Defeat of budgets:

Local Govt members warned of disciplinary action

By Ranil Wijayapala

The defeat of the budget proposals presented by eight Local Councils for the second time created an uneasy situation among political circles in the country during the past few weeks as almost all 335 Local Government bodies were presenting their budget proposals for 2014 for the approval of Council Members.

UPFA General Secretary Susil Premajayantha	Colombo Mayor A.J.M. Muzzamil	Provincial Councils and Local Government Ministry Secretary R.A.A.K. Ranawake

In the wake of the defeat of budgets in eight UPFA-run Local Government bodies for the second time, compelling the Chairmen of these Local Government bodies to resign from their posts, according to the Local Authorities Special Provisions Act (Amendment) which came into effect from January this year, President Mahinda Rajapaksa and UPFA General Secretary, Minister Susil Premajayantha warned the Members who were instrumental in defeating the budgets presented by the Local Authority Chairmen.

According to the Provincial Councils and Local Government Ministry, the budgets of the Peliyagoda Urban Council, Meerigama Pradeshiya Sabha, Kesbewa Urban Council, Matara Pradeshiya Sabha, Rajanganaya Pradeshiya Sabha, Medawatta Pradeshiya Sabha, Alawwa Pradeshiya Sabha and Embilitpitiya Pradeshiya Sabha have been defeated twice, compelling the Chairmen of these Local Councils to resign from their posts.

Budgets of another eight Local Authorities have been defeated when they were presented for the first time. The budgets of the Valvettithurai Urban Council and Valikamam East Pradeshiya Sabha, run by the Tamil National Alliance, have also been defeated when they were presented for the first time.

To face the crisis situation these Local Government bodies are facing, the UPFA announced that it will take disciplinary action against the party members of Local Government bodies who purposely vote to defeat the budgets of the Local Councils controlled by the party.

Working committee

President Rajapaksa, after convening the Members of the Local Councils where the budgets have been defeated, has warned that the party members who did not comply with the polices of the Alliance will be subjected to disciplinary action.

Addressing an all island working committee meeting of the SLFP, held under his leadership at Temple Trees, President Rajapaksa said there is no internal conflict in the ruling Alliance and members who are attempting to create a rift by defeating the 2014 budget proposals of Local Governments will face disciplinary action.

The party's decision to take action comes following the defeat of the budget proposals of 16 Local Government bodies including Pradeshiya Sabhas, Urban Councils and Municipal Councils with a majority of ruling party members. It has been reported that even the deputy chairmen of some of the Local Councils have voted against the budgets proposed presented by the chairmen of the Councils.

However, Minister Premajayantha assured that the defeat of budgets in certain Local Governments does not amount to a defeat of the Alliance and will not in any way weaken the massive strength of the UPFA.

The Minister also said that the parties of the Alliance will take stern disciplinary action against members who disregard the instructions of the parties and act to defeat the budgets.

Disciplinary action will be taken against the members of Local Governments by the General Secretary of the relevant party in the Alliance and if they are found to have acted with malicious objectives, they will be expelled. “The Elections Commissioner will be informed of their removal”, the Minister said. According to sources from the North, the Northern Province Chief Minister has also made a request from his party members to support the chairmen of the Local Authorities to get the TNA-run Local Authorities to pass their budgets.

Commenting on the situation that has arisen, Provincial Councils and Local Government Ministry Secretary R.A.A.K. Ranawake said that the situation which has arisen in the eight Local Government bodies will not hamper their development activities.

Despite the defeat of budgets twice in eight Local Government bodies, budgets of 140 Local Authorities have been passed unanimously while another 105 budgets have been passed with majority votes.

“Another 40 Local Government bodies are yet to present their budgets and they have time till December 31 to pass their budgets”, he said.

Legal situation

Explaining the legal situation, the Secretary said the secretary of the respective Local Authority where the budget has been defeated for the second time will inform the Elections Commissioner regarding this issue.

“According to the Local Government Special Provisions Act, once the budget is defeated twice in the Council, the Local Authority chairman or mayor has to resign from the post,” Ranawake said.

According to the Local Authority Elections Act, the Elections Commissioner will inform the General Secretary of the political party, which enjoys the majority in the Local Government body, to appoint a new chairman or mayor to that Local Authority.

“There will be no impact on the party which is enjoying the majority votes in that council due to this situation. Only a new Chairman will be appointed by the same political party”, he said.

He said that the Chairman or the Mayor will not lose his seat as a result and they will continue as Members of the Council.

The newly nominated Chairmen of the Council can continue the activities of the Local Authority after presenting new budget proposals.

He said issues of this nature will not arise if the Chairmen of these Local Authorities accommodate proposals of other Members when the budget is presented for the first time.

The Valikamam East Pradeshiya Sabha, where the budget was defeated on the first occasion

“If the Chairman agrees with those amendments and is willing to accommodate them, they can pass the budget without any problem.

If the Chairman doesn't agree with the proposals, only he can submit new proposals for the second time”, he said.

However, he said that the defeat of budgets will not have an impact on the development activities in the respective Local Government body.

Revenue collected

The Local Authorities are preparing their budgets based on the revenue they collect as taxes, rate money, revenue from licences, court fines, stamp duties and weekly fares.

He said though these Local Authorities depend on the budget proposals, the Central Government also allocates funds for the development activities in those Local Authorities.

“Apart from these funds, the Government allocates funds for Local Authorities. For instance, under the Pura Neguma program, 108 Local Authorities have been identified to be developed after allocating Rs. 50 million for each Local Authority”, he said.

“Under the Budget 2014, it has been decided to allocate one million rupees for each Pradeshiya Sabha on a monthly basis to have a maintenance unit. In addition to that, funds have also been allocated to have a machinery and equipment unit for each Pradeshiya Sabha for them to have bulldozers, backhoes, metal crushers and concrete-mixing machines”, he said.

He said the Local Government Training Institute is ready to conduct a program to educate the Chairmen, Deputy Chairmen and Secretaries of Local Councils and Municipal Commissioners of Municipal Councils to prepare the budgets according to a new structure.

“We are planing to conduct these training sessions for them in future to get them educated about the proper utilisation of funds, especially provided through foreign funds such as World Bank, Asian Development Bank and Japan International Cooperation Agency for development activities”, he said.

“This will help them to prepare the budgets effectively and to use funds sparingly without wasting them on unnecessary items”, he said.

However, he said when other Local Authorities faced a crisis situation, the Colombo Municipal Council could face the budget effectively as the Opposition also joined hands with the ruling UNP-led administration to pass the budget for 2014, reducing the two days allocated for the debate to one day.

Speaking at a press conference, Mayor A.J.M. Muzammil said that it was not his victory, but that of the city-dwellers.

“We all agreed to go for a vote at the end of the first day and the Opposition voted in favour of the budget,” the Mayor said.