The Office of the Comptroller of Puerto Rico published the result of the investigation of a complaint related to the use of public funds and property for personal benefit, and the disbursements issued for the development of a municipal hotel with no benefit.
The investigation revealed a pattern by the mayor of using the powers and duties of his office to obtain improper benefits.
The mayor bought paint for his private business, using the special prices of the Municipality's commercial customer account in order not to pay the sales and use tax (IVU), obtained from a Municipality contractor an estimate of damages to a property of his own without paying for it, and allowed a Christmas party of the corporation Empresa Municipal para el Desarrollo Económico de la Ciudad Pirata, Inc. to be held in a restaurant owned by his family.
Through these situations, the crimes of illicit benefit from work or services, typified in the Act 146-2012, Penal Code of Puerto Rico, and prohibited actions in the Organic Act of the Office of Government Ethics, could have been configured.
In addition, two municipal employees, the housing rehabilitation officer and the project inspector, performed private work for their own benefit and for the mayor. The Office of the Comptroller's auditors found in the computers drawings of property plans in the name of the mayor and his relatives, invoices for technical drawings, and plans for services to a former municipal employee, and quotes for work not related to the official business of the Municipality.
Through these actions, the municipal employees could have committed crimes of illicit benefit from work or services.
The investigation also revealed the purchase and investment of $2,426,376 from 2011 to 2016 for the development of a municipal hotel that has had no benefit. The mansion-type house, developed with resources of the then Government Development Bank and of a Joint Resolution of the Legislative Assembly of Puerto Rico of 2013, is abandoned and has only generated $8,340 from private activities. (See exhibit)
The results of this investigation were referred, on March 9, 2022, to the Department of Justice and to the Office of Government Ethics so that they may take the pertinent actions. In addition, the Panel of the Independent Special Prosecutor is recommended to consider the result of the investigation and the mayor of the Municipality to ensure the diligent use of resources for the benefit of the public interest.
The Result of this investigation is dated April 28, 2022.
See Audit Report RIQ-DIE-22-05.
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