Mexico City, April 8, 2020.
On April 2, the "Decree ordering the extinction or termination of public trusts, public mandates and similar" was published in the Official Gazette of the Federation.
In this regard, the President of the Republic instructs the agencies and entities of the Federal Public Administration, the Office of the President of the Republic, as well as the Agrarian Courts, that in terms of the Federal Law of Budget and Fiscal Responsibility (".LFPRH"The Board of Trustees, as well as its respective Regulations, shall carry out the processes to extinguish or terminate all public trusts without an organizational structure, mandates or similar of a federal nature in which they act as responsible units or principals.
In this regard, the rights and obligations arising from such instruments will be incurred by the corresponding executors of expenditure against their authorized budget, in accordance with the applicable provisions.
On the other hand, those executors of expenses, through their responsible units, are also instructed to coordinate in an appropriate manner the necessary actions to concentrate in the Treasury of the Federation all federal public resources that are part of the trusts, mandates or analogous aforementioned, no later than April 15 of the current fiscal year.
It is clarified that the Head of the Ministry of Finance and Public Credit ("....SHCPArturo Herrera Gutiérrez, is authorized to resolve exceptions to the provisions of the preceding paragraph in consultation with the Ministry of Public Administration ("...").SFP"). These exceptions will have to be resolved upon a duly founded and justified request submitted by the Head of the executor of the expenditure to the Head of the SHCP, Mr. Arturo Herrera Gutiérrez. In the event that such authorization is not issued within a period not exceeding 10 working daysshall be understood as unauthorized.
Likewise, the executors of expenditures must refrain from exercising or committing federal public resources charged to public trusts without an organic structure, mandates and similar of a federal nature. Only in those cases in which it is necessary may the respective exception request be exempted to the Head of the SHCP, Mr. Arturo Herrera Gutiérrez.
It should be noted that excluded from the Decree are public trusts, mandates or similar that are established by law or legislative decree and whose extinction or termination requires constitutional or legal reforms, as well as legal instruments that are used as public debt mechanisms, or whose purpose is to address health emergencies or to execute labor or pension obligations.
Finally, it is established that non-compliance with the Decree will give rise to the corresponding administrative responsibilities in terms of the General Law of Administrative Responsibilities.
The lawyers of the financial and securities law area are at your service to answer any questions regarding the contents of this informative note.
Miguel Angel Peralta
Pedro Said Nader