L.R.O. 1/2012
LAWS OF GUYANA
LOCAL GOVERNMENT (LOCAL AUTHORITIES GUARANTEE
FUND) ACT
CHAPTER 28:05
Act
56 of 1956
Amended by
4 of 1972
Current Authorised Pages
Pages
(inclusive)
Authorised
by L.R.O.
1 – 9 ... 1/2012





LAWS OF GUYANA
2 Cap. 28:05 Local Government (Local Authorities
Guarantee Fund)
L.R.O. 1/2012
Index
of
Subsidiary Legislation
Page
Local Authorities Guarantee Fund Regulations 7
(Reg. 15/1958)



LAWS OF GUYANA
Local Government (Local Authorities
Guarantee Fund) Cap. 28:05 3
L.R.O. 1/2012
CHAPTER 28:05
LOCAL GOVERNMENT (LOCAL AUTHORITIES
GUARANTEE FUND) ACT

ARRANGEMENT OF SECTIONS
SECTION
1. Short title.
2. Interpretation.
3. Establishment of Local Authorities Guarantee Fund.
4. Power of Minister to employ a secretary and servants.
5. Management of Fund.
6. Obtaining of security by local authorities.
7. Obtaining of security by officers of local authorities.
8. Payments into Fund.
9. Claims by local authorities.
10. Re-imbursement of local authorities.
11. Refund of contributions to officers.
12. Regulations.
__________________________
56 of 1969 An Act to establish a fund for the provision of security for
the faithful performance of their duties by persons
employed by Local Authorities.
[29TH DECEMBER, 1956]
Short title.
Interpretation.
1. This Act may be cited as the Local Government
(Local Authorities Guarantee Fund) Act.
2. In this Act—
LAWS OF GUYANA
4 Cap. 28:05 Local Government (Local Authorities
Guarantee Fund)
L.R.O. 1/2012
c. 28:02
Establishment
of Local
Authorities
Guarantee
Fund.

Power of
Minister to
employ a
secretary and
servants.
[4 of 1972]

Management
of Fund.
[4 of 1972]
Obtaining of
security by
local authori-
ties.
[4 of 1972]
“local authority” shall have the meaning assigned thereto by
the Principal Act;
“officer” shall have the meaning assigned thereto by the
Principal Act;
“the Principal Act” means the Local Government Act.
3. There is hereby established a Fund to be styled the
Local Authorities Guarantee Fund (hereinafter referred to as
“the Fund”) for the purpose of providing security for the
faithful performance of their duties by those persons required
so to do under the Principal Act.
4. (1) The Minister may employ a secretary for the
proper administration of the Fund at such salary as may be
fixed by the Minister.
(2) The Minister may employ such other persons
as may be required for the proper administration of the Fund.
5. (1) The Fund shall be under the management and
control of the Minister.
(2) All expenses incurred by the Minister in
connection with the proper administration of the Fund shall be
defrayed out of the Fund.
6. Every local authority which desires to obtain
security in any sum approved by the Minister for the faithful
performance of his duties by any officer in the employ of such
authority shall pay into the Fund such annual sum as may be
prescribed by the Minister.

LAWS OF GUYANA
Local Government (Local Authorities
Guarantee Fund) Cap. 28:05 5
L.R.O. 1/2012
Obtaining of
security by
officers of
local authori-
ties.
[4 of 1972]

Payments
into
Fund.

Claims by
local authori-
ties.
[4 of 1972]
Re-imburse-
ment of local
authorities.
[4 of 1972]
Refund of
contributions
to officers.
[4 of 1972]
7. Every officer required to give security for the
faithful performance of his duties under section 42(4) of the
Principal Act shall pay into the Fund such annual sum as may
be prescribed by the Minister.
8. All payments into the Fund shall be made in
advance.
9. (1) Where any officer in the employ of a local
authority in respect of whom security has been obtained or
given as provided by section 6 or section 7 of this Act is in
default of duly accounting to the local authority for any
moneys received by him on its behalf, the amount due shall be
certified by the Chairman of the local authority and submitted
to the Minister through the District Commissioner.
(2) The District Commissioner shall submit to the
Minister together with the certificate of the amount due, a
report on the circumstances of the case.
10. Where the Minister is satisfied that any loss has
been incurred by a local authority as a result of the failure of
any officer employed by such authority faithfully to perform
his duties, the Minister shall direct that the local authority be
re-imbursed from the Fund to an extent not exceeding the
amount for which security has been granted to such local
authority and obtained by the officer under this Act.
11. Where the Minister is satisfied—
(a) that any officer who has made
payments to the fund under section
7 of this Act has ceased to be
liable to make any further payments;
and
LAWS OF GUYANA
6 Cap. 28:05 Local Government (Local Authorities
Guarantee Fund)
L.R.O. 1/2012

Regulations.
[4 of 1972]
(b) that such officer has faithfully
performed his duties throughout the
period of his employment in respect
of which he was required to give
security under section 42(4) of the
Principal Act,
the Minister shall refund to such officer all payments made by
him to the Fund.
12. The Minister may make regulations—
(a) prescribing the manner in which
accounts relating to the Fund shall be
kept;
(b) providing for the auditing of
accounts;
(c) prescribing the payments to be made
into the Fund by local authorities and
by officers; and
(d) generally, for the proper administra-
tion of the Fund and the carrying out
of the provisions of this Act.
____________________


LAWS OF GUYANA
Local Government (Local Authorities
Guarantee Fund)
Cap. 28:05 7
L.R.O. 1/2012
SUBSIDIARY LEGISLATION
_________________
Reg.15/1958 LOCAL AUTHORITIES GUARANTEE FUND
REGULATIONS
made under section 12
Citation.
Contributions
to the Fund.

c.28:02
1. These Regulations may be cited as the Local
Authorities Guarantee Fund Regulations.
2. (1) Every local authority shall, in respect of each
offer for which it desires to obtain security, make an initial
contribution to the Fund equal to one quarter of the sum
approved by the Minister under section 6 of the Act unless
the local authority has previously paid an initial contribution
approved by the Minister in respect of such officer of the
Districts Guarantee Fund referred to in section 3 (2) of the Act
and shall thereafter contribute annually to the Fund an
amount equal to one half of one per cent of the sum in which
the local authority is secured in respect of such officer.

(2) Every officer who is required to give security
under section 42(4) of the Local Government Act shall
contribute annually to the Fund an amount equal to one half
of one per cent of the sum in which the Minister had directed
that security shall be given by him.
(3) All annual contributions to the Fund shall be
paid prior to the 1st January of the year in respect of which the
contribution is made.

LAWS OF GUYANA
8 Cap. 28:05 Local Government (Local Authorities
Guarantee Fund)
[Subsidiary] Local Authorities Guarantee Fund Regulations
L.R.O. 1/2012
Register of
Contributions.

Financial
provisions.

Investment of
the Fund.
3. (1) The Secretary of the Fund shall keep a register
of contributions which shall contain the name of every local
authority and officer contributing to the Fund, the name of
every officer in respect of whom a contribution is made to the
Fund by a local authority, the sum in which each such local
authority or officer is secured and such other particulars as
the Minister may require.
(2) The Secretary of the Fund shall keep such
books of account in addition to the register referred to in the
preceding paragraph as may be necessary for the proper
management of the Fund.
4. (1) All contributions to the Fund and all interest on
investments of the Fund shall be paid into the Fund.
(2) All payments in respect to the re-imbursement
of local authorities under section 10 of the Act and all refunds
of contribution to officers under section 11 of the Act shall be
made out of the Fund and an account thereof kept by the
Secretary of the Fund.
(3) All sums due to the Fund by any officer or
local authority shall be paid through the appropriate District
Commissioner to the Secretary of the Fund.
(4) The Fund shall at all times be under the
management of the Minister and no moneys belonging to the
Fund shall be appropriated or utilised except on an order
signed by the Chairman and the Secretary of the Minister.
5. (1) All moneys belonging to the Fund, except such
part thereof as the Minister shall consider expedient to retain
for making payments of the Fund shall, as far as practicable,
be invested on behalf of the Fund in such securities, or
employed at interest, in such manner as may be approved by
the Minister. Any such investment may at any time be
LAWS OF GUYANA
Local Government (Local Authorities
Guarantee Fund)
Cap. 28:05 9
[Subsidiary] Local Authorities Guarantee Fund Regulations
L.R.O. 1/2012

Audit of
accounts of the
Fund.
changed into securities so approved, and any sums required
for making payments out of the Fund may be raised by the
sale or realisation of any investment of the Fund.
(2) All moneys belonging to the Fund and not
invested as aforesaid shall be deposited in the Post Office
Savings Bank in an account entitled “The Local Authorities
Guarantee Fund.”
6. Annual accounts of the transactions of the Fund
during the year ended the preceding 31st December, and a
statement of the assets of the Fund at that date, shall be
prepared by the Secretary of the Fund and shall be audited
and certified each year by the Director of Audit and shall be
laid before the Minister as soon as possible.
____________________