Society's Solidarity Under Scrutiny: M5S Query Raises Query on Society's Solid Foundation
In the heart of Savona, the attention of the City Council has been drawn towards Sea-S, the company tasked with managing urban hygiene services. Red flags have been raised by councilors Manuel Meles and Federico Mij with an interpellation questioning Sea-S's financial stability. The new "door-to-door" waste collection service they've recently launched seems to have left some councilors scratching their heads.
The councilors' document displays Sea-S's 2023 balance showing a staggering loss of over €294,104, resulting in a significant reduction of the company's share capital. Despite the 2024 balance registering a small profit (€7,482), it wasn't enough to recuperate the previous losses. To avoid bankruptcy, some extraordinary measures were taken by the company's board of directors. These included converting credits into reserves, interest-free loans, postponing debts, and securing a financing contract of up to €1 million.
The board of directors doubled down on their doubts about Sea-S's ability to maintain consistent profitability, considering the intricacies of implementing the new service. They believe that close monitoring of the company's continuity throughout 2025 is essential.
A significant concern arises from Sea-S being a part of the consolidated perimeter of the Municipality of Savona, with Ata holding a majority share (51%) and currently under precautionary administration. In the event of Sea-S's failure, it could have serious implications for the urban hygiene service execution.
The councilors express concerns over the City's nonchalant attitude towards Sea-S's financial turbulence and its impact on the service and Ata's precautionary administration. Despite the takeover of the urban hygiene service management, they question whether accounting, financial, and patrimonial measures taken are adequate. They ponder whether alternative solutions, like transferring Ecosavona's shares to generate other income streams, should be considered. Lastly, they wonder why a 20% advance of the 2024 annual fee was made, based on the instalment recovery plan.
In a broader sense, the economic and financial dynamics of companies like Sea-S are critical to assess. Ensuring transparency in financial reporting, incorporating sustainability practices, adopting green technologies, fostering partnerships, and engaging the community are all viable strategies in safeguarding urban hygiene services and their financial stability.
- The councilors' concerns about Sea-S extend beyond the new waste collection service, as they question the adequacy of accounting, financial, and patrimonial measures taken, considering the company's financial instability and the potential implications for urban hygiene services.
- In light of Sea-S's precarious financial situation, the councilors propose the exploration of alternative solutions, such as transferring Ecosavona's shares to generate additional income streams, in an effort to ensure the long-term financial stability of urban hygiene services in Savona.
