The management of MCG Investments Incorporated, which spearheads the operations at Giftland Mall, has not paid any taxes to the Mayor and City Council (M&CC) for the past four years, as the company states it was awaiting an agreement to carry out the demanded payments amounting to over $25 million.
MCG Investments Inc consultant Ray Hugh represented the Chairman of the company, Roy Beepat at Wednesday’s session of the Commission of Inquiry (CoI) into the puzzling state of affairs at City Hall.
Being required to provide an explanation of a clash between Town Clerk Royston King and Beepat, the consultant indicated that a notice was sent to the company for a total of $44,255,183 in taxes in 2017. He said that a meeting was facilitated
The Giftland Mall
between the two parties on November 2, 2017, when it was decided that all rates and taxes, including penalties and interest, would be waived for the years 2015 and 2016.
“It was agreed at that meeting that taxes for the years 2015 and 2016, including interests and penalties, would be waived. Interests and penalties for 2017 also would have been waived. The demand then [for 2017] would’ve been $11,467,500 and it was agreed that MCG Investments would provide a payment schedule to the Mayor and City Council,” Hugh told the CoI on Wednesday.
According to him, that was so since the company had carried out a private contractual bargain to fix the roads, drains and to install streetlights. Garbage collection was also done privately throughout the area and as such, the company was not benefiting from any services that were provided by the Council. As such, for 2017, the Giftland Mall was only required to pay the sum of $11,467,500 after the interests and penalties were waived.
He stated that King was required to respond via a letter after the engagement to confirm the agreements and a schedule would subsequently be sent by Beepat, verifying how the payments would be made.
However, King made no attempt to answer to the decision that was taken until April of this year, when he indicated via a letter that the agreement “no longer stood” because of the lapse of time and “certain circumstances”.
An excerpt of the letter sent by the Town Clerk stated, “I must inform you that certain circumstances including the lapse of times from the time of our conversation in 2017 to today’s date and no follow-up actions by MCG Investments Inc in payments of rates and taxes to the City Council, our discussion is no longer relevant.”
The document further stated, “The Chairman of the Finance Committee had agreed to meet and discuss with you the way forward to settle your accounts…”
The Commission also heard that another letter was issued by the Town Clerk the following May, stating that the Council took a decision on April 28, to impose a fee of $25,263,750 instead of the previously agreed sum of $11,467,500.
The company has not paid any taxes since 2015, and is contending that City Hall has to come to the table with an explanation as to why the extra costs were attached to the initial sum. Hugh indicated that Beepat had written several letters to the Town Clerk, reminding him of the arrangement that was set but there was no reply.
When the matter was raised by the legal assistant, Sherwin Benjamin as to why the principal rates for the past four years were not paid, Hugh responded, “I don’t see without an agreement, just going ahead and paying something because they can say if you pay part of it, pay the whole thing. The agreement was that after we received the letter [from the Town Clerk], we would send in a payment plan.”
Benjamin posited, “Every citizen of Georgetown can say that there isn’t an agreement so they’re not paying taxes. That would be a sad day for this town. At the very least, your company should pay the bare taxes for 2017.”
As a consultant by profession, Hugh was asked to give a recommendation to the Council, and he stated, “I would say clean it up. It seems like everyone is doing their own thing at City Hall and we need someone to make sure that proper plans, structures, and an overview is put in place.”
To date, monies are owed by the Giftland Mall at Liliendaal, Greater Georgetown, for taxes dating back to 2015.
