Since three years, the activity of students residence revealed losses of millions of leks. Emptied rooms, students prefer not to shelter anymore in the buildings of Students City. The Director accepts the situation: The reason is the mismanagement by previous leaders, the government will give soon solution
By Avushe Zhuka
From three years the activity of the University Student Residence No.sh.aTirana, known as the Student City is resulting in losses. Mismanagement, abuse of funds, failure to collect taxes and non-payment of services received have led to a difficult financial situation in which the city hosted thousands of students from across the country. Referring to data made public by the Supreme Audit Institution (SAI) after the financial control done in this mansion, it turns out that in 2012 the loss was at the value of 75.3 million Lek, while in 2013, in the amount of 55.4 million Lek.
Leaders of the University Student Residence No.1, sh.a Tirana (RSUT), say that results of 2014 to be at a loss, but are not made public the exact figure. According to Director of University Student Residence No.1, Anila Shehu, the company continues to be unprofitable and because of this it makes mismanagement. Economic problems in management of Students City are reflected in the final report of the audit exercised at this center, released in late 2014. KLSH notes that no measures have been taken to improve the financial situation in the future and to find other resources to revenue growth and reduce costs. This mansion with 26 housing buildings for students and three others inhabited by families is located in a difficult situation which requires solution as soon as possible. But the Director of the Student Residence seems to be clear which will be the solution to the economic crisis derived from this society. “This is a facility that requires a solution and the government will give it very soon,” said Shehu.
The bigger student residence in the capital city, Students City is facing problems directly related to the main activity of the company. From year to year, this student residence is losing its host. Recent years students have found alternative housing, such as rental homes, while tens of rooms or even buildings are left empty in the students residence, causing great economic damage in the society. RSUT Director notes that this year at this residence were registered around 6 thousand students. The fee paid by each student to student housing in the city is 45 thousand lek, a figure also applied last year. But compared with a year earlier, in Student City this year are registered about 700 students less. Also, it is learned that a building is completely empty, while other sources within the residence are talking about three unoccupied buildings. Lack of intersest from the youth to be resident in this city as well as their removal is justified by the Student City leaders with reasons that private universities were closed down and that a number of students who live in the cities near Tirana prefer to make the way shuttle
The report of the High State Control notes that for the academic year 2012 – 2013 ftom 2006 rooms in total were used 1967 or 39 rooms less. While in 2013-2014 it shows that 164 rooms are used less or in other words hundreds of students preferred not to enroll in this mansion. The economic damage caused to the company during the last two years appears to be 44 million 775 thousand leks. According to the director of the student residence, Anila Shehu it comes to depreciation of facilities which it says is not put down. “Many of the rooms are not suitable to be habitable. This is the reason that some of the rooms are not put into use, but also the fact that the number of students who are leaving this mansion is increasing year after year. There has been a real measurement program for housing capacity, which has left rooms for abuse. It was lacked a database and statistics declared are not consistent with the number of students. Unregistered persons ensconced in these buildings, while the premises of these buildings are used in an abusive manner “, speaks about the situation in which Shehu found the mansion.
Another problem that threatens to aggravate even more the society’s budget is the compensation forworkers leaved. 38 employees laid off in the years 2012,2013 and 2014 have filed lawsuits for unfair dismissal. The amount required by them appears in the total figure of about 30 million lek. The Administrator Shehu acknowledges that these issues continue to be the trial process. Acquisition of these processes by the plaintiffs would cause great economic harm in the society. Another economic damage is caused by the compensation of employees who have won court cases in years ago. One such case is that of a former director of the Student Enterprise Treatment No.1, who won the trial in early 2006 and continues to be paid by the company. With the court decision he must receive a payment that actually counts for two administrators salaries taken together until his return to the workplace. “We are trying to make a deal with this person, because this decision is causing harm to the society,” says Shehu.
The collapse of the premises and facilities built without permission that perform their activity in Students City area student was associated with judicial proceedings brought against RSUT’s. These structures erected within the area under the management of the company collapsed in October 2013 with the arrival of a new manager of the residence. Shehu says that the company has won all the lawsuits as these facilities were built illegally in a space that is property of RSUT. During 2012-2014 were identified deficiencies in meeting the documentation in the files of signed contracts with entities that have leased premises of Students Treatment Enterprise No.1, sh.a. There were problems with tender procedures and the selection of the winning companies have signed a contract for the provision of various services in the enterprise. Also are violated the tender regulations and selection of winners was made with different standards.
Another outstanding debt over the years in Student City is the one for electricity. Already arrears from defaulting electricity company CEZ, have passed to the government. There are around 139 million Lek, while the settlement of arrears to the water supply are paid by the company itself. “We have liquidated debt collected from non-payment of drinking water supply that was inherited from the previous management of the company,” said Shehu. Although are colleced millions of Lek annually from student housing fees, the Student City today is not only well managed, but found indebted that will take years to wash. Even more difficult appears the financial situation in this enterprise if the government does not intervene to find a solution, because liabilities increase will come in and within a short time student residences can be found on the verge of bankruptcy.
*This publication was made possible by the support of Soros Foundation. The thoughts and opinions expressed in it are those of authors and do not necessarily coincide with views of the Soros Foundation
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