Colombia ends 36-year Fomag trust contract with Fiduprevisora

Colombia's Ministry of Education announced on Friday, October 30, that it will not renew the trust contract between Fomag and Fiduprevisora S.A. The agreement, signed on June 21, 1990, has been in force for 36 years and expires on October 31.

Minister Ilva Myriam Hoyos Castañeda described the decision as historic and a matter of state. She said it aims to protect fundamental rights and correct adverse and irregular situations identified during the contract's execution.

A one-year transition will begin on November 1 and may be extended for one additional year. The government said it will maintain continuity of health care, ongoing treatments, access to medicines, and the processing and recognition of economic benefits.

The decision follows recommendations from the Labor and Finance ministries, Fecode representatives, legal and technical reviews, supervision reports, and oversight body findings. A public tender will be held under Law 91 of 1989 to select a new service provider.

Hoyos stressed that ending the contract does not mean denying teachers' rights or interrupting health services and economic benefit payments. She guaranteed that teachers and their families will retain their rights to life, health, pensions, and severance during the transition.

The ministry also said it will review and correct the system's administration and operating conditions while preparing the conditions for the new public bidding process.