Desiree Sainthrope is a Legal expert with extensive experience drafting and analyzing trade agreements. She is a recognized authority in global compliance and possesses a broad range of interests within the legal field, including intellectual property and the evolving implications of technologies such as AI.
What prompted you to write a formal letter to Mayor Alfred Mentor regarding the financial regulation?
The urgency to address the unlawful implementation of a financial regulation by the Mayor and the Council was the primary reason. It was crucial to ensure that they understood their actions were not only unauthorized but also counterproductive to the integrity of local governance and legal compliance.
Could you elaborate on the alleged unlawful implementation of the “financial regulation” by the Georgetown Mayor and City Council?
The issue arose because the Mayor and City Council took it upon themselves to pass a regulation aimed at waiving interest on outstanding rates and taxes without any legal authority. This act contravenes established statutes, specifically the Municipal and District Councils Act, which does not grant them the power to enact financial regulations independently.
What is the specific problem with the regulation aimed at waiving interest on outstanding rates and taxes owed by property owners?
The problem lies in the overreach of authority. The Mayor and Council do not have the jurisdiction to waive such financial obligations, as this power is exclusively vested in the Minister of Local Government and Regional Development. Their actions effectively undermine the statutory framework designed to maintain fiscal discipline within local government operations.
What legal authority does the Municipal and District Councils Act, Cap. 28:01 of the Laws of Guyana grant regarding financial regulations?
The Act specifies that the authority to make financial regulations is vested in the Minister of Local Government and Regional Development, not in the Mayor or the Council. This includes overseeing areas such as accounting, borrowing, tendering, and revenue receipt.
What does Section 146(1) of the Act state about the authority to make financial regulations?
Section 146(1) clearly delineates that the Minister has the sole authority to make financial regulations for controlling and managing the financial business of councils. This section explicitly does not grant such powers to the Mayor or City Council.
Can you explain the types of financial regulations covered under this Act, such as accounting, borrowing, tendering, and the receipt of revenue?
The Act encompasses a broad range of financial regulations including, but not limited to, the guidelines for accounting procedures, borrowing, tendering processes, and the proper methods for revenue collection. These ensure financial transparency and accountability within local government operations.
Why is the Mayor or City Council not empowered to enact or implement financial regulations independently according to the Act?
The reason is to maintain a centralized and uniform approach to financial management across municipalities, which prevents discrepancies and potential misuse of power. Allowing independent enactment by individual councils could lead to inconsistent and possibly detrimental financial practices.
What consequences arise from enacting subsidiary legislation by an unauthorized entity?
Enacting subsidiary legislation without proper authority results in the regulations being ultra vires and legally void. This means any actions taken under such regulations have no legal standing and could lead to significant legal repercussions, including potential personal liability for the officials involved.
Can you detail the procedural requirement for subsidiary legislation to come into effect, specifically the need for publication in the Official Gazette?
For subsidiary legislation to be effective, it must be published in the Official Gazette. This ensures transparency and public awareness. The Mayor and City Council do not have the authority to fulfill this requirement, further invalidating any regulations they attempt to implement independently.
Was there any consultation between Mayor Mentor and your office regarding this regulation before it was passed?
No, there was no consultation. The Mayor acted unilaterally without seeking the necessary legal opinion or approval from my office, which could have prevented this unauthorized initiative.
How does the purported regulation fail to align with the statutory limits outlined in the Municipal and District Councils Act and the Local Government Commission Act?
The purported regulation oversteps the statutory limits by assuming authority not granted to the Council. Both Acts clearly stipulate the extent of powers held by local councils, and financial regulation is not within their purview.
What was the significant ruling by the High Court in 2022 and how does it relate to this situation?
The High Court ruling reaffirmed that local democratic organs are not exempt from legal constraints and must adhere to statutory limits. This case underscores the importance of councils operating within the legal boundaries set by relevant legislation.
After consulting with the Attorney General, what kind of legal action are you prepared to take?
We are prepared to initiate legal proceedings to nullify any actions taken under the unauthorized regulation and hold the responsible parties accountable. This may include civil litigation to recover any unlawfully waived sums and potential criminal charges where applicable.
What steps will be taken against attempts to enforce the so-called financial regulation?
Any attempts to enforce this regulation will be met with immediate legal challenges. We will seek court orders to prevent its implementation and pursue all necessary measures to ensure compliance with the lawful process.
How will sums waived under this measure be recovered and what role will civil proceedings play in this recovery?
We will initiate civil proceedings against those responsible for waiving the sums. This will include personal liability for the officials involved, ensuring that any financial losses to the treasury are recovered.
What actions might be reported to the Police and why?
We may report conduct that potentially amounts to illegal activity or abuse of office. This ensures an investigation and action against any criminal behavior identified.
Could you explain why it was important to copy the letter to the Town Clerk of the Municipality of Georgetown and the Attorney General and Minister of Legal Affairs?
Copying the letter ensures all key stakeholders are informed and able to take necessary actions to uphold the legal framework. It also underscores the gravity of the matter and our commitment to lawful governance.
How does this incident reflect on upholding the legal framework governing local government financial matters?
This incident highlights the critical importance of adherence to legal frameworks to ensure proper governance and financial integrity. It serves as a reminder that local governments must operate within the bounds of their legal authority.
How do you intend to ensure compliance with the legal procedures and authority moving forward?
We will enhance oversight, provide regular training for local officials on legal compliance, and establish a more robust system for vetting and approving financial regulations.
Are there any plans to communicate with Mayor Mentor and the Councillors in the future to avoid similar situations?
Yes, we plan to establish ongoing dialogue and collaborative efforts with Mayor Mentor and other Councillors. This will help ensure future initiatives align with legal frameworks and prevent similar issues.
