The procedure, authorised by the outgoing Government, once in office, has been suspended as a precautionary measure by the courts since 26 June.
The Govern desists from the acquisition of 88 luxury homes
The Regional Ministry of Housing, Territory and Mobility has found substantial irregularities in the case file that render the acquisition agreement null and void.
The decision to revoke the acquisition agreement is adopted to avoid the damage to the Administration caused by the extra cost of the operation, also due to the arbitrariness in the adoption of the agreement and the lack of technical and legal support.
The Vice President and Minister of Economy, Finance and Innovation, Antoni Costa, and the Minister of Housing, Territory and Mobility, Marta Vidal, appeared before the media today to report on the withdrawal by the Government of the Balearic Islands of the operation for the acquisition by first refusal of 88 luxury homes worth 25.8 million euros, authorised by the outgoing Government once in office, as well as the transfer of the administrative file to the Public Prosecutor’s Office.
According to the councillor for Housing, Territory and Mobility, Marta Vidal, the operation has been suspended as a precautionary measure by the ordinary courts since 26 June due to an appeal filed by the owner company, Metrovacesa, SA, and in the administrative file of the procedure, in addition to the lack of technical justification for the acquisition of the development, there are no legal reports from the Balearic Housing Institute (IBAVI) to support this operation, nor the mandatory report required by Law 1/2019 for the adoption of agreements by a government in office. This absence was already highlighted in the legal report of the Department of Housing, which warned of the need to incorporate it into the file.
On the other hand, according to the councillor, several cost overruns have been identified in the operation, amounting to at least more than ten million euros, due to the acquisition surcharge of 40% in relation to the maximum price per square metre, the payment of VAT, in this case 21%, and more than 400,000 euros of investment in the adaptation of the dwellings. This issue is being analysed in detail.
Another fact that the councillor highlighted is that the Government in office persisted after the precautionary suspension of the procedure by the courts, sending a request on 30 June to Metrovacesa, SA, to sign the public deed of sale on 5 July, one day before the investiture of the current president Margalida Prohens in the Parliament of the Balearic Islands.
Audit of the IBAVI and return of 17 million to Ports IB
Given the damage that the operation would cause to the public accounts of the Administration – compromising not only the accounts of IBAVI, but also those of Ports IB, from which the Government in office withdrew 17 million euros without the approval of its Board of Directors -, the arbitrariness of the operation and the lack of endorsement of the legal services of IBAVI, the Regional Ministry of Housing, Territory and Mobility has detected irregularities, which, in addition to desisting from the acquisition operation and halting the current judicial process to avoid compensation, have led it to transfer the file to the Public Prosecutor’s Office to assess whether there is any evidence of a crime, and to commission an audit of the management of the Balearic Housing Institute (IBAVI).
Finally, the vice-president and councillor of Economy, Finance and Innovation, Antoni Costa, has informed that the procedure will be initiated for the return of the 17 million euros taken from Ports IB and the remaining 9 million euros to the general accounts of the Government of the Balearic Islands.