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Tuesday, January 31, 2023

EV: YPOIK bought a building without the available credits

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The Ministry of Finance proceeded with the purchase of the Nicosia City Center without any available funds in the State Budget and without any relevant provision for its purchase, says the Audit Office.

< p>“In other words, its provisions on Financial Liability and the Financial Framework Law were not observed, which stipulates that no Public Investment Project can be promoted if the procedure provided in Part XI (Selection and implementation of Public Investment Projects) of the Law is not followed.” , the Audit Office states in its special report for the Ministry of Finance for the year 2020.

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He also notes that the building will be completed after modification of its original design, in order to meet the building requirements of the State, which requires the purchase of the building to be subject to public procurement legislation and will be delivered, apparently, for use without being secured. certificate of final approval, “criminal offense”.

The Audit Office insists that “the purchase of the building was made, in our opinion, at an unprofitable, for the public, price, while it is being built on land that will still belong to a third person, to which rents will be paid in excess of the reasonable price. value of the lease, without in fact the property falling into the ownership of the state “.

As mentioned, the Department of Lands and Surveying estimated the value of the building at € 20,000,000, while the State will pay to the owner company the amount of € 22,650,000. “That is € 2,650,000 more, and the market value of the lessor's right to € 4,230,000 while the State will pay to the Institution an amount equal to € 5,279,000, ie € 1,050,000 more”, adds the Audit Office./p>

In his replies to EV, the General Manager of YPOIK, states that credits will be transferred from other articles of the Budget for the purchase of the building, that the agreed price includes the cost for the internal separation of the building , based on the usual practice in the case of office space and that the final purchase price of the building is not unprofitable for the state.

Source: www.philenews.com

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