Argentina will not renew 5,000 public contracts and will review a million social plans

The Government of Argentina will not renew around 5,000 public contracts next year and will review more than a million social plans to detect irregularities, as reported this Tuesday by the presidential spokesperson, Manuel Adorni.

Adorni also announced that public contracts signed up in 2023 that end on December 31 will not be renewed in 2024, while the rest will enter a 90-day review process.

In a press conference at the Casa Rosada, the spokesperson specified that this measure will affect all temporary employees of the federal Administration and those of various public entities in Argentina, and that only workers in state companies and companies will be excluded.

Review of Argentina’s social plans

Regarding social plans, the Argentine Executive will begin the audit of more than one million social plans and predicts, based on calculations from judicial investigations, that 160,000 beneficiaries could be receiving these aid in an “irregular” manner.

According to the spokesperson, these plans would have a total value of 10,000 million Argentine pesos (12.45 million dollars).

“Argentines should not be responsible for this money,” Adorni emphasized.

The objective of the Argentine Government is “to make the system transparent, to ensure that those who need it are paid and that (the social plans) stop functioning as a business for intermediaries and the heads of social organizations.”

First demonstrations in the street

Precisely, a part of these social and union organizations demonstrated last Wednesday in Buenos Aires, coinciding with the 22nd anniversary of the protests of December 2001, which in the economic sphere led to what is known as the banking ‘corralito’, and in politics caused the resignation of the radical president Fernando de la Rúa (1999-2001).

The General Confederation of Labor (CGT), the powerful and majority federation of Argentine unions, with a Peronist orientation, did not participate in last week’s mobilizations.

Cegetista leaders and sympathizers are expected to mobilize tomorrow in Buenos Aires in protest of the decree of necessity and urgency signed last week by President Javier Milei, pending approval by the Argentine chambers and which represents the practical deregulation of the entire economy of the country.

Milei Trade Measures

The Government of Argentina replaced the current Import System of the Argentine Republic (SIRA) with a new Statistical Import System (SEDI) in order to eliminate “bureaucratic loopholes” to import trade in the South American country.

With the end of the SIRA and the implementation of the SEDI “the official on duty ends up being able to decide what we want to export and what not,” said the presidential spokesperson, Manuel Adorni, in a press conference at the Casa Rosada (seat of Government). when referring to the Executive’s resolution, which was published this Tuesday in the Official Gazette of Argentina.

The new model will allow the Argentine Government to value “the decision of the private sector more than that of those who are behind a desk,” emphasized the government spokesperson. “We always trust the person working more than the bureaucrat,” he reiterated.

The controversial SIRA was approved by Sergio Massa, who was Minister of Economy during the second half of Alberto Fernández’s Government (2019-2023), who was also the presidential candidate defeated by the ultra-liberal Javier Milei in the runoff held on November 19.

The import system, which was one of Massa’s ‘star measures’, established quotas for purchases from abroad in Argentina, installing a discretionary system of licenses and permits for imports.

With the new scheme, which had already been advanced by the current Minister of Economy, Luis Caputo, it will not be necessary to process licenses for shipments intended for consumption.

By Nadeem Faisal Baiga