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“We have another technical problem to abolish them, the fact that we have no cash flow, as you know, the biggest problem that we encountered in this period as mayor was that we found a current debt of 2.5 billion lei, money that theoretically we should pay on the spot, ”said Nicusor Dan, according to Agerpres.
Asked what generated the debt, the mayor listed the causes that led to its creation and also explained the reason why municipal companies cannot be closed immediately.
“From companies, from festivals, from an unreasonable budget, from the forecast of income that was known to be impossible, this is how this debt was reached. Not having money to pay all the debts … very simplistic: to close a business, you have to pay your debts, put your people aside, see what the inventory items are, and that’s it. Currently we do not have the cash flow to pay off your debts and bring them to zero. This is the technical hurdle we faced to close, “said Nicuşor Dan.
He added that when the municipal companies were set up, “there was a political purpose, to pay very well to some party members.”
“The decision has been made, they will be abolished. On the one hand, the abolition procedure was started for one of them. It is a tourist company, it has the peculiarity that it did not have contracts with the City Council of the Capital, in fact it did not have contracts with anyone, the employees of the capital stock lived, there were about 15 and they also had an apartment rental, quite consistent. They didn’t do anything, they had some kiosks, but they hadn’t worked since the pandemic, some information kiosks in Bucharest. And these people received salaries in vain “, added the mayor general of the Capital.
He also said that the higher the cost of some of the services provided by these municipal companies compared to similar services provided prior to their establishment.
“The problem of companies must be seen globally, theoretically they were created to provide cheaper public services. For example, street lighting or tree care in parks. The problem is (…) how much do we, as a municipality, pay before these companies and how much do we pay after their creation? And we see that in many sectors we pay 30%, 40%, 50% more. That’s why they have to be abolished, ”said Nicusor Dan.
