SOLRØD: The municipality's sale of Solrød Biogas to Solrød Bioenergi earlier this month will now be a matter for the Ombudsman of the Danish Parliament by the Social Democratic City Council group, says group chairman Jonas Ring Madsen (S).
- It is absolutely crucial for trust in local democracy that we clarify whether the process and the basis for decisions have been in order, and whether the municipality and the citizens' interests have been taken care of in the best possible way, says the group chairman.
The Social Democratic group points out that the sale on December 1 was urgently processed at an extraordinary city council meeting, and that the party finds it unusual that such a large and complex case should be processed under time pressure.
In addition, the party group points out that there are still unanswered questions about the process, the material and the assessment of the municipality's interest in selling Solrød Biogas.
Possible lost profit
As previously mentioned, the municipality sold the plant with a profit of 88 million DKK, less debt and costs, and Mayor Emil Blücher (LA) stated in connection with the sale that the time was ripe for a private player to take over the plant, whose operation will continue as before.
The Social Democratic group now raises doubts about whether the sale price of 120 million DKK is in the municipality's interest, when it cost approximately 100 million DKK. DKK to establish the facility in 2015.
The party also points to the concession agreement under which the facility will be operated for the next 15 years, and highlights a briefing at a closed city council meeting on November 26 that the facility could have provided the municipality with income of DKK 6 million annually for the next 15 years (a total of approximately DKK 90 million).
It was also reported at the closed meeting that after the concession agreement expires, the facility could potentially be sold for over DKK 300 million, including because at that time it will be debt-free.
"By waiting to sell, Solrød City Council would thus be guaranteed income for a total of DKK 90 million, while the return would go from -DKK 1.2 million to a plus of DKK 138 million. Information that has now been removed from the case processing and hidden from the public.", writes the Social Democratic City Council group.
- This case is such an enormously bad business practice that it must be investigated whether anything illegal has also taken place. The case must be investigated thoroughly, and therefore it is relevant to involve the Ombudsman of the Folketing, says Jonas Ring Madsen.
Possible conflict of interest
So the Social Democrats are questioning calculations and scenarios that the party does not believe are clearly evident from the material that formed the basis for the decision, and the party is calling for transparency in the finances by keeping the company - compared to a sale now.
In addition, the S Group points to the mayor's competence and possible conflict of interest by referring to the fact that at the finance committee meeting and the city council meeting on December 1, questions were raised about alleged close connections between LA Solrød and the company that is the buyer.
This led to Emil Blücher being declared incompetent by the finance committee, while he and the rest of LA were declared competent at the subsequent city council meeting.
- Regardless of party affiliation, there must never be any doubt that major municipal decisions are made on a factual and transparent basis and without any questions being raised about conflicts of interest, says Jonas Ring Madsen.
The points to the Ombudsman
In its request to the Ombudsman of the Folketing, the Social Democratic City Council group has listed seven points that it asks the Ombudsman to address.
- Whether the urgent processing of the case at the extraordinary city council meeting on December 1 was objectively justified and compatible with the requirements for proper case information.
- Whether the city council has been given a sufficient and complete basis for decision-making, including relevant financial calculations, scenarios and impact assessments (sale now vs. later sale/continued operation).
- Whether significant annexes and calculations have been omitted from the case, and whether this has been done in accordance with the rules for publicity, case information and good administrative practice.
- Whether the administration's recommendation and treatment of alternatives meet the requirement of objectivity and proportionality in municipal decisions.
- Whether the impartiality assessments in the case, including the handling of information about financial connections between the buyer and politicians, have been carried out correctly and sufficiently, and whether a broader assessment should have been made than the one that was carried out.
- Whether the overall process provides sufficient assurance that Solrød Municipality's interests have been safeguarded in the best possible way.
- Whether the sale, based on the above, has taken place on a legal basis.
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