Home Top Stories Audit Report 2022: Municipalities, NDCs continue to breach law by not submitting...
The 2022 Auditor General report’s findings on the Local Government and Regional Development Ministry have revealed that a number of municipalities continue to be in breach of the laws relative to them, continuing to receive millions in subventions despite multiple years on record where no financial statements were submitted.
According to the Municipal and District Councils Act, Chapter 28:01 of the Laws of Guyana, the Treasurers of all municipal and district councils must ensure their accounts are in order by the end of the financial year.
“It should be noted that the Ministry transferred sums totalling $174.9 million to the municipalities in 2022. Despite this legal requirement, a number of the Municipal and District Councils were still in violation of Section 177 of the Municipal and District Councils Act Chapter 28:01.”
The report notes that the Georgetown Mayor and City Council (M&CC) was one of the primary offenders. Despite receiving $30 million last year, the M&CC still had outstanding financial statements for 2006, 2008 to 2011, 2017 and 2020 to 2022. The last time Georgetown was audited was in 2004.
The Linden Town Council has not submitted financial statements for 1985 to 2007, 2011 and 2013. However, it has been compliant with the law since and received $15.7 million last year.
Abraum and Bartica meanwhile did not submit statements from 2015 to 2022, receiving $17.4 million and $13.8 million respectively. Mahdia and Lethem did not submit statements for 2019-2022 and 2021 to 2022, respectively.
Only the New Amsterdam Town Council and Rose Hall Town Council have generally complied with the law. The Anna Regina Town Council was meanwhile last audited in 2017, submitting statements from 2018 to 2020. Corriverton was last audited in 2018 and received $15.6 million.
“The Head of Budget Agency indicated that in accordance with the Act, it is the responsibility of the Treasurer to submit all Financial Statements to the Audit Office. The Ministry continues to advise the Local Organs to submit their Financial Statements and that they must do so in the required period.”
“All municipalities were written to as a reminder to submit all Financial Statements to Audit Office,” the Audit Office said. Meanwhile, the report recommended that the Ministry follow up with the agencies to ensure proper and complete financial statements were submitted.
In much a similar way, the Neighbourhood Democratic Councils (NDCs) were also flagged by the Audit Office, who noted that they have been in breach of the Local Government Act stipulating their accounts be finalised annually. A sum of $338.1 million was transferred to these councils last year.
In Region One, there was a 27-year gap where no financial statements were received. There were also gaps in Regions Two, Three, Four, Five, Six, Nine and 10. According to the Ministry, all NDCs were written to reminding them to submit their financial statements.
“The Head of Budget Agency indicated that in accordance with the Act, it is the responsibility of the Overseer to submit all Financial Statements to the Audit Office. The Ministry continues to advise the Local Organs to submit their Financial Statements and that they must do so in the required period. The Audit Office recommends that the Head of Budget Agency follow-up with the agencies to have the outstanding Financial Statements submitted for audit,” the report states. (G3)
