City of Altea to pay €1.4million in court ruling

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IN compliance with a judgment of the High Court, The City of Altea must pay €1.412million to the company, FCC Environment SA.

Altea Town Council met last week in a plenary to discuss, amongst other matters, approval of the proposed settlement agreement with FCC Environment.

Pedro Lloret, Councillor of Finance explained that further to the judgment received on 29th November 2016, the city must make payment to FCC Environment in respect of works carried out between 2007 and 2013, being garbage removal and street cleaning.

The plenary approved the proposal on commercial settlement.

Lloret explained that whilst FCC Environment were the contractors of the garbage removal and street cleaning between 1997 and 2007, when the contract ended in 2007, FCC Environment continued to provide the service (and subsequently billing the municipality) until 2013. It was in 2013 that the Public Enterprise took over the contract.

The Councilor went on to say that although it is now difficult to assess the economic impact of this inaction, the first question asked should be as to why the council did not take action when the expiration of the contract with FCC Environment was nearing.

An expensive case of negligence, the original claim was for over 2 million€, meaning the city has saved more than 500,000€. The settlement payment will be made following receipt of a loan to the city, after the council’s request last year to join the Economic Promotion Fund of the State to make the payments was rejected.

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