Dear Editor,
The Ministry of Communities wishes to clarify for the public several facts relating to the audit into the grants made to the Georgetown City Council.
This is in response to an article appearing in the Stabroek News on October 25, 2016 under the headline, `Mayor miffed at ‘disrespectful’ audit into $300M subvention’ in which City Mayor, Patricia Chase-Green is quoted as saying that the investigation of City Hall was unprofessional and disrespectful.
Firstly, the Ministry is not in any way involved in an investigation at the Municipality but is in fact collecting data in preparation of a response to audit queries stemming from the 2015 Auditor General’s report.
The Ministry also wishes to note that at this stage there is no basis on which to launch an investigation.
Further, it is required of the Permanent Secretary to account for all expenditure under the Ministry of Communities irrespective of where it was spent.
It is also normal procedure for queries raised in the Auditor General’s report to be resolved before the Public Accounts Committee (PAC) starts its work. This is done in conjunction with the Auditor General and the Accountant General’s Office.
In 2015, the Georgetown Mayor and City Council received two grants appropriated under the Ministry’s Capital Programme to be used for the “Georgetown Restoration Programme” and the “Emergency Solid Waste Management of Haags Bosch Sanitary Landfill” amounting to $300M and $100M respectively.
Each grant was based on a separately signed Memorandum of Understanding (MOU) between the Permanent Secretary, Ministry of Communities and the Town Clerk of the M&CC.
The MOUs outlined stipulated requirements attached to the grants in accordance with the Laws of Guyana, Chapter 28:01 (Municipal and District Councils) which was set out to satisfy financial accountability and transparency.
It is required of the Ministry of Communities to ensure that any subvention or grant disbursed to local democratic organs is spent in accordance with the programme.
The AG’s report is an essential step in this process.
On October 5, 2016, following the submission of the 2015 AG report, a letter was sent to the Town Clerk and copied to the Mayor, informing them of a decision to dispatch the Ministry’s internal auditor to have the issues resolved.
During a meeting on October 14, 2016, it was made clear to the Town Clerk, the Internal Auditor of M&CC and the City Treasurer that the Ministry was not auditing the city council but merely seeking to determine whether the grants were spent in accordance with the MOU.
The Ministry reiterates its absolute regard for the authority and autonomy of local organs and would in no way impinge on or circumvent the council’s work.
The Ministry will also firmly apply the relevant procedures to ensure the highest standards of accountability.
Yours faithfully,
Danielle Campbell-Lowe
Public Affairs Officer
Ministry of Communities
