The Corporation of Hamilton has been given back control of its own financial affairs after Government lifted a temporary stewardship notice.

But the municipality will have comply with a list of financial instructions, while any big-money items costing more than $50,000 will still have to be approved by Government.

Home Affairs Minister Michael Fahy announced that Government was taking over financial control last December after City Hall was charged with a raft of good governance violations. Ombudsman Arlene Brock filed had filed an in-depth, highly critical report earlier that month citing numerous examples of maladministration at City Hall, including questionable expenditures, potential conflicts of interest, City business being held in secret caucus meetings, the advice of technical experts being ignored and an increase in retroactive and unsigned resolutions.

At the time, Sen Fahy described the move as “regrettable” but temporary, adding that he hoped it could be lifted within three months once a number of financial procedures and good governance measures were in place and being observed.

At a press conference this afternoon, Sen Fahy said: “The Minister of Finance has issued a set of Financial Instructions to the Chief Operating Officer of the Corporation of Hamilton that must be used by the Corporation of Hamilton in accordance with Section 7B of the Act with immediate effect to ensure good governance of their finances moving forward.

“Additionally this morning, I sent a letter to the Chief Operating Officer of the Corporation of Hamilton in accordance with Section 5.1.2 and 5.1.3 of the Financial Instructions that formally approved a fiscal budget for 2014-15 that the senior officers of the Corporation and I considered reasonable for them to carry out the business of the Corporation of Hamilton for this period.

“As a result of these measures now in place, I can formally advise that today I have lifted the Stewardship Notice of 19th December 2013, which in essence, permits the Corporation to move on with managing their financial affairs in consultation with me as Minister with responsibility for Municipalities where appropriate.”

Sen Fahy said that other regulations to improve the governance of both Hamilton and St George’s Corporations — such as a Code of Ethics, a Council Meeting Guide and an Asset Management Plan — were “in the final stages of drafting”.

“However, I believe the most critical piece at this time was the Financial Instructions being in place to ensure the Corporation could assume their day to day functions independent of the Ministry, save for areas where Ministerial approval is required,” he added.