Funds held in a trust from ride hailing platforms like Uber Technologies Inc will be transferred to Mexico City’s public coffers at the start of the new year thanks to changes in the fiscal code, the local government said in a statement.

The changes will allow the city to disclose how the money is being spent, it said. The statement was sent in response to Bloomberg’s story about how nearly US$24mil had been deposited by Uber into the trust, but that the city’s Ministry of Mobility, Semovi, wasn’t saying what happened with the money.

The trust dates to September 2016, when Uber agreed to deposit 1.5% of each trip started in Mexico City into the trust to serve as a source of revenue to do things like upgrade public transportation infrastructure. The accord meant additional revenue for municipal transport while also helping to mollify local taxi owners concerned about lost business.

"Semovi’s administration recognises that the nature of the trust doesn’t allow elements of transparency or certainty, ” according to the statement. That’s why the changes were made and approved by the city’s legislative body earlier this month, it said.

After the city declined to give details in previous interviews, the statement now says 110 million pesos were withdrawn from the fund for a programme to replace old taxis that will result in 650 newer, cleaner vehicles, including hybrid or electric models.

The replacement programme is available to anyone who’s interested, without the need for intermediaries, the city stated, in response to the Movimiento Nacional Taxista union saying it hasn’t seen a cent from the Uber trust.

 - Bloomberg