“Don’t throw a fete if you are owing money.”
That was the message from Minister of Rural Development and Local Government Khadijah Ameen yesterday, as she warned municipal corporations burdened by hundreds of millions of dollars in debt to prioritise settling arrears.
Ameen spoke with reporters after meeting mayors, chairmen and CEOs at the San Fernando City Hall auditorium, where submissions were being finalised ahead of the Government’s mid-year budget review. She said the local government system has long been strained by financial shortfalls, with allocations approved in previous budgets but not released.
She estimated that total debt across corporations could reach $1 billion, citing the Tunapuna/Piarco Regional Corporation alone as owing $30 million to contractors for scavenging services, with legal correspondence now being sent to its office. Several corporations, she said, are months behind on payments.
“Some of them are months behind. Some are owing over $80 million, $50 million or $20 million per corporation for scavenging services. This is one of the larger expenditure items, but when you add other suppliers, it amounts to a tremendous debt. It is a disservice that was done by the former government as a means of suppressing funding.”
Ameen said some corporations experienced up to five months of funding shortfalls under the previous People’s National Movement administration, forcing them to use current allocations to clear old debts.
As a result, she said, less work has been undertaken in the current fiscal period, as resources were redirected to settle arrears and stabilise finances. The Ministry is now requiring corporations to use unspent balances to address outstanding liabilities before continuing related services.
“So we are saying, do not throw a fete if you know you are owing money. Let us try to settle. Some of our relationships with businesses in communities have suffered because suppliers were not being paid. We have been managing the debt and have covered a number of projects from previous years—not just the year before we came into government, but even three and four years prior.”
Looking ahead, Ameen said the Ministry will factor in increased National Insurance Scheme contributions and wage adjustments arising from the recently signed agreement between the National Union of Government and Federated Workers and Chief Personnel Officer Dr Daryl Dindial, although formal communication has not yet been received.
She added that virements are also being considered to help clear outstanding balances.
Beyond debt management, Ameen outlined a series of structural reforms aimed at improving oversight and efficiency within regional bodies. She said the ministry is standardising human resource management and strengthening procurement systems, noting that when she assumed office, there was no procurement officer within the ministry.
“I would really like to know what the ministry and the former minister of local government were doing without a procurement officer while millions of dollars were being spent.”
She said Cabinet has since approved the establishment of a procurement unit, which will provide each corporation with a procurement officer and administrative support.
Additional initiatives include the creation of a public health management unit to coordinate scavenging services, litter prevention wardens and drain cleaning, as well as a Local Economic Development Unit to help corporations generate revenue.
“A lot of them have property that they could utilise to bring revenue, while also stimulating the local economy and providing spaces for entrepreneurs.”
Ameen said several corporations have also expressed interest in developing administrative complexes, particularly where current offices are housed in substandard rental facilities.
“I have corporations housed in rental buildings that are in poor condition. Roofs are leaking, and CEOs have to cover their desks when it rains, yet we are paying rent for these spaces. We are moving toward a comprehensive programme where the Government will work with corporations that have land—some have already identified sites—to develop proper administrative complexes.”
Guardian Media contacted several People’s National Movement chairmen and mayors for comment but none responded up to press time.
