Évreux, Normandy – A recent audit of Transurbain, the company operating urban transport in the Évreux Portes de Normandie agglomeration, revealed a mixed bag of findings ranging from excessive cash flow to significant shortcomings in public procurement practices.The report, issued by the Regional Chamber of Accounts (CRC) and ultimately addressed with a new contract signed in December 2024, highlighted a need for greater oversight and adherence to public contracting regulations despite finding no evidence of mismanagement. Transurbain’s CEO,Diane Leseigneur,acknowledges the validity of some criticisms while defending the company’s financial performance and operational constraints imposed by its primary stakeholder,Évreux Portes de Normandie.
The public transportation operator Transurbain has recently undergone a review by the Regional Chamber of Accounts (CRC) of Normandy. The financial jurisdiction examined the internal organization and finances of the public transport operator serving the Évreux agglomeration for the period 2018-2023.
This marks the first such review since Diane Leseigneur became President and CEO of the public limited company (established in 2018, following its creation as a mixed-economy company in 1986). According to Leseigneur, the process has already yielded positive results. “It’s always beneficial, as it highlights areas needing attention. For example, I was unaware that we lacked formal occupancy agreements with EPN, which is unusual [these documents were ultimately signed in December 2024, N.D.L.R.]. It helped regularize aspects of the public service obligation contract as it was structured after the change in status. There was a degree of copy-pasting involved, and things may not have been entirely precise. It drives improvement,” the CEO confessed, adding that all six recommendations made by the CRC have been addressed.
No Revenue Collection Agency
Table of Contents
The CRC found “no mismanagement” within Transurbain but identified a number of shortcomings and dysfunctions.
Regarding the funds the transport company receives – which are fully transferred to the organizing authority, Évreux Portes de Normandie, the majority shareholder (90%) of the SPL (the City of Évreux owning the remaining capital) – the CRC believes handling “public funds through unauthorized personnel” necessitates Transurbain establishing a revenue collection agency to receive its commercial revenues. “No, that’s not necessary,” Leseigneur countered. “We don’t receive public funds, but private funds.”
However, the SPL did follow the jurisdiction’s third recommendation. The CRC noted weak oversight by the company’s shareholders of its activities. “Since 2020, Transurbain has not provided useful data to measure the quality of service provided to users, without any penalties being applied or any controls being carried out by Évreux Portes de Normandie,” the report stated.
Now, each month we have a detailed report with quality indicators that allows us to measure certain data. That didn’t exist before, and that’s a good thing.
Photography
Acting on behalf of the Évreux Agglo, Transurbain sees the latter taking responsibility for the majority of investment in the urban transport network. This is particularly true for the bus fleet renewal. As for operating costs, they are almost entirely covered by the payment of a fixed operating contribution (CFE).
“This contract is particularly favorable for Transurbain, which has been able to accumulate available funds exceeding its financing needs,” the Chamber noted. The CRC calculates that “between 2018 and 2023, Transurbain’s net cash flow increased by a factor of 2.5, reaching €2.1 million in 2023. This cash flow is excessive given Transurbain’s financing needs, which have averaged €70,000 in investment annually since 2018.”
Diane Leseigneur disputes this assessment. “That €2 million was a snapshot in time, at the end of the year. Once you’ve paid your charges and salaries, it’s gone. As for the ‘weakness’ of investments, it’s because we don’t make them. We are simply the operator of the network; we keep the shop running.”
Poorly Structured Public Contracts
The Regional Chamber of Accounts is more critical when addressing public procurement and purchasing. The CRC points to “serious dysfunctions in the on-demand transport contract” it reviewed, as well as “serious dysfunctions” within the company’s purchasing function, and further “serious dysfunctions” related “to the absence of a public buyer within the company, to a poor definition of responsibilities among employees, and to a lack of knowledge of public procurement regulations.” The lack of a dedicated employee for public procurement leads to “manifest irregularities” in the various procedures carried out by Transurbain in relation to public contracts.
The wake-up call was beneficial, according to Diane Leseigneur. “We are not sized to have a position that manages these issues. We had requested assistance on certain contracts from EPN without success. We have approached SCET [a subsidiary of Banque des Territoires, N.D.L.R.] to conduct a study on what contracts would need to be put out to tender based on the projects, how to structure them, etc. They delivered their conclusions a month ago. Everything will be brought up to standard. It’s a long-term effort because we have a lot of purchases to make in all directions. We will try to upskill someone part-time, and I hope we will have the support of EPN alongside us because this is not our core business and I do not have the means to recruit someone.”
“We’re Running on Empty”
Diane Leseigneur emphasizes that the CRC report does not mention any mismanagement. “Since 2012, we have always been slightly profitable, with dividends paid to the agglomeration.”
Ridership, impacted by Covid-19, has reportedly returned to pre-pandemic levels, around three million passengers annually. However, further growth will be difficult, the CEO regrets, due to a budget constrained by its ordering party.
“Transurbain is entering a difficult period, she predicts without hiding her frustration. EPN is seeking to minimize investment with us. We are understaffed in terms of lines in operation, the number of buses, and non-operational staff. To reduce further, we would have to consider reducing services, even though there is demand, for example from hospital interns on atypical schedules, or from the air base to extend the network to its entrance. We would need to electrify line T9, but financially, that is not possible. We need to develop Véloo and consider short-term rentals. There are needs, but the financial constraints imposed by EPN will hinder the development of mobility,” she concludes.
Personalize your news by adding your cities and media as favorites with My Actu.
