SOCIALISTS ACCUSE RIVERO OF DIVERTING COUNCIL FUNDS

Santa Cruz de Tenerife, Monday January 18 2010

THE SOCIALIST Party on Monday accused the Canarian president Paulino Rivero of misspending money intended for local government.

by JAMES TWEEDIE

PSOE regional parliamentary group spokesman Santiago Pérez said that regional president Paulino Rivero had “unilaterally” decided to use a €70 million payment from the national government to encourage firms to take on new employees by paying for their social security contributions.

He pointed out that the money was compensation for the abolition of the regional companies tax intended for local government.

His comments at a press conference in Santa Cruz were timed to coincide with a meeting the same day between the Canarian Coalition (CC) – Popular Party (PP) government and representatives of the autonomous community's island Cabildos and town councils the same day.

Mr Rivero has claimed that the scheme will create 80,000 new jobs.

But Mr Pérez quoted Gran Canaria Construction Bussinessmen's Association president María de la Salud Gil as saying that the move would “punish businesses which have conserved jobs in this time of crisis” and reward those who had laid off workers by failing to renew their contracts.

He added that Mr Rivero's decision to reduce regional MPs' wages by €400,000 was invalid as the parliament is independent of the president, who cannot propose or dictate legislation.

Mr Pérez then turned to the long-running Mount Tebeto case in Fuerteventura, where the Canarian government has been ordered by judges to pay €100 million in compensation to firm Canteras Cabo Verde for withdrawing its quarrying licence.

Cabo Verde had held the licence since 1982 but had never mined stone at the site. A 2009 report showed that Mount Tebeto's mineral deposits had no commercial value.

Mr Pérez criticised the Las Palmas de Gran Canaria anti-corruption office – which has jurisdiction in the case – for failing to investigate an official complaint against the regional government by himself and fellow PSOE regional MPs Gloria Gutiérrez and Maria Guerra de Paz.

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