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Chile Fire Funds Mismanaged: $1.8 Billion in Irregularities Uncovered
Valparaíso, Chile – February 11, 2026 – A scathing audit has revealed widespread financial irregularities totaling over $1.8 billion in the wake of the devastating February 2024 wildfires that ravaged the Valparaíso region. The findings, released this Tuesday by the Valparaíso Regional Comptroller’s Office, point to significant mismanagement of funds allocated for emergency response and reconstruction, raising serious questions about accountability and transparency. Here’s a developing story, and archyde.com will continue to provide updates as they become available.
Massive Overpricing in Demolition Contracts
The most substantial irregularities were detected within the Regional Directorate of Architecture (MOP), specifically concerning contracts awarded to San Nicolás SpA for the demolition of homes in the El Olivar sector. The audit, Report No. 500/25, found that San Nicolás SpA charged $7.3 million per demolished home – a staggering 220% higher than offers from other competitors, which stood at $3.5 million. Investigators discovered evidence of pre-determined contract awards, with the then Regional Director maintaining direct communication with the company representative via WhatsApp *before* the formal bidding process.
Adding insult to injury, $782 million in payments were made for items like “perimeter closures” and “land matching” that were either never completed or lacked any technical justification. The audit even uncovered instances where the company submitted repeated photographs, including images of homes *already* demolished, as “before” photos to support their claims for payment.
“Ghost” Machinery and Inflated Rental Costs
The Regional Presidential Delegation (DPR) also came under fire, with the audit (Report No. 528/25) exposing a lack of control over heavy machinery rentals totaling over $568 million. Companies like San Nicolás SpA and Minera y Constructora Río Grande SpA were found to be operating as intermediaries, subcontracting services despite having machinery registered in their own names at the time of the contract awards.
Perhaps most shockingly, over $61 million was spent on machinery rentals where drivers were documented as operating two different vehicles – a truck and a skid steer – simultaneously, an obvious impossibility. The DPR also paid up to 220% more than the Municipality of Quilpué for the rental of similar equipment, like hopper trucks and backhoes.
Municipal Level Concerns: Unaccounted Donations and Safety Risks
Irregularities weren’t limited to regional authorities. In Viña del Mar (Report No. 503/25), $33 million in monetary donations remained “principled” – essentially untouched – in an unused checking account a year after the emergency. The municipality couldn’t account for 1,280 benefit delivery certificates, raising concerns about whether aid actually reached those in require. Discrepancies were also found in the inventories of essential supplies like mattresses and tents.
Quilpué (Report No. 535/25) faced objections over the purchase of 382 gas stoves – costing nearly $15 million – that lacked the required SEC safety certification, posing a potential risk to users. The loss of 297 donated SIM cards and the disappearance of water ponds from the Calichero intake sector were also reported.
The Comptroller’s Office has issued deadlines of 30 to 60 days for the entities involved to either return the funds or rectify the situations. Failure to comply could result in legal action against responsible officials, with potential asset seizure to recover the misappropriated funds. This case serves as a stark reminder of the importance of robust oversight and transparent financial management, especially in the aftermath of large-scale disasters. The implications of this audit extend beyond financial recovery; they strike at the heart of public trust and demand a thorough investigation to ensure accountability and prevent future abuses.