Audit Authority Targets Daniela Peñaloza (UDI): Identifies 7 Charges for ‘Serious Irregularities’ in Costly Land Purchase for Cesfam

Original article: Contraloría acorrala a Daniela Peñaloza (UDI): acredita 7 cargos por “graves irregularidades” en millonaria compra de terreno para Cesfam

The Office of the Comptroller General of the Republic (CGR) dealt a significant blow to former Las Condes mayor Daniela Peñaloza (UDI) by substantiating seven charges against her for «serious irregularities» in the multi-million dollar purchase of land designated for a new Family Health Center (Cesfam), resulting in enormous financial losses for the municipality.

The oversight body, headed by Comptroller Dorothy Pérez, determined that the transaction—which amounted to 353,956 UF and was approved in March 2022—violated essential principles of propriety, omitted key information from the municipal council, and bypassed the legal mechanisms required for public acquisitions.

The land, spanning over 5,300 square meters, was presented to the council for approval in a vague manner: without specifying the actual properties to be purchased, detailing the costs of each property, or informing what purchase mechanism would be used. Additionally, the municipality «did not conduct independent appraisals to verify the reasonableness of the amounts,» noted the report.

One of the most alarming overpricing cases identified was for a house previously sold for 14,600 UF, which the municipality bought for over 24,000 UF. For the CGR, this discrepancy constitutes a «serious violation of the principle of propriety.»

The 20-page report, dated this Monday, does not solely target the former mayor but outlines a network of responsibilities within the municipality. The most severe sanction is proposed for former Control Director Eduardo López Arriagada, against whom the CGR recommends outright «dismissal,» accusing him of—among other offenses—»ordering the alteration of a public instrument.» At least a dozen other officials face charges and sanctions, including temporary suspensions, salary reductions, and annotations on their employment records, as reported by El Mostrador.

It is noteworthy that, at the end of 2024, López testified before prosecutors that Peñaloza herself insisted on signing the decrees that authorized the contentious purchase.

«I advised the mayor not to sign them, as in my view it was inappropriate given the land’s value, which I believed caused significant harm to the municipality regarding the last piece of land,» López stated.

This was corroborated by the former legal director of the municipality, Héctor Navarrete, who asserted that «the mayor entrusted the flagship project of her administration to those handling the municipality’s health sector (Ricardo Gutiérrez) and the budget and finance (Alejandro Contreras), individuals she exclusively trusted.»

“Serious Irregularities” in Costly Land Purchase

The summary details that the purchase was formalized on April 19, 2022, with the involvement of companies FG Oriente II Spa and Vulcon Asset Management Spa, without the municipality applying any of the mechanisms required by Article 9 of Law 18.575. In other words, there was no public proposal, no private bidding, nor a reasoned resolution for a direct deal. Regarding this, the ruling is categorical and states: «Omitting or evading the public proposal (…) particularly contravenes the principle of propriety.»

The CGR also detected serious discrepancies between the initially agreed prices with the companies and the final amounts paid by the municipality. An example of this irregularity was the acquisition of the Nueva Delhi property, which «was supposed to cost 14,688 UF, but was ultimately paid at 24,280 UF.» Furthermore, the report confirmed the involvement of external professionals mandated by the municipality to conduct purchase negotiations, acting outside the legal and institutional control units, which weakened internal oversight.

According to the findings, the failed construction of a Cesfam during Peñaloza’s tenure resulted in a loss of $15.2 billion for the municipality.

The case reached the CGR following a complaint by councilors from the commune—led by Catalina Ugarte (Republican Party)—who raised alarms about omissions, allegedly altered documents, and potential overpricing. Current mayor Catalina San Martín, initially as a councilor and later as the chief municipal officer, initiated a municipal strategy aimed at investigating and clarifying the facts.

With this resolution, the CGR concludes an investigation initiated in 2023, placing Daniela Peñaloza in an extremely complex political and legal scenario.

In light of the charges against the former mayor, it is now up to the Las Condes municipality to define administrative responsibilities and to pursue potential legal actions based on what the supreme oversight body has classified as one of the most severe violations of property and propriety in this northeastern Santiago commune in the last decade.