The building in which the Ministry of Labour is housed faces static issues[/B][/QUOTE]
The disputes between the Ministry of Finance and the Audit Service continued before the Parliamentary Finance Committee in relation to the release of €25 million of funds. for the purchase of the Metropolitan building for the purpose of housing the Ministry of Labour and Social Security.
A representative of the Ministry of Finance stated before the Committee that the building which houses the Ministry of Labour has[/B] stability issues.[/B]
In response to a new letter sent to the Commission by the Audit Office, the representative said that the issue of the building factor, raised in the letter, was addressed by the seller using the provisions of the Nicosia Local Plan, which was confirmed by a representative of the Nicosia Municipality.
For the purchase price of €20.35 million as estimated by the Land Registry, the spokeswoman said that the construction cost is not the same as the selling price of a building.
She explained that the Government has very large housing needs and there are three ways of dealing with them. The construction of a building with funds from the budget, rental, and purchase and how a combination of these options are used.
Recalling that the tender for the selection of buildings was called in 2020, he added that "at this time less than 2 years have passed, there was no possibility to erect a building in a period of 2 years."
The Auditor General, Odysseas Michaelides, recalled that the 2014 Fiscal Responsibility Law provides for a cost-benefit analysis, a provision that was activated by a circular in 2021.
He recalled that the building was intended for the Ministry of Transport, which he said is not suitable because it has wasted space. "When it didn't suit them for the Ministry of Transport, they said let them take the Ministry of Labour," he added.
He noted that to the contractor the building in question cost €12 million while the plot on which it was built is around €3 million. "Is it reasonable for the Republic to give him €21 million? "The Republic will let a contractor make a 40% profit?" he questioned.
He also wondered how long the Republic would wait for the Labour Ministry to move into the building for which the plot has to be divided.
A Nicosia Municipality spokesman said the seller of the building would be asked to pay an additional amount beyond €300.000 for the separation of the plot, while the spokesperson of the Ministry of Finance said that the seller has informed that if the sale does not take place, no request for separation will be submitted.
In addition, the Land Registry said that the €20.35 million valuation price was obtained by combining three valuation methods: comparative, investment and construction cost with a weight of 75%, 15% and 10% respectively.
He said the final cost, including the businessman's profit, amounted to €22 million but a 10% cost was deducted due to the large size of the building.
It is recalled that Nicosia City Central has been finally leased by its owner.
The matter is expected to go to the Finance Committee for a positioning next Monday.
Source: CNA
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