The Office of the Comptroller of Puerto Rico issues a favorable opinion with exceptions on the contracts for professional and consulting services, and on the contracts awarded for the purchase and construction of artisan kiosks of the Pa' Mi Gente Program. This program was created in 2010 to foster microenterprises in the categories of accessories, crafts, flowers, services, fruits and vegetables, and light meals.
The Report reveals deficiencies in the contracts awarded for the acquisition of the Program's kiosks. One of the suppliers awarded a contract for $1.1 million for the construction of 150 kiosks did not comply with the terms. Contrary to the Acquisition Regulation, the Department did not impose on the supplier the penalty of $25,650 for late delivery, nor did it notify the General Services Administration so that this entity could impose disciplinary measures on the supplier.
The Department then formalized a takeover agreement with the insurer to complete the construction of the remaining 130 kiosks. Our auditors identified that the Department did not obligate the funds for the payment of some of the works and modifications carried out, and in 2013 it paid for 34 kiosks valued at $248,737 that as of 2016 were still in the contractor's workshop.
The three-finding audit notes that the Department had not included some 353 kiosks in the Property Registry, did not maintain an updated inventory of the delivered kiosks, some were exposed to the weather, with trash and waste, and did not have the VIN number. These situations prevent control, foster deterioration, and could result in sanctions for violations of Act 22-2000 on Vehicles and Traffic of Puerto Rico, among others. (see the photos)
The Report covers the period from January 1, 2012 to December 31, 2016.
See Audit Report DA-18-01
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