Baja Financial Irregularities Audit

Federal audit uncovers 214.8M pesos irregularities in Baja California. Misuse of funds under Governor Ávila Olmeda’s administration. Efforts underway to recover embezzled money, but accountability gaps remain.

## Audit Reveals $214.8 Million in Federal Fund Irregularities in Baja California

In the latest report by the federal auditing authorities, Baja California has been flagged for irregularities amounting to 214.8 million pesos concerning the mishandling of federal funds in public accounts for the years 2022 and 2023. This amount is approximately equivalent to the 2024 budget allocation for Playas de Rosarito.

While a final report on the 2023 public account is expected in February 2025, the identified irregularities pertain to funds meant for social support, education, infrastructure, and security under Governor Marina del Pilar Ávila Olmeda’s administration. Notably, this amount is less than what was reported under previous administrations. For instance, the first administration under Morena governor Jaime Bonilla Valdez saw irregularities of 1.5 billion pesos, while the PAN administration led by Francisco Vega de Lamadrid was noted for 436.6 million pesos between 2014 and 2015.

Efforts to address these issues have led to the recovery of 38.4 million pesos. However, state agencies, decentralized organizations, and municipalities still need to clarify 82% of the total amount flagged.

### Education and Social Program Contract Dodgies

This audit cycle particularly highlighted concerns in the spending of funds intended for disadvantaged populations. This differs from past reports that mainly flagged issues in the distribution of federal contributions. The audit revealed that payments totaling 747.6 thousand pesos were made to 306 beneficiaries after their date of death.

Additionally, delays in submitting beneficiary information for food assistance programs were noted. Several contracts for school breakfast programs were found not to have met minimum clause requirements, raising concerns over the oversight involved.

Contracts worth millions of pesos were executed despite the companies involved having tax issues, further indicating fundamental procedural gaps. This includes food and diagnostic services contracts awarded to firms with outstanding tax debts, contravening federal procurement laws.

### Infrastructure Projects Oversight

Findings revealed that several infrastructure projects either were not completed or did not deliver expected benefits. Out of 23 public work projects, five were non-operational despite significant financial outlays, indicating a lack of accountability and effectiveness in delivering public services to impoverished areas.

### Accountability in Tijuana

Tijuana’s municipal government encountered significant scrutiny, with 63.9 million pesos flagged due to unreturned federal funds from previous fiscal exercises. Moreover, discrepancies were found in the financial reporting tied to various governmental bank accounts.

## New Developments in Governance and Economic Trends

### Tijuana Plant Reopens After Fine Settlement

In related news, the Prime Wheel Plant 1 in Tijuana resumed operations after settling outstanding fines with local authorities.

### Mexican Peso and Economic Stability

Currently, the Mexican peso trades at approximately 20.55 to the dollar, experiencing depreciative trends compared to other global currencies. The economic implications of this development continue to be monitored closely.

These audited findings underscore a persistent challenge in effective financial governance and highlight the need for enhanced transparency and tighter control measures in public fund management across Baja California.