A commitment made more than 20 years ago threatens the city's funds with seizures amounting to 6 million dollars
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Cosquín's mayor, Raúl Cardinali, described the judicial ruling that authorizes a 33% deduction from revenue sharing as "an atomic bomb for the Municipality." The measure seeks to guarantee payment of attorney fees in the context of an old financial case involving the municipality. Including interest, ongoing lawsuits exceed six million dollars.
The conflict dates back to 2001, during former mayor Andrés Bustos's administration, when the municipality acted as guarantor for loans granted to municipal employees. Those loans were deducted from payroll, but the withheld money was never transferred to the financial institution. "The money that was taken from employees was ultimately not deposited by the Municipality to the financial institution," Cardinali explained.
Although the original entity was dissolved, the claim was acquired by a trust group that in 2022 obtained a favorable ruling. However, enforcement was suspended due to the economic emergency approved by the City Council. Despite this, the seizure of one-third of the revenue sharing funds is moving forward to cover the legal representative's fees for the group.
Raúl Cardinali, intendente de Cosquín
A historic debt that puts the city in check
"The municipality became jointly responsible not only for withholding from payroll what employees requested, but in theory also for paying the financial institution. Employees received the money, the financial institution never collected, and a lawsuit was filed with an original debt close to 660 thousand dollars. Today, with an interest calculation we don't understand, it stands at six million dollars," Cardinali stated.
The mayor also detailed that "there are two lawsuits: one for 5.8 billion pesos from the financial institution and another initiated by its attorney. We consider this confiscatory, unfair, and detrimental to the provision of services if it were to proceed. Since we took office, we've initiated a new lawsuit challenging the legality of the origin of this case because the mayor (Bustos) signed the debt settlement without going through the City Council."
Cardinali announced that they will request the provincial judiciary to rule on the lawsuit filed by the municipality itself. This action seeks to declare the ruling that gave rise to the current claim illegal. According to the official, the situation is so serious that it could compromise the very operation of public services.
Andrés Díaz Yofre, el abogado que reclama 6 millones de dólares adeudados
The mayor warns of an unprecedented scenario
"The judge gives the possibility of seizing up to 33% of the municipality's revenue sharing, which would be 160 million pesos per month in favor of attorney Andrés Díaz Yofre. For us, that's impossible. We'd have to hand over the keys and let them come govern; it would be something unprecedented in history," the mayor emphasized.
He added: "I don't know if that will be enough for the ossobuco or the flank steak for the weekend barbecue. We want to discuss the interest calculation matrix, otherwise water service, timely payment of salaries, and hospital operations, among other services, will come to an end. We're going to fight to the end."
With this outlook, Cosquín faces one of the most unusual crises in its recent history. A court ruling on a conflict that began more than two decades ago threatens to paralyze its economy. Residents, without having participated in the conflict, could end up paying a debt that today puts the municipality in check.
