Linden Town Council $200M in debt — begs NICIL to pay over millions owed

By Vanessa Braithwaite, April 25, 2016, http://guyanachronicle.com/lin...-over-millions-owed/

Linden Mayor Carwyn Holland

THE newly sworn councillors of the Linden municipality (M&TC) have inherited close to $200 million in debt to several organisations, and are seeking various solutions to clear these debts at the earliest opportunity. $70 million are owed to the National Insurance Scheme (NIS), and this would negatively affect some 120 council workers if they were to be hospitalised due to illness or injury. The non-contribution could also affect their ability to receive pensions when they retire.

The council is also indebted to LUSCSI for street light payments, besides its debt to other organisations. It has several developmental plans, both immediate and long-term, but with the financial inability to move forward, the Mayor and councillors are somewhat distraught over the situation.

However, they remain positive in their desire to serve the people and transform Linden into a city.

Mayor Carwyn Holland recently told market vendors that the council would like to transform the market into a municipal mall, but with the current financial situation it is in, materialisation of this vision will not be easy.

“The council is cash-strapped, close to $200 million in debt… to inherit $200 million [in debts] is not an easy thing; but, through God, all things are possible,” he said.

He also revealed the financial situation to representatives of the American Embassy, who recently visited Linden and expressed an interest in assisting the region in whatever way possible.

Money owed by NICIL
The council also wants the National Industrial and Commercial Investments Limited (NICIL) to settle its debts, as this would greatly assist in clearing their expenses and financing projects that should be started in the near future.

The Guyana Chronicle was told by a well-placed source within the municipality that the debt is close to $600 million. The Mayor posited that the council is rallying for that money as it is very much needed at this time.
“We are hoping and we are praying for our money owed to us by NICIL to pay off our debt, so that we can start on a fresh ground,” he told the vendors.

Former Chairman of the Interim Management Committee, Orin Gordon, had bemoaned the council’s terrible financial state.

He told the Guyana Chronicle that the municipality was forced to function with limited resources, and depended heavily on collection of rates and taxes.

The current tax roll, which has not been updated since 1976, could only suffice for 25 per cent of the council’s expenses, according to Gordon.

“Persons are paying rates and taxes between $600 and $800 per year, and this is because the valuation level has never changed since 1976, and this is very outdated because of inflation and other factors,” he mentioned.

One of the major factors leading to the council being cash-strapped has been the disbanding of the Kara Kara toll booth as the previous administration’s means of giving concessions to Bai Shan Lin. The municipality lost in excess of $200 million from the project whilst Bai Shan Lin was able to transport lumber out of the town without charge.

Minister of Legal Affairs, Basil Williams, said the toll booth will be reinstituted and the council will earn greatly from the venture.

“Over $250 million was lost, which would have been earned because of the many heavily laden trucks to pass Kara Kara. They did not want you to be enriched and empowered,” he told the people of Linden.

As a result of this, the council was unable to pay increased wages to workers, and this has caused many to leave.

The toll booth has since been reinstituted, and the council now wants NICIL to clear its debt.