Office of the Comptroller report reveals an unused $1.6 million investment in Public Works facilities in the Municipality of Fajardo
The Office of the Comptroller of Puerto Rico issued a qualified opinion on the fiscal operations of the Municipality of Fajardo. A qualified opinion is issued when the noncompliances, individually or together, are significant but not pervasive.
The Report reveals that the Municipality of Fajardo invested $1,698,292 in the construction of the Public Works facilities through seven contracts and 43 amendments formalized between 2013 and 2021. As of June 26, 2023, the project was not being used and, due to the time elapsed, was deteriorated. This lack of planning has the effect that the Municipality must use additional resources to complete it and repair the damage.
The Municipality also ordered the purchase of four wagons for $218,317 from the contractor of the Public Works project, without holding a bid. The Bidding Board authorized this purchase through an additive change order; however, the regulations provide that for purchases or supplies greater than $100,000, the Board must hold a bid and award it in favor of the reasonable bidder. This situation prevented free competition among suppliers.
The three-finding audit notes that the Municipality did not request or obtain the renewal of the contractor's payment bond or performance bond when formalizing in 2022 an amendment to the improvement contract for the Muñoz Rivera street promenade and the replacement of paving stones in the recreation plaza. These bonds, which guarantee the payment of labor and compliance with the contract, were requested 14 months later, after the request for the documents by the auditors of the Office of the Comptroller.
In addition, the auditors found 29 vehicles in a state of abandonment at the Public Works facilities, at the Public Transportation Terminal, and at the Police Headquarters. This situation prevents adequate control of property and fosters the commission of irregularities.
The Report comments on the mayor's settlement agreement with the Office of Government Ethics (OEG) in 2023, and the payment of a $4,000 fine. The complaint indicates that the mayor used his powers to dismiss, under threat, an officer and the police commissioner, and ordered that the ticket books be handed over to him, so that a ticket would not be issued in the residential development where he resides.
The OEG also filed a complaint against the president of the Municipal Legislature in 2021, for using two municipal vehicles to go to work and transport unauthorized persons. In 2023, he agreed to pay $138.89 through a payment plan.
As of June 30, 2022, six civil lawsuits totaling $942,580 were pending resolution by the courts.
The General Fund budget of the Municipality of Fajardo in fiscal years 2019 through 2023 was $18,466,381, $18,967,736, $19,641,561, $20,797,739, and $20,642,439, respectively. The Municipality had its financial statements prepared, audited by certified public accountants, for fiscal years 2019 through 2023. These reflected surpluses of $33,173,322, $29,736,250, $31,101,295, $34,066,468, and $35,966,169, respectively.
The audit recommends to the director of the Office of Management and Budget that he ensure that the Municipality of Fajardo complies with the Corrective Action Plan of the Office of the Comptroller of Puerto Rico.
This report covers the period from January 1, 2018, to December 31, 2022.
The Audit Report OC-25-18 can be obtained on our website: www.ocpr.gov.pr.
Some documents on this page are saved in PDF format.
To view these documents, you must have the following free program installed.
