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Justice ordered the National Government to stop withholding co-participation from Chubut

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Justice ordered the National Government to stop withholding co-participation from Chubut

Justice ruled in favor of the province of Chubut in the conflict it maintains with the government of Javier Milei over co-participating funds. The determination was made by the Rawson federal court, led by Judge Hugo Sastre.

The interlocutory ruling decided to allow the “self-satisfactory measure” and ordered “the cessation of the withholding that the defendant has been making on repayments for loans agreed upon within the framework of the Trust Fund for Provincial Development.” the sums that the latter must receive as Federal Tax Co-participation. “This, until the refinancing of the debt is completed and for the maximum period included in the current financial year,” adds the resolution.

Furthermore, the magistrate urged Chubut and Nación to “arbitrate means conducive to the cancellation and/or refinancing of the debt, under reasonable conditions, which do not involve the commitment of essential services of the provincial state.” On the other hand, he rejected the order also sought regarding the return of the sums already withheld and the imposition of conditions for an eventual refinancing.

In its foundations, Judge Sastre referred to the history of the birth of the fund and to the actions of the National Government over the years, which “far from exhibiting a strict policy regarding financing facilities, has shown itself open to providing solutions to the financial ups and downs of the province of Chubut.”

For this reason, he understands that “having the National State financially assisted an outgoing Provincial Government, with all the more reason it should support and make more flexible its policy of sanitation and refinancing of provincial public debts – an action that would have been applied to the province in the recent past, as only distant twelve months ago -, especially when the regulatory framework has not changed either.”

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In that sense, it considers that the actions of the National Government “that is, ignoring or remaining silent to a request for refinancing and/or cancellation of the plaintiff, has not been in accordance with its past actions. In effect, it is in clear contradiction with the conduct previously assumed.”

In this regard, its actions “are irrational, as well as contrary to the purpose of the rule that constitutes the Fund and which provides for the refinancing of the debt now in conflict, since, finding itself in a clearly dominant position, it decides to ignore the requests for refinancing carried out by the Province, ignoring the state of emergency that it is going through.”

And it states that “it omits to adopt parallel measures that cushion the negative effects that the plaintiff’s economy causes when it stops receiving the co-shareable funds that correspond to it on a daily basis. In fact, a measure of this nature has a negative impact on provincial coffers, putting the fulfillment of essential functions at risk.”

For Sastre, “we are faced with an unfair and intransigent position on the part of the defendant, added to a non-existent policy of absorption of consequences by the National State with respect to the Province of Chubut carried out by the automatic discount of co-participating funds.”

Likewise, he argued that the actions of the National Executive “leads to the aggravation of the special situation that the Province of Chubut is going through”, referring to the “state of economic, financial and administrative emergency” of the Patagonian province.

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“Even more so when the withholdings represent more than a third of what is received in co-participation, a situation that could not be prolonged over time without affecting essential services such as health, hygiene, education, etc., basic needs of the population whose satisfaction “It must be guaranteed,” adds the resolution.

The vice-governor of Chubut, Gustavo Menna, celebrated the resolution through their social networks. “The Federal Justice ruled in favor of @NachoTorresCH: the National Government illegally withheld Chubut’s participation,” he wrote on his X account (formerly Twitter).

“They are going to have to take courses on contracts and sending emails. Meanwhile, they will not be able to continue retaining what belongs to the province“added Menna.


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