The failure by Vélez-Málaga Council to pay the compensation awarded five years ago by the Supreme Court to residents of El Copo has meant that the total bill has now risen from the original €2.8 million to a staggering €5.2 million.
The failure to address noise issues during the period 1990 to 2003 resulted in the Supreme Court ordering the Council to pay €2.8 million in compensation to the 18 owners of properties in the El Copo district.
Added to the original amount is a variable amount of €12,000 per year for the period 2003 to 2008, plus interest of 1.3 million, bringing the grand total to €5.2 million.
The Council proposes to pay off the €1.3 million in interest on a quarterly basis over a period of 10 years at an interest rate of 4%, meaning another almost €300,000 being added to the final bill (for the taxpayer, inevitably).
Regarding the second, variable compensation award of €1,171,973, the Council is relying upon the former municipal cleaning company, Urbaser, to pay back money the Council alleges it owes.
As for the remaining €713,945 of the principal sum as yet unpaid, the Council is refusing to pay this until there is sufficient liquidity. Good luck on that one!.