Las Palmas City Council has opened sanction proceedings against the Canary Cemetery Company (Canaricem) for alleged serious and very serious infractions, with fines that could reach €54,000 and the possible termination of the contract.
The capital's council, through the General Directorate of Contracting and Heritage, has initiated a file that could lead to economic sanctions of up to €53,970.90 and, ultimately, to the termination of the municipal cemetery concession contract, signed in 1997 and valid until 2047.
The resolution, signed last Friday by Rafael de Francisco Concepción, appoints the head of the Heritage service, Adrián Vega, as the instructor of the procedure. Two main facts are being investigated: an alleged contractual breach for diverting Canaricem's own activities to the company Jomavaro, with which it shares an administrator, and a supposed repeated obstruction and falsification of information.
According to the municipal document, the alleged irregularities have been detected from the documentation provided by the concessionaire itself in response to information requests, without the need for external reports. The audit commissioned in November 2024 on the state of the funeral facilities had already questioned the management, but the current file is based on the data submitted by Canaricem.
The first noted breach is the subcontracting of works that, according to the specifications, should have been executed directly by Canaricem. Of the 41 works subcontracted to individuals in 2024, 34 were carried out by Jomavaro, a company with which Canaricem shares an administrator and a representative. The City Council considers that this relationship evidences a unity of decision and interests, which could constitute a diversion of income towards Jomavaro and a reduction of the 5% fee on the gross income that Canaricem must pay to the council.
Municipal technicians warn that this situation could justify the application of the doctrine of lifting the corporate veil to determine the true volume of income from the concession. They also point out that Canaricem incorporates Jomavaro's invoices as operating expenses, which could imply an artificial increase in costs and a distortion of the economic result.
The concession specifications limit subcontracting to ancillary works and auxiliary services, but the municipal analysis considers that Jomavaro has habitually taken on essential and own works of the concession, exceeding the authorized limits. Both the incorrect attribution of income and expenses are classified as very serious infractions, which can lead to fines ranging from €10,794.18 to €53,970.90, in addition to the possible termination of the contract.
The City Council has granted Canaricem a period of 15 working days to submit allegations. The resolution has not yet been notified to the company, which will be able to defend itself against the accusations before a final decision is made.
The relationship between the council and Canaricem has been marked by the municipal government's criticism of the deterioration in the maintenance, conservation, and cleaning of public cemeteries, as well as discrepancies in the information provided by the concessionaire. The external audit of 2024 had already highlighted deficiencies, although the current procedure is based on the documentation provided by the company itself.
This new chapter in the so-called 'cemetery war' could have significant consequences for the management of funeral services in the Gran Canaria capital, where more than 300,000 residents depend on these facilities. The possible termination of the contract would open a scenario of uncertainty regarding the continuity of the service and the need for a new tender.
For now, the procedure continues its course. The concessionaire has the opportunity to present allegations and avoid sanctions, but the City Council has already made it clear that the indications of non-compliance are serious and that it does not rule out reaching the termination of the contract if the irregularities are confirmed.
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