SaS Raises Concerns Over €23-million State Land and Housing Purchases
Bratislava, 12 November (TASR) – Opposition party Freedom and Solidarity (SaS) is warning of alleged irregularities in the purchase of land and rental housing projects worth €23 million by MIRRI Developments, a company operating under the Investment, Regional Development and Informatisation Ministry (MIRRI), MP Vladimir Ledecky (SaS) declared at a press conference on Thursday.
MIRRI Developments has rejected any doubts about the purchases, maintaining that the tender was transparent and that the assets remain state-owned.
Party representatives examined four contracts worth a total of €23 million and identified several alleged irregularities. In one case, they said, the expert valuation was prepared on the very day that the tender was closed, while another contract had no expert valuation at all. They also said that the 14-day period allowed for submitting additional documents wasn't respected in two cases, but the ministry signed the contracts regardless.
"In one case, the state even signed a contract claiming to know all the details of the project, even though it didn't receive the documentation until seven days later. This isn't a transparent purchase made with public money," warned Ledecky.
The MP also drew attention to liens affecting two projects and the absence of building permits in Lucenec and Bratislava. He questioned the feasibility of constructing 270 flats in Lucenec on land purchased at €342 per square metre. SaS further underlined that the ministry is yet to present a financing model or the rental terms for the planned flats.
According to Ledecky, MIRRI is launching its own property development projects instead of using the State Housing Development Fund, without clear rules or a financing plan. He also highlighted preparations for a second round of the tender, even though the first round was terminated prematurely.
SaS intends to raise the issue before the House committee for public administration and to seek an explanation from Investment Minister Samuel Migal (Independent). "If we don't receive an explanation, we won't rule out filing a complaint with the law-enforcement authorities," added Ledecky.
Party vice-chair Marian Viskupic described the ministry's approach as an inefficient use of public funds. He considers the land purchases to be a suspect transaction and an irresponsible waste of public money at a time of fiscal consolidation. SaS is therefore calling on Migal to publish the relevant documentation, explain the alleged irregularities, present a financing plan and clarify the budget for the planned second round of the tender.
In its response, the Investment Ministry emphasised that MIRRI Developments operates as an independent entity and that the minister is in no way involved in the tenders. MIRRI Developments has rejected allegations concerning a lack of transparency, stating that the tender was announced in advance and closed early due to strong demand. The conditions didn't require building permits or new expert valuations at the initial stage, while bids were assessed by a professional committee.
The company said that acquiring land at different stages of development was consistent with standard property development practice and that any unallocated funds are to be carried over to subsequent rounds. Its role is to purchase land rather than to undertake construction directly. The acquired assets remain the property of the state-owned company and are financed from its share capital. According to the ministry, this creates the conditions for more affordable rental housing without putting public funds at risk.
