JD70M in unsuccessful municipal investments— Kreishan

Tawfiq Krishan
Minister of Local Administration, Tawfiq Kreishan. (Photo: Twitter/X)
AMMAN — On Wednesday, Deputy Prime Minister and Minister of Local Administration, Tawfiq Kreishan, announced that the value of unsuccessful investments in municipalities is estimated at JD70 million, all of which fail to generate income for the municipalities, as per Khaberni. He emphasized the ministry's support for economically viable and successful investment projects that create job opportunities.اضافة اعلان

During a meeting with several mayors in Irbid, Kreishan pointed out that the majority of municipal investments involve the construction of warehouses leased to citizens without regular rent collection, leading to significant financial burdens for citizens. Furthermore, he affirmed that the ministry supports municipal investment projects, provided they are carried out in collaboration with the private sector.

Kreishan revealed that the uncovered accounts for municipalities amounted to JD200 million, while the municipalities' indebtedness reached JD85 million. Despite this, municipalities continue their work, striving to provide services to citizens. The completion rate for projects in municipalities and governorate councils ranged from 90 percent to 60 percent.

Moreover, Kreishan acknowledged that the delay in achieving progress is due to some regulations and legislation related to tenders and budgets that require modification. He added that the ministry is working on amending some legislation related to the rotation of governorate councils' budgets.

Regarding the size of municipal debt, Kreishan downplayed it, considering it insignificant compared to Jordan's debt, which constitutes 89 percent of the Gross Domestic Product (GDP). He highlighted that municipal fuel revenues, which were JD190 million prior to 2020, declined to JD105 million, then increased to JD180 million in 2023. This necessitates that municipalities do not rely on these revenues but generate their own income through investments.

The minister mentioned that grants, which amounted to JD470 million before 2020, decreased to zero after 2020. The ministry has also requested JD500 million in grants from the Planning Ministry to support municipalities over five years.

In relation to the new professional licenses system and the complaints raised by traders and investors about its disruption, Kreishan acknowledged numerous concerns. He emphasized the necessity of maintaining the old system in parallel with the new one to prevent any disruption to citizens' interests.

Kreishan revealed the existence of 'corrupt employees' caught in municipalities hindering transactions under the new system. They were receiving bribes to process transactions and write off funds owed to the municipality. The new system regulates such actions, leading some employees to claim that the new system does not work with the aim of returning to the old system. The minister also pointed out administrative slack in the Ministry of Local Administration and other ministries. Therefore, administrative updates were implemented to eliminate this slack.

Notably, he praised the achievements of municipalities in Jordan in general and Irbid West Municipality in particular, commending the municipality for numerous projects funded from its own resources, providing financial income, and reducing the cost of implementing these developmental and service projects.


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