VIGILANCE COMMITTEE REPORT

According to the requirements of Article 59 of the law of condominium property valid in the state of Guerrero and the Article 45 of the valid Regulation of Las Torres Gemelas in Acapulco, Gro, the Vigilance Committee carried out an analysis of the principal functions, performed from March until July of the present year, by the Administrative Committee.

As is well known, the Administrative Committee is made up of the condominium owners, Alberto Malda Lopez, Victor Manuel Dajda and Lucio Pernatozzy, who maintain a continuous communication, to take and speed up decisions related to the responsibilities for The Condominium. It is to be noted that for a mayor efficiency and effectiveness in the results, Mr. Victor Ortiz Dajda decided to establish his personal address in the port of Acapulco in order to perform the activities of planning, organizing, directing and controlling of a general type as well as the continued operation of the Condominium.

The aforementioned, gives as a result that Mr. Victor Ortiz, exerts the double function of Administrative Committee member and Administrative Manager of the Condominium, which apparently could be considered inadequate, but it is the case, that the circumcises currently afflicting the installations, require that this condition continues, as long as the critical situation, as a result of the irresponsibility and bad management of a group of persons who notably harmed the economic stability of Las Torres Gemelas, and who were about to provoke the loss of our legacy; is not normalized.

Given the importance of the point mentioned before, the Vigilance Committee attained itself to the corresponding analysis, having decided that for the moment this situation is appropriate and should continue, until achieving the total economical and administrative normality of the Condominium.

To continue the monitoring of the obtained results as so far by the Administrative Committee and consequently verifying the effects that might have presented themselves as a consequence of the decision taken by both committees, referring the dual functions of Mr. Ortiz, the Vigilance Committee thoroughly analyzed this situation, concluding that it has given magnificent results and that considerable and highly beneficial achievements have been made, including the improvement of appearance and relations of the Condominium, as much in the hotel area as with the majority of the owners, time sharers and users of the installations, which had deteriorated notably in the last tree years.

With regards to Mr. German Serrato Gamboa, who acted as manager and legal adviser , of Las Torres Gemelas, the Administrative and Vigilance Committee, collectively analyzed the convenience of the mentioned professional to persist as legal advisor and proxy, as long as the total legal administrative situation is not normalized.

Finally a general analysis was carried out of the management of the Administrative Committee emphasizing the following points:

Special Assessment: Only a recovery of 45% of the extraordinary authorized payment has been achieved at the Assembly of March 25th of 2007, nevertheless up to now paint jobs and pipe placements are ahead of schedule, for the collection of the water of the air conditioners. At the same time a collection for the missing amount has been programmed to be used for: current transformers, emergency plant, boiler, pipes for the swimming pool and a hot water reservoir.
Time share sale: for this point, the results are not what had been expected, being that the condominiums haven’t demonstrated their interest in the purchase of the departments, so the possibility of offering outside of our condo area is being considered, as to opportunely comply with the debts mentioned at the last assembly.

Parking lot: special interest has been placed on this point, since it is of particular importance for the users of the installations and the lack of nearby parking space is noticeable. With respect to this, the Administrative Committee established a contract for a 2 year rental, of a lot located four blocks from the property, at a cost for the user of 75 pesos daily, including valet parking. Up to date, the operation has been carried out adequately and a set of problems were avoided, which threatened turning critical, above all during the dates of a mayor tourist influx to the port of Acapulco

Law suits related to the condominium: Multiple prejudices caused to our condominium, by the intransigencies and irresponsibility of a small group of people, have forced us to respond and promote a series of trail that have negatively affected our prestige and our economical legacy. Nevertheless, up to date, our right to justice has been recognized and is inclined to our favor for the principal trails, so we shortly await, to no longer carry this economical burden and discredit.

Financial condition: The financial condition of the condominium has been audited appropriately By Iturralde Consulting, which is a renowned accounting office that has been found generally satisfactory for the operation of the Administrative Committee, nevertheless dealing with a critical point and of substantial importance for the condo owners, the Vigilance Committee will continue to pay special attention to this area, one has persisted in the request to the Administrative Committee , to provide this information , which with respect, justified and reasonably motivated is to be requested in writing by any owner.

Various Contracts : a point which has provoked doubt with some condo owners, is the proper operation and fairness of diverse contracts, which up to now are valid, between the condominium and companies or persons, therefore the Vigilance Committee is respectfully requesting the Administrative Committee to provide a copy of said contracts, with the purpose of carrying out a corresponding analysis and to have the possibility to emit its justified and fair opinion, with respect to the mentioned contracts

General Affairs: within the analysis undertaken by the Vigilance Committee, a few following points are mentioned that have been carried out within its operation.

The conclusion that the Vigilance Committee brings to your consideration, is a result of the general analysis, carried out on the operation of the Administrative Committee, according to Article 59 of the law of condominium property valid in the state of Guerrero and of Article 45 of our regulation.

The management of the Administrative Committee, from March to June of the present year, considers itself in a favorable manner regarding the interests of the Condominium, emphasizing our recommendation to continue with its actual labor to the benefit of Las Torres Gemelas in its entirety.

It is convenient to mention, that the members of the Vigilance Committee will continue in its labor to comply without restrictions, with its functions which have been entrusted to it and to manifest its interest to know the points of view and the suggestions that tend to improve the actual situation of Las Torres Gemelas.