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Comptroller of Puerto Rico reveals significant deficiencies in permits, revenue oversight, and property control at the Department of Natural and Environmental Resources

San Juan, Puerto Rico — The Comptroller of Puerto Rico, Attorney and CPA Carmen A. Vega Fournier, announced the results of Audit Report OC-26-21 of the Department of Natural and Environmental Resources (DRNA), which covers the period from July 1, 2020 to March 31, 2025.

The report issued a qualified opinion, having determined that, although the Department's operations were carried out in general terms in accordance with the applicable law and regulations, deficiencies were identified related to the granting of permits, oversight, the generation of revenue, and the handling of public property.

Among the main findings, the audit evidenced irregularities in the process of evaluation and approval of authorizations, licenses, and special permits. It was determined that applications were approved without having the required documentation, including tax certifications, evidence of insurance, environmental evaluations, and compliance with technical recommendations.

Likewise, significant delays were identified in the processing of applications for authorization for the use of the maritime-terrestrial zone and submerged waters; concession for the use and exploitation of public maritime-terrestrial domain assets, commercial fisherman license, well construction permit, and franchises for the use and exploitation of the public waters of Puerto Rico, including cases that exceeded the regulatory term of 30 days by up to 138 days, which affected the efficiency in the provision of services and could have negatively impacted the revenue of the Department and of the applicants.

The audit also revealed deficiencies in the determination of charges and in the compliance with obligations on the part of concessionaires. These are charged a fixed monthly fee per person participating in the activity for which the permit or authorization was granted. Among the activities are embarkation and disembarkation to the natural reserve of Isla de Mona, Isla Desecheo, Cayo Aurora; among others. In one case, a charge lower than that required by regulation was established, which represented an undue economic advantage for the concessionaire. In addition, no adequate follow-up was evidenced for the delivery of required reports and payments, nor the imposition of corresponding fines for noncompliance, which resulted in the loss of revenue for the Department.

Regarding oversight, it was determined that the Corps of Rangers did not have evidence of inspections or verifications conducted on the concessionaires, which limits the Department's ability to guarantee compliance with the conditions of the permits and to adequately protect natural resources.

Another relevant finding relates to the use of land without valid permits and deficiencies in the control of special permits for telecommunications installations in state forests. It was identified that the majority of the permits evaluated were expired and, even so, operations continued. In addition, limitations on the access of Department personnel to certain installations were documented, which hinders supervision and oversight.

In the area of revenue, the audit determined that multiple invoices related to lease fees for special permits were not issued, and in some cases it was not possible to determine the amount not billed, which represents a deficiency in the financial administration of the Department.

On the other hand, the report reveals deficiencies in the handling of public property. A physical inventory of the property has not been conducted in more than 20 years, and during several periods the Department did not have a duly appointed property custodian, which weakens internal control and increases the risk of loss or improper use of assets.

In its comments, the Department's management attributed several of these deficiencies to the lack of personnel, the operational burden, and budget limitations. They indicated that they have initiated corrective measures, including efforts for the recruitment of personnel, interagency agreements to expedite processes, review of billing procedures, and the contracting of consultants to conduct property inventories.

In addition, initiatives were reported to strengthen the Corps of Rangers, including holding an academy to recruit new members, with the objective of improving the oversight of natural resources.

As a result of these findings, the Office of the Comptroller issued recommendations directed at the Secretary of the DRNA, including ensuring strict compliance with the legal requirements in the evaluation of permits, reducing delays in administrative processes, strengthening oversight through periodic inspections, improving billing and collection mechanisms, maintaining updated records of permits, and guaranteeing the conduct of annual inventories of public property.

“The protection of our natural resources requires a rigorous, transparent administration in compliance with the law to safeguard the environmental heritage of Puerto Rico and guarantee the responsible use of public resources,” expressed the Comptroller.

The complete report is available on the official page of the Office of the Comptroller of Puerto Rico www.ocpr.gov.pr.