FOR THE PROJECT OF UPGRADING THE STREET LIGHTING
The responsibilities as well as the incorrect handling of the previous administration of the municipality regarding the project of energy upgrading of the street lighting was highlighted by the discussion held in the municipal council of Ioannina on Wednesday evening, on the occasion of the approval of the signing of the escrow contract and the opening of a special account ( escrow account), as well as that of the signing of the pledge agreement and the assignment of the claims that are necessary in order to proceed with the contract between the municipality of Ioannita and the contractor company, with the object of “the provision of services to upgrade the energy efficiency of the road system and infrastructure lighting of the municipality of Ioanniton”.
In his introduction, the mayor of Ioannina, Thomas Begas, referred to the history of the case which began with the cancellation by the previous municipal authority of the unanimous decision of the municipal council of the public tender for the supply of LED technology lighting fixtures, with a budget of 3 million euros in logic that this is a small intervention with a large cost.
The mayor reminded that the municipal authority of the “New Era” decided to proceed with the conclusion of a program contract with the Region of Epirus for the replacement of all the street lighting of the municipality by transferring in blank the entire management of a project worth 19 million euros that mortgages the reimbursement fees of the municipality for 12 years in this, without studies that should have been drawn up in order to accurately determine the physical and financial scope of the project.
“In response to our questions then, the responsible deputy mayor sent a short note coming from a Technical Advisor of the Region of Epirus, which is far from being characterized as a documented study and in the end the project was auctioned by the Region of Epirus without the preparation of all the necessary studies, without the clear definition of the physical and economic object, without technical rules and without economic logic”, he noted characteristically Mr. Begas.
He added that on 31.05.2023, the then mayor signed the service contract between the municipality of Ioannita and the Consortium of which the annexes are an integral part, which were forwarded to the municipality for signature and which has no possibility of control or change or modifying them.
“At this point I am obliged to point out that the former mayor, after showing the study and hastening to sign the main contract, as a result of which he legally and financially binds the municipality, did not proceed as he had a legal and political obligation to sign the two main annexes, i.e. the signing of the escrow account agreement and the opening of a special account (escrow account), as well as the signing of the pledge and assignment of claims agreement, according to which the municipality assigns to the contracting company, each of its claims from the reimbursable lighting fees, up to the amount which corresponds to the contract, i.e. up to the amount of €15,477,592, plus VAT and in total up to the amount of €19,192,214, leaving in a politically impermissible and legally dangerous way a serious pending matter for the next municipal authority and we are now invited, ladies and main advisors to pull the chestnuts out of the fire”, said Mr. Begas.
Concluding and after noting that from the first day of assuming his duties he had meetings both with the competent municipal services, as well as with representatives of the contractor as well as legal advisors in order to establish whether there are scopes for changes to the contract, he emphasized that according to article 6 of the special terms of reference signed by the previous municipal authority, in case of withdrawal by the municipality, it is obliged to pay the contractor 80% of the future payments with a discount rate of 5%.
“From the brief reference to the history of the case and after it was studied both by the competent employees of the technical service of our municipality, by the legal department and my special partners, we found that the municipality has no escape route from the above contract in which he was led by the previous municipal authority and is now obliged to proceed with the completion of his contractual obligations. Both I as mayor and the municipal authority, as well as the municipal services, will do everything possible to produce the best possible result for the benefit of our municipality”, concluded Mr. Begas.
Questions to the legal service
The mayor made known to the House the questions and also the answers he got from the legal department of the municipality, which call on the municipality to proceed with the signing of the contracts as suggested.
More specifically, the legal service to the question of the mayor whether, after the signing of the main contract, the signing of the contracts (appendices thereof), is mandatory for the municipal authority, answered positively.
In question as to whether the provision of authorization to the Mayor for the
signature of the contracts must be given by the Municipal Council as the only competent body for this decision, the answer was again positive and finally, to the question whether the condition of the contract of the special specifications according to which: “the Municipality is granted the right termination of its services to the contractor stemming from the contract of 12 months prior notice and payment to the contractor of 80% of future payments, plus a 5% discount rate”, binds the Municipality and can be activated by the contractor company with the way to terminate the contract, even with the issuance of a competent court decision, the legal department responded as follows:
“In the opinion of our Service, the provision provided in article 6 of the E.S.Y.
and in article 6 of the S.P.Y. clause, on the one hand, is binding both for the
contracting authority, as well as for the contracting company, on the other hand, due to its general and vague wording (i.e. the word “discontinue” is used), which allows for its broadest interpretation, this (clause) may be invoked by the contractor company, interpreting it as applicable in any case of termination of the contract by the Municipality, even in the case of a decision of a competent court”.
Locations
There followed a discussion and positions from the heads of the opposition factions as well as municipal councilors with the House ending up with a majority vote in favor of the proposal.
In more detail, Dimitris Papageorgiou also referred to the history of the case and disputed that the repayment in case of withdrawal of the municipality at a rate of 80% is valid, declaring that he is proud of the contract.
Tatiana Kalogianni, for her part, described the contract as binding and incomplete without energy efficiency data as it should be, and she suggested postponing the matter.
Nikos Godas spoke about the inconsistency of reasoning and proposal of the municipality and voted in favor with reservations for reasons of legitimacy.
Pantelis Kolokas asked for the procedures to proceed quickly leaving aside any political disagreements by voting in favor, while finally Oli Tsoumanis emphasized that the need to replace the lamps with new LED technology is understandable, adding however that it was done in the wrong way by the previous municipal council beginning with the current one coming, despite its disagreements, to continue the decisions that have been made in favor of the private company that has undertaken the project.
Closing the discussion, the mayor stated the following:
“We have exhausted the possibilities we had but we cannot afford to wait any longer. We have a very difficult fight ahead of us to ensure the best we can for our citizens from this lion’s share contract. We will fight this battle hand in hand with the legal, financial and technical service of the Municipality”.
#municipal #authoritys #hands #tied
2024-04-10 10:26:08
