Chile’s Contraloría General de la República (CGR) has uncovered more than $1.8 billion Chilean pesos (approximately $1.7 million USD) in irregularities related to the response to the devastating February 2024 wildfires that ravaged the Valparaíso region. Five audit reports released this Tuesday detail issues ranging from inflated contracts and unsubstantiated payments to questionable coordination between authorities and suppliers, prompting administrative investigations and referrals to both the Public Prosecutor’s Office and the Council for the Defense of the State (CDE).
The most substantial discrepancies were identified within the Dirección Regional de Arquitectura (DRA) – the Regional Directorate of Architecture, part of the Ministry of Public Works (MOP). Report N°500/25 revealed a pattern of irregular contracting with Empresa San Nicolás SpA for the demolition of homes in the El Olivar sector. The company reportedly charged $7.3 million pesos per demolished home, a figure 220% higher than competing bids offering $3.5 million pesos. The audit found that the then-Regional Director maintained direct communication with a company representative via WhatsApp prior to the formal bidding process, suggesting a pre-determined outcome.
Further scrutiny of the DRA’s expenditures revealed $782 million pesos in payments for “perimeter closures” and “land leveling” work that was either not completed or lacked technical justification. In a particularly striking finding, the company allegedly used repeated photographs, or images showing homes already demolished, to substantiate claims for work completed “before” demolition. Report N° 805/25 also identified an additional $434 million pesos in improper payments for partial demolitions billed as complete, and failure to issue penalties to contractors who missed deadlines.
The Delegación Presidencial Regional (DPR) – the Regional Presidential Delegation – also faced criticism for a lack of oversight in heavy machinery rentals, with irregularities totaling over $568 million pesos. The Contraloría found that companies awarded contracts through direct negotiation, San Nicolás SpA and Minera y Constructora Río Grande SpA, did not own the machinery or vehicles they claimed to provide, instead acting as intermediaries subcontracting the services informally. More than $61 million pesos was paid for machinery rentals where drivers were documented as operating two different vehicles simultaneously – a physical impossibility. The DPR also paid up to 220% more than the Municipality of Quilpué for the rental of similar dump trucks, and excavators.
Municipal-level audits revealed systemic issues with internal controls. In Viña del Mar, the Contraloría found $33 million pesos in donations remained unused in a current account a year after the emergency. The municipality also failed to provide 1,280 delivery receipts for aid, hindering verification of whether assistance reached those affected, and discrepancies were found in inventories of mattresses and tents. In Quilpué, the purchase of 382 gas stoves for nearly $15 million pesos was flagged as problematic, as the appliances lacked safety certification from the SEC (Superintendency of Electricity and Fuels), posing a potential safety risk. 297 SIM cards donated by the Regional Secretariat of Transportation were reported missing, along with water tanks from the Calichero sector.
The Contraloría has given the involved entities between 30 and 60 days to demonstrate the restitution of funds or rectify the identified issues, warning that “reparos” – legal claims – could be filed against responsible officials if the observations are not addressed.
