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Next The differences remain for the purchase of the Metropolitan HOME • INSIDER • CYPRUS • The differences for the purchase of the Metropolitan remain
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Disputes continued between the Ministry of Finance and the Audit Office before the parliamentary Finance Committee regarding the release of a fund of € 25 million for the purchase of the Metropolitan building for housing purposes of the Ministry of Labor and Social Insurance <./b>
A spokesman for the Ministry of Finance told the Commission that the building housing the Ministry of Labor was facing static issues.
In response to a new letter sent to the Commission by the Audit Office, the spokeswoman said raised in the letter, was addressed by the seller utilizing the provisions of the local plan of Nicosia, something that was also confirmed by a representative of the Municipality of Nicosia.
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For the purchase price of € 20.35 million as estimated by Cadastral, the spokeswoman said that the construction cost is not the same as the sale price of a building.
He explained that the Government has very high housing needs and there are three ways to address them. The construction of a building with funds from the budget, rent, and purchase and how to use a combination of these options.
Recalling that the tender for the selection of buildings was announced in 2020, he added that “at the moment Less than 2 years have passed, it was not possible to build a building in a period of 2 years “.
The Auditor General, Odysseas Michailidis, activated with a relevant circular in 2021.
He reminded that the building was intended for the Ministry of Transport, which stated that it is not suitable because it has lost space. “When he did not do it for the Ministry of Transport, they said let the Ministry of Labor take it,” he added.
3 million “Does it make sense for the Republic to give him € 21 million? Will the Republic let a contractor make a profit of 40%?” He asked.
He also wondered how long the Republic will wait to move the Ministry of Labor to the building for which the plot should be separated.
A representative of the Municipality of Nicosia said that the seller of the building will be asked to pay an additional amount in addition of € 300,000 for the separation of the plot, while the representative of YPOIK said that the seller informed that if the sale does not take place, no request for separation will be submitted.
Besides, the Land Registry said that the price of € 20.35 million of the valuation resulted from a combination of three valuation methods, comparative, investment and construction costs with a weight of 75%. 15% and 10% respectively.
As he said, the final cost, including the profit of the businessman amounted to € 22 million but a cost of 10% was deducted, due to the large size of the building. p>
It is recalled that Nicosia City Central has finally been rented by its owner.
The issue is expected to be submitted to the Finance Committee next Monday.
