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Georgetown, Guyana — Mayor Alfred Mentore has publicly criticized Minister of Local Government Sonia Parag’s recent denunciation of a Georgetown City Council decision to grant a 25% interest waiver on outstanding rates owed by One Communications, formerly known as GTT. The dispute highlights ongoing tensions between Georgetown’s local government and the central government over authority, financial autonomy, and adherence to legislative constraints.
The controversy began when Minister Parag denounced the waiver in a Facebook statement on November 11, deeming it “alarming and unlawful.” She cited Section 215(3) of the Municipal and District Councils Act, which caps discounts on overdue rates at 10%. By approving a waiver more than double this limit, the council, according to Parag, is disregarding the law and failing in its “fiduciary duty to the citizens of Georgetown.”
Responding to this criticism in a public letter, Mentore defended the council’s decision, asserting that the waiver was a pragmatic effort to secure substantial payments from One Communications, thereby supporting the city’s revenue. Mentore pointed out that discussions about this concession have been ongoing since 2016, highlighting that under the council’s guidance, One Communications had revalued its property to reach a settlement. According to Mentore, “the council has agreed to review, and grant a waiver of 25% of interest accrued; the company will pay the demand and 75% of all interests accrued on that particular property.”
The Mayor described Minister Parag’s statement as an “assault on the principles of separation of powers that underpin our fragile democracy,” adding that it was “swift, and dismissive, signaling a concerning trend in the government’s handling of local government issues.” Mentore further suggested that the Minister’s perspective was uninformed, and criticized her response as “misguided, [and] a rookie” reaction. He warned that the Minister’s stance could cause “reputational damage” to One Communications, which he characterized as “a good corporate citizen” that has paid its taxes in advance in the past to help the city meet its obligations.
In addition to defending the council’s actions, Mentore also accused the central government of a pattern of interference with local governance. Citing a prior instance when a central government official opposed the council’s decision to offer amnesty to tax-delinquent businesses, Mentore warned that these actions were “not only undemocratic but undermine the very essence of local autonomy.” He emphasized that the Georgetown City Council, like all local government bodies, is an elected entity accountable to its constituents, not subject to central government authority.
“The constant undermining of the City Council’s autonomy signals a troubling desire by the central government to assert its dominance in every aspect of governance,” Mentore stated, arguing that such interventions threaten the integrity of local governance. He also expressed concern over what he described as an apparent discrepancy in the government’s treatment of foreign and local companies. “While it has consistently been willing to grant major tax breaks and concessions to foreign companies, especially those in the oil and gas sector… when it comes to local businesses… it seems to act with a different set of rules.”
The mayor is calling for respect for the independence of local governance structures: “If we are building a truly democratic society, we must support and protect the independence of local governance structures… without fear of retribution or interference from the central government.” These remarks underscore a growing divide under the People’s Progressive Party (PPP) administration in perspectives on governance and authority in Guyana, one likely to shape discussions with City Hall for the foreseeable future.
