Due to defects that the Council of Armenia let pass, the Agreement on photo fines for the Quindian capital fell

Due to defects that the Council of Armenia let pass, the Agreement on photo fines for the Quindian capital fell
Due to defects that the Council of Armenia let pass, the Agreement on photo fines for the Quindian capital fell

The Administrative Court of Quindío –TAQ, announced the considerations that led to the invalidity of Agreement 302 that generated the photo fines in Armenia.

The administrative act that had the approval of 11 councilors was attacked on the following points: The technical and financial studies were not presented along with the draft Agreement, in addition to the authorizations necessary to determine the viability of granting authorization to celebrate a contract of concession and there is an inconsistency between the remuneration percentage and what is established in article 7 of Law 769 of 2002.

Regarding these, the Court ruled, detecting the defects that made Agreement No. 302 of March 11, 2024: “By which the mayor is authorized to enter into a concession contract to provide transit services for the city of Armenia, Quindío”, will not pass.

The technical and financial studies in addition to the authorizations necessary to determine the viability of granting authorization to enter into a concession contract were not presented with the draft Agreement: On this point, the Court ruled: “In that sense, it must be taken take into account that concessioning some municipal transit services for a period of 15 years, establishing as a benefit a percentage of the collection for fines, sanctions and fees related to their provision, could mean a reduction in the income of the territorial entity, reason for which there must be an analysis in this regard, to determine the viability of the authorization, since it could have a fiscal impact for the municipality”… And he adds: “But even if it is determined that said rule is not applicable, the truth is that the support of the draft agreement must take into consideration the need or convenience of the concession contract, the impossibility of the municipality to provide the services directly with continuity and efficiency, the benefit for the municipality of Armenia, and the impact on rents or income municipal, this is due to the fact that the Municipal Council, based on these supports, can properly exercise its function of control of the municipal administration and harmonious collaboration in the development of the public function.

Regarding these requirements, the Court found that a document called analysis of the financial model for the Concession Contract was provided in which they make a list of the income with a 15-year projection, but the analysis of the data incorporated therein is not attached.

This is why, however, they fail to explain and support the causes that generate these problems of mobility and road congestion, coupled with the fact that they do not indicate what other problems are occurring that require the attention of the Ministry of Transit and Transportation, nor evidence is provided in this regard.

The above does not allow us to elucidate the relationship of necessity between those problems that, it is worth indicating, are stated in a general way, and the granting to a third party for the term of 15 years of automobile registration, traffic license rights, driver registration, transportation registry, comprehensive care center and special circulation permit, infrastructure and technological platform for photo-arrest of traffic violations and technological and administrative assistance and support for collection of traffic violations for the city of Armenia, Quindío, the above prevents establishing convenience for the general interest. “Now, a financial model is presented along with the draft agreement, without any attached document being observed in which the analysis of the data entered, the sources of the information, the supports that lead to establishing the percentages of increased income and operational expenses, which is also not possible to elucidate with the presentation made by the public servant of the Municipality of Armenia in the debate of the draft agreement.

It is not possible to establish how the administration made the comparison between the current income and those that would be obtained with the execution of the concession contract, in order to determine the benefit from the fiscal point of view for the municipality of Armenia,” indicates the Court. .

In the financial model, as explained by the public servant of the Municipality of Armenia, a global percentage of income from fines, fees for registration services, among others, was established of 50% for the concessionaire and 50% for the Secretariat of Transit and Transportation. of Armenia, without any specification having been made regarding the legal limit established in the regulation in question.

For its part, the certificate from the Municipal Treasury Secretariat indicates that at the beginning of the operation there is a decrease in the income received by the territorial entity, which causes a fiscal impact in the short term, but that it would be recovered in the future. medium and long term, and that in the event that negative peaks are generated, the administration has different substitute sources to cover the expense.

However, he argues, the goals set forth in the Medium-Term or Long-Term Fiscal Framework would not be affected, since there is a certain source that would finance the expense.

Armenia was going to start losing with the concession: “This certification also does not allow us to establish the convenience of authorizing the concession contract; on the contrary, there is a reduction in income and although it is indicated that in the medium and long term it would be recovered, neither There is some support for such a conclusion.

Thus, it must be taken into account that prior authorization to enter into contracts such as a concession is not a simple formality, but is due to harmonious collaboration in the fulfillment of the public function, especially when it comes to concessions for the term of 15 years a public service that generates income to the territorial entity, which is of relevance to the public interest of the municipality of Armenia, which is why a judicious analysis was required with real data of the mobility problems of the municipalities and their causes, the reasons why the territorial entity cannot, with its resources and infrastructure, provide the public service efficiently and continuously or why it is more convenient for the general interest that said service be concessioned to a third party, information that the municipality should have and should appear before the Municipal Council of Armenia, to determine the feasibility of granting authorization to enter into a concession contract,” he concludes.

 
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