The Office of the Comptroller of Puerto Rico issued a qualified opinion on the fiscal operations of the Municipality of Guaynabo. A qualified opinion is issued when the instances of noncompliance, individually or in the aggregate, are significant but not pervasive.
The Report reveals that the Municipality of Guaynabo invested $15,921,660 in the construction of the Rafael Ithier Music Museum, which has had no use nor resulted in any benefit to the public interest. From 2013 to 2017, 16 contracts and 22 amendments were formalized with five contractors for design, construction, inspection, supervision and soil study services. However, as of 2020 the Museum was not being used. (see photos in Exhibit 1 of the Report)
In addition, the Municipality purchased a ready-mix concrete plant for $221,158 from a Kentucky provider, to produce high-quality concrete. This acquisition had the purpose of reducing its construction costs and providing concrete services to other municipalities and private companies. However, this investment has had no use since the plant is deteriorated, covered in vegetation and had not been installed. (see photos in Exhibit 2 of the Report)
The five-finding audit points out that for the acquisition of the play modules or playground of the Torrimar passive park for $124,294, the requirement to hold a bid was not met. The Municipal Regulation provides that for purchases exceeding $100,000, a bid must be held. Instead, the Municipality requested quotes from four providers.
The Municipality disbursed $29,450 for the payment of three fines for violations of regulations related to the management of solid waste, erosion control, and processing of general permits. In addition, it paid a penalty for unsafe working conditions stipulated in the regulations of the Occupational Safety and Health Administration (OSHA). These situations have the effect of reducing the available resources and may cause environmental damage and unnecessary lawsuits.
The auditors detected that from 2015 to 2018, the Municipality made 907 payments totaling $35,578,580 through electronic transfers, without regulations for this type of payment processing. In addition, they did not provide for examination 17 disbursements and their supporting documents corresponding to the payment of construction works for $870,147, and the supporting documents of seven disbursement vouchers totaling $242,206 were not marked as paid. These deficiencies did not allow verification of the correctness and propriety of those disbursements.
The Report comments on the judicial process against the then-mayor, from when the federal prosecutor's office filed charges against him for fraud against the United States government on December 8, 2021, until he was found guilty on charges of bribery, extortion and conspiracy on March 22, 2023.
The audit recommends that the Office of Management and Budget ensure that the Municipality complies with the Corrective Action Plan established by the Office of the Comptroller.
This second and final report on Guaynabo covers the period from January 1, 2015 to December 31, 2020.
Audit Report M-23-24 can be obtained on our
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