The Comptroller of Puerto Rico issues an adverse opinion on the fiscal operations of the Municipality of Cataño related to purchases, disbursements, and permanent improvements to the municipal facilities.
The Report reveals that false quotations were considered in the awarding of 50 purchase orders for $266,621 from January 2010 to July 2014. The evidence indicates that false quotations were used to make it appear that the requirement to obtain at least three quotations was being met and thus favor several companies. These situations were referred to the Secretary of Justice and to the executive director of the Office of Government Ethics on October 19, 2017.
For example, for the awarding of the purchase of polo shirts and t-shirts to company A for $42,403, 13 false quotations were considered. For the construction of two tennis courts in the Marina Bahía development for $44,580, two false quotations were considered. In addition, for the repair of the Government Center substation for $37,000, and the purchase and installation of rolling doors at the Convention Center and at the Municipal Library, several false quotations and others obtained irregularly were submitted.
Our auditors identified that in some situations the companies were related by family ties. For example, in the awarding for the purchase of signs and street banners for $56,857 in favor of company J, 19 quotations from company K and 20 from company L were considered. The owner of company K and his spouse, and the owner of company L, received payments from company J for professional services, reimbursements, and bonus. In addition, the representatives of company J were the aunt, the father, and the brother of the spouse of the owner of company K.
The two-finding audit notes that on the computer of the then municipal secretary, three documents related to partisan political matters were found. In addition, the use of the email and of a multifunction device to digitize and process electronic documents for private purposes was identified. This situation was also referred to the Secretary of Justice and to the executive director of the Office of Government Ethics on October 19, 2017, for the corresponding action.
The Report covers the period from January 1, 2010, to December 31, 2014.
See Audit Report M-18-33.
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