PAMI Signs Controversial Rental Contract in Buenos Aires

PAMI has awarded a rental contract in Buenos Aires for $65 million monthly, causing controversy due to high costs and lack of competition in bids. Critics argue the deal is excessive given alternatives.


PAMI Signs Controversial Rental Contract in Buenos Aires

The National Institute of Social Services for Retirees and Pensioners (PAMI) has awarded a rental contract for a property in the City of Buenos Aires for a monthly amount of $65,000,000, with a real estate commission of $46,800,000, in a process with only one bidder. According to file No. EX-2024-66403307-INSSJP-GAEI#INSSJP, the agency has decided to relocate the administrative offices of "PAMI Listens and Responds" due to structural deficiencies in the current facilities located at 468 Paranà Street.

According to Pocovi, the rental contract with his company KABNER S.A. expired on October 31, 2018, but the Ministry of Labor continued to occupy it without paying rent, generating a debt of over $25 million. According to the official appraisal, the agreed rental price is 15.63% higher than estimated by the agency's technicians. The abbreviated competition No. 500/24 was held on July 29, 2024, with a single offer presented by Marcelo Adolfo Pocovi representing Inversora Eslava S.A. The real estate firm in charge of the operation, Miriam Campos S.A., will receive fees of $46,800,000.

The awarding of this contract generated criticism due to the high amount allocated for a rental without public attendance and the lack of competition in the selection process. Although the State Property Administration Agency offered available offices, these were rejected for not meeting technical requirements. The $65,000,000 monthly rental contract, equivalent to approximately USD 52,845, was agreed for a period of 36 months, totaling $2,340,000,000. Additionally, the agency authorized up to one billion pesos in renovations to adapt the property, which, four months after the contract began, is still under construction, according to an investigation by El Disenso.

The rental contract for that property expired in November 2023 and was extended for six months until a new location was found. The new rented building is located at Bartolomé Mitre 402/430 and belongs to Inversora Eslava S.A. The contract is for 36 months, with a semiannual update of the rental fee. In 2019, the businessman had a dispute with the government of Mauricio Macri over a multi-million dollar rental debt for another property used by the State. The building in question, located at 600 Adolfo Alsina, was used by the Compulsory Labor Conciliation Service (SECLO).

"With the previous management, we had no issues; they even paid contracts in advance," said Kevin Pocovi, the businessman's son. Marcelo Pocovi stated that the problem began with the Macri administration and that, despite his complaints to the Ministry of Production and Labor, he received no responses. At the current exchange rate, this amount is equivalent to nearly USD 1,902,439. PAMI is paying 65 million pesos monthly for the rental of the 5th floor, while in the same building, Toribio Achával offers the 7th floor for USD 33,800, and in Argenprop, the entire 3rd floor, with 1,700 m² and parking, can be rented for only USD 18,000.

The agency has not yet made any statements about the contract. This is not the first conflict involving Marcelo Pocovi. This means that PAMI members are paying between double and triple what other tenants pay.