It is privatized the water: Puebla

National/states

Without participating in the bidding, Concesiones Integrales obtained it through rights transfer

It is privatized the water: Puebla

By: Carlos Damian                                             May 28, 2016

Moreno Valle and the candidate to governing (PAN), implicate in the machination

Mexico. -   The privatization of the drinking water service in Puebla City was resulted of a political and economic machination to benefit to a company that it did not bid in the regular contracting phase. Exist documents that reveal the implication in that process of the governor Moreno Valle; of the current candidate to the gubernatorial Jose Antonio Galil Fayad (PAN); the ex-secretary of government and now federal deputy, Luis Maldonado Venegas (PRD), and Julio Cesar Lorenzini, Rural Development secretary of the entity. The contract that was granted to the company Concesiones Integrales SA de CV (CISA), has a duration of 30 years. Of December of 2013 to date the consortium recovered the investment required in the agreement, by a thousand 40 million 333 thousand dollars paid to the state government, money of which is done not know the destination, since their income margin in that period is of two thousand 22 million 222 thousand dollars. In a way illegal were delivered 25 Operating Systems of drinking water and Sewer of Puebla (Soapap) to private hands affecting to 475 thousand user - 98 percent of the total registered in Puebla -. Most of the families affected in their economy to be increased the monthly payments by the service until in 400 percent. While the rest of the population has service four hours to the week.    Only half citizens of the Puebla City they receive water 24 hours a day. It was discovered that behind the benefitted company illegally by Rafael Moreno Valle and Jose Antonio Galil Fayad is found financial Monex, which settled economically to the company benefitted from the grant. The drinking water privatization in Puebla was handled with a total opaqueness strategy. 31 is December of 2012 Rafael Moreno Valle, after a negotiation hides with the coordinators of the Congress of the state, procured that is approved a new Law of Water of the state. Decided to open the door to the direct participation of the companies deprive in the managing, distribution and collection of the water, with the argument of the fact that the Soapap was insolvent and were found in bankruptcy condition. Moreno Valle maneuver and his accomplice Gali Fayad were accompanied of the connivance of the executive advice of the responsible organization that was controlling the Drinking Water System (SAP, for their initials  in Spanish), of that this last was forming part. That initiative of law was presented in the local Congress on September 5, 2013, accompanied of the Moreno Valle, Luis Maldonado Venegas companies, that now presides the Alertness Commission of the Deputies Chamber, and of Julio Cesar Lorenzini. Half of the population receives water four hours the week A proposal of such magnitude was not analyzed to depth by the deputies populates us, that approved it without changes so only seven days after. Before sending the initiative, the executive advice of the Soapap already was operating. 29 of August of 2013 summoned to a process of bidding so that private companies participated in the drinking water service in Populates. The public bidding summons SOAPA -LPIC-001/2013 was published 18 of September of 2013, when the votes of the PAN and their/its allies in the state Congress - PRD, PVEM, New Alliance and five deputies of the PRI - had endorsed the  reform  that  privatized the water in the entity. It was determined as limit date for the purchase of bidding conditions 25 of September of 2013, and the proposals presentation before of the 9 of December. As part of the plan to guarantee the grant to the beneficiary, three days before of the bidding failure, 23 of December of 2013, was constituted before notary public 25 of the state of Aguascalientes, through public writing 51206, the designated mercantile society Integral Grants SA de CV, that it did not participate in the bidding. The sentence was issued 26 of December, and the Soapap awarded contract to a consortium integrated by Grupo Agua de Mexico SA de CV, EPCCOR Servicios SA de CV and Tecnología Intercontinental SAPI de CV. However, the same day Grupo Agua de México, SA de CV celebrated a contract of rights transfer to the recently created Concesiones Integrales SA de CV. In said legal act, Grupo Agua de México, relinquished "unconditionally" the rights derived from the public bidding in order to awarding the grant title with which was granted the character of concessionaire to Concesiones Intergales, that had been created three days before. The bidding process of the SAP in Puebla, known in large part of the population as the "theft of the six years", it did not permit that other solvent companies economically presented technical proposals. Thus, created CISA 72 hours before of the bidding sentence, yet were not found registered in the Public Record of the Property and of the Trade neither in the Federal Contributors Record. The rights transfer to CISA violates the legal certainty because were not fulfilled the originally covenanted obligations, neither has record of the correct application of the resource delivered by that company. That legal act was granted of unconditional way, sufficient element to rescind the own grant fixed.  The governor orders to conceal the information bound to the process The grant was delivered in December of 2013, but it was May 15, 2014 when the Soapap received from CISA the payment from an initial consideration from thousand 40 million 211 thousand dollars. In the contract was established that each month the concessionary would pay to the public organization of the state 5 percent of the gross income obtained by the drinkable water supply to the population. To this is added that the current governing and his candidate of the PAN decided to extend the grant. Up until now by the opaqueness expressed by the governor has led the privatization of the water, already ordered to encrypt the information on the process and their agreements with CISA, and is done not know the destination of thousand 40 million 211 thousand dollars. In addition to the discretionarily of the government full of tricks and traps to cheat to the population of Puebla, the director of the Soapap, Manuel Maria Urquiza Estrada (MUE), modified the agreement of CISA, that, in spite not to have experience in the branch, in their page of Internet is bragged of having 20 years of knowledge and experience in that activity. The directing MUE is friend of the governing and of the candidate of the PAN, authorized the following: The investments by 213 thousand 345 dollars to the fact that had been committed praises private company and that they had to be accomplished in a term not greater than five years would be extended to ten. Also it extended the force of the grant guarantees the tariffs increase; reduce the percentage related to the consideration periodic (payment to government); modify, free discretion, the performance and guarantee standards, and even is assured to the company a compensation of the government. The company CISA was committed to the fact that in the first two years of have begun the grant would accomplish investments by thousand 16 million 333 thousand dollars, but it is day that only they have invested 3 million five hundred thousand dollars, solely 4.8 percent of what is committed. Furthermore, it has not been applied a permanent actions process for the detection and flights repair. Calculations of nongovernmental and civil organizations warn that is lost more than 50 percent of the drinking water. The administration of the service has turned out to be a deceit for the population but it is a gold mine for the entrepreneurs and their allies in the government, Rafael Moreno Valle and Jose Antonio Galil Fayad. Other theft to the people by the ruler in shift, together to the rich entrepreneur, and with their political cunning accomplices. (La Jornada, politica, p. 21, Mayo 21, 2016).