Mogán Not Required to Return 900,000 Euros from Fdcan to Canary Government
The High Court of Justice of the Canary Islands has ruled in favor of the Mogán City Council, exempting it from repaying nearly 900,000 euros from the Canary Islands Development Fund.
By Idaira Santana Dorta
••3 min read
IA
Stone town hall facade with balcony and iron railings, under warm afternoon sunlight.
The High Court of Justice of the Canary Islands (TSJC) has issued a final ruling that exempts the Mogán City Council from returning 897,572 euros to the Government of the Canary Islands, related to the Canary Islands Development Fund (Fdcan).
The judicial resolution, issued by the second section of the Contentious-Administrative Chamber on January 7, 2026, was not appealed by the current regional Executive. This ruling annuls the decisions made in July 2021 by the then vice president and finance minister, Román Rodríguez, which demanded the council partially reimburse contributions received in 2017 and 2018 for the construction of the Arguineguín parking building.
The conflict arose due to an increase in the project's cost, which rose from 5,997,556 euros to 8,322,885 euros. The previous Government of the Canary Islands argued that, with the increased cost, the Fdcan financing percentage was reduced from 83.65% to 60.98%. Therefore, it considered that the justification for the 2017 and 2018 annuities should adhere to this new percentage, implying an alleged over-financing by Mogán.
However, the Mogán City Council maintained that the cost overrun was entirely covered by its own funds, without altering the Fdcan allocation. The TSJC ruling, with magistrate José Suay as rapporteur, concludes that the council strictly complied with the initial agreement, which set a contribution of 1.5 million euros for the first two annuities and 2 million for 2019. The judgment emphasizes that the agreement did not prevent an increase in project cost, provided that Fdcan funding was not exceeded and was used for its intended purpose.
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"It is absurd to use public funds as an instrument of punishment for political or personal disagreements."
The mayor of Mogán, Onalia Bueno, celebrated the judicial decision, calling it a “setback” against what she considered “maneuvers to harm the municipality” by Nueva Canarias, the party to which Román Rodríguez belongs. Bueno recalled that Mogán had already obtained another favorable ruling in a similar conflict with the Cabildo, where it was determined that the island corporation unlawfully excluded the municipality from the Fdcan distribution.
The Executive could not make a subsequent reinterpretation of the rules of the game to penalize Mogán, especially when it did not modify or update the conditions of the text.
A statement from the Mogán City Council emphasized that the TSJC ruling is “emphatic” in stating that there was no over-financing or defect in justification, and that the Mogán administration rigorously complied with the agreement signed with the Government of the Canary Islands.