This is one of the conclusions from the audit inspection of the loan agreement between the municipality of Santa Cruz and Caixa Central – Caixa Central de Crédito Agrícola Mútuo, dated July 27, 2020, amounting to two million euros, intended to fund measures and activities countering the pandemic’s impact.
“The municipality of Santa Cruz [led by the JPP] did not always adhere to the municipal regulations in force, which it was bound to follow for granting support”, states the audit report, noting that these norms were replaced by “measures targeting specific situations and designated individuals, violating the legal obligations.”
The court indicates that the control mechanisms for Temporary Financial Support and Support for Participation in Leisure Activities/2021 “failed to prevent, respectively, two non-residents of Santa Cruz at the payment date from benefiting from support and other two from benefiting from a support amount exceeding the one duly established by the Municipal Council’s decision.”
The Court of Auditors found that, from the total contracted with Caixa Central de Crédito Agrícola Mútuo, the municipality used, between November 2020 and August 2022, 1,863,371.91 euros (93.2% of the total), primarily to directly support 1,358 residents, among other objectives.
The report indicates that nearly the entire loan was used to fund expenses stemming from the COVID-19 pandemic, except for the aid granted under the Housing Rehabilitation Support, which addressed pre-existing situations.
In light of the findings, the Court of Auditors recommends that the Santa Cruz Municipal Council, adjacent to Funchal to the east, ensure compliance with the municipal regulations for financial support allocation.
The court also requests “adherence to the legal obligation of providing administrative acts’ rationales,” as stipulated by the Administrative Procedure Code, along with “respect for the normative framework underlying medium and long-term loan agreements.”
Another recommendation is for the municipality to implement effective internal control mechanisms that verify the beneficiaries’ eligibility at the time of support payment, not merely at the application stage.
The Court of Auditors further mandates the Santa Cruz Municipal Council to inform the Madeira regional section by December 31, 2025, about the measures taken to address the recommendations outlined in the report.
