An older man with a hat is sitting in front of a microphone in a recording studio.
URUGUAY

Scandal: The INC bought land at an inflated price to honor Mujica

An elephant state where politicians have plenty of money to spend on whims

The board of the National Colonization Institute (INC) approved the purchase of 4,404 hectares in Florida for US$ 32.5 million, with exclusively official votes. The price paid was US$ 7,383 per hectare, almost double the market value of 2023 according to MGAP data.

A price that defies market logic

The national average value per hectare was US$ 3,783 in 2023, and in Florida, US$ 4,102. The INC paid almost double the local and national average, which represents a clear overprice.

Lands with Coneat index 60–80 were sold at US$ 3,167 per hectare, but the INC paid more than double. Experts consider this price completely unjustifiable.

[Resultados de las elecciones 2025 en Uruguay]

A purchase with a political tint

The purchase was announced by Alejandro Sánchez during José Mujica's funeral procession. The absence of opposition votes and the symbolic context reinforce suspicions of political motivations.

Two men talking in an indoor setting.
Fratti and the late former guerrilla and murderer Mujica | Redacción

The operation was carried out in an act of strong electoral charge. A local producer declared that "it doesn't withstand the slightest economic analysis" and that it represents a "nonsense" with public money.

Lack of transparency and questioning

No technical studies or public appraisals were presented to justify the price. The lack of opposition support increases doubts about the legitimacy of the process.

White facade building with windows and an open door, with a plaque on the wall and a flag waving.
Headquarters of the National Institute of Colonization | Redacción

The expenditure of US$ 32.5 million seriously compromises the INC's budget. Analysts argue that with that money, many more rural families could have been benefited.

[Apagón, más cortesía del monopolio estatal]

Who benefits from this operation?

The INC keeps that the purchase is a step forward in land redistribution, but the true beneficiaries could be the sellers. The identity of the previous owners is unknown, which generates speculation about conflicts of interest.

A worrying precedent

The INC has been criticized in the past for opaque and politicized operations. In this case, the overprice and the political context make it a paradigmatic episode with possible effects on the agency's credibility.

The government presents the purchase as a tribute to rural workers, but the facts point to an irresponsible use of public resources. Citizens deserve clear explanations about this operation that seems to benefit a few while the country faces increasing difficulties.


Editor's note: this article is based on official data from MGAP-DIEA and INC sources reported by El País. We invite INC authorities to provide their version of the events and to make the details of the operation transparent to clarify public opinion's doubts.

➡️ Uruguay

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