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Home El Dia

Puerto de la Cruz Government Unveils Financial Irregularities from Previous PSOE Administration

January 16, 2025
in El Dia
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Puerto de la Cruz Government Unveils Financial Irregularities from Previous PSOE Administration
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The group directed by the PSOE, which led the Government of Puerto de la Cruz until the motion of censure in August last year, is implicated in “a series of serious irregularities” that “have a direct impact on the financial stability of the municipality as well as the welfare of social and civic organisations.”

This was reported on Thursday by the current coalition comprising PP, CC, and Portuense Citizen Assembly at a press gathering. The team helmed by Mayor Leopoldo Afonso (PP) disclosed figures indicating “over one million euros in invoices lacking the necessary administrative procedure, resulting in considerable detriment to the municipal finances and, consequently, to the entire community.”

These irregularities impact approximately 25 social and cultural organisations that have not received the appropriate subsidies sanctioned by the previous local administration led by socialist Marco González. Additionally, Leopoldo Afonso has alerted to a debt amounting to 4.1 million euros, including a liability in invoices totalling 2.4 million; 500,000 euros corresponding to debts incurred by the public company Pamarsa; 1,076,928 euros in agreements; and sanctions from Costa, totalling 142,740 euros.

Puerto de la Cruz Government Unveils Financial Irregularities from Previous PSOE Administration

Jardín Beach, closed to bathing due to sewage discharges. / Arturo Jiménez

During Thursday’s media briefing, the mayor slated “severe irregularities inherited from PSOE-controlled areas, which are damaging the financial health of Puerto de la Cruz and the welfare of our social organisations.”

The complaint unveils an “economic gap of 4,135,475 euros related to invoices processed without the appropriate procedures, adversely affecting both the City Council and the populace. “It is entirely unacceptable that over 25 social entities did not receive the promised funding.” Afonso also underscored the case of Christmas lighting in 2023, which “involves an unprocedural bill exceeding 200,000 euros.”

Moreover, the local councillor remarked that “environmental management has been neglected” and that there is an average payment period to suppliers of nearly 80 days, resulting in a troubling lack of liquidity for our small and medium-sized enterprises,” Afonso elaborated.

“As a governing body, we are dedicated to rectifying these irregularities and restoring trust in our institutions, striving to make Puerto de la Cruz a model of effective governance and transparency,” the mayor declared.

Leopoldo Afonso took over from Marco González as head of the Puerto de la Cruz City Council on August 16 of last year following a successful motion of censure against Marco González’s administration, with the backing of CC and the party that had partnered with the PSOE until the motion, Portuense Citizen Assembly (ACP).

The first deputy mayor and councillor for Sustainable City, David Hernandez (ACP), pointed out that “one of the key issues is the debt accrued through irregular processes, primarily in the areas governed by the PSOE, such as Festivals and Culture.” “What is perilous and irresponsible is the over a million euros in invoices processed without appropriate procedures, operating via phone. Undoubtedly, this highlights a lack of planning, which we had previously cautioned our former government allies about,” Hernández emphasised.

Celebration of the Night of San Juan in Puerto de la Cruz last year. / Maria Pisaca

In this context, the first deputy mayor noted that “with this new agreement, we aim to introduce a change, starting with the regularisation of procedures—that is, a contracting strategy prioritising tenders.

“In the agreement we signed, more investment for the city is promised and, indeed, in five months we have already witnessed significant progress, such as the allocation of over 3.5 million for the Plaza de Europa car park, 1.3 million towards the sanitation of Punta Brava; 500,000 euros for the refurbishment of educational infrastructure; 6 million for the resurfacing of Aceviño and José María del Campo Llarena streets; and the purchase of the old Colegio de Los Agustinos. Over 10 million for projects in just five months,” underscored David Hernández.

Lastly, Hernández highlighted that “we have a chance to redirect, plan, and manage public funds in a responsible and serious manner.”

Similarly, the Councillor for Works and General Services, Alonso Acevedo, expressed that “there are 25 social and cultural organisations owed substantial funds, the same ones that had been promised subsidies that they never received.” “It must be made clear that these organisations, which play an essential role in the social and cultural landscape of our community, were unequivocally let down, jeopardising the viability of these entities; “Not everything goes,” Acevedo asserted.

For his part, the official responsible for works shared that “another of the pressing concerns raised in the current government’s complaint is that more than 25 social entities that had been promised funding did not receive the agreed-upon sums. For instance, the Diversas Association has been awaiting payment of 40,000 euros since 2021, indicative of a lack of dedication to entities striving for social welfare. The PHE Festival is waiting for 60,000 euros, and the Reyes Bartlet is also owed 138,000 euros. Notwithstanding this debt, the current administration is pursuing a new agreement to ensure they receive their payments promptly in the future.”

Last year’s edition of Mascarito Ponte el Tacón, part of the Puerto de la Cruz Carnival. / Maria Pisaca

Furthermore, he noted that carnival groups are also facing dire circumstances, with close to 50,000 euros still pending. Other entities such as Visión Azul (30,000 euros), Cruz Roja (60,000 euros), and Cáritas Diocesana (30,000 euros) have had their payment requests overlooked, accumulating debts that hinder their operational capabilities and their ability to support those in greatest need.

Other impacted organisations include the Centre for Tourism Initiatives (CIT), expected to receive 25,000 euros; the local music band with debt nearing 40,000 euros; and event producers, collectively owed nearly 100,000 euros. Gifres SL (60,000 euros), known for performing arts, Banda de Música (40,000 euros), and the Institute of Hispanic Studies of the Canary Islands IEHC (20,000 euros) are also experiencing considerable delays in payment.

This list continues with additional organisations such as the Neotropic Foundation, several primary sector cooperatives, the North Tenerife Drug Dependence Association, Veranos del Taoro, Ritmos Handmade, and Colorado Producciones, all adversely affected by prior mismanagement.

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