Salvador Mazza is a town located in the northern part of the State of Salta. Until last week that town was popularly known as "Pocitos", today its popularity comes from the accusations that it’s Mayor, Carlos Villalva, was delayed in a brothel while he was being indicted for human trafficking.

The General Auditor’s Office of the State of Salta conducted an analysis in the now popular City of Salvador Mazza. The watchdog made a total of 106 observations in regard to legal, financial, accounting, and budget matters. The few amounts of actual days worked by the Mayor and his adviser, salaries were paid but didn’t follow protocol, and tax exemptions that were given without justification. In addition, there are debts for almost $9.5 million pesos. To get a better understanding of what this amount of money means to this municipality, let’s take into consideration that it takes $10 million to maintain the entire City for a year. 

Apparently the Municipality of ´Pocitos´ had money problems, or at least that’s what the Audit gathered from the fact that "11 checks were issued totaling $1.7 million pesos that were bounced for insufficient funds between January and September 2011", which consequently resulted in numerous lawsuits. Nevertheless, the audit team identified a large number of "tax exemptions". What is this exactly? It's basically the benefit of not paying any taxes or debts. This statute was supported by ordinance (016/09) written in the Municipal Tax Code where it is stated as a "forgiveness". However, some time after it was declared, it was discovered that it had "not been regulated by the City Council."

The severity of the financial situation of Salvador Mazza increases if one considers that, according to information provided by the head of the Taxpayers' Office the total debts received were of $9.4 million of which $1.6 million were for property taxes, $6.7 for compensation, and $1.1 for Automotive Services. This means that even though there is a liability of nearly $9.5 million pesos in taxes, the City had the luxury of exempting taxation on some citizens without any legislation to support it. Once again, it’s important to keep in mind that Salvador Mazza needs $10 million pesos per year to keep its government running. 

Gone With the Wind

The Municipality informed the audit, that between July 2009 and August 2010, revenue from the Pavement Reconstruction was of $2.3 million pesos. Moreover, they explained that that money was spent on various construction jobs that summed up $1.7 million, although the City only stated the amount of money spent and what things they did. For example, because of potholes they did pavement patching, but not only was the official documentation backing these statements never found, but there is a difference of $635,000 pesos between the proceeds and the amount spent. 

About the subsidies given to "Social Funds", the Audit couldn’t analyze them because the superintendence of Salvador Mazza had "not recorded it in their balance sheets", although it is an obligation under the Accounting Act. In a report by the Accounting General of the State of Salta it shows that between May and August 2010 $430 thousand pesos were used to pay beneficiaries. But as for documentation and support, where that money is or under what concept they are stated is, for now, a mystery.

From Home to Work and From Work to Home

For the mayor of Salvador Mazza and his advisor of the Department of Culture, Juan Carlos Aguirre, this precept Peronista is not met, mainly because between June and July 2010, "they only went to work 13 days." Ten resolutions that were later approved a month afterwards both officials were allowed to "be absent in the municipality" for purposes such as "making presentations inherent to their position."

Contracts That Fail to Close

On the other hand, the City signed with the law firm and Associates Calvo Gainza a contract where they would "always use this firm in court cases and legal consultations, among other issues." The agreement estimated a total payment of $567,000 pesos. The Auditors of Salta found two very important details: First of all that "the superintendence would be required to pay a lawyer by the name of Calvo Moscoso aside from the already established fees." In second place, it was agreed that that same lawyer would collect "for each judicial or extra-judicial process 22% of the proceeds." As was highlighted by the report adopted in October 2011, this goes against the Lawyer’s Tariff Act of the State of Salta, in addition to not complying with the requirements approved by the City Council.

Salary Payments

Even though "505,000 pesos were given in concept of advancement of wages, there was no regulation authorizing that benefit", nor did they have the approval for hiring people under "personal decision." However, as of February 2010, 58 people who were employed could be found under that category, as of September of that same year, the number rose to 84.

As long as we are on the topic of employees, the Audit of Salta also included within its one hundred observations that "a clock for staff control had been purchased but by the end of the audit, in September, it had yet to be installed".