He Council of Tenerife wins another lawsuit against banking to recover six million euros of public money. This is the meaning of the judgment of the Provincial Court of Santa Cruz de Tenerife that it agrees with the insular institution in its claim to recover public funds that it claimed as money paid unnecessarily as banking products, the so-called swap, hired by previous island governments that caused economic damage to the island coffers. The Provincial Court hears the claim of the Council of Tenerife To recover exactly 5,253,723 euros, these bank products were inefficient and caused economic damage to the public coffers of the Island. To this amount must be added the interest that has been generated since the date of the claim.
In 2011, the insular government, then in the hands of the Canarian Coalition, contracted products called swap with banking entities to finance debt amortizations, operations that were detrimental to the coffers of the Cabildo de Tenerife, since payments continued to be made once the aforementioned loans were paid. Despite the fact that there were Supreme Court rulings in 2016 invalidating said payments, the previous political leaders never demanded the return of public money to the banks. It has been in this mandate when action has been taken to legally claim the return of the money. The procedure was even about to expire, since previously no action had been taken to recover it. In this favorable sentence for the Cabildo de Tenerife, it is worth highlighting the work carried out by the prestigious Tenerife jurist José Luis Sánchez-Parodi, who recently died, whose successful management has allowed the Island Corporation to recover public funds that legitimately belong to Tenerife society.
two sentences
Actually, there are already two rulings in favor of the Island Corporation, which plans to recover more than six million euros of public money for these banking products. The first ruling on this matter, dated March 8, 2022, established that the amount of 791,710.52 euros should be paid to the Cabildo de Tenerife, which are added to those of the current judicial resolution, greater than 5.2 million euros, plus interest. The insular president, Pedro Martín, indicates that “we were surprised that the previous corporation did not demand from the banks the return of improperly collected money, as has been demonstrated.” Martín adds: “We have done what we had to do, defend the interests of the Cabildo, and justice has proved us right.”
Also the TSJC
A final judgment of the Superior Court of Justice of the Canary Islands (TSJC) last January also agreed with the Island Corporation in the procedure initiated against the company awarded the eternal reform of the facade of the Island Palace due to the defects detected in the plays. In this case, the amount that the court determined must be returned to the Cabildo is 4,506,339 euros, plus legal costs. This ruling allows the restoration of the building to be resumed this year.
