Private insurance elimination: MXN$5 billion in savings

The elimination of private insurance for government workers will generate savings, according to SFP

Private insurance elimination: MXN$5 billion in savings
Sandoval added that the government was cutting back on insurances and other expensive luxury benefits while reducing upper-income wages - Photo: José Luis González/Reuters
English 04/01/2019 13:35 Antonio Hernández Mexico City Actualizada 13:35

The head of the Ministry of Public Affairs, Irma Eréndira Sandoval, said that through the elimination of private insurances for workers of the federal government, MXN$5 billion pesos have been saved.

“Since insurances of all kinds have been eliminated, not only insurances for major medical expenses but also financial products of different sorts that the past administration bought at a massive scale, we achieved a reduction in expenditure of $5 billion pesos,” stated the Minister.

In a press conference, during the presentation of the collaboration agreement between the federal body and the Financial Intelligence Unit, Sandoval explained that the savings generated by the new federal government were not a consequence of job elimination.

“The directive of President López Obrador is not to trample on the rights of public servants. The new federal government will not remove jobs that are essential for the public administration,” she said.

Sandoval added that the government was cutting back on insurances and other expensive luxury benefits while reducing upper-income wages.

“Setting an example, the President has cut 40% of his income, and so have the new ministers and members of his cabinet. We’ve had wage cuts of between 40% and 50% with respect to their previous income. Let us be clear that the sectors with lower wages have had increases of between 1% and 5%. We are not leaving anyone on the streets,” she said.

Regarding the agreement signed with the Financial Intelligence Unit for the exchange of information on corruption acts and money laundering, the stateswoman explained that they were aiming to strengthen the federal administration’s investigation capacity so that they wouldn’t have to turn to international or foreign organizations to learn about this sort of crime.
 

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