In another change of tack, President Néstor Kirchner decided that he would, after all, use the power given him by congress and 'intervene' (place under federal administration) Pami, the corruption-ridden state healthcare system for pensioners (WR-03-24).
Placed in charge was the executive's representative on the board (and its chairman), Juan González Gaviola -so what this move means is that he will, for the next six months, not be fettered by the formalities of consultation with the other directors.
This is important, because in this period González Gaviola is expected to draw up plans for a complete overhaul of Pami, which will include reducing the representation of the unions on the board.
These are expected to put up considerable resistance, as they did earlier when González Gaviola asked them to reduce their US$1,000-a-month salaries.
Long-haul reform. Pami, which manages an annual budget of Arg$2.7bn (US$960m), is weighed down by a debt of Arg$1.8m (US$640,570). Its payroll has been inflated with people who draw salaries but do no work; the fees it pays for services have often been fraudulently inflated and huge healthcare provision contracts have been awarded to friends of the directors.
The intended beneficiaries, pensioners who must on average survive on Arg$210 (US$75), must frequently endure long waits for treatment.
González Gaviola has said he intends to decentralise the administration of the system, review all appointments and seek to promote the ablest and most experienced employees. With the unions, he says, he will have 'mature conversations' to redefine their participation. He is already warning, though, that straightening out the service will take some time: 'No-one should expect miracles overnight.'
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