The Comptroller of Puerto Rico publishes the result of an investigation into alleged irregularities related to the hiring, the services rendered, and the payments made to two professional services contractors of the Municipality between 2017 and 2018. The findings were referred for the consideration of law enforcement entities and entities that govern the profession.
The investigation revealed that contractor 1 billed $3,150 for direct services related to air conditioners and electricity, without holding the master electrician license or the refrigeration and air conditioning technician license. In addition, contractor 1 performed work without having formalized a written contract and billed twice for the same services of assessing damages to the air conditioners located at the Government Center.
On April 29, 2018, the Municipality of Cataño canceled the contract of contractor 1, for $4,200 monthly, after he was charged by the Federal Bureau of Investigation with bribery and conspiracy to defraud a federal funds program when he was an official of the Municipality of Toa Baja.
On the other hand, contractor 2 billed $1,050 for direct services related to the air conditioners, without holding the refrigeration and air conditioning technician license. Contractor 2, who in turn had a contract with the House of Representatives, billed $1,750 for services not rendered to the Municipality of Cataño. The invoices examined for March and April 2018 indicated that he was at both locations rendering services. In fact, the municipal employees informed the auditors that they did not know the contractor nor the work he performed for the Municipality.
The audit also notes that the invoice format of both contractors was similar, and the detailed description of the services on some invoices was identical. In addition, the contractors never followed the normal process of delivering their invoices directly to the Finance Office; rather, the invoices arrived at Finance from the Administrator's Office. The then municipal administrator certified the work of these contractors.
These situations contrary to current law and regulations were referred for the evaluation of the Secretary of Justice and of the administrator of general services and chief procurement officer on July 20 and 21, 2023, respectively. Also, referrals were processed to the Examining Board and Association of Refrigeration and Air Conditioning Technicians of Puerto Rico, and to the Examining Board and Association of Master Electricians of Puerto Rico on September 18, 2023.
The investigation recommends to the mayor, among other things, that he ensure that the municipal secretary establish the necessary controls for the hiring processes, that the finance director ensure the accuracy of the invoices, and that he recover from the contractors those amounts indicated in the Report.
This Investigation Report of October 4, 2023 is available at www.ocpr.gov.pr.
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