The Office of the Comptroller of Puerto Rico issues a qualified opinion on the fiscal operations related to the procurement for the acquisition of fuel and lubricants for the motor vehicles of the Administration for the Development of Agricultural Enterprises. A qualified opinion is issued when the noncompliances, individually or together, are significant but not pervasive.
The Report reveals that a contract was awarded to Company A in 2008 for the acquisition of fuel and lubricants without holding a public bid. When Company A ceased operations, it assigned all rights and obligations contracted under the contract to Company B.
As of June 30, 2016, $3.3 million had been disbursed for these purchases contrary to the provisions of the applicable law and regulations. In addition, as of March 7, 2018, ADEA had not complied with the obligation to register Company A's contract with the Office of the Comptroller as provided by Regulation 33, Registry of Contracts.
The one-finding audit notes that these situations do not promote free competition among bidders and resulted in illegal payments to the companies due to the lack of a written contract. The Secretary of Agriculture is recommended to evaluate the findings to determine whether to proceed with the recovery of the $2.8 million improperly paid to Company B.
The Report covers the period from January 1, 2013 to December 31, 2016.
See Audit Report DA-18-16.
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