Filtro Noticias
Search filter

The Supreme Court dismissed Zaragoza City Council's appeal and confirms the 50 million euro debt owed to FCC

19/03/2019

The Supreme Court dismissed Zaragoza City Council's appeal and confirms the 50 million euro debt owed to FCC

  • The rulings of the Aragon High Court of Justice on the price revision of the cleaning and collection contract have legal effect, and establish the criteria to be followed  in the adjustment of  outstanding years until 2019.
The Supreme Court dismissed Zaragoza City Council's appeal and confirms the 50 million euro debt owed to FCC

The First Section of the Administrative Chamber of the Supreme Court has issued an order, whereby the appeal to the Supreme Court filed by the current government of Zaragoza en Común, is declared inadmissible, and which upholds the decisions of the Aragon High Court of Justice, under which the City Council of Zaragoza is required to pay the price revisions of the contract for the street cleaning, collection and transport of urban waste.

The Supreme Court states in the order that there is no annulment interests because of the lack of legal grounds, ordering the City Council to pay the costs.

The content of the debt is FCC's request for price revisions to take into account variations in the workforce and the tons collected. These revisions have not taken place since 2009.

As a result of this Supreme Court decision, the three judgments of the Aragon High Court of Justice of 25 June 2018 take full effect. It should be remembered that the period in question and on which the Aragon High Court of Justice ruled is between 2009 and 2013. However, the corresponding annual adjustment would have to be applied between 2014 and 2018, and the corresponding adjustment for 2019. Overall, this would amount to more than 50 million euro.

The cash shortages that have arisen as a result of non-payments by the current government team regarding the various contracts managed by FCC, whether for this cleaning and collection contract or the parks and gardens contract, where the debt amounts to five million euro, are very difficult to manage for a company like FCC. The payment of these amounts is critical for the job stability of the people who provide services in the city of Zaragoza.