Plaza Once Station (photo by José María Pérez Núñez
CC by SA 2.0 creativecommons.org via Wikimedia
Commons: Ciudad Gris/La Estación)
|
It is also hard to
separate that tragedy from a general attitude of indifference on the part of
the current national government with regard to its invested responsibilities as
the country’s elected administration and its accountability for the well-being
of the country, its economy, its currency, its world image, its infrastructure
and, ultimately, its people. In this
sense, the Plaza Once Rail Tragedy might well be seen as a symbol of the
chronic and unwarranted deterioration to which Argentina has been subject in
the past decade and, particularly, in the last half of that period.
The Tragedy. The wreck took place
on a Wednesday morning at about 8:30, on the Sarmiento western commuter line, when
the train, operated by concession-holder TBA (Trenes de Buenos Aires), was loaded with some 1200 rush-hour
commuters. As the train came into the Once
de Septiembre Station (better known simply as Once) on track No. 2, it slowed to a reported 20 kilometers per
hour, but was then unable to brake and crashed into shock absorbers at the end
of the track beneath the station platform. The impact was such that it sounded to
many passengers and passersby like an explosion, and the lead car telescoped
into the one behind it. These two cars were even more packed with workers coming
into the city from the western suburbs than the rest of the train, since
morning commuters tend to favor the cars up front so as to save time by getting
off and out of the station quickly, ahead of the rush.
There was an
immediate attempt by the firm and the government to blame the gory incident on
“human error”, claiming that the commuter train’s driver was at fault. But
although this may briefly have led the early investigation off on a tangent,
rail workers were quick to come to their companion’s aid and tell the press and
anyone else who would listen to them about the deplorable safety conditions
under which they were working and the general disrepair of TBA’s rolling stock.
It was the third
worst crash in the long history of Argentina’s railways, and it was the very
worst in more than three decades.
Although President
Cristina Kirchner—in common with Buenos Aires Mayor Mauricio Macri and Buenos
Aires Provincial Governor Daniel Scioli—immediately decreed a 48-hour period of
national mourning, and issued a succinct message of condolences to families of
the victims, her first reaction to the tragedy was silence. And not merely
silence, but reclusion as well. She left the national capital for nearly a week
and holed up in her remote southern home province of Santa Cruz, where she
hosted a private meeting with her Paraguayan colleague Fernando Lugo, in her
luxury boutique hotel, Los Sauces, in Calafate, before traveling to her home in
Río Gallegos, where she headed up a birthday homage at the private mausoleum of
her late husband and predecessor, former President Néstor Kirchner, who died in
October of 2010 and who would have been 60 years old that Saturday. Her absence
from Buenos Aires in the face of the train crash attracted particular attention
since she had already spent the previous week “resting” in Santa Cruz and
returned there almost immediately after the tragedy—not without first meeting
briefly with her transport secretary, Juan Pablo Schiavi.
Cristina Kirchner - too little too late. |
Too Little Too Late. The president
reappeared in public the following week—at a rally to celebrate the first
raising of the Argentine flag on February 27, 1812—in the northern city of
Rosario, where, on the tail-end of a half-hour speech about the achievements of
her and her husband’s administrations, she finally mentioned the Once Rail
Tragedy, saying, rather vaguely, that she would “take all measures necessary”
in the case. Considering the time she’d had to think about it, her
pronouncement seemed meager at best. She also sought to deflect government
responsibility by exhorting Argentine justice to complete its technical
investigations “within the next 15 days”. (The judicial branch, of course,
immediately said that it would take however long was necessary to investigate
that case and would accept no pressure to finish up quickly). Then, in barely lukewarm acceptance of a
small quota of accountability, the president admitted that the Argentine rail
system needed “to be reformulated” and grudgingly confessed that “if we haven’t
done more, it’s because money has been lacking.”
But that wasn’t strictly
true. TBA was a private consortium that
took over the Sarmiento and Mitre commuter rail lines in 1995 as part of the
decade-long privatization plan introduced by Peronist President Carlos Saúl
Menem. At the time some private sources estimated that Argentina’s overall
State-run medium and long-distance railways were losing on the order of a
million dollars a day. That meant that international investors weren’t exactly
tripping over each other to buy them. So consortia ended up being formed by
local multi-interest groups and, in certain cases, international technical
partners, as in the case of TBA. Still, the local operators—domestically
perspicacious and good horse-traders that they were—argued that unless they
raised ticket prices beyond what Argentine commuters could pay, it would be
impossible to maintain the rail services. So as part of the clearly one-sided
contracts that they negotiated, these companies not only were granted exploitation
of the lines they dealt for, but also a pledge from the government to continue
to pay massive subsidies for upkeep and to defray losses on ticket sales.
In retrospect it's
hard not to suspect that subsidies were always what the “privatization” deals
were all about, and, as long as we’re being suspicious, that precious little of
those subsidies has ever been used for rolling stock and track upkeep. Otherwise,
the Once Rail Tragedy never would have uncovered, for instance, just how
disastrous the state of repair of some of the major commuter lines is.
Furthermore, TBA wasn’t a stand-alone firm, but formed part of the Plaza Group
(through its Cometrans holding group), majority-owned by the Cirigliano family
of Argentina, and also of UGOFE (Unidad
de Gestión Operativa Ferroviaria de Emergencia—or Emergency Rail Operations
Management Unit), which also operated other rail services in the Buenos Aires
area. TBA was also granted concessions for north-bound long-distance services,
in total operating, according to unofficial estimates, about a thousand runs
and carrying approximately 500,000 passengers a day.
Pino Solanas: A true swindle. |
About a week after
the Once Rail Tragedy, public pressure brought Federal intervention of TBA. In
May of last year, three months after the disaster, the government revoked TBA’s
concessions and placed them under the care of a consortium called UGOMS. But
who is UGOMS?
UGOMS stands for Unidad de Gestión Operativa Mitre-Sarmiento (or Mitre-Sarmiento
Operational Management Unit). It was formed on the same day that TBA lost its
concession last year, and is a “temporary consortium” created especially to
take over for TBA. It is made up of rail operators Ferrovías and Metrovías.
According to filmmaker, socialist politician and Proyecto Sur Party Congressman Pino Solanas, on this first anniversary
of the Once disaster, “the Ciriglianos continue to draw payment from the
State—and with exaggerated surcharges—for the repair of train cars on the
Sarmiento and Mitre lines, through their company, EMFER
S.A, and they continue to operate trains through UGOFE S.A., which operates the
San Martín, Roca and Belgrano South lines.” Solanas adds that “the brand new
mirror company, UGOMS, which currently operates the Sarmiento and Mitre lines,
is run by its partners, Ferrovías (EMEPA Group) and Metrovías (Roggio
group).”
Where Did All the Money Go? As described by
Solanas, who is noted for uncovering government corruption, the repair
contracts alone have been a succulent source of government subsidy income for
the railroad concession-holders. The leftwing politician claims that no
government audit has ever been carried out, for instance, to determine the
final destination of “thirty-seven workshop-factories, thousands of railway
cars, locomotives, machinery, equipment, and 60,000 spare part accounts.”
According to Solanas, “the great majority of these assets have disappeared,
without anyone’s ever having demanded their replacement.” This is only part of what the congressman
calls “a triangle of corruption” that includes, he alleges, “the Transport
Secretariat, the National Commission for Transport Regulation, railway
management and companies.” He adds that this apparent complicity is why no one
has yet tracked the path of multi-million-dollar subsidies to find out “where
all the money went that never reached the trains.”
In 2012 alone, rail
lines serving the Buenos Aires Metropolitan Area are reported to have received
over 4.6 billion pesos in subsidies (or about US$980 million at the official
government exchange rate). About 3 billion pesos of that is reported to have gone
to UGOFE. Solanas describes both UGOFE and UGOMS as being “invented by the
government as holding groups for the TBA,
Metrovías and Ferrovías concessions, as a means of covering up a true swindle
against the citizenry [since] by contract, UGOFE and UGOMS, are corporations
created by the State and managed by private firms, which are compensated for
their management services. In other words, they have no civil accountability
whatsoever in case of any sort of accidents or labor suits, and as if that were
not enough, any fines that might apply to them don’t come out of their pockets,
but out of those of the citizens.”
The
administration, for its part, has managed to dodge a direct hit in the case of
the Once Rail Tragedy by using two successive transport secretaries, Ricardo
Jaime and Juan Pablo Schiavi, as scapegoats. It has also tried to blame the
situation of ineffectiveness and scandalous corruption surrounding the
concession contracts on the 1990s administration of fellow Peronist Carlos
Menem, but after a decade of Kirchners at the helm, this complaint clearly
seems less than credible, especially coming from a government that overturned
the Due Obedience and Full Stop amnesties that protected members of the former
military regime of the 1970s and 1980s from trial, and that had no problem
deciding to re-nationalize the oil industry and the flag-carrier airline, which
had also been privatized under Menem. And this leads one to ask why the
railroad concessions are being kept alive—if on life-support—when they have so
obviously failed to solve the country’s rail travel problems and are still
bleeding the government treasury as always.
Ricardo Jaime |
Jaime and Schiavi. Successive
charges that have been leveled against former Transport Secretary Jaime would
appear to provide an inkling of a response. He came to national office in 2003
when Néstor Kirchner was elected president. He remained in that post under
Cristina Kirchner’s administration until 2009, when his name had become so
connected with scandal that he was forced to resign. He has had numerous court
actions filed against him and has been variously accused of charges ranging
from contempt of court to alleged kickbacks and from failing to comply with the
duties of a public official, to alleged involvement in a money-laundering cover-up
and abuse of office.
Juan Pablo Schiavi |
His
connection with the Kirchners went back 20 years, when as city council
president for the Santa Cruz oil town of
Caleta Olivia, he joined Néstor Kirchner’s bid to unseat fellow Peronist
and provincial political strongman Arturo Puricelli as governor. For his
loyalty, Jaime was awarded the post of cabinet
chief for Kirchner’s first governorship, and when Kirchner won a second term,
Jaime was appointed to head the Provincial Education Council. When Kirchner
reached the presidency in 2003, the transportation slot was waiting for Jaime
in the ministerial cabinet of Planning Minister (and first-hour Kirchner
loyalist) Julio de Vido.
It was
by the hand of de Vido that Juan Pablo Schiavi (55), a man with a somewhat
chequered political past, came to the Transportation Secretariat. Of Peronist
extraction, Schiavi became involved in politics while still a teen, as a
militant in the Peronist Youth movement and with alleged ties as well to the
Montoneros urban guerrilla organization.
He didn’t take up his first real political post, however, until, at age
32, he was appointed advisor to the Peronist Bloc in the Buenos Aires City
Council. During Peronist politician Carlos Grosso’s brief term as mayor of
Buenos Aires (1989-1992) Schiavi served as Undersecretary of Maintenance and
Services.
Despite
his Peronist background Grosso’s mayorship—like Menem’s presidency— was marked
by flourishing relations between the public and private sectors and was to
produce some major transformations in the city, not the least of which was the
Puerto Madero urban renewal project that turned the old port of Buenos Aires
into a luxury residential, tourist and entertainment haven. But it was also a
municipal administration that generated wide-spread scandal and accusations of
gross corruption surrounding not only the swift privatization processes that
Grosso’s policies spawned but also his government’s handling of public funds.
These accusations brought a wave of formal complaints and lawsuits, the
pressure of which eventually forced Grosso to resign. By the time Grosso had
dealt with all of the charges against him, his name was so tarnished that he
retired entirely from politics, despite his managing to see most of the cases
against him dropped, filed for lack of evidence or thrown out of court.
While
Schiavi was in his post in the Grosso government, one of his jobs was to
oversee trash collection contracts, which is where he met Mauricio Macri, who, 20
years later, was to become mayor of Buenos Aires and an archenemy of the
Kirchners. Back then, Macri was heading
up SOCMA, the business conglomerate founded by his father, Franco Macri, one of
whose companies was the trash management firm MANLIBA. Schiavi forged ties with
Macri and with SOCMA executive Daniel Chaín, and, with Chaín (later Human Development
Minister for the City of Buenos Aires), eventually formed a partnership,
working together through the 1990s. One
of that partnership’s projects was the remodeling of some thirty train
stations.
Schiavi
was to later take part in Macri’s two bids for mayor (the first of which he
lost to Aníbal Ibarra), but had a falling-out with Macri over his association
with liberal economist Ricardo López Murphy. In the meantime, he returned to
government when Ibarra was suspended and impeached because of accusations
surrounding an infamous nightclub fire (República Cromagnon) in which 194
people died. When Ibarra’s Vice-Mayor and replacement, Jorge Teleman took over,
he asked Schiavi to take up the post of Municipal Planning and Public Works
Minister, a job he held from 2006 until the following year, when Macri, with
whom he remained estranged, won the mayoral elections. During that year,
however, Schiavi had managed to nurture a good relationship with Federal Planning
Minister Julio de Vido, who placed him in charge of the Railroad Infrastructure
Administration (ADIF), a State company whose job was supposed to be promotion
of railway renewal. But the ADIF
obviously met with little success in complying with its express aim. Be that as it may, when scandal forced Jaime
to resign from the Transportation Secretariat post, it was Schiavi who de Vido
tapped to take his place.
Planning Minister Julio de Vido |
The de Vido Connection. While,
as I said earlier, top government officials have done their darnedest to use
Jaime and Schiavi as circuit-breakers to keep the Once Rail Tragedy blowback
from hitting them smack in the face, it’s pretty hard to miss the fact that they
had to have known full well what their subordinates were doing. It would be at
least naïve to think that they wouldn’t be keeping a close eye (for their own
individual interest if nothing else) on a post
that was the key to activities involving billions in subsidies.
Says
Solanas: “For such a swindle, shouldn’t Planning Minister Julio de Vido—who has
had the Transport Secretariat under his ministry since 2003, and who had Ricardo
Jaime at the head of it for six years—be held accountable? And isn’t the
president principally responsible for the administrations of her ministers?
Everybody, including Cristina [Kirchner] knew about the reports of the Federal
Auditor General, the National Ombusman and the [other] claims lodged,” he says,
regarding the deplorable state of the railroads and the safety issues involved.
“And yet,” he says, “de Vido was absolved in the case and the party of the
concessions, subsidies, swindles and complicities carries on.”
Elisa Carrió: Impeach Cristina. |
Meanwhile
Civil Coalition Congresswoman Elisa Carrió—another noted crusader against
corruption—said this past week that she would be presenting a request for the
impeachment of President Cristina Kirchner, based, she added, on the
administration’s responsibility in the Once Rail Tragedy. She said that she was
also seeking charges against de Vido. Carrió announced the move after a Federal
Court brought more serious charges
against Jaime and Schiavi and confirmed pursuit of charges against Sergio and
Mario Cirigliano (who head the group that owns TBA). Carrió said that “reading
the court’s decision convinces me that the crimes with which Schiavi and Jaime
are charged are the same ones that correspond to Julio de Vido and Cristina
Kirchner.” The congresswoman opined that it was impossible “for Cristina
Kirchner not to have known about the illicit association that her husband led
and, in any case, she maintained it during her own mandates, and it is on this
that the request for impeachment for misconduct is based, on the calamity of
crimes produced around public transport subsidies since the beginning of Néstor
Kirchner’s administration.”
The Once Rail Tragedy
cannot be taken out of the context of the Kirchner administration’s overall
policies and their increasingly pernicious effects. It is symptomatic of a situation in which Argentina
could almost be said to be held hostage by the policies of an administration
whose main focus from the outset has been staking and perpetuating its own
claim to power at the expense of the rest of the country. The administration’s radical
foreign policy that has isolated Argentina from the opportunities that could put
it on the road to its rightful place as a genuine regional and world leader, its disdain for the tenets of the
kind of healthy economy it should be enjoying, its thoughtless dilapidation of
the country’s foreign reserves, its failure to identify and deal with
corruption, its hostility toward any and all sorts of criticism, its aversion
to accountability and readiness to lay blame elsewhere, and its failure to
recognize the democratic principle of the minority’s right to have its say are
all symptoms of a greater and graver illness, one for which the Once Rail
Tragedy stands as a public symbol.