The cap on the housing allowance for ministers was raised from $25,000 per month to $500,000 per month under the new government in 2015, according to Clerk of the National Assembly Sherlock Isaacs, who says that a decision was also taken at the same time for all allowances to be paid by the Parliament Office, from where they draw their salaries.
Isaacs gave the explanation after being asked by Stabroek News about the terms and conditions under which housing and other allowances are paid for Members of Parliament; it has emerged that Minister within the Ministry of Natural Resources Simona Broomes had been renting a property for US$2,500 a month.
Peter Ramsaroop, from whom Broomes was renting a house, has sued the minister, the Parliament and the Attorney General over her alleged failure to pay three months’ rent.
Ramsaroop’s attorneys contend that Parliament Office, on Broomes’s behalf, had entered into a tenancy agreement whose duration was the 1st day of February, 2016 to the 1st day of February, 2017. They further claim that in breach of this agreement, Broomes gave 30 days written notice to terminate the tenancy on September 19, 2016 and thereafter vacated and delivered up possession of the premises on or around the 31st day of October, 2016. They, therefore, claim unpaid rent for November and December 2016 and January, 2017, which equals the Guyana Dollar equivalent of US$7,500.
In its response to the filing, Parliament Office has contended that following numerous complaints about the safety, comfort and convenience of the property, Ramsaroop, via email on April 18, 2017, said he was willing to terminate the contract and return Broomes’s security deposit of US$7,500.
While the case is still engaging the court, questions have been raised as to how and why Parliament Office was renting a property for the minister for such a sum.
Isaacs directed Stabroek News to the Handbook for Members of the National Assembly, which explains that ministers are entitled to a housing allowance.
The handbook explains that the Speaker, the Prime Minister, Vice Presidents, the Attorney General and the Senior Ministers are each entitled to occupy, free of rent, a furnished residence provided by the government or in lieu thereof to be paid a house allowance.
The other ministers, the Leader of the Opposition and the Parliamentary Secretaries are not entitled to be provided with residence but are each paid a house allowance.
The house allowance for the Speaker, Prime Minister, Attorney General, Ministers, and Leader of the Opposition was $25,000, while the Parliamentary Secretaries’ allowance was set at $15,000.
According to the handbook, the housing allowance is exempt from income tax and is payable monthly by the Parliament Office with and at the same time as salary.
Isaacs explained that at present those ministers who are not provided with a residence or are renting property collect the allowances with their salaries, while the Parliament Office pays rent for properties occupied by ministers who live out of town and these include Broomes and Minister within the Ministry of Communities Valerie Patterson.
Stabroek News understands that prior to 2015, any rent over the $25,000 allowance was paid by the Office of the President, which also paid for domestic services used by ministers. Additionally, the Ministry of Agriculture paid for gardening services and the ministry to which the minister was assigned paid their telephone bill.
Minister of Finance Winston Jordan explained that this is no longer the case.
“All allowances are to be paid by Parliament. It is Parliament which pays ministers and therefore no government ministry should be covering the living expenses of a minister,” Jordan explained.
Stabroek News was, however, unable to ascertain from either Jordan or Isaacs under whose authority the allowance was raised.
