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Maloutas: The economic situation of the municipality of Kozani 2019

08/07/20 15:56
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Maloutas: The economic situation of the municipality of Kozani 2019

by sierafm
08/07/20 15:56
in LATEST NEWS, LOCAL NEWS
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The discussion about the finances of an organization of T.A.. in this case of the Municipality of Kozani, always offers the opportunity for a more general dialogue about the economic situation, in which he is.

This discussion is even more interesting at the end of a local government term and the beginning of a new one. In addition to the narrow nature of the approval of financial statements, also includes the concept of an account of the actions of the outgoing Municipal Authority as well as the situation in which the new municipal authority takes over the management of the municipality
It is obvious, that, when these kinds of discussions take place before elections, there is a lot of tension given the specific time period, as a result of which even inaccurate data may be given. This is not done on purpose but due to lack of time to cross-check the necessary information, as a result, the picture of the financial situation of the organization is not accurately captured and thus the citizens cannot form a complete picture of the financial situation of the Municipality..
Today though, a year after the municipal elections and with almost all of the Municipality's financial data made public, it is the most suitable time, to start a discussion based on real financial data and situations, through which the real economic situation of the Municipality will be communicated to the citizens clearly and without tensions..
This intention of ours is not governed by a mood of revanchism and our only goal is to demonstrate the reality., regarding the finances of the Municipality.
The previous Municipal Authority had used the financial management of the Municipality as a pretext, in order to hurt our credibility, promising purge and imposition of order on the finances of the Municipality.
During the Municipal period 2014-2019 we have often been the recipient of harsh and unfair criticism, not only for what we did during our tenure 2011-2014, which I emphasize once again, that there was the most difficult period of self-government after the coup, due to the economic crisis and the enormous difficulties of starting Kallikrates, but also for previous periods, going back many years.
We are gonna start, describing the situation, to which we received the Municipality, first by listing all the data, referring to the dates 31/8/2019 and 31/12/2019 (depending on when financial items were available) and at the same time comparing them with the corresponding ones of the previous five years.

But let's move on to the numbers:

  • The canteen at D.A.K.. was hired in June 2017 and until the end of the previous Municipal period, that is, up to 31/8/2019 and for a while 27 months only two rents had been paid, resulting in a total debt of approximately 100.000 euro.
  • The building, where a coffee shop was operating on the sidewalk on Irini Street, it was rented for the first time 2001 and up to 2014 its total debt in these fifteen years amounted to 585.000 euro. The five-year rule of the previous Municipal Authority, this debt was further increased 345.000 euro.
  • The municipal refreshment room was rented in December 2015 and in 31/8/2019 the total liabilities from unpaid rents amount to approximately 110.000 euro.
  • The obligations of the municipality to suppliers in 31/12/2019 amounted to height 5.398.437 euro. The same amount in 31/12/2014 amounted to 2.884.400 euro. This large increase is a fact that significantly burdens the market of our municipality.
  • The debts of the Municipality and the Legal Entities (DI.PE.THE. Charitable business, Sports Organization, Primary and Secondary School Committee) to DEYAK from water consumption and district heating in October 2014 amount to 3.318.000 euros for a period 25 years since the establishment of DEYAK. During the previous Municipal period, ie until October 2019 this amount had skyrocketed 4.885.000 euro.
  • The unpaid obligations to DEYAK from water consumption and heating of citizens to 2014 amounted to their height 22.000.000 euros since the establishment of DEYAK 1989 (including the precautions that were deleted). This amount soared to its end 2018 within just four years of the previous municipal term at 29.265.000 euro, showing an increase in its order 33% or over 7.000.000 euro, despite the fact that at that time two debt repayment regulations were in force in one hundred installments, which greatly facilitated collection.
  • The renegotiation by the previous municipal authority of the Municipality's loans from the Deposit and Loan Fund had the consequence of requesting additional guarantees from the European Investment Bank for the loan the municipality had received from it and led to the Municipality being charged with an amount of approx. 750 thousands of euros, according to a statement from the then-deputy mayor to the city council
  • DEPEPOK, the development company of ZEP, abandoned, was left to its fate without a balance sheet being drawn up in recent times 5 years and without being audited by certified public accountants, leaving accumulated debts to employees, Ika, PPC and certified public accountants.

I remain only in the above, not to mention other issues, which tend to be characterized as minor, such as the management of DIPETHE or the "borrowed" oil from DIADYMA.

It is absolutely useful to remember this point, what was the financial situation during the period 2011-2014 middle of the economic crisis, with the country's economy collapsing and the finances of local government organizations being hit hard.
Compared to the period of the crisis, the time period from 2015 until the 2019 the economic situation of the country had stabilized and the finances of the Local Government Organizations had been consolidated and not worsened by further cuts.

The citation of these financial data proves the real situation and dispels myths. So it turns out that:

  • The speed with which suppliers were repaid slowed down during the period 2014/2019
  • The obligations of the Municipality to DEYAK were launched in the same period
  • The care for the collection of the requirements of MUNICIPALITY / DEYAK / OAPN was insufficient

This situation only causes sadness and anxiety for the finances of the Municipality. It proves once again the dimension of words and deeds of the previous Municipal Authority, the ease of exercising inexpensive criticism and the inability to achieve goals and results.

By no means do I want to convey that I recommend for the mother to be inactive, in which they handed over the Municipality to us. If the financial situation of the Municipality and Legal Entities were better, we would start with clearly more favorable conditions in the current municipal period. But unfortunately this is the reality and we must be realistic, especially in the critical period we are going through, because we will be called upon to make decisive decisions about the future of the citizens and the region.

The legality and transparency of the financial management of the Municipality is self-evident and necessary for us and it is self-evident that it governs the operation of the Municipality in all areas. It is the necessary condition for good operation of the Municipality and the basis for improving and strengthening the efficiency services, which is our top priority.

The recent experience of the explosion of digital services during the coronavirus pandemic gives us many good examples of optimizing service delivery. Especially in the next period with the further contraction of lignite activity and as the social problems in the area will intensify, we need to support the citizens even more. Beyond the self-evident obligation of the state to deal with the new data, to support the region and contribute to its development, We, as a Municipality, must stand responsibly towards the citizens.

Only through legal procedures, transparency, rational management and realistic treatment of data, we will contribute decisively and effectively to shaping the next day for the place and our fellow citizens.

 

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