Monday, November 13, 2017
Earthquake Reconstruction is not a Mix of Public and Private Funds
of the Republic
- “The funds that the government is spending come from taxpayers’ contributions
to the public finances of the country and from society as a whole,” EPN.
- Reconstruction will require approximately 48 billion
pesos, he said.
an event with the private sector, which is participating in the reconstruction work, the president explained that a tenth
of the funds required will come from this sector.
At the Official Residence of Los
Pinos, Mexican President Enrique Peña Nieto reported that the government estimates that the reconstruction work due
to the damage caused by the earthquakes in September will require an investment of approximately 48 billion pesos [US$2,512,800,000].
At the event, during which actions by the government and the various private sector foundations and institutions
that have become involved in the reconstruction work were evaluated, the President of Mexico declared that Mexicans are the
largest contributors to the assistance provided by the government.
He said that, “The
government is allocating resources which are its responsibility; funds from taxpayers to the public finances of the country,
come from the population, from those who pay their taxes responsibly. This enables the government to assign this amount of
resources for reconstruction."
Noting that a tenth of these resources will come from the private sector,
the president declared that the government will offer advice on where to allocate these resources in order to avoid duplication;
“Let us prevent the same work, or efforts by two sources, from focusing on the same target.”
president said that the government will provide a portfolio of options on where to direct the resources that the private sector
is managing, adding that, “The sum of efforts is what is really enabling the country to get back on its feet, especially
in the parts of the south and center of the country that were affected."
convinced that the sum of efforts by the Government, private organizations, the private sector, and civil society, will enable
the families affected to have new homes, rebuild their cities and reconstruct cultural spaces,” he said.
After acknowledging and appreciating the effort made by the private sector in support of the affected population,
he said: "At the end of the day, the sum of efforts will not only enable us to ensure that we are doing the reconstruction
well, but also that we are really driving the transformation of the communities that were affected.”
The president declared that the government will be absolutely transparent about the way it spends the resources it
has assigned for reconstruction work. "The public funds the government has allocated for reconstruction work are displayed
on the transparency website, which anyone can consult,” he declared.
He explained that transparency
is an, “Additional component we are seeing today, different from other efforts that have been made in the past in the
wake of events, hardship or natural disasters.”
He said that the Law provides that Transparency website
on the funds allocated by the government, to which contributions from the states are added, will also include the funds collected
by the private sector and reported to the Tax Administration System.
Nieto declared: “We must make it clear that the funds have not been combined. Let's clear up that doubt: we are
not adding private funds to the public funds allocated by the government: they are being administered separately."
In the meeting, it was announced that in addition to providing support for reconstruction work, the population is
being incorporated into the banking system, since one of the most important challenges, in terms of housing reconstruction,
was the definition of the payment mechanism and the means of making it effective, which involved opening a savings account,
accompanied by a debit card, so that it would translate into materials and funds families could use.
Peña Nieto announced that support has been provided for housing reconstruction, in Chiapas and Oaxaca alone, for over
73,000 affected families, “And in this same month, in the next few days, we will be delivering or distributing cards
to the other states affected."
He pointed out that in total, in all the states affected by the earthquakes,
184,000 houses, nearly 14,000 shops and 16,000 schools sustained some form of damage. Of the country’s cultural heritage,
1,821 buildings and churches, 175 medical units and hospitals, and 140 roads were affected.
that over six million people saw their electricity services and drinking water supply suspended as a result of the earthquakes,
the president declared that two months later, electricity has been fully restored together with 99.8 percent of the water
Traffic has been restored on all the roads affected, 98 percent of medical units are
operating, hospitals that suffered partial damage are being repaired, together with most of those suffered major damage.
“Support is being delivered. Where cards have not yet been delivered, they are on their way, because this has
involved an enormous effort to take the corresponding censuses. But, in the end, all those affected have been attended
during this emergency. They have been supported so that they can have shelter and food and not remain homeless,” he
The president expressed his appreciation for the work that Mexico City and each state
government has done, because, “They have assumed a very constructive attitude, in coordination with the government,
which has made it possible to increase the capacity to address this challenge."
He added: “I
would like to express my thanks for the solidarity Mexicans have shown. In the end, Mexican society has been the biggest contributor
to this effort to cope with the emergency and carry out reconstruction work."
AND GOVERNMENT HAVE WORKED TOGETHER FOR THE BENEFIT OF MEXICO AND MEXICANS: JOSÉ ANTONIO MEADE KURIBREÑA
Secretary of Finance and Public Credit José Antonio Meade Kuribreña, pointed out that two months after
the earthquakes that affected the country, one of the guidelines established by President Enrique Peña Nieto, to urge
civil society to become involved in the reconstruction work, was implemented with generosity, solidarity and creativity. “Society
and government have worked together for the benefit of Mexico and Mexicans,” he declared.
said that all the support received from civil society and the Federal Government should be effective and transparent. For
this reason, efforts were made to, “Make each peso that has been mobilized for this purpose transparent,” so that,
“Society, as a whole knows about all the sources of funds and how they have been used."
society has played a very important role at every stage of dealing with the consequences of natural disasters. It mobilized
itself at the start of the emergency, and accompanied public servants, our Armed Forces, the Federal Police, and institutions
such as the Red Cross and the United Nations (UN),” said Meade, who also highlighted the importance of the collaboration
of the Fuerza México Trust, the Slim Foundation, the country's banks, and insurance companies, among others.
He said that 100 percent of the nearly four billion pesos of funds contributed by civil society and the private sector,
and in some cases by donations from abroad, will also be transparent.
“Mexicans will be
quite clear, as a result of the commitments assumed here, about each of the sources of funds that reached the authorized grantees
and each of the uses made of these funds,” he declared.
During the event, Undersecretary
of Expenditure of the SHCP, Fernando Galindo Favela, provided the latest figures for the amount of funds authorized during
yesterday’s session of the Natural Disasters Fund (FONDEN) which, he said, amount to $12.990 billion pesos, "$3.509
of which correspond to Oaxaca, $2.035 to Chiapas, $3.717 to Morelos, $1.664 to Mexico City, and $973 to the State of Mexico."
He explained that $7.3 billion pesos correspond to the education sector, and $3.5 billion to the housing sector.
WE ARE NOT ONLY GOING TO RECONSTRUCT BUILDINGS OR HOUSES; THE AIM IS ALSO TO REVIVE SOCIAL AND PRODUCTIVE
LIFE: PRIVATE SECTOR
Manuel Escobedo Conover, President of the Mexican
Association of Insurance Institutions, explained that 38,832 compensation requests have been submitted to the insurance sector;
4,449 claims have been handled, and that losses are estimated at $16.447 billion pesos. He said that work is underway to submit
a proposal to expand catastrophic insurance coverage, by providing microinsurance through FONDEN.
of the Business Coordinating Council, Juan Pablo Castañón said that during the first weeks of emergency, companies
delivered and channeled over 13 billion pesos.
He said that the private trust Fuerza México
was set up to focus aid and coordinate societies' initiatives with society, to ensure that support reaches the places
where it is most urgently needed, quickly and with quality and transparency.
not only going to reconstruct buildings or houses. The aim is to revive the social and productive life of those who have been
most severely affected and live in the most isolated areas,” he said.
Gavica, President of the Mexican Association of Banks (ABM), indicated that the banks dealt with the crisis: "Banks never
stopped and never stopped serving their customers." They also raised funds for reconstruction, and by November 3. they
had collected 403 million pesos. He explained that programs were set up for the partial or total deferral of interest capital
payments for small businesses and for individuals; and new grace periods were established so that they can begin to pay their
debt obligations as of next year.
Antonio Molpeceres, Resident Coordinator of the United Nations System
in Mexico, acknowledged the efforts and actions of the Mexican people in response to the emergency. “The Mexican State
and civil society responded in an exemplary way to help the affected population,” he said. Likewise, on behalf of the
UN, he reiterated his commitment to accompany the Mexican State, in ensuring a more prosperous and resilient country, and
as the spirit of the 2030 Agenda indicated, without leaving anyone behind.
President of the Telmex
Foundation Carlos Slim Helú expressed his gratitude for the joint work between the government, private enterprise and
civil society two months after the first earthquake that affected Chiapas and Oaxaca.
explained that a few days after the first earthquake, on September 13, “We invited the entire population to donate to
the Foundation, and for each peso donated we would contribute five. This meant that in 27 days, we collected donations, from
the Foundation and over 217 thousand donors, of 2,437, 668,811.44 pesos,” which is now in the United Mexican Fund.
He thanked President Enrique Peña Nieto for the initiative of this joint work, “And I would just like
to say that we are ready to speed up our activities for this great challenge and national project for the reconstruction and
transformation of the affected areas."
On behalf of the Mexican Red Cross, Commander Isaac
Oxenhaut said that by the end of October, over 4,200 tons of aid had been delivered, benefiting more than one million people
in the affected states. He added that 240 million pesos have been received in donations, of which about 105 million pesos
have been applied both in the operations and in the purchase of supplies, and there is still a balance of 135 million pesos,
which will to continue accumulate over the next few days in bank accounts.
Lastly, Alejandro Ramírez
Magaña, President of the Mexican Business Council, reported that the Fuerza México trust has received 224 million
pesos to date, which have been separated into 154.554 million pesos and $3,715,000 USD. He said that he is about to receive
donations from several more companies totaling at least 150 million more pesos.
the transparency criteria that have been established for this trust, he pointed out that it has included citizens of social
standing and experts in transparency in its technical committee. He highlighted the signing of a collaboration agreement with
the National Institute of Access to Information to make various documents available in its electronic portal such as the contract,
operating rules, the way the technical committee was formed and financial statements.
of the Republic, Nov. 13, 2017, Mexico City; translation Presidency of the Republic