…gets subvention from Ministry of Communities

THOUGH the Local Government Commission (LGC) is essentially supposed to be a constitutional agency, it has not yet been placed on the country’s constitutional agency register, which means that it still falls somewhat within regulations of the Ministry of Communities (MoC).

This is the issue at the heart of the current lack of payment of salaries to the commission, where the eight Commissioners and 27 administrative staff members have not yet been paid their January 2019 salaries.

Since the commission is not a registered constitutional body, its budgetary allocation is allotted as a subvention under the Ministry of Communities as opposed to be being paid directly from the treasury.
On January 21, MoC Permanent Secretary Emil McGarrel, wrote to the LGC advising it that it was not a constitutional body, and enquired what was the extent of its salary expenditure.

According to Minister of Communities, Ronald Bulkan, while the issue at reference is a matter of technicality, it leaves his ministry in a rather unfortunate position, since the MoC is responsible for ensuring that whatever money has been allocated to the agency is spent within certain financial accountability restrictions, while at the same time being unable to direct how the money is spent.

“We’re unfortunately caught in the middle, when we really have no desire to be in it,” Minister Bulkan said. Adding: “We’re a very reluctant partner in the whole equation, because, at the end of the day, the ministry is committed to the local government agenda, and to the authority and autonomy of the LGC, but there is a commensurate fiduciary obligation and responsibility that the ministry cannot knowingly contravene,” as the Ministry of Finance placed them not as a constitutional agency, but as a subvention agency under the MoC, so the accounting officer of the ministry has to satisfy himself that the expenditure that we’re signing off on is in accordance with the provisions in the financial regulations.”

The MoC is contending however, that it is unable to sign off on salaries for the commission because, from all appearances, at the current rate, after paying salaries, the LGC does not appear to have enough money remaining to cover its other operational expense, which would see the commission being overdrawn if continued.

The LGC was allocated some $124M in the 2019 budget. The MoC is contending that given that the January 2019 salary being requested is for 12 months, the LGC salary allocation would amount to 91.12 per cent of the LGC’s overall budget, thereby bringing the total to some $113M.

The MoC is therefore requesting from the LGC that they show that the remaining $11M could cover their remaining operational expenses for the 12-month period, before the January salary amount requested could be released.

“The ministry is awaiting a response from LGC essentially to demonstrate that their 2019 allocation for operating expenses including the payment of salaries is sufficient for the entire year.

Right now currently the request for January salary multiplied by 12 will take us to the sum of approximately $113 million and the entire allocation is $124 million so it means then that there is insufficient money for other operating expenses so clarification is being sought to satisfy the ministry that the remainder is sufficient to take care of the other operational expenses and in the absence of that information, the ministry cannot sign off on the request for January salaries because it would knowingly be participant in a situation that would result in the expenses not being sufficien. It would be an unauthorised commitment,” Bulkan further explained.

Nonetheless, Bulkan maintained that it is not his ministry trying to direct the LGC how to do its work or how to pay its staff.
“The accounting officer of the ministry, which is the permanent secretary, cannot knowingly commit government resources to a situation that is essentially tantamount to breaking the regulations. So it is unfortunate that the ministry is being seen as a stumbling block in this situation.

There is a given allocation and the subvention agency has to live within that allocation and the accounting officer has to be satisfied that the arrangements that are in place reach this end. That can only be changed if the Ministry of Finance gives instruction to the contrary,” Bulkan further explained.

Bulkan maintained that the LGC is still an autonomous agency and the MoC cannot direct them on how the money can be spent.
“That is for them to decide we can’t dictate for them what they can do, they have internal autonomy. All they have to do is live within the allocation that was made by Parliament. We don’t have any scope or leeway to either adjust or direct them on what they can do,” Bulkan affirmed.

Speaking at a press briefing on Wednesday, LGC Commissioner Marlon Williams put out a plea for the “necessary authority” responsible for having the LGC registered at a constitutional body do so.

“The commission has had some issues because it is not on the register. Though it is expected to be on that register, it is not on that register and it has been the subject of actions of the permanent secretary of the MoC and we would like to see those issues resolved. All of this stems from the LGC not being registered as a constitutional agency as yet, so it is absolutely imperative that this is done immediately,” Williams said.

Williams noted that he would not name the agencies responsible for putting the LGC on the constitutional agency register, nor could he confirm the scale of salaries being paid at the LGC.