Audit Finds Irregularities in CFE Project in Monterrey

The Federal Audit Office (ASF) identified financial irregularities totaling MX$19.366 million (US$1.037 million) in a high-voltage electricity project developed by CFE in Monterrey’s metropolitan area.

The project, titled "Reduction in Short Circuit Levels in the Monterrey Metropolitan Area Grid," was executed through CFE Transmisión, a now-defunct subsidiary. ASF reviewed the investment reported under project code 00000065286 and found two major discrepancies. First, a budget modification of MX$170.474 million between the approved investment of MX$384.483 million and the final reported expenditure of MX$554.957 million. Second, a difference of MX$19.366 million between the amount CFE reported as executed and the documented disbursements totaling MX$574.324 million.

In response to ASF’s findings, CFE’s Northeast Regional Office argued that the budget adjustment had been formally approved by CFE’s Corporate Finance Directorate in December 2023 and March 2025, aligning with internal financial systems. However, ASF maintained that the second discrepancy, related to payments not properly reflected in the system, remained unresolved due to inconsistencies in accounting records.

According to CFE, some of the mismatch stemmed from accounting shifts between fiscal years and system errors in SAP, CFE’s institutional budget module. These include deductions and amortizations incorrectly registered in project estimates and unaccounted budget carryovers from 2024 to 2025.

Despite CFE’s explanations and documentation, ASF concluded that the accounting inconsistencies were not sufficiently justified. As a result, the auditing body is promoting administrative sanctions and has called on CFE’s internal oversight units to investigate and, if necessary, initiate proceedings against the public servants responsible for the discrepancies in the 2024 Public Account.

ASF’s review of the project generated three official results. One showed no irregularities, while two led to the promotion of administrative responsibility proceedings, underscoring ongoing concerns about transparency and oversight in state-managed infrastructure projects.