Local Government Minister Sonia Parag and City Mayor Alfred Mentore have clashed over a decision of the City Council to grant a 25% waiver on the interest for outstanding rates owed by the ONE Communications company (formerly GTT) to the Georgetown City Council.

On Monday, Minister Parag lashed out at the move, describing it as unlawful and alarming. In a statement, the Minister said any discount on rates due must not exceed 10%, and that by approving more than double that limit, the Mayor and his council have disregarded the rule of law and their fiduciary duty to the citizens of Georgetown.

But City Mayor Alfred Mentore has fired back and has indicated that the 25% waiver is not on the rates owed, but on the interest accrued on the rates owed.

The City Mayor said the move by Minister Parag to “interfere” in the decision of the Council is deeply concerning.

He said the Parag’s action is a direct assault on the principles of separation of powers that underpin the country’s fragile democracy. 

“The waiver was aimed at allowing the company to settle its outstanding taxes, an initiative that was both pragmatic and potentially beneficial to the city’s revenue stream. In fact, the City Council and GT&T have been discussing this matter for some considerable time,” the City Mayor said. 

It was explained that the matter dates back to 2016, when it was brought to the attention of the then Town Clerk, Royston King.

It was explained that the company, at the time, had expressed concerns about the valuation of some of its properties, more particularly the property at 69 Brickdam, Georgetown. According to Mayor Mentore, it was agreed that the properties would be valuated before approaching the relevant agencies and government ministries to plead its case.

He said those attempts straddled the previous and current governments and the current Minister of Local Government should seek advice and counsel before going off on an “ill-advised frolic”.

Mayor Mentore said the company recently engaged him along with members of the Council’s Finance Committee and the City Treasurer’s Department to find a solution to this issue.

According to the Mayor, the company obtained a revaluation of its properties, and in accordance with the Municipal and District Councils Act, the council agreed to review, and grant a waiver of 25% on the interest accrued. He said One Communications will have to pay all of the rates and taxes owed, along with 75% of the interest.

He said One Communications has been “a good corporate citizen” to the city, and in the past, the company paid its taxes in advance of the stipulated tax pay period to help the council fulfill its financial and other obligations to its employees and its citizens, in local communities. 

Mayor Mentore said Minister Parag’s posture and utterances are an indication that she lacks knowledge of the history of the matter, and may have been misled. He said it is unfortunate that the Minister rushed to make her statements without knowing all the facts involved in this matter. 

Mentore said this was not the first time that the Minister has found herself interfering in the work of the Council.

The Mayor reminded that the Council is an elected body, and it will continue to act within its jurisdiction and within the confines of the law, and will not allow central government to undermine its work. 

Related posts:

Jagdeo accuses Georgetown Mayor of inflating Central Government’s taxes owed to City Giftland Boss and City Mayor’s Attorney differ over Court ruling on taxes owed Re-elected City Mayor calls on Government to work with the municipality in the interest of the people City Businesses owe City Hall over $16.2 Billion in rates and taxes; Chamber asks them to pay up