Javier Milei’s government detected “unnecessary expenses” by US$4.8 billion in AySA during the previous management. This was stated this Tuesday by the presidential spokesperson, Manuel Adorni, during his usual press conference. “Far from dedicating itself to quality service, the company functioned as a campaign platform for the officials on duty,” said the official.
In detail, Adorni assured that “there were US$200 million allocated to works” of which “25% were allocated to works in Tigre and Argentine Malvinas“. In addition, they also reported the purchase of a building on Tucumán Street “for US$31,600.00 dollars” where repairs were also contracted for “US$9,600,000” for said building: “The irony is that this work was never finished.“.
The government’s complaint for irregularities in AySA
In his usual press conference, Adorni provided details about the irregularities and “unnecessary expenses“detected by the Government in the state company. “There were US$200 million allocated to works, 25% of those works were assigned to Tigre and Argentine Malvinas. Draw your own conclusions,” the spokesperson began explaining.
“AySA also financed sporting and social events in the districts that were politically aligned with the previous government, or with its officials, such as the Iron Man triathlon and the Tiger Challenger, an ATP tennis tournament that happened to be held in that district,” Adorni ironically said. Along these lines, The La Libertad Avanza official also assured that the company “spent US$1,300,000 between 2022 and 2023 sponsoring AySA in these events“.
On the other hand, Adorni denounced that the company acquired “a building on Tucumán Street for US$31,600,000“where in addition “repairs were contracted US$9,600,000“. “The ironic thing is that this work was not finished. And what is even more ironic, or strange, is that it was planned that several extra floors would be built in that building dedicated to the exclusive use of the president of AySA.”
“In addition, in September 2023, the famous Renault Kangoo trucks were purchased. There were 613 trucks that were acquired by US$25,700,000 or US$42,000 for each Kangoo trucktriple its real value on the date of purchase,” explained Adorni.
The spokesperson also targeted the company’s communications area, which he accused of allocating resources to “accounts outside the state entity and mentioned the political leaders of the Frente Renovador“.
Finally, when asked about a possible judicial process against Malena Galmariniformer head of the state company, Adorni responded: “the presumption of corruption or the presumption of misuse of public funds that has the elements to prosecute it, it is effectively prosecuted“.
The government has the privatization of AySA on its agenda
In this stage of deepening the privatization and/or closure of state companies, the ruling party has one last candidate in its sights: This is Argentine Water and Sanitation (AYSA). Currently, the 90% of the company’s capital corresponds to the National Governmentwhile the remaining 10% is in the hands of the company’s staff.
After announcing the irregularities, one of the strategies of the officialdom aims to divest, in the near future, of a part of the shares owned by the State. This could be done through a national and international public tender for the sale of 100% of the company’s sharesas happened this week with Industrias Metalúrgicas Pescarmona SA (IMPSA), which was the first privatization of the government.
Other options of the Government would be to launch the Stock market in March 2025and that it is the financial market that sets the value of the company’s shares. The company had losses of $70 billion so far this year, and has more than 7,000 employees.
Source: Ambito
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