Government discards international external audit of the state due to fiscal constraints

José Antonio Kast's government has decided against proceeding with the international external audit promised during the campaign, citing fiscal resource shortages. It will instead focus on an internal review led by a strategic committee. The Subsecretaría General de la Presidencia confirmed the decision to La Tercera.

During last year's presidential campaign, José Antonio Kast's team promised a total and independent audit of the state from the first day of government. The plan involved convening the Contraloría General de la República and global auditing firms like Deloitte, PwC, EY, and KPMG to examine ministries, subsecretaries, services, and public companies, aiming to identify overpricing and irregular contracts.

Sources from the 'Big Four' anticipated an international tender, though they voiced concerns over political implications. The Subsecretaría General de la Presidencia stated that the government will rely on internal resources due to tight public finances.

The Comité Estratégico de Auditoría y Revisión Fiscal, formed two weeks ago and chaired by subsecretaria Constanza Castillo, requested preliminary reports from public services on fiscal resource use from 2025 to March 11, 2026. The committee, including subsecretaries of the Interior and Treasury, the budget director, and a presidential cabinet representative, will mobilize over 1,000 internal auditors.

"This is a key instance that will allow us to conduct and streamline this process in an unprecedented effort where we will activate more than a thousand internal auditors to review the state of the fiscal accounts and tell Chileans transparently where every public peso was spent," said Constanza Castillo.

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President José Antonio Kast chairs a cabinet meeting at Cerro Castillo following ministerial changes.
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President José Antonio Kast led his administration's fourth cabinet meeting on Thursday at Cerro Castillo, following Tuesday's ministerial adjustment that removed two ministers.

Chile's President José Antonio Kast defended his administration's progress in its first month, stating that an entire state cannot be overhauled in one month. At the second session of the Strategic Audit and Fiscal Review Committee, he praised auditors for safeguarding public resources.

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Chile's Consejo Fiscal Autónomo (CFA) issued a critical report on President José Antonio Kast's megarreforma, warning of persistent fiscal deficits and nine direct risks to public finances. President Paula Benavides stressed that the impact hinges on realizing projected economic growth. The government said it will review the report.

Gustavo Alessandri, president of the Chilean Association of Municipalities (AChM), disclosed irregularities from the previous administration under Carolina Leitao, including lack of internal controls and resource abuse by some directors. He announced consideration of legal actions through labor, penal, and administrative channels but clarified he is not targeting Leitao personally. The organization has 60 days to respond to Contraloría observations.

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After Gabriel Boric's government ended and José Antonio Kast took office, several former undersecretaries have taken up new roles in Congress, municipalities, and academia. Figures like Nicolás Facuse and Luna Follegati now serve as parliamentary advisors, while others seek positions in the private sector or education.

Chile's Public Security Minister Trinidad Steinert and Undersecretary Andrés Jouannet missed a key Senate Finance Commission session on modernizing Carabineros, forcing its suspension. The incident drew criticism from both opposition and government lawmakers. A Segpres minister apologized for the coordination failure instead.

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President José Antonio Kast's government has delayed entry of its controversial 'National Reconstruction Plan'—recently renamed the 'economic reactivation reform'—into Congress until next week. Initially announced in March with an expected April 1 entry, the postponement allows final reviews and shifts focus to school security following a deadly incident in Calama.

 

 

 

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