The Directorate General of Military Industries (FM) ended 2007 with a negative net worth of $ 1,009,630,907.72. The data comes from the financial statements of the department, which were analyzed by the General Audit Office (AGN, for its acronym in Spanish), in a report adopted in November of last year.

Although the inspection body "declined" to comment on the reasonableness of the balances of Manufactures, for the "significant limitations" to work and "observed uncertainties" itself listed the commitments that dragged the agency, especially on a legal level.

In its financial statements, Military Industries foresaw some $ 82,530,266.12 to address the almost 1,100 cases for damages generated by the tragic explosion of the dependence of Rio Tercero, Cordoba, in November 1995. However, the AGN said that in that total nearly 11,000 civil actions from March 2009 were not included which totaled $93.1 million.

The report also notes that "according to reports by FM, efforts are being made within the scope of the President's Office to issue a law to pay fixed sums in compensation concept to all civil plaintiffs by explosions and completion of all pending lawsuits."

Moreover, the balance of Manufactures 2007 also includes $ 13.3 million that are claimed by the Argentine Army following alleged breaches of the agreements signed between February and October 1994, which are under criminal investigation for smuggling weapons and material. In fact, in this case the Army requested the intervention of the Treasury Solicitor's Office, which suspended the proceedings "until the criminal courts give a ruling on the authenticity of the agreements underlying the claim."

Military Manufactures also faces another trial. It is processed in the District Court in Civil and Commercial de La Plata by a fatal traffic accident occurred on June 3, 2003 in the town of Laprida, Buenos Aires. On that occasion, a vehicle collided head-FM with a private car. The amount sought by the lawsuit is $ 8,234,789.46, a total that is included in the financial statements of 2007, although the dependence quoted in an insurance guarantee company Progress + Astro Insurance Company ( number 642 895) which had a limit of liability coverage of $ 3 million.

Apart from negative equity, the AGN says FM ended 2007 with a loss of $ 84,439,838.92, and argues that "the economic and financial projections show significant losses for the year ended on December 31, 2008". Therefore, the dependence which operated under the aegis of the Ministry of Economy: sanitation tried to manage their debts to the General Treasury of the Nation. But, through Decree 1079 of 2006, it was decided to move it to the jurisdiction of the Ministry of Federal Planning, and also prepared to include sanitation in the bill of legal transformation, by which the General Military Industries became Military Industries State Society. The commitments, meanwhile, were included in non-current liabilities, under "other" for $ 983,194,393.03, "and why there have been no cancellations during the year," the report added.

This legal transformation in addition stipulates that "the new society from the responsibility of continuing to serve civil cases arising from explosions (Rio Tercero) and emerging responsibilities of the same, which will be assumed by the Federal Government is exempt" completed the Watchdog.