Service providers demand Council settle €25m debt

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SERVICE providers in Velez-Malaga are up in arms because they haven’t been paid by the town hall, and some threaten to cease operating. The town hall owes €25m to several different companies, all of which seem to have agreed to start putting pressure on the council to get their money.

The latest company to demand payment is Alsa, which operates buses in the town, including a free service to take local university students to the campus in Malaga, which is used by around 1,000 students.

The company has written to the town hall demanding the payment of €309,000 which is owed to them within one month or they will cease the service.

The town hall has promised to pay €111,000 before the end of the month and will be classified as a extrajudicial debt.

Travelsa, the tram service provider, had also threatened to cease operating if they were not paid the €177,000 owed to them before the end of the month. The Councillor for Transport, Antonio Lopez, complains that the company is too fond of putting pressure on the town hall and that they are not owed any money from previous months.

The company providing rubbish collection and cleaning services in the town, Althenia, said in October 2010 that they would cease to provide the service due to a debt of €11m. A last minute agreement was reached and the service continued.

The municipal housing company (Emvipsa) has criticized the town hall over delays paying the staff, and last year, their accounts were embargoed when the town hall fail to pay the tax office a debt of €359,000.

By Jennifer Leighfield

 

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