“It’s Illegal” – Jagdeo slams M&CC’s move to waive interest on unpaid taxes

Vice President Dr Bharrat Jagdeo has issued a scathing condemnation of the Georgetown Mayor and City Council’s (GM&CC) attempt to waive interest on outstanding property taxes, calling the move illegal and a blatant scheme for corruption.

Speaking during his weekly press conference on Thursday, Dr Jagdeo exposed what he described as a “corrupt” plot orchestrated by the People’s National Congress (PNC)-led A Partnership for National Unity (APNU)-led municipal to waive interest on unpaid property taxes without government approval.
“It’s illegal what their trying to do. It’s not in accordance with the financial regulations; they have to seek approval because we believe this is a scheme to collect money from people as part of the so call waiver. You know how it works; you owe $10 million; you can pay $5 million and share $1 million with the party and $1 million with us,” the Vice President said.
Earlier this week, Local Government and Regional Development Minister, Sonia Parag issued a firm warning to the GM&CC regarding its attempt to implement what she called an “unlawful and unauthorized” financial policy.
In a letter dated March 26 to Mayor Alfred Mentore, Parag demanded an immediate cease and desist of the proposed waiver scheme, stressing that the Council lacks the legal authority to make such decisions independently.
The move to implement the waiver was supported by the APNU+AFC-aligned Councillors of the Mayor and City Council.
In the letter, the Minister noted that the Council is not authorised to make such decisions.
“Section 146(1) of the Act is unambiguous,” the Minister stated. “That power lies with the Minister, not with you.” She further emphasized that all financial regulations, including matters related to accounting, borrowing, tendering, and revenue collection, must be approved by the government and published in the Official Gazette.
Citing a precedent set by the High Court ruling in the case of The Mayor and Councillors of the City of Georgetown v The Attorney General and the Local Government Commission (2022-1HC-DEM-CIV-FDA-294), Minister Parag reminded the Council that local democratic organs do not have unlimited autonomy and must operate within the statutory framework established by national legislation.
If the GM&CC proceeds with the scheme, Minister Parag made it clear that legal action will be taken.
In February, the Council advocated for businesspersons to contact the City Mayor to settle outstanding debts. However, Vice President Dr Bharrat Jagdeo had warned against such practices noting that it is a recipe for corruption.
“We are not supportive of this and we’ll expose it. This is the PNC’s way of raising funds and supporting corruption at city council,” he said.
The PPP General Secretary said while it is commendable that the Mayor and City Council wants to collect taxes, they should start with the People’s National Congress (PNC) headquarters which owes over $6B.