The government of Javier Milei deepens the adjustment on the public sector with a new dissolution of trust funds. After eliminating PROCRATE, he now decided to annul five trusts linked to the promotion of entrepreneurial capital, assistance to victims of traffickingcompetitiveness of sugar sector in it NOA, mortgage refinancing and strategic investment.
Under the protection of the Bases law that enabled the Executive Branch to “modify, transform, unify, dissolve or liquidate public trust funds,” the Milei administration published tonight the decree 1048 that orders the dissolution of five other trusts under the argument of the existence of “flaws” and “weaknesses” of them, according to internal audits.
In this way, he ordered to close the Trust Fund for the Development of Entrepreneurial Capital (FONDCE) which was created to “finance ventures and entrepreneurial capital institutions” by granting “loans to ventures and/or entrepreneurial capital institutions to support entrepreneurial projects”, Non-Refundable Contributions (ANR) for ventures, capital institutions entrepreneur and institutions that offer business incubation or acceleration services; capital contributions in ventures and entrepreneurial capital institutions; and other financing instruments.
The decree warns that the General Audit Office of the Nation (SIGEN) detected “weaknesses in the management of investments and their recovery”, as well as the absence of “operational and procedural manuals”, in addition to “weaknesses in accountability and lack of of management indicators”.
The dissolution of the Mortgage Refinancing Trust which had the objective of implementing the Refinancing System implemented by Law 25,798. Likewise, SIGEN also reported “the existence of important weaknesses regarding the development of the aforementioned Fund, as well as delays in the rendering of accounts by the Trustee and in the hiring of external auditors for the audit of the Financial Statements of the Fiscal Years. 2021, 2022 and 2023 and lack of active management for the recovery of funds in arrears, among others.
Likewise, it ordered the closure of the trust of the Strategic Investment Program “whose objective is to invest in strategic sectors for the National State, promoting the generation of employment as an economic development policy in pursuit of the sustainability of the real economy.” According to the Government, “the assets have not been integrated into the trust, therefore, given the lack of functioning, there are no reasons to justify its permanence.”
At the same time, the dissolution of the Public Trust Fund called “FUND FOR DIRECT ASSISTANCE TO VICTIMS OF TRAFFICKING – LAW 26,364” intended for direct assistance to victims of the crime of human trafficking and exploitation.
The Government justified the closure based on a SIGEN report that indicates “the non-existence of a formalized procedures manual, shortcomings observed in the Trust Contract and the non-existence of a Computer System for the management of the executive unit of the aforementioned Fund, inter alia”.
Finally, the decree determines the suppression of the Program to Increase the Competitiveness of the NOA Sugar Sector (Proicsa)which had the purpose of allocating credits to promote the competitiveness of the sugar industry in Northwestern Argentina.
“With regard to the activity of the PROICSA trust, the process of granting all the credit assistance that was eligible in accordance with the Loan Contract signed with the ANDEAN DEVELOPMENT CORPORATION (CAF) has been completed. That, therefore, since In 2020, PROICSA does not have any activity in relation to disbursements to be made,” the government argued.
One by one, the trust funds that Javier Milei dissolved since his arrival to the Government
Since the beginning of his management, Milei has carried out a audit of the trust funds that led to their dissolution. One of the first to be eliminated was Fund for the Fiscal Strengthening of the Province of Buenos Airescreated by the Government of Alberto Fernández for the strengthening of Buenos Aires with resources obtained from the review of the amounts granted to the City for the transfer of Security.
The same day too ordered to modify the COUNTRY Tax to reduce to a minimum the distribution that the Socio-Urban Integration Fund (FISU), the fiduciary tool used by the previous government for the urbanization of popular neighborhoods. He FISU, that before the modification received a third of the 30% collected by the tax, saw its financing reduced to a minimum since it will barely receive 1%.
He also deregistered from the Trust Fund for Universal Health Coverage (FFCUS). This was decided this Friday, through resolution Resolution 666/2024 published in the Official Gazette. It was established in 2016, during the government of Mauricio Macri, and its objective was “to finance actions aimed at reduce gaps in access to health services.
In that line, the Government also resolved to close a fund that was intended for the sheep activity in the country, for which about $3,000 million a year were handled. It is about the Trust Fund for the Recovery of Sheep Activity (FRAO)which for the Government operated “without any type of transparency.” Agricultural producers criticized the Government’s measure and defended the transparency of the system.
Another of the most recent cases was the announcement through the Official Gazette of the closure of the Social Capital Trust Fund (FONCAP)a state tool for finance microenterprises so that families with employment problems can develop their own productions.
On October 8, the Government moved forward with the closing of another trust fund, in this case, it finances the Progresar Scholarships. It did so through Decree 888/2024 published in the Official Gazette with the signatures of President Javier Milei, Chief of Staff Guillermo Francos and the Minister of Economy, Luis Caputo.
In the letter, they indicate that the Public Trust Fund created on January 28, 2022 called “Progresar Trust Fund” whose purpose was to finance lines of action aimed at complementing and enhancing the actions of the “Support Program for Argentine Students” (Progresar). According to the Government, this fund “was never operational, because the assets necessary for its operation had not been integrated.”
Created in 2022 It had a duration of 20 years counted from the date of its constitution through the execution of a trust contract. Upon expiration, the ownership of the trust assets will remain in the hands of the trustee”, which in this case was the Ministry of Education at that time, now the Ministry of Education.
On the same day, through Decree 888/2024 and with the signature of Javier Milei, the chief of staff Guillermo Francos and the minister of economy, Luis Caputo, two more were eliminated trust funds that target different sectors of society. It is the case of National Emergency Fundwhich had the objective of financing response actions in emergencies that affect the country, and the Native Forest Environmental Protection Fund (Phoforest).
Source: Ambito
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