Chilean Official Under Scrutiny Amidst Fraud Allegations in Post-Disaster Reconstruction Contracts
Valparaíso, Chile – Yanino Riquelme, the current Regional Presidential Delegate of Valparaíso, is facing increasing scrutiny following allegations of irregularities in the awarding of no-bid contracts for reconstruction work after the February 2024 fires that devastated parts of Chile. The controversy centers around contracts totaling over $7.6 billion awarded to companies San Nicolás SpA and Minera y Constructora Río Grande SpA, with the Comptroller’s Office raising concerns about potential fraud and inflated pricing.
The Allegations
The Comptroller’s Office investigation revealed significant discrepancies in the contracting process. Specifically, San Nicolás SpA, a company established in 2021, was awarded a substantial $6.7 billion contract despite, at the time of signing, possessing limited resources – only three workers and no demonstrable machinery. Further investigation showed the company’s registered address was a beauty center and an accounting office. The Comptroller’s Office too questioned the lack of supporting documentation for services rendered, noting the repeated submission of identical photographs of trucks in operation as reported by YouTube and as reported by YouTube Shorts.
The potential surcharge, as estimated by the Comptroller’s Office, could reach up to $4,219,156,397, representing a significant overpayment for the services provided.
Riquelme’s Role and Response
While the initial contracts were signed by Riquelme’s predecessor, Sofía González, it was Riquelme who authorized the payments to San Nicolás SpA after assuming the position of Regional Presidential Delegate in November 2024. He also received and approved conformity reports regarding the work performed by the company. Riquelme reportedly recommended San Nicolás SpA to the Regional Directorate of Architecture of the MOP (Ministry of Public Works) for demolition work in the El Olivar sector of Viña del Mar, providing the company’s contact information via WhatsApp as detailed in reports.
Riquelme has acknowledged the Comptroller’s Office findings, stating that the report indicates “possible excessive amounts” and “possible surcharges.” He has pledged to cooperate with the CDE (Contraloría General de la República – Comptroller General’s Office) and has initiated internal investigations to determine if any administrative responsibilities were violated. He stated, “It is not up to us to make an analysis or critique. What we do share is that we must continue strengthening the institutions of the State of Chile regarding emergencies.”
Company Background and Previous Contracts
San Nicolás SpA was incorporated in 2021, with Tomás Avilés Tillería (20 years old) and Catalina Jara Briones (24 years old) becoming the owners in 2023. Prior to the controversial contracts in Valparaíso, the company secured contracts with the Presidential Delegation of Biobío, headed by Daniela Dresdner, totaling $528 million.
Ongoing Investigations
The Valparaíso Prosecutor’s Office is currently investigating the hiring of San Nicolás SpA by the Regional Directorate of Architecture of the MOP for the demolition of homes in El Olivar. The Comptroller’s Office also raised concerns about the informal manner in which the regional director of architecture contacted the company, inquiring about their financial capacity via WhatsApp without requesting formal documentation.
Background on Yanino Riquelme
Yanino Riquelme González, 60, is a civil electrical engineer from the Catholic University of Valparaíso. He has a background in electrical engineering and project management, with experience in both the public and private sectors, including roles at Compañía Minera doña Inés de Collahuasi and Chilquinta. He previously served as Seremi of Public Works for the Valparaíso region from 2022. His appointment to the board of directors of the Valparaíso Cultural Park, including the appointment of former constituent Jorge Baradit and PC activist Nelson Ruminot, has also drawn criticism.