The day Santiago 2023 expanded the power of Harold Mayne-Nicholls

On June 27, 2023, the sixth Extraordinary Assembly of the Corporation Santiago 2023 took place, marking a pivotal moment in the organization’s efforts to prepare for the Pan American and Parapan American Games scheduled for October of that year. The assembly was convened amid urgent financial and administrative challenges, including a backlog of pending reports and a blockage by the National Institute of Development (IND) on public funding disbursements. These issues created a pressing need for increased authority within the organization, leading to a significant shift in leadership. The situation had been building for weeks following the departure of Gianna Cunazza as executive director, who was replaced by Harold Mayne-Nicholls. A former president of the Chilean Football Federation (ANFP), Mayne-Nicholls assumed the role of director-executive with the condition that he would gain greater powers to lead the non-profit entity, which operated using both public and private funds. According to the minutes of the 25th Extraordinary Directors' Meeting held on June 23, the board agreed to call the assembly to expand the executive director's authority due to the critical state of the organization. The specific amendment approved during the assembly pertained to Article 50, Section J of the corporation’s statutes, which allowed the hiring of personnel and termination of employment contracts. This change required approval from at least two-thirds of the founding members and the presence of a notary, both of which were fulfilled. The notary present was Claudio Salvador Cabezas of Lo Barnechea, while the founding members unanimously endorsed the reform. With these new authorities, Mayne-Nicholls maintained several employees but also terminated numerous others. Many of these dismissals led to lawsuits alleging violations of fundamental rights, particularly since some workers were paid on a fee basis. As of now, the organization faces potential liabilities exceeding $1.6 billion in compensation claims. Mayne-Nicholls himself has declined to comment, though his associates have noted that he decided against continuing the practice of hiring on a fee basis, a policy that had persisted since the corporation’s inception, during which current Sports Minister Francisco Riveros served briefly as legal director. Legal disputes extend beyond internal matters. The corporation is currently embroiled in litigation with suppliers, notably Brazilian company FAST, which has filed a complaint against Mayne-Nicholls over alleged contempt related to a bank guarantee. There is also a court order preventing such actions. Additionally, there are ongoing issues regarding tax payments and a large-scale purchase of dollars that resulted in losses. Despite these challenges, the corporation received public and private funding, with some decisions, such as currency purchases and deposits, being reviewed with the Ministry of Finance, led by Mario Marcel. Other cases involve international bodies, such as the Commission of Human Rights in the Americas, which is handling the case of Mónica Apablaza, a former corporate lawyer dismissed before Mayne-Nicholls’ arrival. Following extensive reviews, the IND rejected approximately 6% of the corporation’s financial reports, totaling nearly $24 billion. Some concerns raised by the Ministry of Sport suggest possible irregularities, prompting the case to be referred to the High Complexity Prosecutor’s Office. Among the criticisms, the ministry questioned the extension of the corporation’s closure date, originally set for September 30, 2024. Initially, Mayne-Nicholls intended to end the organization by that date, but under pressure from Minister Jaime Pizarro, he opted instead to request an extension.