Tuesday, 9 August 2011

Ronda - Ayuntamiento in the red to the tune of 30 million euros

Ronda residents are waking up today to the stark facts that have been laid bare in a letter from the new Mayor,Mari Paz Fernandez that itemises the details of the nearly 30 million euro debt that the new leaders of the Ayuntamiento ( town council) have inherited from their predecessors. It makes sober reading and lays out various measures that will be put in place to minimize future expenses and try to pull Ronda out of the mire.

This is the itemised list of the debt owing:

Banks 15.320.946,61
Providers 10.767.927,91
Social Security 569.158,68
Junta Andalucia 328.391,77
Private Business 1.920.000,00
Unpaid Bills 593.898,18

Total 29.500.323,15

As a result various providers are refusing to supply materials to the council, such as cleaning equipment, office materials, maintenance work, as there are still bills owed from as far back as 2009.

On top of this there is no cash flow to pay the salaries of the various workers in the council.

In face of this massive economic fiasco, the new leadership are proposing a list of measures to reduce future spending these include:

1.A reduction in the amount of advisors to the council by half, and a reduction in the remaining advisors salaries.

2.Suspension of the offical car- only to be used on offical business out of town.

3.Reduction of the Mayor's own salary.

4.The revision of the contracts for the local municipal newspaper and television network.

5. A centralized system for the buying of future materials for the council to reduce the problem of expensive and unnecessary expenses.

6.A restructuring of the municipal platform to improve the efficiency of the funcionaries.

7.A promise to pay providers according to the law as quickly as possible.

This seems to me all very well, but what happens about the actual 30 million euro debt? If town services are to be cut back, which seems to me to be the next logical step in the plan of action, as the Ayuntamiento is one of the main employers in the town there will be more and more people out of work, not paying into the social security system etc etc. Unfortunately this sorry situation is being played out across the country, and although Spain is already on the verge of collapse, I fear the worst is probably yet to come.

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