipalities with relation to the conduct of their financial affairs. He said it is important for regulations to be put in place to ensure there is uniformity.

Meanwhile, the GAM president in delivering brief remarks, noted the roundtable forum is a timely one and will aid in addressing some of the challenges affecting municipalities.
“There have been too much cries from municipal organs of financial shortcomings and if one is to closely examine the reasons, you may find that prioritising personal interests over community needs often takes precedence. Or in some cases, defaulting vendors, staff or contractors are given a pass or the blind eye even when their shortcomings or in some cases malpractices are as clear as day,” Holland posited.

While government is mending the broken local government system, Holland believes that some “municipal administrative actors” remain bent in old custom and practice, thereby hindering positive changes. All must get in line, he said.

The roundtable discussion continues today. Public Procurement Commission Chairman Carol Corbin is among presenters in the lineup.