Comfenalco Antioquia Under Administrative Intervention: A Detailed Examination

Comfenalco Antioquia Under Administrative Intervention: A Detailed Examination

Administrative Intervention of Comfenalco Antioquia

Luis Guillermo Pérez Casas, the Superintendent of Family Subsidies, announced a comprehensive administrative intervention of Comfenalco Antioquia, a non-profit organization focused on improving the living conditions of Colombian families. The intervention could last up to 12 months and involves the suspension of its board members. This measure comes in the wake of findings that include the transfer of significant resources to an external entity, Mandato Salud, without an apparent legal business basis.

Misallocation of Resources

The transfer of residual resources from the liquidation processes of health programs, amounting to approximately $10.000 million, to a trust has raised significant concerns. Since 2021, this trust is no longer under the ownership and control of the family compensation fund. The lack of clarity regarding the ownership and allocation of these residual resources, whether they belong to the Health System or the compensation fund, has created a legal and asset risk to the fund’s interests.

Board’s Lax Oversight

The board of Comfenalco Antioquia has been found to lack control and diligence in managing this matter. They failed to exercise due control over the actions carried out by the administrative director concerning the formation of Mandato Salud and the transfer of fiduciary rights. The board has not requested management reports or accountability regarding the actions carried out by the managers. Nor has it asked for a follow-up report from the fiscal review or internal audit. This lack of oversight breaches several regulations and potentially puts the fund’s assets at risk.

Recurring Losses and Asset Risk

In addition to the issues with Mandato Salud, the recurring losses of the housing cost center, reaching over $20,000 million, are impacting the corporation’s assets negatively. These losses put at risk the assets of Comfenalco Antioquia and all affiliates and beneficiaries of the family’s subsidy of the entity. The housing program has been reporting losses for the past six years, suggesting a possible breach of the transparency regime.

Affect on Social Security Programs

Comfenalco Antioquia aims to enhance the living conditions of thousands of families in Colombia by delivering comprehensive social security programs. These include health, housing, education, recreation and tourism, culture, and economic well-being initiatives. The organization collaborates with regional, national, and international – public or private – entities to promote programs for the poorest populations. However, the current administrative and financial issues could potentially impact these social security programs and the families reliant on them.