Vlora dormitories on the brink of bankruptcy due to energy and water debts

Author: Denis Tahiri

The student town in Vlora is on the verge of bankruptcy. And the reason for the failure is not only the expenses for the administration, but also the unpaid bills of electricity and water and at the same time the accumulated taxes. With a debt accumulated over time and passed like a baton over the years, the first signs are seen in the maintenance of the dormitories and in the Services to the dormitories. The accumulated debt up to the moment of publication of the article reaches the figure of ALL 66714597.97.

The campus that accommodates young students includes two dormitories, which were said to have been reconstructed and were ready for the new academic year. But only one of the buildings is in good condition. In the other, no intervention was performed.

The reconstructed dormitory of Vlora

"The building that has been reconstructed has 120 rooms, make no mistake, and there are only two people per room, it is better than the old one to be honest. This old one has about 45 rooms and students usually stay 2 or 3 people in a room. Marjusi starts the conversation about "Sinjalizo". The student decided to live in the community with his peers. He mentions that the biggest problem in the dormitory is directly related to maintenance

"It was my choice to stay in the dormitory, it gives you a lot of opportunities for socializing, plus it's even cheaper than a rented house, to be realistic in Vlora it's not that cheap" explains the young man.

Boys' dormitory in Vlora Student Town

Currently, from the information provided by "Sinjalizo", about 200 students who attend the school in Vlora live in these two dormitories. The young people who were contacted by "Sinjalizo" expressed complaints about the conditions.

To whom does "Treatment of Students JSC VLORĂ" owe

To say that the total debt of an institution is 66714597.97 ALL is a big figure, but when you also show to whom these obligations are, you better understand the unprecedented situation in which an institution that provides a very important service to hundreds of youth, that of housing.

Currently, from the documents available for the "Sinjalizo" platform at ACQJ, the debts of this institution over the years can be clearly identified. An amount of ALL 24892515.38, the Vlora student treatment company owes OSHEE Vlora to OSHEE Vlora, to which the Electricity Distribution Operator has imposed a late interest which is approximately the same amount as the obligation, with a total value of ALL 23018161.69, where the total obligation to the Electricity Distribution Operator of Vlora Student Town is in the amount of ALL 47910677.07.

As stated by the students, there have been no shortage of power outages. "There were times when the lights went out, but they came back on. We found out that it was a break from OSHEE, but I can't say for sure." says one of the students in this dormitory.

Meanwhile, the obligations are also high towards the Waterworks of Vlora, where the value of the obligation is 7652964.9 ALL with an interest arrears of 458235 ALL. The total debt to Vlora Waterworks is an amount of ALL 8111199.9.

But on the other hand, the long-term obligations of the Vlora student treatment company are also towards private entities. Currently, this institution owes a hydrocarbon distribution operator an amount of ALL 1512267.

In court with the municipality and unpaid employee insurance

In the list of liabilities that the Student Treatment Company in Vlora has, there are also liabilities in the tax branch in Vlora, where from March to September 2022, no liability has been paid for the employees of this company. The value of the tax liability for the employees of this institution is 3592084 ALL with a late interest of 1180451 ALL and with a total liability of 4772535 ALL.

On the other hand, this institution is in court with the Municipality of Vlora, which, if the VKM is necessary, will have the institution under its control. The cause of the lawsuit is building and property tax liabilities imposed over the years. This obligation of ALL 1956160 has been extinguished by the decision of the Administrative Court of the first instance, but its continuation remains to be seen.

Meanwhile, this institution also has obligations towards the two auditors who performed the audit for 2021, where each of them owes a figure of 360000 ALL.

The Ministry is aware of the situation

In the documents owned by "Sinjalizo", there is also a letter which is a response to a letter from the Ministry of Education, where it is written, among other things, that: "As you are aware, since 2019-2022, the Society has not received approval of the Economic Development Program from MAS. Occurring in these conditions, the company's weekly expenses are only the standard ones: salary + social security, energy, water, internet + mail, which thanks to our monitoring have been realized at their minimum possible. Other operating expenses from 2019-2022 have not been realized due to lack of funds, leading society to "beg" sometimes for chlorine and sometimes for detergent to clean the dormitories.

On the other hand, the Ministry of Finance and Economy is also aware of this situation in which this company is located, which is also the recipient of this letter, which also specifies the obligations of the company.

Among other things, in this document it is also announced that the subsidy was not made in accordance with VKM No. 75, dated 12.2.2018.For the approval of the model of financing of Public Institutions of Higher Education and Scientific Research, Chapter V, point 2 and in accordance with the MFE Instruction no. 9, dated 20.03.2018 "On standard procedures for the implementation of the budget", as amended , Chapter III, Subsidies, points 191 and 192 and consequently, nor according to the real expenses of the company sent with the relevant monthly statements (situation, invoice, payment list, etc.)".

Meanwhile, the Ministry of Education, officially asked about this issue, states that: "The amount of financing for each company is calculated on the basis of indicators and reports in accordance with Joint Instruction no. 7, dated 24.04.2003 "On the criteria for planning and using the budget subsidy in student treatment enterprises and dormitory and canteen enterprises" , as follows: 

- the planned number and the actual number of students accommodated in the dormitory; 

- the number of employees according to the organizational structure of the company, which must be within the limits stipulated by the joint directive of the three ministries, in the ratio of 1 (one) employee for every 11 (eleven) students; 

- annual average salary according to the company's economic program project."

 Students leave, dorm budgets drop

Currently in our country, the only student treatment societies that have not been taken over by the municipalities are those of Korça and Vlora. The official reason is that the necessary VKM has not yet been issued.

"The transfer of 100% of the shares of the joint-stock company "Student Treatment" Vlorë and Korçë from the Ministry of Finance and Economy to the municipalities of Vlorë and Korçë, is made by decision of the Council of Ministers, with the proposal of the Ministry of Finance and Economy", officially says the Minister of Education for "Sinjalizo". Meanwhile, on the other hand, unofficial sources inform that the reason is the debts accumulated for years by these institutions.

What stands out, the subsidy of these companies has been decreasing year after year. In 2018, the treatment of Korçë students benefited from an amount of 19,986,744 ALL as a subsidy from MAS, where the following year this figure goes to 16,846,891 ALL, marking again in 2020 another slight decrease, reaching the value of 16,415,000 ALL. Meanwhile, in 2021, the subsidy figure reaches 11,500,000 ALL, while for 2022 "Treatment of Korçë Students" has benefited a value of 6,856,078 ALL.

On the other hand, the Student City of Vlorë in 2018 benefited a value of 26,641,334 as a subsidy, while in 2022 this value is only 13,446,806 ALL. Meanwhile, the number of students is clearly smaller, where according to INSTAT, in the academic year 2017-2018, 131,833 students sat in Albanian universities, in the academic year 2022-2023, a total of 123,880 students sat in university banks.

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