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Next Previous Party of millions with rents & purchases of buildings from the state HOME • INSIDER • CYPRUS • Party of millions with rents & purchases of buildings from the state
& nbsp & nbspVassos Vassiliou & nbsp; & nbsp;
The timeless party related to the housing of ministries, government departments and services, as well as storage space, has returned to the forefront in a debate before the Parliamentary Committee on Finance regarding the purchase of the Metropolitan and Nicosia City Center buildings.
The Auditor General of the Republic Odysseas Michailidis suggested that the state proceed with the construction of buildings that will house ministries and government departments, on government land. & Nbsp;
It is worth noting that just a few months ago the Auditor General Michailidis referred to the rental of a building whose ten-year rent was such that the State could build its own building with this amount. & Nbsp;
SEE ALSO: The Metropolitan market is scandalous, the Auditor complains
However, for those who know, it is a common secret that buildings have been bought or rented over time to serve owners who have either erected buildings and stayed unallocated, or built specifically to rent them to the public. It is also known that some of the owners had close relations with politicians. The owners of buildings that were rented to the public included, from time to time, politicians.
It is also noted that the great effort made about ten years ago with the aim of erecting buildings in the area of the International State Fair clashed with the reactions of the Municipality of Engomi and residents of the area. In the process, an effort was made to build three buildings in the wider area of the General Secretariat, which will house the Ministries of Interior, Justice and Transport and it is estimated that the bids will be announced soon.
But what is clear from the Audit Office, as recorded in its latest report on the matter?
According to the Auditor General, for a period of a few years the State paid rents of € 185 million. It should also be noted that based on the same report, 380 owners rent buildings in the State. In recent years, the State pays about € 20 million annually for rent, which is equivalent to the construction of buildings with an area of about 15,000 sq.m. & nbsp;
The state has been renting buildings since 1977, which demonstrates its dependence on private owners. The Auditor General recorded that in 2011 the state paid € 30,900,000 in rent. In 2012 he paid € 30,200.00, in 2013 the amount was reduced to € 27,400,000, in 2014 € 23,200,000, in 2015 € 22,700,000, in 2016 22,700,000 and in 2019 € 23,400,000. Many of the rents were reduced due to the financial crisis and the negotiation between the government and the landlords, while the release of rented buildings also contributed to the reduction of the annual rents. & nbsp;
Moreover, according to a relevant document of the Ministry of Finance which had been submitted to the Council of Ministers on. 30/4/2014, the number of rented buildings (to the public) amounted to 671, although from time to time there were fluctuations in the numbers. & nbsp;
As pointed out by the Auditor General, the Public Service, in a very large percentage (53%) is housed in rented buildings. He also pointed out that the relocation of ministries to rented buildings, as an intermediate solution, without the simultaneous promotion of the construction of privately owned buildings and the continuation of rental under the same conditions, is not the most economically viable option and does not serve, in the best possible way, the public interest. & nbsp;
Some of the findings of the last audit that were included in a report of the Audit Office and which are expected to be presented to the Parliamentary Audit Committee, are the following: & nbsp;
-It was observed that they were concluded favorably to the owners rental contracts, with a long rental period and provision for rent increases every two years. & nbsp;
-Due to the long rental periods provided by certain rental contracts, from the calculations of the Audit Office it seems that the total amount of rents paid for a period of about 10 years, was possibly equivalent to the cost of construction of privately owned buildings. & nbsp;
– Work has been carried out on a number of rented buildings, the costs of which were borne by the state instead of the owner. At the same time, with the start of these works, the tenant was already starting to pay the rent to the landlord, ie before the use of the buildings. & nbsp;
– Rental contracts with agreed rental prices were identified, much higher than the reasonable market prices. & nbsp;
-Several rented buildings did not have Certificates of Approval, some had Certificates of Approval with Notes, while others had Certificates of Approval with Unauthorized Works. & nbsp;
-Some Services/Departments/Organizations proceeded to rent buildings to meet their housing needs, with a much larger office space than required. & nbsp;
-Rent increases were given, without any prior attempt/negotiation to limit them. & nbsp;
-A number of buildings were rented, which presented various problems and/or were insufficient/unsuitable/energy-intensive to house Government Services. & nbsp;
-Buildings were selected without following the appropriate procedures, violating the principles of good administration, equal treatment and transparency. & nbsp;
-It has become clear that for certain buildings may have been committed by various persons exercising public authority, criminal offenses in connection with the procedure initially followed for their rental and at a later stage for their acquisition.
< According to data collected by the Audit Office, for a certain period of time, the ministries that paid the most rent (due to the many services that fall under them). ) were the following: & nbsp;
-The Ministry of Interior has spent the largest total amount, approximately € 29.5 million for 86 rental contracts. & nbsp;
-The Ministry of Transport, Communications and Works has spent a total amount, approximately € 22 million for 86 rental contracts. & nbsp;
-The Ministry of Foreign Affairs has spent a total amount of approximately € 20.2 million on 83 rental contracts including embassies, embassies and consulates abroad. & nbsp;
-The Ministry of Health has spent a total of about € 19 million on 12 rental contracts.
The wreck of the International Exhibition
Under the government of Dimitris Christofias, it was decided to use part of the International State Exhibition for the construction of privately owned buildings to house government services. Specifically, the Provincial Department of Urban Planning and Housing, the Central Cadastral Offices, the Provincial Cadastral and Surveying Department, the Nicosia District Administration, the Central Offices and the Provincial Office of the Ministry of Interior and the Nicosia Office will be transferred there. It was also planned to build a hotel and a Conference Center at the Exhibition site, which will be managed by the State Exhibition Authority.
At the same time, provision was made to house the following services: & nbsp;
Aglantzias, buildings were erected to house the Ministries of Justice and Defense (along with similar services). & Nbsp;/p>
