A viral video circulates on social networks: trucks transport copper through the southern mining corridor to ship it through the port of matarani (Arequipa) and export it to China.
“Looting”, indicates the subtitle. In the description of the audiovisual, the text indicates that the transnationals take the wealth of Peru without paying taxes.
The director of Videnza Consultores and former Minister of Economy, Luis Miguel Castilla, argues that “this narrative” is without foundation. There are many resources from mining income in the Peruvian State that are wasted.
What taxes does mining leave to the national treasury? Income Tax (IR) and royalties. Half of the IR returns to the regions where the minerals were extracted. This item is called mining canon. Companies also pay quarterly royalties for the sale of their production.
The entire amount of this tax is shared between subnational governments and universities in the producing region.
2022 was a historic year. More than a decade ago, the mining regions did not receive so much money from royalties. According to him Ministry of Energy and Mines, S/ 7,844 million increased accounts of regional governments, municipalities and universities. Ancash, Arequipa, Tacna, Ica Y Moquegua, They got the best slice of the pie. Within hours of the end of this year, the execution in investment projects is lean.
the portal of Economic transparency of Ministry of Economy reveals that the regional governments of cajamarca Y ancash they are the laziest. The first, of each S/ 100 transferred, barely spent S/ 39, Ancash S/ 42, Ica S/ 47.
In summary, the regional governments only executed 62% while the municipalities 61%.
Is more resources a solution?
The country is experiencing a climate of social upheaval due to the fall of Pedro Castillo. The President of the Front of Popular Organizations of Puno, Amador Núñez, It raises, among other claims, that 90% of taxes from mining and gas remain in the producing regions.
Puno is home to one of the most important tin mines. Thanks to the good prices of the metal, his regional government received three times more by canon. However, its level of spending on investment projects reaches 63%.
The highland region has many needs, as Núñez explains. Probably has the worst human development indicators according to the Videnza Consultores observatory: 70% of children under six years and 35 months old have anemia. And only 64% have access to water.
The journalist Liubomir Fernández maintains that there is a lack of public policies to reduce these gaps. Since the beginning of regionalization, he adds, all regional efforts have been marked by inefficiency and suspicion of corruption.
Do they stir up the conflict?
The Andean south is home to the main copper mines. The companies based in apurimac Y Cusco they use the southern mining corridor to transport the ore.
According to The Bambas, This road was closed for more than a year and a half due to protests by adjacent communities who are demanding a series of compensations. These populations lack basic services.
However, their municipalities do not use their resources well either. chumbivilcas only executed 55% investment this year, Velille 59%; This district, one of the most troubled, has almost 9,000 inhabitants and the municipal budget for this year amounted to 47 million. Capacmarca, 3,000 inhabitants and its budget is around 37 million.
inefficiency and corruption
In Arequipa, the Governor Kimberlee Gutierrez “He congratulates himself” on having spent 70% of his investment budget, but it is disputed whether they are important works.
In several regional governments the small project predominates. In many cases, you compete with the municipalities.
Yamila Osorio, ex-governor mistiana, maintains that in the period 2018-2022, the budget was atomized. 287 projects were executed and for each file, the investment does not exceed one million soles.
On the other hand, there is a lack of supervision, says Castilla. You can build a heated pool in a district where there is no drinking water or a stadium for 40,000 spectators in a depopulated jurisdiction. There is no control.
Castilla maintains that the transfers to the municipalities is another trick of the regional efforts to improve “the photography of the execution.” Resources are wasted that way.
Let’s see the specific case of the Arequipa province of camaná. The counselor of that jurisdiction, Chriss Diaz Montoya reveals that the drainage from the urban area is deposited in the sea. In 2019, the local municipality received a regional transfer of two million soles to prepare the technical file for a wastewater treatment plant. Four years have passed and the study is still not complete. Last August, the Gutiérrez management once again distributed another S/126 million and included that commune and 17 others again, despite the fact that they did not render accounts of previous money deliveries.
Castilla warns that this model incubates various forms of corruption. In Arequipa, he was exposed by an investigation by the Public Ministry. Several councilors, says Díaz Montoya, became managers of the works for their provinces. However, “the task” was not free. Once the transfer is approved and the contractor chosen, it must pay a percentage, the tithe, which used to be shared with the governor, counselor and mayor. The company recovered that investment in the addenda or by abandoning the work. Can a company that was charged a bribe be audited? Impossible. This scheme has been repeated in other regions. Last month, he stopped at councilor of Puno, José Borda Cahua. There are several charges against him, the most serious, having offered money to an official to approve some addenda for signed contracts. And this, in exchange for what?
Today the regional governments have 247 paralyzed works and the municipalities 1624.
Did regionalization fail?
Miguel Castilla responds that this decentralization process has hit rock bottom. But the solution is not to recentralize budget execution. The quality of human resources must be improved. The indicators are worrying. Only 10% of the officials in charge of public investment in the country are suitable. If Pedro Castillo was criticized for permanently changing ministers, in the regions, there is high volatility in key positions.
The general manager is one of them for budget execution and the formulation of management policies. However, these officials only remain in office for 10 months. With six regional managers, it is difficult to manage a four-year government in a reasonable manner.
In Apurímac, which manages the income left by Las Bambas, a manager lasts six months. He has to have more control and change the vision that regional governments are a continuation of municipalities and above all spoils of war to be skimmed.
Governors on a tightrope
The National Election Jury (JNE) suspended eight acting governors for convictions, preventive detention orders or fugitives from justice in the period 2018-2022.
84% of the regional authorities have pending investigations for crimes of collusion, incompatible negotiation, embezzlement, embezzlement, etc., indicates the Convoca portal. There were accidental efforts.
In this period, Puno had three governors. The aimara leader Walter Aduviri, months after his inauguration, he was vacated due to a sentence corresponding to his performance as a leader. he replaced it Augustine Luque today in pretrial detention for colluding with a Chinese company in breach of contract to build a hospital. Currently, the position is held German Alejo, a counselor who was not prepared to perform in this role.
Source: Larepublica
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