Dear Editor,
The financial mismanagement within Georgetown’s City Council has reached crisis levels, demanding serious action and accountability. This is evidently more than just poor governance—it is a flagrant disregard for the laws that guide the City’s financial affairs. Since I was elected a City Councillor, I have sounded the alarm repeatedly about the Council’s consistent breaches of the Municipal and District Councils Act (Chapter 28:01) and the Fiscal Transfers Act (Chapter 73:07). The law is clear: Section 155 of Chapter 28:01 requires the City Council to submit budget estimates by November 15 of the previous year. As I have previously written, the Council’s attempt to pass off this duty to the City Administration is misleading. It is the Council’s responsibility to ensure compliance by directing the administration accordingly.
The budget for 2024 wasn’t presented until June, a full six months late. The November 15 deadline for the 2025 budget has also been ignored, continuing this disturbing trend of neglect. When this year’s budget was finally presented on June 4—202 days overdue—it became immediately apparent that the financial projections were based on fantasy rather than any realistic assessment. The Council forecast GYD 3.297 billion in revenues, yet by September this year, only GYD 1.686 billion had been collected. This was entirely predictable. By September 2023, for instance, the City had collected just GYD 1.51 billion. It was delusional to expect more than double that amount for 2024.
Further, this year’s budget was passed without consulting a single constituency. Not one constituency meeting was held with the residents of Georgetown to understand their needs and priorities. The budget was nothing more than an administrative gesture—a mere formality devoid of any meaningful input from the people it is meant to serve. It is no wonder the City continues its downward spiral.
Editor, I won’t hold my breath expecting genuine consultations with the citizenry anytime soon. This lack of engagement contrasts sharply with President Ali and his Government, who have laudably made it a point to consult with the populace. They are continuously on the ground, meeting with and listening to the people of Guyana—a model of leadership that our City Council would do well to follow.
The financial reports provided to the Council by the treasurer’s department reveal an even more profound crisis. As of September 2024, the City has amassed a GYD 80 million deficit—nearly double last year’s shortfall at the same period. An absurd 70% of the City’s revenue is consumed by an inefficient, bloated payroll, leaving only 30% for critical services like garbage collection and drainage.
As a councillor, I have consistently raised the alarm about this unsustainable drain on the City’s finances, advocating for optimising the City’s Human Resources. Yet, the Council has so far refused to tackle the problem, opting instead to protect an inflated payroll that benefits a few while the entire City suffers. This unwillingness to act has left us with minimal resources to invest in meaningful projects that could truly improve our communities, further accelerating the City’s decline.
The impact of this is nowhere more evident than in the management of the City’s solid waste. Despite the best efforts of the solid waste management department, Georgetown is disgustingly filthy, with rubbish piling up on street corners and drains clogged with debris, creating a health hazard for residents. Time and time again, the City Council has pointed fingers at the contractors, shifting the blame for the poor state of sanitation. While it is true that the contractors bear some responsibility, the Council conveniently ignores its own obligations. As I write this, the City is a staggering 79 days behind in payments to the solid waste companies contracted to keep our streets clean. How can we possibly expect these companies to fulfil their duties and collect rubbish every day when the Council fails to honour its financial commitments?
Perhaps not so shockingly, nothing (yes, nothing) has been spent on capital investments. Georgetown cannot maintain or improve public services such as waste management, drainage, and market facilities without capital investments. Over time, this leads to a decline in the quality of life for residents. Regardless of political affiliation, any Georgetown resident will tell you they are living through this decline.
Finance Committee Chair Lelon Saul’s promises of aggressive rate collection and a revamped Debt Recovery Unit (currently defunct) have proven to be empty rhetoric. During his budget presentation, he spoke of hiring new staff and increasing the issuance of demand notices, yet months later, we have seen no action. The Council has done little to pursue rate collection effectively—how can they, when the system used to manage collections is barely functioning? For years, the software has been riddled with incorrect, missing, and corrupted data errors that have prevented countless residents from paying their dues. The Council has been aware of this issue for years yet has done nothing concrete to fix it. This negligence has severely hindered effective rate collection.
A convenient excuse for this astounding financial mismanagement often used by the Council is that the Government withholds subventions for political reasons. However, the truth is that the Council has consistently breached the Fiscal Transfers Act (Chapter 73:07). The Act requires the submission of budget estimates by November 15 of the previous year and financial statements by March 31. Neither has been done since I became a councillor.
Finance Committee Chair Lelon Saul is quick to highlight the sums owed to the City by the Central Government, but he remains conveniently silent about the billions the Council owes to the Guyana Revenue Authority (GRA), among others. Furthermore, there are longstanding allegations of billions owed by companies linked to the PNCR. Take Maikwak, for example—a company allegedly owing billions in rates. To my knowledge, the Council has neither investigated these claims nor taken any steps to recover any monies owed. This selective silence raises serious questions about the Council’s commitment to financial responsibility and transparency.
During his budget presentation, Councillor Saul paid much lip service to monetising the City’s assets. As far as I am aware, nothing much has been done. For instance, the Council has failed to collect revenue even from basic sources like billboards on city reserves. Until recently, the Council had no idea how many such billboards existed or what they should charge. It is yet another example of the gross financial mismanagement plaguing our capital city.
Finally, the recent decision by the Council to slash rates and taxes owed by political parties is an outrageous betrayal of Georgetown’s residents. At a time when the City is struggling to provide essential services, this policy speaks volumes of the Council’s priorities.
In short, Georgetown’s financial collapse is the result of failed leadership and blatant neglect. The PNCR-majority Council has ignored our laws, squandered resources, and chosen political favouritism over the City’s needs. With bloated payrolls, unpaid debts, and zero capital investments, the Council has pushed Georgetown further into decline while residents suffer. Their recent move to slash rates for the political parties they represent only confirms their misplaced priorities.
The PPP/C will continue to demand accountability and real reform because Georgetown’s residents deserve leaders who will put the City’s interests first and make the tough decisions needed to turn things around.
Sincerely,
Alfonso De Armas
PPP/C Councillor