Arrecife's partners close ranks with the budgets: the PSOE affirms that it had "doubts" that have already been "resolved"

The PP mayor and the socialist spokesperson have publicly presented the accounts, after the divided vote that took place in the Finance Committee

February 25 2021 (13:22 WET)
Updated in February 25 2021 (16:23 WET)
The spokespersons of the parties that make up the government group, at the presentation of the budgets
The spokespersons of the parties that make up the government group, at the presentation of the budgets

The Arrecife government group has publicly settled its differences this Thursday regarding the upcoming City Council budgets, in a press conference in which the PP and PSOE have presented and defended the accounts. The socialist spokesperson, Alfredo Mendoza, has justified his party's abstention in the Finance Committee, stating that they had "doubts" about some chapters, but that they have already been "resolved".

"Already in the Committee itself, we were very clear that we could not afford not to approve budgets like the ones we have just seen today," Mendoza even stated, pointing out that he wants "it to be understood that the vote in the Committee last Monday occurred in the context of a working body".

As he explained, the socialists arrived at that Committee "with certain doubts regarding the wording of the budget in several chapters" and also about the 27 million loan that the City Council intends to request to pay the Ginory sentence. "There were prior conditions that were assessed at the time regarding the awarding of the loan, and we were still assessing what the new conditions could be established from a financial point of view and how it could impact the future budgets of the Corporation," he pointed out. "But after meetings in these days, we have been able to resolve the doubts," he insisted, although the Finance Councilor, Cristina Duque, was not present at the press conference. 

"I cannot answer, because I don't know, she hasn't called me, but the spokesperson is called Alfredo Mendoza and I have sent an invitation to the spokespersons," the mayor of Arrecife responded to questions from journalists about the absence of the socialist councilor. 

However, the PSOE spokesperson highlighted that the budgets represent "an increase of 55%" compared to the previous one and that the Ginory loan will entail "savings of more than seven million euros" for the Consistory's coffers, and in the face of this, he said that his group can only "vote in favor". 

 

Savings "of 7.5 million" in interest

Specifically, according to what Ástrid Pérez has stated, it is estimated that the Ginory loan will allow the Consistory to save 7.5 million euros in interest. The mayor has assured that compared to the 3% interest that was contemplated in the sentence and that the Justice later raised to 5%, the banking operation will be "practically at zero interest". Thus, it is expected that with the single payment only one million euros will be paid in interest compared to 8.5 that would have to be paid if the current payment plan continues.

It was in 2012 when it was sentenced to pay 20 million euros for the Ginory plot, but that debt has been increasing to 27 million euros due to interest, having paid only three so far, according to Pérez. In this sense, she has been very critical of the previous government groups and especially with CC for their "inactivity". And it is that "being CC responsible for the Mayor's Office and the Finance Councilorship", "not a single euro of the principal was paid". 

This, according to the mayor, meant that "in December 2018", when the socialist Eva de Anta was already mayor, they received "a penalty" and that then the interest rate was raised to 5%. After that, she stated that it was when a first payment of one million euros was made, which is added to another two that the current government has paid. 


She has accused CC of "fattening the account" of the Ginory family

"CC will have to explain to the citizens why they have not paid a single euro of the principal, being able to budget and being able to request a loan from the bank that would come out at a lower interest rate and why they have allowed these gentlemen to collect much more money", Ástrid Pérez has pointed out. "And they will have to explain why they continue to insist that we continue with the payment plan," the mayor has stated, assuring that she "would leave the Mayor's Office" before "fattening the current account of a family". 

"I don't have the soul to be silent, not pay a single euro, and continue with a payment plan that I know is burdensome for society and for the City Council, to fatten the current account of a family. I don't know who in that party will be interested in making a family richer," she added.

 

An appraisal that was not appealed by Cándido Reguera

However, Pérez has recognized that it was her party colleague, the late former mayor Cándido Reguera, who did not challenge the appraisal agreement that set the amount to be paid for the Ginory plot at 20 million euros, a figure that she considers "is a barbarity" and "a nonsense". 

"I don't know why he doesn't challenge it, unfortunately he is no longer here and cannot say it, but those who know about this tell me that he doesn't challenge it because he may have been afraid that they would force us to a higher appraisal, but if they had forced us to a lower appraisal, it would have been only one million or one and a half million euros. Look, what is more serious? A million euros that we would have saved with the appraisal or letting the family earn seven million euros?" she has pointed out however. 

Now, of the 27 million euro bank loan that the City Council intends to obtain, 24 would be used to pay the Ginory debt and the other three for investments, according to the mayor.

 

The future of the Ginory plot

Regarding the future of the Ginory plot, Ástrid Pérez has pointed out that a modification of the General Plan of Arrecife is being studied, which allows changing its use, since currently the land is intended for "parks and gardens". 

However, for the moment and until it is seen if this is possible, the drafting of a project has been commissioned to pave it and put electricity, to "try to hold sporting, cultural and festive events there". However, the mayor has pointed out that, for this, the principal debt must first be paid, otherwise it cannot be registered in the Property Registry in the name of the City Council. 

 

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