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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Illustration of tense standoff between Boric government officials and Kast's Republican team over public sector bill restrictions in Chile.
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First frictions between Boric government and Kast team over public readjustment

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Gabriel Boric's government included provisions in the public sector readjustment bill restricting civil servant dismissals, drawing criticism from president-elect José Antonio Kast's team, who call them a breach of trust. Arturo Squella, Republican Party president, warned that these measures undermine relations between administrations. The executive defends them as formalizing existing rules.

Ten days have passed since José Antonio Kast assumed Chile's presidency, marked by high activity in security, economy, and education. The government has prioritized police actions, housing reconstruction, and fiscal adjustments. Key ministers lead coordinated initiatives under a 'Hub' model.

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President José Antonio Kast said in his first radio interview from La Moneda that exceptions will be evaluated case by case in the 3% budget cuts ordered by Hacienda to ministries. He confirmed analyzing salary reductions for executive authorities amid the fuel price crisis. He also backed questioned ministers and defended his emergency government's priorities.

The election of Neiva's municipal comptroller for the 2026-2029 period has faced multiple setbacks, including a candidate's resignation and a review of another's potential ineligibility. The process, involving interviews and voting, lacks a set date but could occur between December 16 and 17 if no further issues arise.

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Following legislative elections, Argentina's officialism warned the opposition it will veto the 2026 Budget if it fails to ensure fiscal balance. Chamber of Deputies President Martín Menem stressed the need for rationality to avoid political chaos. The government aims to delay the debate until new legislators take office on December 10.

Supreme Court minister Diego Simpertigue defended his role in rulings linked to the Belarusian plot, as judicial fiscal suspended conservador Sergio Yáber for alleged ties. Deputy Cristián Araya faces claims of receiving payments, affecting José Antonio Kast's campaign. These developments highlight irregularities in a dispute between Consorcio Belaz Movitec and Codelco.

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José Antonio Kast's government held its first expanded political committee on Monday at La Moneda, where Segpres Minister José García announced urgencies for 20 bills, mainly on security and migration. Three initiatives received immediate discussion, including classifying irregular entry as a crime. The announcement comes amid internal criticisms over possible pardons and limits to free higher education.

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