A missing garden, park and signage/The consequences of a financial decision by the Municipality of Vlora

At the end of April, at the height of the electoral campaign, after the (earlier) transfer of the Vlora Water Supply Company from the Municipality to the Ministry of Infrastructure, the Municipal Council of this city approved an agreement to pay in installments the unpaid debt that the Water Supply Company had to the Municipality.

The agreement would also serve to resolve the financial impasse created between the two institutions since 2018, as the Water Supply Company did not regularly transfer the revenues it collected from taxes such as cleaning or greening to the Municipality's budget.

Meanwhile, negotiations for the payment of debts had been underway for a year.

Debt
A working group established earlier had calculated that the amount of debt was 261 million lek, of which 70 million lek new is interest on late payments and 191 million lek principal.

The water utility proposed that the company recognize the debt as far as the principal is concerned (paying it in installments), but not the interest.

The proposal then went to the City Council for discussion on April 29.  

The Democrats
opposed the agreement at the Municipal Council meeting, arguing that the municipality cannot forgive the money that the Waterworks has collected, and that does not go to the citizens.

Consequences
Former Mayor Gëzim Zilja and current Democratic councilor Gjergji Nika gave concrete examples to Faktoje.al of what could be financed with 70 million new lek in public services.

Gjergji Nika said that such an amount would serve to invest in a kindergarten or school in rural areas.

Meanwhile, Gëzim Zilja said that the amount not included in the agreement and 'indirectly forgiven' would serve to improve road signage and install traffic lights on the city's main axes; the renewal of the Soda Forest; the creation of small rectangular gardens along the Lungomare, a park in front of the former Navy School; the construction of social housing for the homeless, as well as the creation of public sports fields for children and youth.

Reaction
The Legal Director of the Municipality of Vlora, Dorian Demiri, said that the debt (70 million new lek) will not be forgiven, but a way will be found to request the repayment of the interest in court through a second decision. This clarification by the DP has been described as a fruitless attempt.

Decision
DP member of the Municipal Council, Gjergji Nika, said that the decision approved by the Municipal Council (30 in favor, 6 against and 1 abstention) that does not include late payment interest can be used in court against the Municipality itself.

"Regarding late payment interest, when you approve a contract and agree to abide by it, plus vote in the Council on a draft decision that does not mention late payment interest, but only requests payment of the principal, then the court application is invalid because the Municipality as an institution has previously agreed to this amount and the court rejects the late payment interest request, given that the last approved decision remains in force (which is the last one, without the late payment interest)," said Nika.

According to him, the amount of interest-delays will remain in the Municipality's accounting books until they are forgiven by law or by internal order. Faktoje.al