From 2012-2013, Veracruz government gave $34.9 million to shell companies

An investigation was opened into Veracruz ghost companies, but it went nowhere.
An investigation was opened into Veracruz ghost companies, but it went nowhere.

By Arturo Angel and Victor Hugo Arteaga / Animal Politico

Officials close to the governor of Veracruz, Javier Duarte, gave contracts to a network of ghost for the purchase of products to be used for vulnerable companies, but never reached their destination.

The procedure was simple: the start of the presidential term is selected PRI vote promoters are asked to provide signatures used to create new businesses. These companies were assigned a false tax domicile, that no authority reviews.

Once created, the companies were recorded as government suppliers, able to sell items from diapers to cement.

A small group of officials, close to the governor, ensured that contracts are awarded via direct awards or closed tenders. After getting the money, the companies closed.

Veracruz’s government used this same procedure over and over again, spending 645 million pesos ($34.9 million) between 2012 and 2013.

In those years, administration officials in Veracruz Javier Duarte signed 73 contracts for the purchase and distribution of goods which, on paper, would go to people in poverty, victims of natural disasters, children and elderly. But there is no evidence that they were delivered.

http://www.animalpolitico.com/2016/05/desaparece-el-gobierno-de-veracruz-645-millones-de-pesos-entrega-el-dinero-a-empresas-fantasma/

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