The Ministry of Housing and Urbanism (Minvu) has ended its contract with San Sebastián, the construction firm responsible for reconstruction efforts in the El Olivar sector of Viña del Mar. The decision follows the discovery of serious technical irregularities during the project’s execution in the wake of the 2024 mega-fire.
Minister Iván Poduje confirmed that the ministry has filed a formal complaint with the Valparaíso Regional Prosecutor's Office. The move aims to determine accountability for the use of uncertified materials and critical flaws found in the structural calculations of the homes.
"We ordered an expert audit based on reports we received regarding the materials the construction company was using, which were not certified," the minister explained. According to the official, the company had been mixing authorized supplies with others of questionable origin.
An emergency plan for those affected
The head of Minvu has ordered a comprehensive review of all blueprints submitted by the company. After identifying technical failures, the ministry initiated administrative inquiries and legal action against those responsible.
To avoid further delays, Poduje announced an alternative plan to recover lost time. The government’s goal is to complete the delivery of the homes by December, fulfilling its commitment to families who have been waiting for housing solutions for over two years.
The news has caused deep frustration among the beneficiaries. Rigoberto San James, a spokesperson for the affected residents, sharply criticized the oversight provided during the previous administration and labeled the construction firm a "ghost company."
"If they aren't meeting the necessary safety standards for fires or earthquakes, it’s better to scrap what’s been done, accept the lost time, and start from scratch with a serious company that actually knows the business," the representative stated. San James emphasized that the case highlights state negligence that has directly impacted those who lost their homes.
The Public Prosecutor's Office will now lead the criminal investigation. Prosecutors must determine whether there was any misappropriation of public funds and if the construction firm committed crimes by compromising the safety of future housing in a highly vulnerable area.
