Overview
- The regional government opened a formal recovery procedure on Wednesday seeking €797,607.11 plus interest after finding the project was about 60 percent complete by the grant deadline.
- Xunta officials say the clawback follows the grant rules that require a proportional reduction when contracted work is not finished and that the deadline could not be extended without changing the competitive call.
- Aceesca says the reclaimed money was already spent on the residence, reports that construction is now nearly 80 percent complete after a €380,000 anonymous donation in March, and has filed appeals asking the recovery be suspended.
- The association warns that interest is accruing on the claim, that it will need to stop work again when current funds run out, and that it may have to take a loan to repay the Xunta and finish the building.
- The project was presented as a €5 million development with €3 million in co‑financing, won in a competitive Next Generation call, and the outcome of pending appeals will decide whether the recovery is enforced or paused so the residence can open.