The General Audit Office (AGN, for its acronym in Spanish) detected that the company Emergency Operating Company SA (SOESA), which manages the Belgrano railroad cargo service, committed "gross misconduct" in their business practices, but are not penalized because a system of penalties was not agreed. These violations are not punished, the "staff negligence" and lack of maintenance of roads and trains, generated hundreds of accidents.
The contract signed between the National Government and SOESA "did not have a system of penalties," therefore, since its inception in 2007, the company was not fined for misconduct during the service and will not be until it is set the penalty system. In this situation, the National Commission for Transport Regulation (CNRT) found irregularities, such as in 2007: "trains with locomotives were still without terminals satellite system being allowed to circulate without respecting security protocols under Technical and Operational circulate without permission via the use of train rules.
These and other breaches caused accidents, including highlights produced in 2007: "13 derailments occurred for speeding, 26 derailments occurred by sudden braking and other shortcomings" caused by negligence and carelessness of driving personnel in the performance of their tasks. "
The AGN noted that "the operator does not meet the specified maintenance cycles in quantity and quality", both for infrastructure and rolling stock, "being-this-causal determinant in the generation of accidents." "159 cases of derailment were reported in 2006, of which 22.64% were due to faulty locomotives" in Belgrano Cargo, the agency added. During 2007 and 2008, the CNRT made rolling stock inspections and noted "serious deficiencies in several cars, technical irregularities that prevent a safe operation of the units."
Parallel to this “violations were committed by SOESA" but "the sanction was imposed on Belgrano Cargo” the former service provider. This is because "the concession contract with the cargo company is still in force and in the termination process." However, the watchdog said that "it is misleading that Belgrano Cargo is accused responsible, since it has been replaced in implementing the main object of the contract and other obligations by SOESA ".
In this sense the Audit explained that in 1999 the company Cargo Belgrano SA received the award of the management of General Belgrano rail service. In 2006, a year after "a state of emergency was declared by the company" an agreement between, Belgrano Cargo SA and the Government on State Emergency Operating Company SA (SOESA) was held, to entrust the latter, the operation and emergency operating passenger services".
"Readjustment" of Cost without Approval
According to the report, approved this year on data for the period 2006-2009, the "operator must notify the Secretary of Transportation changes in operating costs" for later "adequacy". The AGN found that the expenses were higher than expected, although the proposed readjustment of costs had not been approved by the Secretariat. Note that this dependence "regularly authorize major expenditures" to those provided in the Operating Agreement, although the closing date of the report "just passed the first monthly accountability."
Fees and Financing
The head of the Ministry of Transport told the Audit "as there is no regulatory framework defining tariff values” the Belgrano Cargo "is given on a discretionary basis." It should be noted that the resources to fund operating costs are paid by the State. The report describes "an imbalance between the rates levied by (during the audit period) $ 163,743,700 $ 766,938,000 and subsidies, representing the first-rates-only 21.30%" of the total costs of the company. That means that almost 80% of the revenue to cover operating costs comes from the national government.
However, the AGN ensures that the State "failed to meet regularly with the transfer of funds to the operator," and such a situation, "it difficult to meet the targets." Eight dates set by the watchdog, only four of them the expected amount was deposited, even once, of $ 22,557,000 it was deposited no more than $ 6,426,156.