The mansion of a former Kirchnerite mayor imprisoned for corruption was auctioned in Mendoza: how much did they pay?

The Mendoza courts auctioned off the mansion seized almost two years ago from the former mayor of Guaymallén, Luis Lobos , who is convicted of corruption. The property in question, located in the exclusive Alto Portal del Sauce neighborhood, was sold for a total of $172,241,977.30, a figure much higher than the initial price.

The judicial measure, which was implemented in the context of the Asset Forfeiture Law , was decided in November 2023. It is a legal instrument that makes it possible to " recover assets acquired with funds from illicit acts against the public administration."

The property was put up for auction on December 21 of that year, "under the mixed sealed-bid auction system with bidding among the highest bidders." The starting price at that time, when "the mansion was dismantled, vandalized, and serving as a hideout," was $127,750,000.

The house and the property on which it is built, valued at $127.5 million, have had two failed auction attempts in this time, according to the news website El Sol . However, given the lack of bids in those initial rounds, the base price was reduced to $64,041,977.30, a figure that generated increased interest among several investors and allowed the transaction to be completed.

According to the established procedure, the General Directorate of Schools (DGE) will be responsible for formally approving the result, as the proceeds of the auction will be used for the construction and repair of schools in Mendoza. Once the provincial agency approves, the buyer must pay the total value of the property, plus 3% VAT for commission and administrative fees, with a maximum period of five business days to close the transaction.

Lobos, who was mayor of Guaymallén from 2013 to 2015, was convicted of illicit enrichment and fraudulent administration, and his assets were subject to forfeiture.

The case was emblematic because the eight-year prison sentence allowed, for the first time, the enforcement of the civil action under that legal instrument against the former municipal leader's possessions.

In a summary trial, and in exchange for a reduced sentence , the former official admitted his responsibility for the crimes he was charged with. Although his sentence had been six years in prison, it was later increased to eight years after it was combined with another four-and-a-half-year sentence he already had.

In addition, Lobos had agreed with the court to a perpetual ban from holding public office.

During the trial that brought him to trial, Lobos failed to justify his acquisition of luxury goods and also admitted to fraudulent administration in the case involving Wanka SA, which had been paid for street paving that was never completed.