### Financial Crisis Hits Los Cabos
Los Cabos, one of the most prominent tourist destinations in Mexico, is facing a significant financial crisis following the administration of Óscar Leggs Castro, who served as the Mayor until September 2024. The city’s current financial health is alarming according to the new municipal management led by Christian Agúndez Gómez.
Rigoberto Arce Martínez, the municipal treasurer, admitted, “We are crafting a strategy to navigate out of this financial pit.” He explained that the city’s accounts, reportedly containing around 198 million pesos, were significantly overstated due to undelivered checks amounting to 31 million pesos. This discrepancy has left the city technically in debt, with Arce highlighting a negative bank balance of 12 million pesos if outstanding checks were cashed.
The financial imprudence dates back to the prior administration’s decision to exhaust the yearly budget within nine months—contrary to financial discipline laws—leaving little for the rest of 2024. Arce also pointed to debts reaching 2,500 million pesos, including unpaid commitments to institutions like ISSSTE and SAT totaling approximately 300 million pesos each.
The situation is exacerbated by reckless staff hiring, which doubled the workforce without adequate funding. The new administration is reviewing each department to make necessary reductions without harming public services. As the city struggles with budget inadequacies and massive debt, it’s considering a loan of up to 300 million pesos to meet year-end obligations.
Legal actions are being initiated against certain officials from the previous administration, including Óscar Leggs Castro, for potential financial misconduct. An impending forensic audit aims to illuminate the extent of fiscal mismanagement.
### Investigation Launched into Concert Contract Controversy
In a related financial controversy, a questionable contract involving the popular artist Chayanne’s concert is under investigation. Scheduled for February 2025 in La Paz, this private event sponsored by “Baja Vibes” has drawn public scrutiny due to a government-backed loan intended for artist fees.
Suspicions of corruption have arisen as the event, which is expected to be funded through ticket sales, appears linked to municipal officials who reportedly used intermediaries for personal gain. Baja California Sur’s Anticorruption Prosecutor, Lenin Emiliano Ortiz, has confirmed the investigation into this potential misuse of public funds.
The scandal has ignited public outrage, particularly from pensioners in La Paz, who accuse the city of diverting funds intended for their bonuses to cover the concert expenses. Accusations extend to possibly falsifying documents to justify the redirection of public monies.
The inquiry seeks to determine the legality of this transaction and ensure accountability, with government officials facing potential legal repercussions if found guilty of misappropriating funds. This case underscores the broader challenges Los Cabos and surrounding regions face in restoring fiscal integrity amidst scandal and mismanagement.