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AMLO government supported large companies with the Mining Fund in 2019

In the first year of government of the current administration, the Mining Fund Trust (Fifomi) supported to a large extent large mining companies, in addition to giving credits mainly for the commercialization and distribution of minerals and not for exploration and exploitation, warned the Superior Audit of the Federation (ASF).

In the Report of the Result of the Superior Audit of the Public Account 2019 the Audit assured that “the insufficient application of the instruments of Governance and Internal Control, in terms of the definition of the participants and the analytical and structural description of the value chain from the mining sector, led to the delivery of credits by FIFOMI to companies whose activities corresponded to consumers of processed minerals. “

For example, processed minerals companies were given 40.55% of the total loans, equivalent to 2.5 billion pesos; almost 20% equivalent to 1.2 billion pesos to distributors, which were used to “commercialize products made with inputs of mineral origin, acquire automated equipment for mixing paints, from construction companies and suppliers of the construction industry.”

But only 40%, approximately 2.4 billion pesos, were allocated to the exploitation and production of minerals and the suppliers of the metallurgical industry and the distribution of equipment and machinery, activities that are the objective of the public policy that motivated the creation of FIFOMI and justifies its permanence “.

But, for the most part, 50.4% of the loans were granted to large companies, while the remaining 49.6% were for small and medium-sized companies. Therefore, the Audit delivered 29 recommendations to Fifomi.