Local Govt Ministry again warns M&CC against “nefarious plans” to sell city properties

Describing it as a “nefarious plan” to undervalue and rapidly sell off city properties, the Local Government and Regional Development Ministry on Sunday said it continues to monitor very closely, actions by some members of the Mayor and City Council (M&CC) of Georgetown.
“These plans must stop forthwith,” the Ministry said in a statement on Sunday. The Ministry noted that notwithstanding the significance of these properties in the historical and other structural aspects of the city’s landscape, some of which form part and parcel of its recorded cultural heritage inventory, new reports indicate that the M&CC is continuing with its clandestine pursuits unabated to dispose of them.

“The Ministry of Local Government, therefore, wishes to reiterate its position with clear unambiguous warnings to the City Council, that it will not condone nor stand idly by while they continue to pursue actions for negotiated disposal of the city’s assets in a manner that contravenes the high standards of accountability, transparency, and adherence to the rule of law that has been established within the national governance frameworks for Guyana,” the Ministry warned.
According to the Ministry, these reports are being taken with the utmost levels of seriousness, with the relevant authorities being placed on high alert to prevent these actions from being carried out.
The Local Government and Regional Development Ministry asserted that the M&CC must understand that Georgetown and its assets, though within the management ambit of the Council, do not constitute personal property in part or whole. As such, the Ministry said that the properties cannot be sold off based on personal interests nor based on the whims and fancies of its members.

The Ministry added, “The City Council would be well advised to take careful note of the resolve of the Government on this crucial matter and avoid the swift and decisive consequences that would be accorded to all parties to any of these nefarious and dubious deals being contemplated, should they choose to follow through on them, despite the many warnings.”

Previous warning
Earlier this month, the Ministry had warned the M&CC about the consequences attached to undervaluing and disposing of the city’s assets in a shady manner. It was reported that several reports suggest that several properties owned by the M&CC have been undervalued and are being negotiated for sale “through very questionable processes and highly-suspicious shady transactions”.
After taking office last year, the People’s Progressive Party (PPP) Government had launched an audit into City Hall, targeting both the financial and operational makeup of the municipality.
Last month, it was pointed out by Auditor General Deodat Sharma that City Hall’s last audit dates back several years ago. For that audit, he noted, all they did was submit financial statements for 2019 and 2020, and even those were not properly prepared.
When it comes to the years of unreconciled City Hall accounts, Sharma noted, the best option may be to start over. “What I’ve advised several entities, including them, let’s close the books, open new books, take an asset that was there, and start fresh. Get new bank accounts and everything. Because it doesn’t make sense to go back to 2005, 2006. Let’s sit down, list all the assets and cash positions, and start a new balance sheet,” the Auditor General has been quoted as saying.
In February, the Council was placed in a conundrum as it relates to leased properties in the city and the possession of relevant documents for those lands. Georgetown Mayor Ubraj Narine had explained that the then Communities Ministry had sent 54 leases for the Council to examine.
However, they were battling with cases where multiple leases exist for the same plot of land. According to Narine, properties that were leased for less than the actual worth had cost the Council millions of dollars. Throughout recent years, there have been many issues at the Council surrounding leased properties. One month prior, the quorum was at odds over the Water Street, Georgetown training complex, which remains unused since 2014.
While some Councillors believed that the building should be leased to garner much-needed revenue, others disapproved of the price offered. City Hall had received a proposal of $1.5 million per month for the said spot. In 2018, during the Commission of Inquiry, it was heard that former Town Clerk Royston King had leased lands to Quick Shipping Incorporated. This plot of land was not owned by the Council, but rather the National Industrial and Commercial Investments Limited (NICIL).