Gutiérrez Molina, a Salvadoran-American national who lived in Texas, arrived in Medellín on a commercial flight via José María Córdova International Airport. He was last seen alive on Sunday, March 22, after visiting commercial establishments in the El Poblado neighborhood. Investigations by the Secretaría de Seguridad y Convivencia suggest the victim was targeted by criminals using scopolamine, a sedative that can be used to incapacitate victims for robbery. According to witness statements, Gutiérrez Molina and another flight attendant were approached at a nightclub by individuals who lured them to another venue in Itaguí, a southwestern suburb of Medellín. While the companion flight attendant was able to make it back to her hotel, ill and disoriented, Gutiérrez Molina remained missing for five days.

“We have very clear leads on those responsible,” stated Mayor Federico Gutiérrez. “I have requested that justice be served and that the perpetrators be sought for extradition to the United States if necessary.”

The body was spotted by residents of Puente Iglesias floating in the Río Piedra ravine. The Instituto Nacional de Medicina Legal y Ciencias Forenses is currently conducting formal identification and an autopsy in Medellín. Mayor Gutiérrez reported that he has personally informed the victim’s father, the US Ambassador to Colombia, and the Consul General at the US Embassy in Bogotá regarding the development. The mayor stated that investigators have identified alleged perpetrators and expressed his intent to seek their extradition to the US.

‼️Tengo que dar una triste noticia.
Desde el pasado Domingo, estamos en la búsqueda de Eric Gutiérrez un ciudadano Estadounidense que se encuentra desaparecido.
Lamentablemente acaba de ser encontrado un cuerpo sin vida, entre el municipio de Jericó y Puente Iglesias.
Existe…

— Fico Gutiérrez (@FicoGutierrez) March 27, 2026

This problem is not new. Criminals have been using scopolamine to prey on both Colombians and foreigners for years. Just last week, the Alcaldía de Medellín (Medellín Mayor’s Office) announced the capture of two women, aged 19 and 34, accused of drugging and robbing foreigners in Parque Lleras. The Policía Nacional and the Fiscalía General de la Nación  (Colombia Attorney General’s Office) conducted raids in the Caicedo and Villa Hermosa neighborhoods to dismantle the operation. The suspects reportedly offered escort services as a facade to move victims to tourist accommodations, where they administered benzodiazepines such as clonazepam to facilitate the theft of high-value belongings and cash.

Manuel Villa Mejía, Secretary of Security and Convivencia, stated that the captured women had extensive judicial records for aggravated robbery. During the operations, authorities seized mobile devices, identification documents belonging to other women, and a firearm. Villa Mejía emphasized that the city is utilizing intelligence and focused operations to close pathways for those who instrumentalize tourism for criminal purposes. These actions are part of a broader strategy to weaken the financial operations of networks that continue to target international visitors in El Poblado.

Finance Colombia has also reported on the capture of the Queen of Scopolamine, who led a network dedicated to drugging and robbing tourists in Parque Lleras. Despite prior law enforcement successes against structures like Las Barbies and The Ghetto, predatory crime remains a concern for the international investment community and business travelers.

Also read: Don’t Be A Victim! Six Rules For Safety When Visiting Colombia

photo of Mr. Gutierrez from social media

The new plant is scheduled to go online in the summer of 2024, and according to Bavaria, will create 1,500 construction jobs, then employ 350 plant workers supporting 7,000 additional indirect jobs. The beer factory is being designed to be completely carbon neutral, and Bavaria has committed to operate it with solar electricity.

The move is an additional vote of confidence for the greater Barranquilla metropolitan area that has been quietly making progress with less attention than Colombia’s more famous cities of Bogotá and Medellín.

The Palmar de Varela brewery will turn out Bavaria brands such as Águila, Poker, and Club Colombia, all Pilsner style beers popular in hot weather climates.

Colombia’s President Gustavo Petro, applauded the decision, saying: “We all make change, total peace is with businessmen, rural people, and workers, women and youth. I thank Bavaria for the investment that will generate employment and contribute to the energy transition.”

Sergio Rincón, president of the beer company (above photo), said: “We firmly believe in Colombia and in the great transformations that the private sector can generate for the benefit of the country. With this new plant, the company is betting in the long term on a significant expansion of the industry. The brewery will produce the national brands most loved by Colombians such as Águila, Poker and Club Colombia, among others.”

“I welcome the arrival of Bavaria to our municipality with great satisfaction. I am sure that it will generate a positive impact in the finances of the municipality and in the social sphere. Thanks to these resources we will be able to continue promoting the development of the municipality with the social investment that will impact the quality of life of the residents of Palma. In the social aspect there will be employment opportunities,” added Palmar de Varela’s mayor, Galdino René Orozco.

The new brewery will add to Bavaria’s eight existing Colombian breweries, two malting facilities, and a label printing factory. Added Rincón: “It fills me with pride to share this good news with the country on these very special dates. We Colombians deserve a future full of hope, celebrations and progress, and this new bet is, without a doubt, a great reason to toast…it is a sample of the spirit of a company like Bavaria, which, after multiple contributions in favor of progress over more than 130 years, continues to undertake, betting on growth and innovation in our processes”.

With 4,000 employees supporting 80,000 indirect jobs, 133 year old Bavaria has breweries in the Colombian cities of Tocancipá, Tibasosa, Yumbo, Itaguí, Bucaramanga, and Barranquilla. It also has two malting facilities in Cartagena and Tibitó, and a label factory in Yumbo.

Police records show there have been 5,399 cases of theft reported in metro Medellín during the first 9 weeks of 2022 compared to 4,538 cases the year before: an increase of 16%. Medellín proper is showing a rise in property crime of 20%, while Envigado has managed to remain stable with only a 1% increase.

Thefts in Medellín are becoming more brazen and violent, and often victims are attacked as part of the theft even when not resisting. In 2021, 19 foreigners died violent deaths in Medellín. Just last month, Australian Nat Ware was shot in the tourist neighborhood of El Poblado in a robbery, even after giving up his valuables. Ware was in Medellín to launch a program training low income Colombians in technology, preparing them for professional employment.

The same month, expatriate contact center executive Manuel Morales was gunned down after leaving the El Tesoro shopping mall in the exclusive Las Palmas area of the city. Also in February, the diners at the luxury Click Clack hotel in Medellín were robbed when a thief dressed in black and wearing a bulletproof vest brazenly walked in and held a stickup, robbing jewels, smartphones and wallets.

Hurto masivo Anoche en el hotel Click clack en el poblado.

Sujeto ingresa con arma de fuego y
Se robo varias joyas de alto valor , celulares, billeteras. Estaba en la puerta del restaurante @PoliciaMedellin @region6policia @seguridadmed @sebaslopezv @QuinteroCalle pic.twitter.com/t4kPphRg9n

— Denuncias Antioquia (@DenunciasAntio2) February 26, 2022

Rising Homicides

While homicides are near historic lows, and a tiny fraction of the high of 6,809 in 1991 during the drug wars, they are rising significantly. In 2021 there were 9.2% more homicides than the year before, a historic low of 369, even lower than the crime rates in the 1970s. The tourist mecca of Poblado has seen a 400% increase in homicides going from 2 to 10, and the quieter, but still popular Laureles neighborhood has seen homicides rise 78% from 9 to 16.

Lower income neighborhoods are also seeing an increase. On the city’s north side, away from exclusive hotels and fancy restaurants, Manrique has seen a 54% increase in homicides, and Aranjuez a 36% rise.

Where is the mayor?

They mayor of Medellin since 2020, Daniel Quintero has a public relations slogan: “Medellín va bien,” or “Medellín is going well.” Last October, he tweeted “In Medellín, committing crimes is getting more and more difficult. When the civic group “Medellín Como Vamos” conducted polling on public sentiment that showed growing discontent with his administration, he dismissed the group as being funded by local businesspeople and presenting selective data. Though in his same tweet touting how tough it was for criminals, he showed a graphic that cherry picked data showing a homicide reduction for the month of September and for youth homicide.

En Medellín cometer crímenes es cada vez más difícil: En septiembre tuvimos una reducción del 15 % en homicidios, comparado con el mismo mes del año pasado. Además presentamos una reducción del 75 % en los homicidios a menores de edad. Toda vida es sagrada. pic.twitter.com/tkkdTExCPY

— Daniel Quintero Calle (@QuinteroCalle) October 1, 2021

Four weeks after the mayor’s “tough on crime” tweet, a spectacular gold heist, like something out of a Hollywood movie, took place on the busy Las Vegas Avenue, again in the higher income, international-friendly Poblado district. At least 11 criminals made off with over 3 kilograms of gold.

July of last year, 15 heavily armed thieves dressed as police and SIJIN (Colombia’s police task force responsible for working with Interpol) stole 400 million pesos in cash and 12 kilograms of gold from the Forum office building in Medellín’s wealthy “Milla de Oro” (Golden Mile) business district, just steps from the Santa Fe shopping mall.

Safety for visitors

Last week, two Chilean visitors to Medellín were robbed at gunpoint of their Rolex watches in Las Palmas near a major thoroughfare. Fortunately for them, the police reacted quickly and were able to recover the timepieces and make arrests.

#Medellin | una hora después de estos hechos, en una rápida acción Policial y la articulación de las cámaras de la ciudad, se logra recuperar los elementos hurtados a esas dos personas e inmovilizar los vehículos dónde se movilizaba los delincuentes >>> pic.twitter.com/WGbHXD8hPN

— Guardianes Antioquia Oficial (@Guardianes_Ant) March 19, 2022

While no one deserves to be a victim of crime, there are several common sense measures that foreigners and citizens alike can take while visiting Colombia, especially large urban areas, or Caribbean vacation spots. Remember, everything starts with situational awareness. Know your surroundings and be alert at all times.

1. Don’t wear expensive watches or gold necklaces. Colombians don’t, and neither should you. You will not see Colombians walking around with expensive jewelry on the street because of the risk of theft. A pedestrian wearing these expensive items will not look wealthy, he will look clueless.
2. Don’t use your high-end smartphone on a busy street. If you must make or take a call, best to duck into a corner store or coffee shop, buy a soft drink and conduct your business there. If you wish to take a photo, that’s fine but just look around and be sure you aren’t the object of anyone’s attention.
3. Don’t carry lots of cash. The vast majority of retail establishments and commercial restaurants in Colombia accept bank cards like Visa and Mastercard. Leave your stash in your hotel safe, or a secure area of your apartment, and don’t walk around with more cash than you expect to spend that same day. ATMs, or automated cash machines are widespread in Colombian urban areas, and generally work fine with foreign cards enabled for international transactions.  When withdrawing cash or purchasing items with a bank card in Colombia, you may be presented with the option of accepting a conversion from pesos to dollars. Generally you want to decline this, as they are almost certainly offering you an unfavorable rate compared to your own bank or financial services provider. Of course, rural areas and small artisan vendors or “mom & pop” restaurants may not always accept charge cards. Large shopping malls often have options for licensed money exchangers. Be sure to count your money and store it in your wallet or purse before leaving their service counter.
4. Be careful partying with strangers. In the US and Europe, we hear about “date rape drugs.” Similar substances are used in Colombia to rob tourists—and Colombians of their belongings. Even when the police investigate, few tourists have the means in time or money to stick around for the prosecution to make its way through the courts, so with no witness, the criminals eventually go unpunished. Some criminals have a modus operandi targeting foreign visitors, using for example, attractive young women or friendly “bros” who know “where the party’s at” as bait.You may notice that when liquor is ordered at most clubs and bars in Colombia (but not in international hotels), the bottle is opened at your table in your presence. This is to show you that the drink is not adulterated, and the bar staff is not “slipping anything into your drink.” When drinking with people you do not know, do not leave your drinks unattended. Drinking a beer and headed to the restroom? Take your beer with you.

5. Be prudent about transportation. Taxis in Medellín are generally straightforward, and the price in pesos is whatever is shown on the taxi meter. The official white cars to and from the airport operate at a fixed rate, which you should confirm before leaving. In Bogotá, the taxis have a notoriously bad reputation, and even many Colombians avoid them, using either Über, or InDriver ride hailing apps. InDriver has the advantage of allowing the passenger to “make your own offer” of how much you wish to pay. It also takes a much smaller cut of the fare, so the drivers prefer it. In Cartagena, there are no taxi meters so be sure to agree on a price before entering the taxi. Most business hotels also can arrange transportation with providers they know and trust.. You can rent a car in Colombia but understand that there is no legal limit for blood alcohol. Driving with any detectable alcohol in your system whatsoever is an arrestable crime.
6. Don’t abuse drugs! Not only is it illegal in Colombia, and Colombian prisons are not pleasant, illegal narcotics are often a means of delivery of the disabling hallucinogens like Rohypnol or the more common Scopolamine, made from a flowering tree found in Colombia distantly related to the Tomato. Crime victims are often reluctant to report the crime because their drug use will show up in the resultant medical attention. The situation is worse when the victims are not fluent in Spanish, or don’t have resources to pay for medical care. Along abusing drugs, public drunkenness is not only ugly, it puts you at risk for victimization by criminals.

Con apoyo de la tecnología de cámaras de video vigilancia de la ciudad recuperamos los elementos hurtados a 2 ciudadanos extranjeros en el sector Las Palmas.

La denuncia es importante para judicializar a los responsables de este hecho. #ImplacablesContraElDelito @seguridadmed pic.twitter.com/xXaZQEVUhe

— BG. Javier Josué Martín Gámez (@PoliciaMedellin) March 19, 2022

Finance Colombia’s executive editor Loren Moss was able to connect with Trejo to discuss Antioquia’s growth and resiliency during the pandemic, also exploring the role of Colombia’s departmental government (Colombia has departments instead of states or provinces) in investment promotion along with the municipal agencies like ACI Medellín, and the national agencies like ProColombia.

Finance Colombia: I want to ask you about the current status of Antioquia, how are we doing after a year of pandemic? Antioquia has a very diverse economy, obviously there is a lot of activity in the agricultural and industrial area, but it’s also a department that has tourism and events, large events. So my question is, how do you see the entire economic state of Antioquia and in which sectors has it affected the economy the most? But before that I ask you to explain your role and what your responsibilities are in the government, so that people understand what Daniela Trejo is doing in Antioquia.

Daniela Trejo Rojas: First of all, let me introduce myself. I am Daniela Trejo, the new secretary of economic development, innovation and new economies of the department of Antioquia. Previously I had been working as director of internationalization and this brings me new challenges, thinking first of all about employment. Employment is like the pain and the cut off of everything that this secretary does, and it’s to take care of and protect the business fabric, I will tell you a little by way of context, Antioquia is the second largest population conglomerate and economy of Colombia.

Here we speak very well of businesspeople and others. Whenever we talk about Antioquia one thinks of Medellín and then in Valle de Aburrá (Aburrá Valley, where Medellín is situated). In Valle de Aburrá there are 10 municipalities that make it up, but in the department, there are 125 municipalities. We are the department of Antioquia and of those 125 in Medellín and in the Aburra Valley, in these 10 municipalities we have very important companies such as Familia, Grupo Argos, Grupo Éxito, Grupo BIOS, Bancolombia, Suramericana, which are the large holding companies of Colombia, which are in the stock market and that for us they are all a source of pride because they represent that business fabric and that productive specialization of the department.

Antioquia is home to several of Latin America’s most important multinational enterprises.

It’s convenient to tell you that COVID hit us very hard. Last year we closed with a loss of approximately 130,000 jobs. The main economy of Antioquia is in the services sector, in the commerce sector, of course they were very affected sectors and that was largely due to those strict closures that we had in the first three months of the pandemic, where we doubled the unemployment we had, in December of last year we had a recovery of 150,000 jobs and we closed the year with a loss of 130,000. This year we have that goal, and it’s to recover 100,000 jobs, but that is not a goal for the department of Antioquia alone, it’s a goal that we have with other sectors such as construction, services and manufacturing, and merchants. We know that we have to come together to move the department forward.

Regarding the context for those who haven’t traveled and for those who don’t know either Colombia or Antioquia, we are divided into 9 subregions. In those 9 subregions we have the Aburra Valley, and here we have a whole ecosystem of innovation, for us this is a source of pride. We have Ruta-N and we have many entrepreneurs and enterprises that are publishing everything; creative industries and business ventures, technology and added value, but we have other subregions, all very different with a diversity of climates, with a diversity of soils, and that has allowed us to specialize. If we go north, we find ourselves in Urabá where we have access to the sea. In Urabá we have an important logistical location for the tertiary economy and from there 40% of the bananas and plantains that the country exports go out.

But if we go down a little bit, we get to the southwest where the specialties are coffees and citrus fruits. Today we are finding very specialized markets in Europe & Asia for our coffees, not only exporting them as commodity coffees, green coffee but already specialized coffees. We have a region in the North where dairy and textiles are also very significant. We have of course historical knowledge in mining, especially the Mid-Magdalena region and there we already have foreign companies that are in the exploration stage.

We have eastern Antioquia where our José María Córdova international airport is located, there we also find very diverse soil and we are promoting all the exploration in medicinal Cannabis, but also the Hass avocado, passionflower, mango, vegetables. This is how our territory is made up, we also have a sub-region that I forgot, the Occident of Antioquia. From the Occident of Antioquia, we have very agricultural locations and we also have a mining presence so we think of it as an important logistics corridor for the development that we are going to have in Urabá.

That is a context for you to understand that Antioquia has a multiplicity of soils and territories, however, what contributes the most to the Antioquia team is trade, manufacturing and construction, those are the factors that contribute the most and that were most affected in the pandemic.

Finance Colombia: Well speaking of the Occident of Antioquia, they are building the 4G highway projects and they are also building the Antioquia port. When do you plan to finish all this? If I understand correctly, you are going to start making a 4 lane highway from Las Palmas to El Tablazo, near the José Maria Cordova international airport (serving Medellín), a project that will be carried out for 36 months under construction by the firm Conconcreto. I remember 6 years ago when Rionegro was a rural town, and Rionegro is a suburb now, as Envigado was before. It’s how Las Palmas was 10 years ago, it’s already Rionegro, they are expanding the roads into double lanes each way, and I imagine that La Ceja and El Carmen de Viboral will be the next. But speaking of that, with so much growth, when do you think the 4G projects and the port of Antioquia will be finished? How is that going? And what changes do you hope these development projects will bring to the regional economy?

Daniela Trejo Rojas: We have a series of infrastructure projects, some more representative than others, of course betting on the regions where we see that there is significant potential. The Department of Antioquia is very focused on Urabá trying to strengthen the port that we already have there. These are projects that are medium-term, but committing to a special date is difficult because each of the projects has a trajectory and has a dynamic, but we hope in three years to be able to have the roads and also the port developments in Urabá, that will allow us to have competitive advantages between Antioquia and other departments, we will be much closer as a port than other departments that have a large flow of merchandise and that today they are leaving through Barranquilla, they are leaving through Cartagena and that they will be able to pass through Antioquia and have to close all the commercialization there.

With Viva Air announcing Medellin as its new international hub, Antioquia can expect nonstop connectivity throughout North America, South America, and Europe.

So for us that also implies changing the locations of the soil a bit, going from having almost concentrated the spirit of Urabá in the production and commercialization of plantain, banana, pineapple and passion fruit, also moving to products transformed with high added value that also induce us to compete with other markets, but you know that port developments also bring social and cultural impact.

You were asking me about the Orient of Antioquia around Llanogrande: the San Nicolás Valley implies a challenge and immense potential for us. Today we can say that they are two valleys that are connected, it’s even very difficult to determine when Envigado ends and when I am in La Ceja, or when Envigado ends and I am already in Rionegro through the same infrastructure. Before it was very easy because you could notice the change in the roads and lighting, and today you go from Rionegro to La Ceja and find more dynamic restaurants, hotels and others, so we can say that they are two valleys that are completely established, and that has also allowed us to have developments such as  the Orient of Antioquia Tunnel that connects us easily between the two valleys, and allows us to have more interaction and that is finally competitiveness for the department, that I can land in Rionegro and in 15 minutes I can be in Medellín, that increases the competitiveness that we have as a territory. After this year of pandemic, we saw that people are leaving Medellín to live in  the Orient of Antioquia, people are located in Llanogrande, in La Ceja, in El Carmen, in El Retiro and there is a real estate pressure that for the mayors has been a bit complex to handle. People are already migrating to  the Orient of Antioquia, to the entire San Nicolás Valley and this also brings to mind some adversities in infrastructure and waste collection, and all the solid waste management is very important.

Also in the same ecosystem, we forget that there are territories that don’t have very good networks of public services, that don’t have good drinking water networks, we still find many of those municipalities that their villages have aqueducts that have been built by the communities themselves and that they themselves administer. Today that means that we are arriving there with demands that the territory is not very prepared to handle. It’s important not only with roads, in  the Orient of Antioquia we from the department have an important position especially in Rionegro, we also have the decentralization of innovation centers where we are talking with the Orient of Antioquia’s chamber of commerce, where we are talking with businessmen from  the Orient of Antioquia and we have a special project that is  the Orient of Antioquia’s airport city, thinking towards the future and taking advantage of the free zone that we already have there.

In the future we are going to start building the second most important complex in Colombia, today El Dorado (Bogotá’s international airport) is not enough, it’s the Bogotá airport, today it doesn’t provide for the maintenance, spare parts and others of its aircraft, and we are understanding that the transport and logistics sector is leaving to migrate to eastern Antioquia, that implies that we have to help young people think about the areas in which they want to work, what kind of professions and trades we need to promote in  the Orient of Antioquia because if the demand reaches us and we don’t have someone to fill it, it would be a problem, but that cannot be solved overnight, that has to be with enough time, so that is why we are preparing. But if we envision where the urban growth is and the economic development of the department, surely the answer is: towards  the Orient of Antioquia and towards Urabá.

Finance Colombia: Yes, I was at an event with the mayor of Medellín and the president of Viva Air and they announced that they are going to name Rionegro as the hub and their vision is that they have about 20 planes already in the factory being built, and it’s funny because like when they already have 20 planes on order, and they say their long-term vision is to connect—basically they are doing what COPA (Copa Airlines) did with Tocumen in Panama, that’s what they want to do with Medellín, and connect, in the words of the president of Viva Air, from Buenos Aires to New York all with connectivity in Medellín. I imagine that they are going to have to build or expand the airport again, they just finished renovating the José María Córdova airport, but I imagine they will have to expand it more, I also hear about making a second runway. I don’t see where; I imagine they know how to do that.

What can you tell me? Because I have also heard rumors of making more airports, for example in the Occident of Antioquia, since Santa Fe de Antioquia is a very touristy area, at least they are expanding the highway, but beyond Santa Fe and San Jerónimo, there is also a lot of activity in Buriticá, with 4G highways that are already under construction, are there current plans? I understand that you are not Secretary of Transportation but if there is something you can tell me about plans to expand the roads?

Daniela Trejo Rojas: Answering you very precisely if we are now promoting developments other than our José María Córdova international airport? No, we have to go step by step, the Orient of Antioquia still has a lot of capacity, since we don’t have overcrowding. The demand that the airport has, we have where to grow, and we are also betting that free zones are a tool for economic development. They can bring foreign direct investment, we don’t see that we still have to bet on airport issues in another region other than the Orient of Antioquia so that it becomes very strong, but speaking of competitiveness, we have all the rehabilitation of the railway system, which is a nice project that is led by the department through the Antioquia railway.

Where many of the sections of the Antioquia railway will be rehabilitated, which was liquidated in 1956 and some sections were left without use, absolutely without use. Today we see all the potential for them to be rehabilitated, many of these sections are in feasibility, others are in pre-feasibility, and in particular there is one that I want to tell you about, which is the one that goes from Barbosa to Puerto Berrio, all of the Rio Magdalena to Medellín.

Antioquia intends to rebuild its railway network.

In that section, today there is a national government plan to rehabilitate the navigability of the Magdalena River, this river is one of the arteries of the country, it crosses all the states, including Antioquia, and in Puerto Berrio there are plans to have a multimodal port that we allow the loading and unloading of maritime merchandise and connect it with the railway section between Barbosa & Puerto Berrio, especially we have the garbage ecosystem, almost all the waste and garbage collection of the Aburra Valley goes to this side of the department of Antioquia, and in the garbage we see a potential for a circular economy and green business.

We think this section of the railway in one day can transport people and in others, for example at night, it can transport garbage, but it’s not only transportation but also to achieve that garbage to complete a cycle, that we call green business and circular economy, and that we can see value in the management of that garbage. It’s a project that today is ahead of schedule in its completion, since last year the feasibility of the project was verified and it’s a work that we hope has already been very viable in that administration. We also have other sections that are being rehabilitated, among that we have the section of the “Tren del Rio,” it’s expected that we will have the railway crossing the Aburra Valley, that project is also in pre-feasibility, and there is a section that goes to Urabá, inclusive. This is the section that is more in its infancy, but it’s expected that we will achieve rail connectivity throughout the entire department. Previously we had it, 60 years ago we had it and today we see the potential of having a multimodal plate, also of lowering the load a little off our roads so that they are more efficient, and that we can also take advantage of the Magdalena River and be able to have loading and unloading of multimodal merchandise in this important area in Puerto del Rio.

I don’t know if you knew that in the 1920s all merchandise taken out from Antioquia was by mule, they had 1 or 2 days of travel crossing mountains to go down to the middle Magdalena (river) and arrive especially at Cisneros, in Cisneros the order was made and the Magdalena was crossed until reaching Puerto Berrio, and in Puerto Berrio the merchandise left to Barranquilla. In Barranquilla there were all the ships with international destinations, including those that were leaving Antioquia and if they wanted to go to Europe they had to go to New York and from New York on to Europe.

That is to say that ancestrally there were already some roads, this is very beautiful, in its time Puerto del Rio was a point of arrival for artists, for tourism it’s spectacular. You started the conversation with tourism and I have not mentioned much about that, and we have some municipalities with a history, still with that railway and with those spectacular railway stations, preserved, with still very light infrastructures that have allowed nature to be preserved. Today ecotourism is important in Antioquia, bird watching and being able to enjoy nature today is one of the great bets we have in the department This is especially speaking of infrastructure other than road and airport infrastructure.

Finance Colombia: Yes, that is something I remember my first time in Colombia almost 20 years ago, that was something very curious for me, that there are no trains. One thing that impacts me, still the case but much better now, is that Colombia has always been very regional, as you mentioned there was no transportation to go to Bogotá or Medellín before modern times. I talked to the president of Tecnoglass and he commented on how expensive it is to transport materials within Colombia, due to lack of infrastructure. They are in Barranquilla because that is where the port is, they export a lot of merchandise. Colombia now is changing a lot, before it was not a great force in exporting, perhaps a little coffee, and before,  textiles, so that seems great to me, mainly because of the industry that can grow by having railways but also for example in the tourism sector.

In Bogotá I took the tourist train to go from Bogotá to Cajicá and Zipaquirá, in this case it would be longer distances. I imagine it is like taking a train from here to Puerto Berrio, but you are there near Hacienda Napoles and so many things of nature that can be seen, right? I find it very interesting that the railway system can be used not only to transport people and make more connectivity not only with the Magdalena River, but there can also be access to Bogotá and that tourist part of western Antioquia, far west near the Magdalena River, and also connecting with Santander and towards Bucaramanga and those areas because they also connect with the Magdalena River.

Speaking of which, because you mentioned Urabá, are there tax incentives? I know that here we have the free zone, here nearby if I understand correctly there are three free zones in Antioquia, but what incentives are there? Because in Urabá we are already going to have the port, but that area has been an area to some extent forgotten, that is to say, much development is lacking, there is still opportunity and we cannot complain about what happened in history, but currently there is a lot of development that is missing. Are there incentives to encourage or promote investment and development in the north of Antioquia? Speaking more specifically after the mountains, speaking of the coastal plain there in Urabá.

Daniela Trejo Rojas: Well I’ll tell you, we have a particularity as a department and that is that after the signing of the peace process, the national government came up with a strategy called ZOMAC and PDET regions that consists of those municipalities and the most affected areas by the armed conflict and where for more than 10 years we have been investing in changing the productive vocation of the soil, trying to replace illicit crops. Especially in Antioquia we have done it with coffee and cocoa, but also with other projects, fish farming and beekeeping projects.

We in Antioquia have a corridor where we have four subregions where we can find 55 ZOMAC, areas that were declared the most affected by the armed conflict, and 24 PDET municipalities, that in other words is a strategy where the government says what we can do with these territories, How can I change the productive vocation to encourage the establishment of local and foreign companies so that we can generate the different dynamics of the economy, promote development in another way, and this is often not so easy. It is not easy to simply make a refund, but who am I selling to? How do I trade? How do I inject technology and innovation into it? Sometimes very complex and important investments are required. We have those municipalities in Antioquia, we have four sub-regions, among them is Urabá that we have mentioned so much, we also have municipalities in the north, in the northeast and in Bajo Cauca, almost all the municipalities or areas that are there as most affected are in those four subregions that if you see them on the map, it is as if they formed a corridor that weaves through Urabá.

There the national government through its agency for the renewal of the territory implements the PDET strategy along with tax incentives, that is: “how do I make a businessman decide to invest in Mutatá, in Caucasia, in Vegachí, in El Bagre,” and not in the Orient of Antioquia where the port, where the free zones are located? So special tax incentives are created both in income tax and in industry and commerce. We also have slightly lighter incentives where entrepreneurs get a very important discount. I am going to tell you about some municipalities:  Caucasia, Tarazá, Puerto Nare, Puerto Berrio, Támesis, Vegachí, Santa Fe de Antioquia are municipalities that have very good tax incentives, they are ZOMAC, and they are a little more distributed throughout the territory. The PDETs are concentrated in this corridor that runs from the northeast, Bajo Cauca and that ends in Urabá. There we have proper incentives in industry with trade discounts, notices and boards, and we have three permanent free zones, we have one in Apartado, Urabá, we have one in  the Orient of Antioquia in Rionegro, and we have one in Caldas, in the Aburra Valley (north of Medellín) These are the strips, for us they are the poles of development and commercial exchange where businesspeople have some discounts, where they have tax extensions to bring inputs and to export. Those free zones still have a lot of potential. We see that entrepreneurs are a bit fearful, but it has become a hub for the development of suppliers where within the free zone where, for example, as a businessperson I occupy the textile space, I can find someone who brings me the fabrics, who brings me the threads, all the spare parts for the machines and that way I can export and import more easily and obviously benefit from important incentives.

Today we are looking to have more expansion of these zones, so they don’t remain only in the special areas. We also seek to have special free zones…today for example in Guarné they already have their free zone, companies are already seeking to participate, and the legislation is new, “fresh from the oven.” We spent more than six months reviewing it, sending comments to the ministry, and they shared it just 15 days ago. It’s just published, it is a strategy of the national government to be able to attract investments directly so that they can install themselves in those territories and see that for many years they will have significant discounts in sales, commerce, notices and boards, among others.

Now that you mentioned the textile sector, we in Antioquia historically have an important vocation in the textile area. In the 60s we had the largest companies in the Aburra Valley installed in Itagüí and in Medellín, today we see that it is a sector that continues to grow, and which has been growing by 2.4% a year. Today it represents around 18,000 companies and 117,000 jobs generated. This is according to the chamber of commerce (so the statistics are) formal, the legalized business. Outside of this. the number must be doubled (due to the informal economy) but the numbers that I give you are those that we have in the chamber of commerce.

The textile sector continues to have gigantic potential, and we have been promoting it. From the department of Antioquia, we have been betting on it because we know that there is ancestral knowledge that has passed from generation to generation and that moves local economies and especially economies of gender. When we go to the municipalities, we find that those clothing and fashion companies are led by women and this helps us to boost local economies. It’s another sector that I did not make much mention of, but I would not want to let it pass because it is a sector that we have been betting on and that we see that there are export opportunities especially to the United States. That even with the pandemic, a business line was developed of supplies and personal protective equipment. Last year we had four companies within the department that did export, especially masks to the United States, and this is important because it shows the resilience of entrepreneurs to take advantage of the difficulty of a pandemic and turn it into an opportunity to transfer it to their own business production line. So Loren, this is a summary of what we have been doing, of these productive bets, of those large infrastructure projects; not only roads but also railways, ports in Urabá and the job we have in the Orient of Antioquia, Airport city. If you are living in the Orient of Antioquia, you are going to see the transformation that it will have in 5 years. It will be an impressive thing because we know that it is the “second story” of Medellín and the Aburrá Valley. We want to thank you for the space, for opening the space in your agenda that we had postponed many times, thank you for that and that it is not the first and the last time.

Finance Colombia: Yes, of course, one last question and I also want to give you space if there is a subject or a topic that I forgot to ask you, I also want to give you the opportunity to mention if there is any news from the government but my last question is how does the government of Antioquia work and collaborate with other actors in the development of the economy?

Daniela Trejo Rojas: Last year was a very interesting year for us from the department’s perspective because our development plan set goals for this secretariat which were very different from the ones they had been working on before. We have a direction that is the focus on internationalization that it had been focusing its efforts on international cooperation. The United 2020-2023 development plan presents us with three other challenges: The promotion of exports, the attraction of direct foreign investment and the promotion of the territory, which are topics of the focus for what ACI Medellín has been doing and also what the national government does for ProColombia.

Antioquia has one of Colombia’s most diverse economies.

This forces us to open our gaze towards the department and understand that when we talk about internationalization it is not only international cooperation but also that export issues are fundamental, to enable, for example, competitive infrastructures. They are fundamental for the internationalization of companies, but also to promote the territory. Who more than we who know the municipalities, who speak with the mayors, can promote the territory and attract investors to settle here? Since last year we began to work hand in hand with ACI and with other organizations, including ProColombia of the national government, the ACI has two foci: the attraction of foreign investment and also international cooperation. They do not work in the export line, although I think they are going to start doing it because we are already seeing that need. They are very focused on Medellín and Valle de Aburra, but the alliance we made last year for the internationalization of the territory put a challenge on us that is to always work with the gaze of both a city and region.

I, as an Antioquian, I tell them: I enjoy all the effort they have made in Medellín to position the city, but it is not a lie that the companies that are in Antioquia today have their production outside the Valley of Aburra. They cooperate, but outside of the Aburra Valley, so there is a connection that is impossible to separate and makes our relationship necessary, since to us as a team and as the manager put us a challenge and that is that we have to do it together, territorial promotion: see what the productive stakes are, that Medellín is not walking on the one hand and I on the other, but that it is a regional & city setting.

Since last year we signed an agreement outside the internationalization alliance, we have been doing it, the work is extremelyhand-in-hand and not only with the city-region but also with the national government through ProColombia because there are many promotion issues where they are the experts, where they have regional alliances in other countries then we know that it is a matter of working together. For you to understand a little, Antioquia has four purposes from our secretary: international operation, attracting investment, promoting the territory and promoting exports. The ACI complements a lot in that purpose and ProColombia helps us with the issue of exports and territorial promotion, that is the job. We even have a table that is the internationalization table where we are with other entities such as ProAntioquia, the chamber of commerce in Medellín for Antioquia, talking about the issues and having a common discourse and narrative that is very important.

Finance Colombia: I think this will be the first meeting between us and to see how we can support you in your missions, Daniela Trejo, thank you very much for your time.

Daniela Trejo Rojas: Many thanks Loren, see you soon.

Images courtesy ACI Medellín

Here in Colombia, Cartagena has had a notoriously corrupt city administration. Newly elected Mayor William Dau was voted in on an anti-corruption platform and has quickly made some very powerful enemies taking on criminal structures. Bogotá’s political/civic culture can be described as “battle royale” where it is everyone against everyone: Private sector vs. public sector, north side vs. south side; each new administration seems to try to undo and reverse everything that was done before. Many remember former mayor and now Senator Gustavo Petro’s garbage fiasco where trash piled up on the streets of Bogotá in 2012 as Petro unilaterally canceled contracts with sanitation contractors—without a viable plan to replace them. Corrupt contractors are still in jail over the “Carrusel de Contratos” scandal where politicians and corporate thieves conspired to rob millions during the construction of Avenida El Dorado, the main thoroughfare leading to Bogotá’s international airport. Petro kept the fares on Bogotá’s Transmilenio bus system artificially low to buy popularity, creating an operating deficit and financial crisis that the following administration would have to fix, and automatically vilifying whoever would follow and have to make unpopular, drastic corrections.

On multiple occasions, Finance Colombia has reached out to Mayor Daniel Quintero for comment (on various issues), who through his press secretary has refused comment or reply.

On the other hand, Medellín’s professionally managed metro runs on-time, is clean and safe, and used by riders of almost every socioeconomic stratum. Medellín has continued to win international accolades throughout the years, hosting the World Economic Forum’s Latin America event in 2016, several UN events, and many delegations from foreign municipal governments to learn best practices. Many visit the city’s Ruta-N business and entrepreneurship incubator that can be credited, along with ACI (Agencia de Cooperación Internacionál), the city’s investment promotion agency with bringing countless jobs and investment to the Aburrá Valley; home to Medellin and its immediate suburbs like Envigado, Sabaneta, Itaguí, and Bello.

The city is home to several multinationals: Bancolombia, Colombia’s largest Bank; Grupo Sura, an insurance, investment & health care giant; Cementos Argos, which as a cement producer is the 4^th largest in the United States and exports to 27 countries; Nutresa, which is like a Latin American Unilever or Nestle, and newer companies like Viva Air. More precisely in the Medellín Suburb of Rionegro, the low-cost airline operates routes throughout Colombia & Peru, to and from the US, and is currently in expansion mode despite the COVID-19 Pandemic.

EPM Headquarters Building in Medellín’s Plaza Mayor

Another multinational with a very unusual business model is EPM, Empresas Públicas de Medellín. The public utility is responsible for sanitation, sewers, water, electricity, and natural gas in Medellín and much of the surrounding suburbs and rural areas. In a joint venture with global telecommunications provider Millicom called Tigo Une, it provides faster residential internet service than is available in many US cities. Earlier this year, they purchased the formerly insolvent utility networks of much of Colombia’s Caribbean coastal region. EPM already owns utility operations outside of Colombia, with assets of the multibillion-dollar company stretching from Chile to Mexico. EPM, though it does issue debt on international markets is not a publicly traded company. Neither is it a municipal utility. It is a separate company with professional management and (up until now) a board of directors to provide corporate governance, but with the city of Medellín as the sole shareholder. In the form of dividends, EPM provides almost 30% of Medellín’s municipal budget, but the key to this arrangement has been that it operates as a separate entity, expressly not part of the municipal administration, but of course with the city’s input. The mayor by statute is the chairman of EPM’s board of directors and has prerogative to appoint the CEO. As shareholder, the city also appoints board members.

A breath of fresh air?

Many in Medellín were pleased to see Daniel Quintero elected last year as a “breath of fresh air” and change from the traditional power families that have controlled politics, especially as he defeated Alfredo Ramos, son of a former governor and member of Centro Democrático, the party of “Uribistas,” personal acolytes of former President (now under house arrest for witness-tampering charges) Alvaro Uribe. With Medellín & surrounding Antioquia Uribe’s home turf (he was both mayor of Medellín & governor of Antioquia before becoming president of Colombia), it was something of a surprise that this local who was raised by a single mother who died when he was just 14 in a mostly poor neighborhood (Tricentenario) won the election. As a youth, Quintero worked as a street vendor struggling to put himself through college. No one knew quite what to make of him.

Quintero had politicked at different times as a member of Colombia’s Liberal Party, Conservative Party, and Green Party before establishing the “Tomato Party” as a publicity stunt to get himself noticed (see the headline photo). He gained attention by throwing tomatoes at pictures of politicians and people he didn’t like, such as Alvaro Uribe and then President Juan Manuel Santos, though he decided to support Santos’ re-election in 2014. He was then rewarded with the political appointment of running InnPulsa, Colombia’s national entrepreneurship promotion agency, then becoming vice-minister for ICT (Information & Communication Technologies) under Santos. In the last presidential election, Quintero initially supported mainstream liberal candidate & peace negotiator Humberto De La Calle, before switching his support to controversial former mayor of Bogotá Gustavo Petro’s (mentioned above) candidacy.

So no one knew what to expect, though it is clear they wanted more of the vice-minister of technology or InnPulsa director than the tomato throwing stunt man who once handed former EPM general manager Jorge Londoño a chunk of cheese (nonverbally calling him a rat).

A whiff of Limburger—stinky cheese.

Finance Colombia being primarily a business and finance publication rather than a political journal, heard some low intensity criticism of appointments that Quintero had been making in the city administration and the way he was making them, but did not actively pursue the stories at the time. Quintero made some other moves that seemed politically silly, such as writing the Cuban government to ask for doctors to help with the COVID-19 pandemic. Regardless of the merits of Cuban medical missions (which are very dubious), it is inconceivable that the current national government would permit such activity, and the action could only embarrass the mayor, which it did. Finance Colombia chalked it up to benign political inexperience.

The mayor also fought back a scandal where he was accused on social media of inappropriate sexual conduct before he was mayor, but even more ominous was his reaction to the press, which brought condemnation from Colombia’s Foundation for Press Liberty, FLIP:

“FLIP was able to document that Quintero personally pressured media executives and pointed out journalists as being opponents of his administration as a way to avoid questions about matters on which he must be held accountable…In events related to this situation, administration officials tried to force national and local media to improve the image of the mayor in exchange for advertising. Telemedellín (City government’s official TV channel) officials asked W Radio to rectify a truthful publication and also that the media agree to subscribe and publish a joint statement with Telemedellín to disseminate as true a situation that did not correspond to reality,” said the journalism rights defense group.

In other words, “I will buy advertising with your paper if you help me bury this scandal.” FLIP also denounced the mayor for pressuring newspaper El Espectador to block coverage of the scandal. According to FLIP, and El Espectador’s own account of the misdeeds, the publisher, Fidel Cano, responded by sending the questions to the mayor that his reporters had been trying to ask. “The mayor of Medellín assured the director of the newspaper that he would take legal action if the publication affected his reputation” (he never did).

All this so far and the mayor has served only his first 8 months of a 4-year term.

The mayor’s official press conference, canceled at the last minute, crowing “Why Medellin is the world’s standard in the assertive management of Covid-19” as cases in the city began to skyrocket

On June 27, the Quintero administration scheduled a press conference titled “Why Medellín has one of the lowest contagion and mortality rates in Latin America?” scheduled for July 2^nd, and led by Daniel Quintero himself, backed by Andree Uribe, Medellin’s Secretary of Health, Alejandro Arias, Medellín’s Secretary of Economic Development, and Eleonora Betancur, the director of ACI Medellin. The day before the press conference, it was abruptly canceled. It seemed the mayor wanted to take credit for good news but avoid bad news. The headlines that day in El Colombiano, Medellín’s largest daily? “100,000 cases of Coronavirus in Colombia, Where are we going?” and with 40% of ICU units full, “Doctors of Antioqua appeal for total & obligatory quarantine.”  The last weekend of August the ICUs are now 70.79% full. The day the press conference was to be held, a headline in El Colombiano announced a coronavirus outbreak with 36 infected in the La Paz prison in Medellín’s southern suburb of Itaguí.

The cases—and deaths were just beginning to skyrocket and two months later Colombia has one of the world’s worst mortality rates on a trailing 7 day average. According to the Colombian government, Antioquia department (Medellín is the only large city in Antioquia) alone has had 77,709 cases so far. Colombia now has over 18,000 deaths from COVID-19, most within the past two months. 1,603 in Medellín & surrounding Antioquia.

Last month, EPM general manager Álvaro Guillermo Rendón announced a memorandum of understanding with InnPulsa, the same national government agency formerly run by Quintero himself, that would, if more than just talk, “convert EPM into a laboratory of smart cities, the 4^th industrial revolution, and the orange economy.” All well and good (maybe, but that doesn’t sound like the function of a utility), but what the public did not know was that this fundamental change in corporate strategy and negotiations with the national government were worked out without the knowledge, discussion or approval of the company’s board of directors. EPM was being treated not as a separate entity but part of the municipal administration.

OFFICIAL STATISTICS: As of August 28th, Antioquia had 77,709 total COVID-19 cases, 1.603 deaths and hospital intensive care wards were over 70% of capacity over 80% of Antioquia’s cases are from metro Medellín.

The $2.7 billion dollar WTF

On August 10, EPM sent out a press release (and the mayor tweeted) that EPM would be initiating legal proceedings in the amount of  approximately $2,7 billion US dollars against the consortiums responsible for construction of EPM’s troubled Hidroituango dam that suffered catastrophic setbacks due to unexpected flooding in 2018 and design flaws that were thus revealed. Whether such legal action is a good idea is debatable: On one hand there certainly were defects that have cost the company millions and delayed the project by over a year. On the other hand, litigation could potentially bring the project to a halt, as EPM is still depending upon the parties it is suing to complete the project before certain deadlines, or it faces economic penalties in power generation commitments of over $150 million USD. It is also far from certain that EPM would prevail in its legal crusade against all the parties named, some of which have nothing to do with the construction defects that led to a tunnel blockage during construction.

The shocking thing is that Mayor Quintero along with Rendon and Alexander Sánchez Pérez, EPM’s vice president for legal affairs, declared this multibillion dollar action without discussion, input or even knowledge of the company’s board of directors!

The next day, the entire board of directors, except for Quintero himself, resigned.

Soon Quintero tried to justify his actions saying “there was no time” and he had to act, but he had already been mayor for 8 months and ran on a campaign of rectifying the Hidroituango situation (remember his cheese stunt with the former general manager?) and so was aware of the situation. If not, he had 8 months to be brought up to speed. At any rate, without board ratification, such actions have dubious legal force, and as bad or worse, prove a lack of corporate governance at EPM and direct political control. CEO Rendón clearly answers not to the board of directors but to a politician.

One day after the board of directors of EPM resigned, the entire board of directors of Medellín’s storied Ruta-N also resigned, along with its executive director, Juan Andrés Vásquez. Ruta N was already under its third executive director in Quintero’s 8 month old administration. Vásquez learned that Quintero was replacing him after Quintero announced Trump-style, in the media, saying he “had drifted away from the administration.” Like EPM, Ruta-N is not a city agency directly under the administration, but a public-private partnership with professionalized management and governance, and internal merit-based personnel policies.  Sources inside Ruta-N say that Quintero had been trying to circumvent the qualifications-based hiring of the business incubator to install friends and supporters into sinecures. People inside both organizations indicate that morale is at bottom.

Beverage giant Postobón rescinded its financial support of a health initiative spearheaded by Ruta-N saying it no longer had confidence in the entity’s governance. Postobón had already spent $4 billion pesos on the initiative to build respirators for coronavirus patients but said it would continue to donate, just elsewhere after the board resignation.

That same week, in reaction to what it called “a deterioration of corporate governance controls at the company,” global ratings firm Fitch downgraded EPM’s credit as a bond issuer to one notch above junk bond status. In a statement, the foreign, independent agency stated:

“Fitch believes recent actions taken by the company are contrary to the Governability Agreement, signed on April 23, 2007, between the City of Medellin and EPM’s management, in which the municipality agreed to respect the autonomy of EPM as an industrial and commercial enterprise of the state and to act exclusively through the board of directors.”

Flailing about

The mayor scrambled to assemble a new board of directors for EPM, which as an issuer of debt in the international capital markets, must answer to institutional bondholders. Over the ensuing days, Quintero variously announced that Claro Colombia CEO Juan Carlos Archila would join EPM’s board (creating a conflict since Claro competes with Tigo Une), Grupo Santo Domingo’s Alberto Preciado,  Luis Fernando Rico, formerly of Isagen, another Colombian utility, and Sandra Suarez, the former general manager of newsweekly Semana all rejected Quintero’s oddly public nominations. Did he not confirm with them beforehand if they would accept the appointments, or did they publicly reject the nominations as a rebuke to the mayor?

Meanwhile, EPM’s board representative to Tigo Une, Federico Arango Toro also resigned in a public letter saying he wanted no part of Quintero’s administration.

Banks and insurers are already turning their back on EPM, citing a lack of control at the organization. EPM had to admit that certain loans and lines of credit had been shut off after the board resignations. An internal document seen by Finance Colombia stated that the firm may have difficulty finding or renewing certain insurance coverages.

In the midst of all this, Colombia’s human rights tribunal set up as part of the 2016 Peace Accords, the JEP (Special Jurisdiction for Peace) has subpoenaed general manager Rendón under threat of arrest for ignoring during his 8 months as the utility’s legal representative, a year old subpoena for documents regarding possible obstruction of the search for the remains of victims of violence during the construction of Hidroituango, before Rendón’s appointment.

Medellín’s city council is on scheduled recess, but they have publicly asked the mayor to reconvene a session to discuss the governance crisis. Under law, (article 23, law 136 of 1994), they can only formally convene during a recess at the mayor’s request.

Labor unions & business community united

EPM’s largest labor union, SINPRO has called for a protest on Wednesday, September 2nd, for everyone in the city to turn out their lights for 30 minutes at 8pm, and for workers and the public to gather outside of the company’s headquarters in Plaza Mayor at that time for a rally in defense of EPM.

“When Medellín turns off, we hope that our leaders will understand that this is everyone’s problem, and that a city shut down doesn’t serve anyone. If EPM is in crisis, it doesn’t just shut down the city, it shuts down the country,” said union President Olga Lucia Arango.

The union is also demanding explanation of EPM general manager Rendon’s alleged private gym and luxury remodel during a time the company is under self-imposed austerity orders.

Civic leaders, executives, and nonprofits from across the region have begun to organize in reaction to the mayor, forming on August 25, a veeduría, or citizen’s oversight group ”made up of people with no particular economic interests in either EPM or the mayoralty that will work to take care of the heritage of the city and the interests of all Medellinenses.”

The initiative, called “Todos por Medellín” (Everyone for Medellín) is backed by over 40 groups, including the Chamber of Commerce of Medellin (in Colombia, chambers of commerce perform a quasigovernmental function, for example, as the registry of corporate and nonprofit organizations, and their articles of incorporation), the Intergremial committee (a grémio is a trade group or business association), and Proantioquia, the region’s primary civic benevolent foundation.

The mayor gets combative

Last Thursday, Mayor Quintero showed no contrition, but tried to dismiss the concerns as political machinations. “The oversight is fine, but we need oversight agencies to see everything. They didn’t see a lot of things, for example, $17 trillion of debt in the last 15 years. How come they didn’t see Orbitel, UNE, Antofagasta, Porce III and Hidroituango? A mayor appears to them who responds, has character, then a lot of politicians come out to do oversight. The veeduría is welcome but we are going to review everything. That the mayor is the one who manages the networks and they govern? No!” he said in a press conference.

Taking a page from the playbook of his preferred presidential candidate and apparent ally Gustavo Petro, who had a disastrous term as mayor of Bogotá and was temporarily removed from office by the national government, Quintero frames it all as a nefarious plot against him (does he think international ratings firm Fitch is in on the plot?)

“There are some groups full of politicians who want to carry out processes to revoke the mayor, that have been moving for a long time, we are ready, we have no problems in showing results and what we have done. They are worried because a long time ago they did not meet an independent mayor, a mayor who is not beholden to politicians or businessmen, but to the people,” said Quintero.

Navegamos entre fuerzas oscuras que se resisten al cambio. Con fe y sin miedo seguiremos adelante con transparencia, honestidad y contra la corrupción y la politiquería.

— Daniel Quintero Calle (@QuinteroCalle) August 26, 2020

CAPED CRUSADER? Quintero seems to fancy himself a hero navigating “between dark forces that resist change. With faith and without fear we will continue forward with transparency, honesty, and against the corruption and politicking” he tweeted last week after learning of the group Todos por Medellín.

Analysis

Quintero’s plan seems to be to blame his woes not on his own actions, but on former President Alvaro Uribe. Uribe’s reputation has steadily declined since his presidency, and where he was once seen as the man who rescued Colombia from communist rebels and drug cartels, his legacy has steadily soured as an avalanche of allegations and evidence piles up that tie him directly to paramilitary death squads during his time as governor, and indirectly to narcotraffickers and civilian massacres committed during his presidency. As if that were not enough, he is currently under arrest and confined to his northern Colombia ranch on charges of witness tampering, attempting to frame leftist senator Ivan Cépeda, a nemesis of Uribe in the Colombian senate.

Quintero wants to blame Uribe & his Centro Democrático for his woes, but since Uribe founded the party in 2013 it has never won a mayoral election in Medellín. The last Uribe supporter to hold the office was Luis Pérez from 2001-2004. Perez later abandoned Uribe for President Santos, working in 2015 as his regional campaign coordinator to defeat Uribe’s chosen presidential candidate Ivan Zuluaga.

Blaming the Uribe bogeyman may be a good tactic after the damage that has been done, but those aghast at recent developments extend far outside Uribe’s sphere of influence. Uribe did tweet support for the citizens movement, and Petro in support of Quintero, but opponents of Uribismo are also speaking out against Quintero. Former mayor of Medellín (2004-2008) and governor of Antioquia Sergio Fajardo immediately wrote a letter of concern, on August 12, admonishing Quintero’s actions.

Medellín’s previous mayor, Federico Gutierrez, nicknamed Fico, surprisingly upset Uribe’s candidate Juan Carlos Vélez to win the mayoralty in 2016. His letter, also dated August 12 is even more blunt. “EPM & Medellin are in danger.”

Letter from former Medellín Mayor Federico Gutierrez: “EPM & Medellín Are In Danger”

“The discourse of Quintero is based on lies. He talks of social struggle, of a class struggle, the same ideas of Gustavo Petro, who furthermore was the first to celebrate and support the mayor’s decision to deinstitutionalize EPM, which obliged the board’s renunciation. But look at the contradictions: What kind of social struggle destroys the motors of progress? EPM is that very thing, an incalculable help for the most vulnerable communities, a tool to breach social divides.” – excerpt from Federico Gutierrez’s letter.

Paisas, as people from Medellín & Antioquia call themselves tend center to right on the political spectrum and have less appetite for the far-left adventurism much more popular in Bogotá. Marxist talk like “class struggle” doesn’t go over so well here. Before this editor started Finance Colombia or even moved to Colombia, representatives from the city (going back to before 2013) would call and extend invitations: “Come to Medellín, let us show you what we are doing” with genuine pride. At the time, this editor was an analyst covering the Latin American services sector for a Connecticut-based research firm. “Look, we want to show you the good things we are doing!” Apparently with no other motivation beyond civic pride and attracting investment and positive attention. “We are building the Metrocable system” a network of cable cars extending far up into low income hillside neighborhoods on the valley walls. “We are building it so everyone can participate in our economic growth,” they said, beaming with pride. Not politicians or political appointees, but entry-to mid-level civil servants.

After moving to Colombia, first to Bogotá and launching Finance Colombia, the outreach didn’t stop. Medellín kept calling. “Come see what we are doing!” In 2015, Finance Colombia published “Social Inclusion: The Secret Sauce To Medellín’s Incredible Renaissance.”

They were going about it pragmatically, person to person, neighborhood to neighborhood, but without any ideological polemics or Marxist-Leninist babbling. There was no talk of class struggle, no attack on the city’s beloved institutions, whether well-established like EPM or new innovations like Ruta-N. Generally, each succeeding administration handed the keys over to the next politely, and with decorum.

One thing that unites Paisas, especially those in Medellín is the progress the city has made, going in less than 3 decades from one of the most dangerous on earth to an international showcase. Startups and international businesses have entered Colombia by first setting up operations in Ruta-N then moving out into larger spaces as they gain a foothold in the country. Get in a taxi and instead of trying to rip you off like in some parts of the country, if the driver realizes you are a foreigner, they will inevitably ask “What do you think of Medellín?” and beam with pride like you just presented them their firstborn child if you have something nice to say.

When protesters rioted in Bogotá last November, partially destroying their own transportation infrastructure and battling with police, Paisas marched peacefully. A few vandals were quickly confronted by peaceful protesters, and students came to undo the defacing they caused.

Medellín has built a strong credit rating in international markets for municipal debt, and EPM has enjoyed an investment grade credit and risk profile. There has been a level of peace between labor and employer, business and government rarely seen elsewhere in Latin America. Is it run by saints? Of course not. But that is precisely why the checks and balances of good governance are important, and Quintero seems to either not understand this, or have other priorities. EPM provides the city with more than electricity, water, and natural gas services. The international corporation provides almost 30% of the city’s revenue by way of operating profits. The fortunes of every residence and business in the Aburrá Valley (where Medellín is the largest city) are tied to EPM. The vitality of the city’s foreign investment attraction is tied to Ruta-N. Investors, both institutional and global-minded individuals are attracted by collaboration and progress, and repelled by scandal, conflict and controversy.

Being a crusader is easy. Throwing tomatoes at pictures is easy. A child can do it. Governing is complex and requires accountability. Medellín Mayor Daniel Quintero is sawing at the very foundations of Medellín’s success, by attacking its governance and institutionalism. It may very well be a good idea to take legal action against the consortiums that are (still) building the Hidroituango dam. But to launch a multibillion-dollar lawsuit behind the back of your own board of directors? No deliberation by the body designed to deliberate such fundamental issues? Are we seeing dictatorial tendencies, the likes of which one would expect from a Banana-Republic Caudillo?

When criticized, the new mayor goes into attack mode. Seeing everyone from the labor unions to civic leaders as a cabal “out to get him.” This editor remembers seeing such behavior at the beginnings of Chavismo in Venezuela. It is also Donald Trump’s style. Attack someone who is offering constructive criticism and they often will instinctively get sidetracked trying to defend the legitimacy of their criticism, allowing attention to be shifted from the original critique, no matter how legitimate.

“Ah, he’s going after the elites,” one more populist journalist friend said to this editor, when the conflict between former directors and the mayor became public. “Who the hell do you want running a multibillion-dollar international energy company?” this editor replied. “They had damn sure better be elite and know what they are doing!”

The former EPM board had directors like Javier Gutiérrez, who was former president of oil giant Ecopetrol, and general manager of energy company ISA; Manuel Mejia, former general manager of Colombiana de Comercio (distributor or manufacturer of brands in Colombia such as AKT motorcycles, Foton trucks, Castrol lubricants, Royal Enfield motorcycles, and Kalley appliances); Andrés Correa, formerly part of the insurance multinational SURA; and one of EPM’s own retired executives: Jesús Aristizábal Guevara, a civil engineer.

The new EPM board of directors is notable for having a preschool teacher, community activists, former politicians, lawyers, but no large company leadership experience. The mayor did nominate a few, but they all refused. Now, the mayor’s new board will have to navigate the $2 billion USD litigation that he unilaterally launched, and the war he has started with what seems the entire political, business, civic, and even labor community of Medellín. What do they know about international capital markets and the mechanics of bond pricing and currency risk? This editor wishes them luck. We want to see EPM succeed and Medellín do well. The only way this will happen is if they make drastic course corrections. It is not too late for the mayor.

On the other hand, we are only 8 months into a four-year mayoral term. This editor has never seen so many disparate people and institutions unite since the 9/11 attacks in the US. There, the population at least temporarily united behind then President Bush. In August, 2020, sectors from labor to enterprise are all uniting against Quintero. He is at a juncture in his mayoralty. He can attempt to reconcile, or he can take Gustavo Petro’s style book and fancy himself the martyr and class-struggler that everyone is out to get.

Mayor Quintero talks about making Medellín what he calls “software valley,” but foreign investors will not locate to a destination mired in conflict that can’t keep its lights on. He was elected without a power base, to some degree a rejection of the Uribista alternative. He clearly views the civic dissatisfactions with his moves as an Uribista plot. Surely they are included in his menagerie of new opponents, but they weren’t the ones who led to a loss of $30 million USD in EPM’s outstanding bond value in the space of 3 days. There were no Uribistas behind Wall Street firm Fitch deciding to lower the utility’s credit ratings. The only “forces of darkness” Fitch cited was Quintero’s “deterioration of corporate governance controls at the company.”

In this editorial, Finance Colombia calls on the mayor to rectify his course and work in a more collaborative, professional and transparent spirit with all the city’s stakeholders, or alternatively on Paisas to democratically and civilly protect the trajectory of amazing progress the city has made in the last two decades. Choose quiet progress over loud and bombastic stagnation. Cooperation over tomato-throwing confrontation.

Medellín Mayor Daniel Quintero (Photo courtesy Alcaldia de Medellín)