Colombia Ends FOMAG Trust Contract as Watchdog Warns of Funding Gap

Colombia's education ministry said it let a 36-year fiduciary contract governing teachers' health and benefits fund FOMAG expire on 31 October, opening a one-year transition as the country's public oversight authority warned of an estimated 1.84 trillion Colombian peso health-financing shortfall for 2026.

The Ministry of Education announced on 30 October that it would not extend fiduciary contract No. 083 of 1990 with Fiduprevisora S.A. Its 1 November explanation says the transition began on 1 November, may be extended for a second year, and is intended to preserve teachers' medical care and economic benefits while a replacement administrator is selected through public procurement. The ministry requested a detailed continuity plan from Fiduprevisora and additional financing from the Finance Ministry.

The separate Procuraduría General de la Nación issued a preventive warning on 22 October about the contract expiry and financing. It said the FOMAG board had approved a transfer of 859 billion pesos to support healthcare, but estimated a remaining 1.84 trillion peso gap for projected 2026 needs. These are oversight estimates, not audited losses, proven diversion of funds or confirmed service interruptions.

The education ministry said it reviewed the original contract and 43 amendments, referred concerns to oversight authorities and requested a forensic audit. It also reported negative net assets of 3.198 trillion pesos as of June 2026. Those ministry assertions do not establish fraud or individual criminal liability, and no completed forensic-audit finding was identified.

The ministry said the termination would not extinguish teachers' health and benefit rights. Its assurance is not independent evidence that every medical provider was paid or every patient received uninterrupted care. Teachers' federation Fecode called for continuity guarantees.

The immediate accountability tests are whether the government secures the financing identified by the Procuraduría, publishes transition and tender terms, and documents uninterrupted services and payments. TFNOS has not independently established the fund's current cash balance or any provider-by-provider disruption.