With regard to the findings and recommendations in the Special Report of the Audit Service of the Republic, as well as the positions of the Ministry of Finance, the following is noted:
With regard to the issue of the existence of available appropriations in the approved state budget, it is noted that appropriations were included in the budget of the Department of Cadastre and Land Surveying in the total amount of €45 million. The budget for the year 2021 and €47 million for the year 2021 and €47 million for the year 2021, respectively. for 2022, which may, on the basis of the relevant Law and Regulations, be used for this purpose.
Regarding the issue of the need to prepare a Project Note/Sustainability Study for public investment projects, it is noted that, this practice came into force in January 2021, i.e. at a time later than the publication of the Open Call for Expression of Interest to the private sector for the acquisition of buildings, published by the Ministry of Finance on 13.9.2019, through which this building was also proposed. It is noted, in this regard, that the Invitation was prepared in cooperation with the General Accounting Office of the Republic, in order to ensure compatibility with the relevant legislation.
Regarding the issue of concluding an agreement for the acquisition of the building before obtaining the final approval certificate, it is noted that, according to the opinion of the Attorney General of the Republic, this action is not inferred as unlawful, while the whole issue is regulated in the terms of the text of the purchase agreement.
With regard to the finding of the Audit Office that the acquisition of the building was made at a price that was unprofitable for the Republic, it is noted that the valuation of the Land Registry and Land Survey Department was estimated at €20.07 million, reduced by 10%, due to the size of the building, while the corresponding estimate by the private valuer was €24.54 million.
It is stressed that it is government policy, which was also followed in the present procedure, to examine the available alternatives for meeting the housing needs of the public sector in relation to the required cost, the opportunity cost and the time of implementation, in order to select the most appropriate procedure for the interests of the Republic. Therefore, taking all the relevant data into account, it was assessed that, at this stage, the acquisition of existing buildings available on the market is the most appropriate option in the interests of the Republic. In this respect, it is noted that the total additional costs that the Republic would have to pay in the event of the construction of an equivalent privately owned building are expected to be in the order of €7.79 million over the next five years.
In conclusion, it is noted that the Purchase Agreement has been subject to a legal and technical review and all safeguards have been put in place to ensure the interests of the Republic and the legality of this transaction, while it is stressed that the Purchase Agreement has not been signed, pending the release of the funds.
(MB/IK)
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