San Juan, Puerto Rico (May 21, 2026) – The Comptroller of Puerto Rico, Attorney and CPA Carmen A. Vega Fournier, reported today the publication of Audit Report OC-26-30 corresponding to the Municipality of Lajas, which examined fiscal and administrative operations carried out from January 1, 2021 to June 30, 2024.
The audit, conducted under the constitutional and legal authority conferred upon the Office of the Comptroller of Puerto Rico (OCPR), issued a qualified opinion, which means that, in general terms, the operations examined were carried out in accordance with applicable law and regulations, except for findings 1 through 5 included in the report.
The report contains five main findings related to government contracting, disbursements without written contracts, purchases without quotes, late budgetary obligations and unnecessary payments of interest, surcharges and fines.
One of the most significant observations establishes that the municipal secretary formalized on September 18, 2022 a contract for $90,000 for the rental of heavy equipment related to work following the passage of Hurricane Fiona. Subsequently, the auditors detected another contract identical in number, term and conditions, but with the amount altered to $140,000. According to the evidence gathered, the municipal secretary unilaterally and illegally altered the contract through a computerized system to increase the amount from $90,000 to $140,000.
The document titled “Registered Contract Data” issued by the OCPR as evidence of registration was also altered. As a result, payments of $124,497 were made to the contractor, exceeding by $34,497 the amount of the original registered contract. The report notes that this deprived the Municipality of resources that could have been used for other public needs.
The mayor objected to the finding and maintained that an attempt was made to internally correct the contract and process changes before the Office of the Comptroller. Nevertheless, the OCPR determined that the finding prevails in accordance with the evidence obtained during the audit.
The audit also revealed that the Municipality requested and received rental services for two trucks for domestic garbage collection for $32,800 without previously formalizing a written contract. The total payment was made on February 25, 2022. The municipal management argued that it was an emergency decreed through an executive order and that a purchase order was sufficient. However, the OCPR maintained that a purchase order does not substitute a written contract nor does it adequately establish the rights and obligations between the parties.
The examination of disbursement vouchers further determined that between May 2021 and February 2024, eight purchases of $49,343 were made without obtaining at least three quotes from representative market suppliers, as required by applicable regulations. The purchases included materials and supplies, firearms, fans, pressure machines, a cistern, vehicle rental and sound equipment with installation. In some cases supplier exclusivity was alleged, although the auditors identified additional suppliers available in the market. Likewise, in nine disbursement vouchers for $32,287, 18 quotes were identified without the name, signature or identification of the municipal official who requested or received them, weakening the traceability of the process and hindering the assignment of administrative responsibilities.
Another finding establishes that the Municipality formalized contracts and amendments without previously obligating the corresponding budgetary credits. Between August 2021 and October 2022, funds for four contracts and twelve amendments for $437,440 were not obligated in a timely manner. The Office of the Comptroller indicated that this practice prevents maintaining effective control of budgetary allocations and may cause overdrafts or unnecessary litigation.
The audit also documented that between June 2021 and April 2024 the Municipality paid $11,697 in interest, surcharges and fines for delays in remittances to the Department of Labor and Human Resources and the Federal Internal Revenue Service (IRS). Of that amount, $10,981 corresponded to the Department of Labor for delays in contributions and withholdings, while $716 were paid to the IRS for delays in federal remittances. The Office noted that these payments reduce municipal resources that should have been used for direct services to citizens and could affect the rights and benefits of municipal employees.
The report further mentions that, as of September 30, 2024, there were civil lawsuits pending against the Municipality for $10,560,000, related to breach of contract, political discrimination, workplace harassment and damages. There were also three cases pending before the Public Service Appeals Commission. Likewise, it was noted that as of June 30, 2024, $85,500 recommended in a previous audit report issued in 2014 had not been recovered.
Among the recommendations issued by the OCPR are to evaluate and ensure compliance with the submitted Corrective Action Plan, strengthen public contracting controls, require written contracts before receiving services, ensure competitive purchasing processes with valid quotes, obligate budgetary credits in a timely manner, avoid delays in state and federal remittances and continue efforts to recover funds noted in previous audits.
“This Office has the ministerial duty to ensure sound public administration, fiscal transparency and the correct use of the people's resources. Each audit seeks to strengthen internal controls and promote citizen confidence in governmental institutions,” stated Comptroller Vega Fournier.
The complete report is available on the official portal of the Office www.ocpr.gov.pr
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