Politics Economy Local 2026-01-26T04:34:55+00:00

ATE Sues Nucleoeléctrica Leadership for SAP Project Budget Surge

Argentina's state workers' union has filed a formal complaint against the leadership of state-owned Nucleoeléctrica, accusing it of an unexplained cost increase for an SAP system migration project, from $600,000 to $7 million. The complaint cites serious management breaches and calls for a full audit.


ATE Sues Nucleoeléctrica Leadership for SAP Project Budget Surge

The Association of State Workers (ATE) framed the situation as a series of serious administrative irregularities with a budgetary impact and weakening of internal controls. In the document, accessed by the Argentine News Agency, the union clarified that SAP S/4HANA projects can vary in scope and complexity, but emphasized that the core problem was not the chosen system, but the lack of documented justification, comprehensive auditing, and traceability of decisions. Among the points raised were the lack of clear information about the actual scope of the project, the modifications introduced, the approved change orders, the milestones, the deliverables, and the market comparisons. ATE maintained that a jump from 600,000 to 7 million dollars required a complete audit of the file, something that, according to the complaint, did not happen. The union's presentation also warned that the SAP case is not an isolated incident, but is linked to other ongoing complaints, such as the tender for cleaning services in nuclear power plants, also questioned for alleged favoritism and overpricing. In this sense, ATE spoke of a pattern of behavior characterized by large-scale deviations, decisions made through informal circuits, and the risk of improper or unjustified expenditures. Reidel is considered a central figure in the libertarian economic circle and one of the most influential advisors to President Milei. ATE's accusations, added to the existing internal and judicial complaints, place the leadership of Nucleoeléctrica under increasing scrutiny and open a front that could lead to broader administrative and judicial investigations. Buenos Aires, January 25 (NA) -- The Association of State Workers (ATE), Zárate branch, filed a formal complaint against the management of Demian Reidel at the head of Nucleoeléctrica Argentina S.A., warning of an extraordinary budget jump in a technology contract linked to the migration of the SAP system to HANA/S4HANA, whose cost would have gone from USD 600,000 to USD 7,000,000. The presentation, dated January 19, 2026 and addressed to Reidel himself—known as 'Satan'—argues that the difference of USD 6.4 million, equivalent to an increase of nearly 1,067%, absorbed the annual budget of the IT area and constituted a serious patrimonial risk for a strategic state enterprise. According to the union, the final amount represented 11.67 times the originally estimated budget. The complaint was filed at a time of strong internal tension at Nucleoeléctrica, with changes in the managerial leadership and a board of directors divided by the irregularities detected in various purchasing processes. In this context, Reidel's role came under observation not only for specific decisions but for his responsibility as the highest executive authority in ensuring control systems and institutional integrity. The conflict takes on greater relevance due to the political and economic context. In the 'alert indicators' section, the union listed signals of weakening internal controls, capture of administrative decisions, and reputational exposure for the company. For this reason, they demanded urgent measures, including the preservation of all physical and digital evidence, the freezing of extensions and payments associated with the SAP contract, and an instruction to cease informal management circuits. ATE also requested the opening of a comprehensive audit—technical, administrative, and economic—of the SAP-HANA file, with the determination of responsible parties for each stage of approval, validation, and execution. If applicable, they requested the initiation of internal summary proceedings and the referral of the proceedings to external control bodies.