2024-06-26 01:09:36
The informative report ready by the Ministry of Finance (FM) states that on the assembly of the Cupboard of Ministers (MK) on February 13, 2024, it was determined to permit the Minister of Finance to grant a state funds mortgage of as much as 5 million euros to the municipality of Rēzekne from the rise within the whole allowable borrowing of municipalities in 2024, that are due for cost on December 31, 2023, for execution.
The FM states that a possibility has been discovered for Rēzekne municipality to stabilize the monetary scenario and, in accordance with the situations laid down within the resolution of the Cupboard of Ministers, to grant a state funds mortgage for the achievement of the obligations undertaken, in order that the inhabitants don’t endure from the actions of Rēzekne municipality, and it is ready to make sure the efficiency of the everlasting features of municipalities established by regulation, restoring monetary stability in the long term.
Within the resolution of the Cupboard of Ministers, particular situations have been set for Rēzekne municipality to obtain a state funds mortgage, stipulating that till the conclusion of the mortgage settlement with the State Treasury, it should submit the FM Council’s resolution on the state mortgage and data on the quantity of Rēzekne municipality’s borrowing, assure obligations, together with the state mortgage, in addition to town council should approve the 2024 funds and not using a deficit, bearing in mind the state funds mortgage.
Additionally, the Rēzekne municipality should submit a certificates that the municipality has opened accounts within the State Treasury for all bills, in addition to submit a council resolution certifying that the Rēzekne municipality undertakes to make sure that it, together with municipal officers and heads of establishments, doesn’t undertake obligations with out an allocation or obligations that exceed allotted allocations or authorizations for the deliberate obligations sooner or later, and that the financing sources for the achievement of obligations are deliberate in strict compliance with the necessities established by the laws.
The FM’s report states that the Rēzekne municipal council was the one council that didn’t approve the municipality’s 2024 funds by February 21. As well as, the 2024 funds adopted by the Rēzekne Municipal Council on March 7, 2024 was permitted, disregarding the choice of the MK and the directions of the Standing Fee for Reviewing Municipal Monetary Stabilization Purposes and Harmonizing Monetary Stabilization Initiatives.
The fee has concluded that the Rēzekne municipality has fulfilled the directions of the fee and the situation set by the MK solely with the amendments to the 2024 funds of April 25, 2024 – it has submitted a balanced funds for 2024 permitted by the Rēzekne municipality council, bearing in mind the deliberate state funds mortgage.
In accordance with the knowledge submitted by the municipality of Rēzekne, the steadiness of funds on Could 31, which isn’t meant for financing marked objectives, is 1,408,621 euros. The Fee has repeatedly indicated to the administration of the Rēzekne municipality that, to be able to scale back late funds, the remaining funds, which aren’t marked as goal financing, have to be directed to the achievement of collectors’ obligations.
Overdue funds to collectors on Could 31 for the municipality amounted to five,103,195 euros, which in comparison with January 31, 2024 is a rise of 777,473 euros or 18%. 92.6% of overdue funds, that are longer than 30 days, have been funds that have been presupposed to be lined from the state funds mortgage.
The FM’s report states that Rēzekne Municipality has fulfilled the situations beforehand set by the Cupboard of Ministers on February 13, together with on April 25, 2024, the Rēzekne Municipality Council permitted a balanced funds for 2024 with amendments. The required quantity of the state funds mortgage to the municipality of Rēzekne for the achievement of overdue funds for 2023 is 4,025,209 euros in line with the collectors indicated within the appendix of this informative report.
It has already been reported that the Saeima adopted the regulation on the dismissal of the Rēzekne Metropolis Council in its remaining studying on June 20.
The adopted “Rēzekne Municipal Council Dismissal Legislation” will enter into power the day after its promulgation. In accordance with the Structure, the regulation may be promulgated no sooner than on the tenth day after its adoption.
The Authorities and the Ministry of Environmental Safety and Regional Growth (VARAM) superior the regulation adopted within the Saeima, justifying it by the truth that the Rēzekne Metropolis Council has dedicated violations of the “Legislation on Finances and Monetary Administration”, the Legislation “On Municipal Budgets” and the Legislation on Municipalities, with out guaranteeing the achievement of the features specified within the legal guidelines and disregarding the pursuits of the residents of the state and the respective administrative territory.
VARAM identified that the council demonstrated systematic incompetence and carried out intentionally unlawful actions associated to the event, adoption and execution of the municipal funds for 2023, in addition to the event and adoption of the 2024 funds.
The supervising state administrative establishments haven’t gained confidence that the monetary scenario of the municipality beneath the present council might change. This endangers the efficiency of the autonomous features of the municipality and guaranteeing the operation of the administration.
The regulation stipulates {that a} short-term administration will likely be appointed within the municipality. Its head will likely be former head of the Firm Register, lawyer Guna Puce, and her deputies – rector of Rēzekne Academy of Expertise, physician of financial sciences Iveta Mietule and former head of the Riga Development Authority Jānis Belkovskis.
2024-06-26 01:09:36