Audit Reveals Irregular Severance Payments and Rehire Practices at Army Factory and Workshop (Famae)

Original article: Contraloría detectó millonarias indemnizaciones y recontrataciones irregulares en la Fábrica y Maestranza del Ejército (Famae)

The General Comptroller’s Office has uncovered numerous irregularities at the Army Factory and Workshop (Famae), detailed in its Final Report No. 750 for the year 2025.

In this investigation, the oversight body scrutinized personnel severance and rehire processes, as well as machinery acquisitions at Famae during the period from 2022 to 2024.

«The audit confirmed that 4 employees who were laid off ‘by mutual agreement’ received severance payments exceeding 100 million pesos, despite this reason not warranting such payments,» the Comptroller’s Office pointed out, adding that some of these individuals «were immediately rehired in the same position.»

According to the report, total severance payments to 63 workers under these circumstances during the reviewed period surpassed one billion pesos.

Acquisitions

Regarding acquisitions, the document states that in August 2023, Famae purchased a laser machine for 70,042,181 pesos through direct negotiation, without proving the supplier’s exclusivity or adhering to the conditions outlined in the Acquisition Manual.

«Additionally, deficiencies in the equipment’s control and operation were identified, as it malfunctioned four months after use, with issues recurring in April 2025, rendering it inoperable to date,» the report adds.

Furthermore, it was found that this purchase was made without comparing offers, conducting a technical-financial analysis, or securing a performance guarantee, which hindered accountability from the supplier.

Given these findings, the Comptroller’s Office instructed that the Superior Council of Famae initiate an investigation to establish potential administrative responsibilities for the identified issues.

«Additionally, the documents were forwarded to the Public Prosecutor’s Office and the State Defense Council for appropriate action,» concluded the CGR.

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