During his participation at Rumbo a PERUMIN – Central Peru Edition, former governor of Ica Fernando Cillóniz expressed his discontent with the way the resources coming from mining canon (fiscal redistribution) and royalties are currently managed, seeing that 30% remains unexecuted and is returned to the public treasury.

In his opinion, the unexecuted resources are a missed opportunity to invest in projects and social works seeking to expand access to basic services and generate formal employment. Poorly trained authorities and incompetent public management are the main obstacles.

In order to reverse this situation of inefficient management of the local public budget, financed mainly with mining transfers, he proposed creating a trust that would autonomously manage this money and allocate it correctly to major works after planning.

"The trust must be a specialized autonomous institution that will implement the National Infrastructure Plan, in which both taxpayers and communities will take part, under the permanent supervision of the Comptroller's Office. So, more than a proposal for Ica, this is a regional proposal in general," he remarked.

In addition to his trust proposal, Fernando Cillóniz also proposed speeding up the mining formalization process and considering the creation of a Citizen's Ombudsman Office to avoid conflicts that could affect the economic and social activities in the Southern Mining Corridor.

Based on figures of the Ministry of Energy and Mines (MINEM), the former regional governor of Ica pointed out that in 2021, transfers from the mining sector to the regions of Peru as mining canon, mining royalties and validity fees and penalties totaled more than 6,624 million soles.

Talking about mining canon only, he said that it amounted to 2.947 billion soles, which means an increase of 12.5% compared to the total for 2020. The resources transferred as canon must translate into works and services to meet the basic needs of the citizens.

Rumbo a PERUMIN

Rumbo a PERUMIN is the program of decentralized conferences that paves the way for PERUMIN 36th Mining Convention, to be held in September 2023 in the city of Arequipa. The first conference is entitled "Consensuses for the Progress of Central Peru" and is being held virtually on November 15, 16, and 17. It focuses on analyzing the development of the regions of Ayacucho, Huancavelica, and Ica.