Misuse of subsidies?

Regulation & Policy    Nov 11, 2021 4:58 PM

The Inspector General reported the finding of misuse of resources invested in the Solidarity Fund for Subsidies and Income Redistribution (FSSRI).

The entity said that some energy commercialization companies would have made an improper application of these resources, El Heraldo reported.

The Inspector said that the companies Dicel, headquartered in Cali, and A.S.C. Ingeniería S.A. E.S.P., located in Pasto, are under investigation.

“With their non-compliance in the transfers to the Fund, they would have caused an alleged detriment of assets, of CoP$31.1B in the first case, and of CoP$1.0B in the second,” the Inspector said.

The entity said that these energy companies failed to remit to the Fund contributions collected from commercial and residential users of strata 4, 5 and 6, which are necessary to cover subsidies for strata 1, 2 and 3.

In addition, the control entity revealed that these energy companies would have appropriated these resources to leverage their commercial operation, ignoring that they are of a public nature, specific destination and mandatory payment.

The Inspector is following up to verify if the behavior detected in these two firms is occurring in the rest of the companies that have the same obligations.

“Of the 61 energy trading companies, 9 have already been reviewed and the rest are being examined until it is established that all of them are complying with their obligations,” the entity said.

The Delegate Inspector for this sector, Orlando Velandia Sepúlveda, said that it is inadmissible that these public resources that are intended to subsidize the lower income strata in the country are staying in the pockets of some private agents.

Bottom-Line: Authorities must increase controls on these issues, as these resources are fundamental in the process of improving the energy service in the Caribbean region.

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