The Office of the Comptroller of Puerto Rico issues a partially adverse opinion on the fiscal operations of the Municipality of Guaynabo. The tests performed and the evidence revealed deviations from provisions of law and regulations related to construction works and bids.
The Report points out that, contrary to Act 173 of 1988, the Municipality contracted a regular corporation to inspect three construction projects instead of a professional services corporation as provided by law. In addition, it paid $710,000 to said corporation whose president was not authorized to practice the profession of engineering since his professional license was suspended in 2008. The Office of the Comptroller referred these situations on July 5, 2016, to the Secretary of Justice, the President of the Examining Board of Engineers, Architects, Surveyors, and Landscape Architects of Puerto Rico, and the President of the College of Engineers and Surveyors of Puerto Rico.
The 11-finding audit reveals that the Municipality split five construction works totaling $700 thousand to avoid holding a public bid. The absence of a formal bid can lead to favoring particular bidders, and a similar situation had been noted in Audit Report M-14-12 of 2013.
Appendix 1 shows some of the 11 bronze sculptures, 15 ornamental trash cans, and other sculptures that the Municipality purchased for $764,695 without holding a public bid. In addition, the Deputy Mayor approved, between 2014 and 2015, nine amendments to the contract it had maintained since 2008 with a private company for the maintenance of the vehicle fleet, without the company competing in the request for proposals that was opened in June 2014 to offer this service. This situation undermines confidence in the processes and encourages favoritism.
Our auditors identified that the Municipality contracted three construction projects for $9.1 million without obtaining the permits from the Office of Urban Permits. In addition, multiple works were carried out without the approval of the Bidding Board, without a formalized contract, and without the required payment of bonds.
Other findings refer to the overpayment of $13,400 for youth training services, deficiencies with the donations granted to nonprofit entities, and 369 employees classified as transitory who exceeded the regulatory probationary year by up to 23 years.
The Report covers the period from January 1, 2011 to December 31, 2014
See Audit Report M-17-42.
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