GEORGETOWN Mayor Hamilton Green yesterday criticised the comments made by Minister in the Ministry of Local Government and Regional Development, Mr. Norman Whittaker, on the management of the City Council’s resources and the deficit budget it presented on Monday.

Speaking at a City Hall press conference, Green challenged the minister to debate the issues on which there is disagreement.

Whittaker on Monday had told the media that the municipal budget which was sent to his ministry is merely an exercise of adhocracy.
“Our Government recognised this laxity on the part of the City Council many years ago and that is why, notwithstanding the fact that the existing legislation allows the Council to prepare and approve its own annual estimates, Government has sought through the sector ministry to ensure that council’s annual budget estimates emanates out of a process of consultation with residents and focuses, inter alia, on providing core services, such as proper drainage, efficient solid waste management, vending in markets and market tarmacs under good sanitary conditions and removal of thick vegetation ensuring that the incidence of breaches of building codes are addressed.
“…we have sought to work with the council to get the body to address the inadequacies and inefficiencies highlighted in the Keith Burrowes’ report. These include issues of transparency of procurement, accountability, debt collection, management etc,” Whittaker said
He noted that the City Council with Mayor Green at its helm, has sought to distance itself from “this transparent arrangement” that is aimed at assisting the Council to do what is right for the citizens of Georgetown and, by extension, Guyana.
The 2014 Budget averages revenue collection of $2.05 billion and has a total estimated expenditure of $2.3 billion, which gives rise to a $246.7M deficit, a deficit that, Whittaker emphasised, will not be funded by the Government.
Whittaker said several inadequacies continue to be evidenced in City Hall’s undertakings.
However, the mayor charged that the current Administration’s support seems to be based on its ability to control the City Council.
Green emphasised that the budget is informed by “physical evidence” and is an assumption of both revenues and expenditures.
To that end, he pointed out that new buildings in the capital city, particularly the high-rise structures, are being targeted to increase the Council’s revenues and the town clerk has been requested to follow up this area.

Four appointments
He said there has been some “frustration” of efforts in this regard and that both Town Clerk Carol Sooba and three persons hired by the minister are “not suited” for the posts they hold and all four appointments were made against the wishes of the Council.
On the point of allocations in the budget and estimated revenues and expenditures, the minister stated that there are “questionable” allocations.
Whittaker said:“A mere 28 percent of this revenue inflow is set aside for capital works.”
He added that a significant portion of the budget is related to staffing expenses and there is an allocation for a further increase in staffing capacity, when the current staffing complement itself is under-utilised.
The minister said:“Employment cost and employment overheads stand at 56 percent of total anticipated inflows and, while overtime continues to be featured high in the budget, the budgeted staff strength which, in the ministry’s 2013 review was already high, increased by four per cent for 2014. That is, the Council plans to add more numbers to the already under-utilised staff.
“Provisions are made for increases of councillors’ stipends and allowances, as well as gratuity for a poorly performing Council,” he charged.
The minister also declared that the proportions of the allocations are “unheard” of.
“The Council, in its 2014 budget proposal plans to expend $2.3 billion out of an anticipated revenue inflow of $2.05 billion.

No explanation
“In other words, the Council plans to spend almost $250M more than what it plans to receive. There is no explanation as to how the Council will finance this deficit.
“…the Council plans to spend almost 70 percent of the citizens’rates and taxes for 2014 on themselves and staff, with a current liability of $1.3 billion, including debts to Guyana Power and Light (GPL),the National Insurance Scheme (NIS) and the Guyana Revenue Authority (GRA).”
Green said the deficit budget was a result of provisions for Local Government Elections, claiming that the deterioration of the City Council started in 1992, since the current Administration came to power.
He argued that the Local Government Elections will, thankfully, result in a reformed environment within which the City Council can execute its functions.
The mayor also called for the President to assent to the Local Government (Amendment) Bill.
Whittaker on Monday explained that the contention of President Donald Ramotar is that the Local Government (Amendment) Bill was unconstitutional, as it sought to vest control of local authorities in the Local Government Commission and remove ministerial control and that is why he did not assent to it.
The minister maintained, though, that the three bills that are integral to the hosting of local government elections have been given assent.
Guyana is expected to host local government elections on or before August 1, 2014, following a vote in the National Assembly, after rigorous debates over their importance to democracy.