EPM corporate governance at risk?

Company News    May 21, 2021 2:22 PM

The Forjando Futuros Foundation and the Inter-Church Commission for Justice and Peace presented a formal complaint to the administrative courts against the EPM Corporate Governance.

The commission considers that this does not represent the public interest, but, on the contrary, benefits the private sector, mostly the Grupo Empresarial Antioqueño, Caracol Radio reported.

Gerardo Vega Medina, Director of the Forjando Futuros Foundation, recalled that Corporate Governance was created in 2007 when Sergio Fajardo and Juan Felipe Gaviria were the mayor of Medellin and Manager of EPM respectively.

“They signed the agreement whose essence was to combat inefficiency, corruption and patronage; however, the remedy came out worse than the disease and the private companies ended up appropriating public resources,” Vega said.

Bottom-Line: EPM continues to go through a difficult institutional and corporate crisis, affecting its performance in key projects for the country such as Hidroituango. Far from being a negative, EPM’s private-company governance should facilitate financing and partnerships. However, the problem lately is that the rules have been ignored or at least bent to allow the politicians free reign.

Local authorities must take early action on this issue to avoid a major crisis.

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