Palermo faces an 8 million euro blow from failed Gesip

Last Updated: December 8, 2023

The ghost of Gesip, the failed company replaced by Reset, has returned to haunt Palermo’s City Council with a financial blow just before Christmas. The Council is facing a decision to cover an 8 million euro debt, plus legal fees, stemming from a lawsuit brought by the liquidators of Gesip against former mayors, liquidators, and the city itself. The bankruptcy of Gesip, which cost the city 60 million euros annually, was largely due to unsustainable management costs and the company’s insolvency dating back to 2006. Despite warnings from company executives to adjust fees and costs, these concerns were ignored, leading to the collapse of the company. The financial burden now falls on the city’s shoulders, impacting its investment capabilities. This article provides the full story in the Giornale di Sicilia.