Economic woe has worn down the Castellano Manchega administration and instigated turmoil between the current government and government elect. And the havoc is reaching new heights.
Economic woe has worn down the Castellano Machega administration and instigated turmoil between the current government and government elect. And the havoc is reaching new heights.
Before the liquidity crisis for facing debts, the Castilla La Mancha government submitted written requests to many contractors, asking them not to submit invoices until after regional elections were held on May 22. Sources at the Partido Popular, a group in opposition to the government that won these regional elections, confirmed this information.
Those who have been working with the regional administration for a long time or who have close relationships with them, including some of the contractors, were asked to submit invoices corresponding to the 2010 fiscal year for an amount of one euro. The outstanding amounts would be requested at a later time, but almost certainly not within the first few months of the fiscal year. This strategy involves a practice known as "cooking the books," an accounting technique designed to hide costs. On the Castilla-La Mancha government´s balance sheet, unpaid invoices will appear as fulfilled obligations.
The companies who build public works are the most affected by slowing the invoices, according to the same sources from the winning party.
The PP declared that "the strategy is clear: if they lost the elections, they wouldn´t be responsible for paying the invoices and, in fact, we would be responsible. If they didn´t lose, then at least they would have won some time."
Edited in English by Brandon Dyches and Jose L. de Haro (for comments contact: joseluisdeharo@eleconomista.es)
