—says Minister Dharamlall; but commits to providing funds by next week
FOLLOWING complaints from Georgetown Mayor, Ubraj Narine, that the City is yet to receive its accumulated subvention of about $40 million from the government, Minister of Local Government and Regional Development, Nigel Dharamlall, has said that the municipality only submitted its request recently, but the funds will still be provided by next week.
Narine, in a statement issued on Monday, said that the municipality is yet to receive $10 million for 2020 and $30 million dollars from this year’s budget.
In light of those claims, Dharamlall, when contacted by the Guyana Chronicle on Monday, said the Mayor’s accusations are surprising, since he is aware that subventions are released based on an official request from an agency. In City Hall’s case, the request for funds was submitted only recently to the ministry.
Minister Dharamlall said he had informed the Mayor and City Council (M&CC) that they are not restricted in any way, since they could tender for works ahead of receiving the funds.
“Late last week the Mayor and I spoke on the matter. I informed the Mayor that it would take a few days to be processed. The City had to submit to us a revised work plan, with bills of quantities,” Dharamlall related.
He further explained: “The way we expend government resources must be prudent and it follows a process. That process requires the submission of a request, which is finalised by the ministry and the Council then the subvention is put through. By next week they will get their money; in the meantime, they could’ve gone ahead with public procurement.”
Dharamlall said this situation is ‘souring’ the relationship between central government and the M&CC.
“I find the mayor’s comments very untimely and they are counterproductive to the relationship we are seeking to establish with City Hall,” the minister lamented.
According to Dharamlall, it was agreed between the municipality and central government that the subvention would be used for further construction on City Hall’s new administrative building, which is being built to remove employees from the dilapidated, historical structure that is being utilised.
The minister said City Hall has agreed to putting $50 million towards the construction, so he is unaware why the MCC has not started tendering for the works.
“I told the Mayor that they could go ahead to tender; he has not done so as yet. All of that will take up time with the public procurement process, while the subvention takes a few days. He can also use City Hall resources in the meantime,” Minister Dharamlall related.
Local government organs, which include the ten municipalities and 70 Neighbour Democratic Councils (NDCs), are given subventions annually to enable them to carry out critical work and sustain themselves, providing that they are not financially fit because of rates and tax defaulters.
According to available information, NDCs are given $5 million each, while the municipalities are given $18 million each, with the exception of the City, which receives $30 million.
Dharamlall said that in addition to the subvention of $30 million, the government has also pledged $100 million for the restoration of the dilapidated City Hall building. However, this cannot move forward until such time that employees are housed in the new administrative building, which is being constructed.