Case against authority for taking over revenue collection dismissed

THE National Court has dismissed a case against the Lae city authority (LCA) for taking over the functions of revenue collection without a valid memorandum of understanding (MoU) from the Lae urban local level government (LULLG).
Under Section 4 of the LCA Act 2015, a MoU should be in place before such function can be transferred from the LULLG.
In his ruling on Friday, acting judge Justice Paulus Dowa found that Jacob Maragau, of the LULLG, had claimed that the LCA had been relying on a ministerial directive which they alleged was in breach of Section 4 of the LCA Act.
The LULLG, therefore, sought declaration through the court that such action by the LCA was unlawful.
Justice Dowa stated that the real meaning of the LCA’s application was that it assumed its municipal functions without a MoU with LULLG in place as required under Section 4 of LCA Act 2015.
He found that Section 4 of LCA Act 2015, appeared to move the traditional municipal functions from the LULLG over to the LCA.
He also cited Maragau’s allegations that LCA did not have a reasonable cause of action in that the LULLG had been mismanaged for a long while and owed the Internal Revenue Commission (IRC) a substantial amount of money.
Justice Dowa noted that by ministerial direction given on March 18, 2019, LCA was given the approval to collect taxes and rates in the absence of a MoU.
By the resolution of LULLG councillors on Nov 19, 2019, the LCA was authorised to collect all revenues and manage the affairs of LULLG for a year.
Justice Dowa ruled that LCA was only doing what had been resolved and was not in breach of any statute or provisions of law. He ruled that the proceedings were, therefore, frivolous and untenable and the proceedings be dismissed.
Out of court, Lae deputy mayor and ward five councillor of LULLG, Maragau apologised to the parties.