Parag slams M&CC for illegal tax waiver scheme

-Demands immediate halt, warns of legal action

Minister of Local Government and Regional Development, Sonia Parag has called out Mayor Alfred Mentore and APNU+AFC-aligned councillors of the Georgetown Mayor and City Council for what she describes as the “unlawful and unauthorized implementation” of a financial regulation aimed at waiving interest on outstanding rates and taxes within the capital city.

In a letter seen by the Guyana Chronicle dated March 26, 2025, addresses what the Minister views as a clear overreach of authority by the Mayor and Council.

According to Minister Parag, the purported regulation lacks legal merit and contravenes the Municipal and District Councils Act, Cap. 28:01 of the Laws of Guyana, which vests exclusive authority to make financial regulations in the Minister of Local Government and Regional Development.

“The law is unambiguous,” the Minister wrote, quoting Section 146(1) of the Act: “The Minister may make financial regulations for controlling and managing financial business of councils.”

She explained that the Act does not empower the Mayor or City Council to draft, enact or implement any form of financial regulation, including the waiving of interest on taxes and rates.

The Minister further stated that any attempt to do so is ultra vires—beyond legal authority—and therefore void.

Minister Parag accused the Mayor of acting unilaterally and misrepresenting legal provisions while failing to consult her office.

“It is deeply concerning that you have sought 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,” the letter reads.

She also referenced a High Court ruling 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), which held that local democratic organs do not possess unfettered autonomy and remain bound by statutory limits outlined in the Constitution and relevant municipal laws.

Minister Parag warned of legal consequences should the regulation be implemented or enforced.

“Any sums due and owing to the treasury that are unlawfully waived under this measure will be recovered through civil proceedings against you and the responsible parties personally, and the matter will be reported to the Police for appropriate action,” she stated.

The mayor has been urged to “cease and desist this course of action with immediate effect.”

The letter was also copied to the Town Clerk of the Municipality of Georgetown and the Attorney General and Minister of Legal Affairs.

 

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