The Chamber of Faro will merge Ambi municipal companiesfaro and Municipal Market of Faro in just one, until the end of the year, an operation that will allow the municipality to “save several thousand euros per month”.
The merger of the two companies, a process launched in 2009, received the green light from the Court of Auditors last Friday and the administrative processes will now be carried out to carry out the operation.
The savings will start to be noticed from the moment the merger is carried out, guaranteed the president of the Chamber of Faro Rogerio Cod Sul Informação. From the outset, on the payroll, since “there is now only one paid administrator”.
At the moment, there is one paid director per company, and the remaining members of the Board of Directors, two, in each case, are unpaid. The model will be maintained, but only with a municipal company.
This will be the only savings in wages, as all current Ambi workersfaro and from the Municipal Market are transferred to the new single company. “We already have as few people as possible working. In these cases, there is usually a certain fear on the part of the workers, but I am sure they are calm, as they know that there is no such danger», joked Rogério Bacalhau.
On this side, the mayor only sees advantages, since the fact that they belong to the same structure, will allow employees to "help where necessary", something that is not always possible, with the separation that exists today, which will bring "synergies that increase efficiency'.
In addition to saving on the remuneration of an administrator, the Chamber of Faro it will also gain from the reduction of bureaucratic burdens. In the future, only one accounting firm and one Statutory Auditor will have to be hired.
Another positive side of the merger, highlighted by the Chamber of Faro, is «the possibility of renegotiating contracts with suppliers making use of the economies of scale that the quantity originates».
"The news means the fulfillment of an important objective of the Municipality, as it allows for a process started in 2009 to be carried out, which will allow for much more effective financial and budgetary control, increasing the efficiency of the application of financial resources and providing greater flexibility to the management of the treasury», considered the Faro local authority, in a press release.
«Within a framework of maintenance of budgetary and management rigor, the Municipality of Faro welcomes this news. Of the various scenarios studied, namely the maintenance of the two companies with identity and autonomous legal figures, or even the incorporation of their areas of activity, resources and commitments under the direct and internal responsibility of the Municipality of Faro, this will be the framework that guarantees greater operational and technical efficiency, but above all economic and financial stability, to all these municipal companies», he concluded.
The Chamber of Faro has been reducing charges to municipal companies since 2009, shortly after the PSD/CDS-PP executive, then led by Macário Correia, took office. At the time, each board of directors of the three existing municipal companies had three paid directors. As of 2010, there was only one director paid per Board of Directors. Since municipalization of the Municipal Theater of Faro, in 2013, that there are only two paid municipal company administrators in the Algarve capital.
Second PAEL tranche of Faro has already entered the municipality's coffers
The Chamber of Faro it has already received the second tranche of the loan it took out under the Local Economy Support Plan (PAEL), with a value of around 3,34 million euros. This amount, like the tranche that preceded it, will be used to pay overdue short-term debts, most of which to suppliers in the Algarve region.
The amount that has now arrived corresponds to about 20 percent of the total that the municipality of Faro asked the State. In a first phase, 60 percent of the more than 16,7 million euros that Faro will receive under the PAEL.
The next tranche, with the same value as the one now arrived, will be transferred “after delivery to the DGAL of the proof of full payments of the eligible debts covered by the previous tranche”, as already happened in relation to the second tranche.
Comments