Minister Işıkhan Urges Municipalities to Address Debts: Majority of Municipalities in Financial Trouble
Minister of Labor and Social Security Vedat Işıkhan has revealed that a significant portion of the 96 billion lira premium debt owed by municipalities to the Social Security Institution (SGK) is attributed to municipal companies. In a live broadcast on AHaber television, Minister Işıkhan addressed questions and concerns regarding the outstanding debts.
Highlighting the importance of insurance premiums as mandatory payments that must be made, Minister Işıkhan emphasized the role of SGK premium revenues in sustaining a comprehensive social security system. He outlined the projected income and expenses for SGK in 2023, with premium income expected to reach 1 trillion 463 billion lira, and expenses totaling 2 trillion 232 billion lira.
Regarding the issue of municipalities failing to pay their premium debts, Minister Işıkhan noted that notifications had been sent in the past to address the outstanding amounts. He stressed that the current debt level of 96 billion lira is unsustainable and urged municipalities, including their affiliated companies, to settle their debts promptly.
Minister Işıkhan specifically mentioned the case of the Istanbul Metropolitan Municipality (IMM), whose premium debt to SGK has skyrocketed in recent years. He cautioned against assuming that restructuring the debt of one company within IMM resolves the entire debt issue, calling for comprehensive action to address all outstanding amounts.
Furthermore, Minister Işıkhan revealed that several metropolitan municipalities, predominantly led by the CHP, have accrued significant premium debts. He highlighted the case of the Hatay Metropolitan Municipality as the sixth most indebted municipality, with debts inherited from previous administrations.
In conclusion, Minister Işıkhan reiterated the government’s stance on enforcing payment of premium debts by municipalities. He warned that municipalities failing to comply with payment obligations will face enforcement proceedings to settle their outstanding debts. It is evident that tackling the issue of premium debt owed by municipalities and their affiliated companies is a top priority for the Ministry of Labor and Social Security.
