The seed of corruption -which stalks politics and becomes notorious when schemes are revealed such as the one attributed to former Governor Wanda Vázquez, the banker Julio Herrera Velutini and the former agent of the Federal Bureau of Investigation (FBI), Mark Rossini- brings with it a social cost that transcends the economic.
The annual losses caused by acts of corruption in Puerto Rico have been estimated at 10% of the government budget, Comptroller Yesmín Valdivieso told EL VOCERO. The official highlighted that there are associated costs that cannot be monetized, such as the delay of the services and functions of the affected agencies, not to mention the impact on the recovery of the Island and the negative effect on the image of the Country.
The calculation of 10% in losses implies that out of a General Fund budget of $12,400 million for the daily operations of the government of Puerto Rico, some $1,240 million are wasted. If the consolidated government budget of $28,000 million is taken into consideration, the loss would be around $2,800 million.
“Corruption costs the treasury a great deal. A single dollar that is lost is a dollar that does not arrive for the government to keep operating well. We (the Office of the Comptroller) always talk about 10%, which is more or less what is estimated as a loss. There is no study, but it has always been estimated at that amount,” she reiterated.
“Corruption costs everything and harms us all as a people. This is not a problem of two or three people who did something wrong, this is a problem of how what those two or three did wrong affects the citizenry,” the official asserted.
Meanwhile, the impact of corruption at the global level is estimated to be around $3.6 trillion annually, according to the World Economic Forum (WEF), an independent international organization. The figure is equivalent to more than 5% of the world's Gross Domestic Product, according to that entity, which recognizes that it is imperative to combat corruption.
The arrest of the former governor
Valdivieso recognized that the accusations against Vázquez -who faces three charges for conspiracy, bribery and wire fraud- as well as the recent arrests of mayors or municipal aides, wound the people's trust in officials.
She admitted, in addition, that her office “was not involved in any of these accusations” against the former governor, while she defended the oversight work carried out by the government entities and the office she directs.
Likewise, she highlighted that the social problem of corruption must be worked on from the home, through the teaching of values.
Rethinking the justice system
For the Secretary of Justice, Domingo Emanuelli, corruption has a devastating socioeconomic impact that causes the degeneration of society. Like Valdivieso, he said that this evil causes distrust in officials and government institutions, which affects the stability and progress of the Country.
Justice has completed 37 investigations with referrals to the Panel on the Independent Special Prosecutor (PFEI), among which are the cases of mayors, former mayors and other officials of different political parties, according to Emanuelli, and has another 22 investigations underway.
“It is time to rethink our justice system and make significant changes to combat corruption,” he maintained. He added that Justice has been evaluating and identifying resources to reinforce the Public Integrity Division, which investigates and criminally prosecutes all criminal conduct committed by an official.
He mentioned that the current legislation imposes limitations on investigating officials at the local level, which is why he has been in meetings with officials of the Executive and the Legislature and has made recommendations to reinforce those inquiries.
Emanuelli reaffirmed that the federal and state law-and-order systems are not on equal footing and that the differences between them are extremely wide and significant. He indicated that while federal authorities have years to carry out their investigations, at the local level Justice is granted only 90 days to complete a preliminary inquiry and make a referral to the PFEI. The term can only be extended an additional 90 days if justified and that body authorizes it.
“I reiterate that the Department of Justice does not have a competition with the federal authorities; on the contrary, we work in collaboration, we share information and resources. The important thing is that everyone who incurs in acts of corruption, as well as any type of crime, be investigated and prosecuted. Our people deserve officials and institutions that serve them with integrity and honesty,” Emanuelli emphasized.
He explained that the legislation in force in Puerto Rico also does not allow the use of tools such as recordings, which are available at the federal level to obtain evidence. Likewise, at the federal level the person under investigation does not have to be notified until the moment of the filing of charges, while at the local level the person under investigation must be notified when referred to the PFEI.
The electoral cost
On the other hand, each time a mayor or legislator is charged with corruption, their seat becomes vacant, which is why a special election has to be held to fill the position. This translates into another expense.
The president of the State Elections Commission (CEE), Francisco Rosado Colomer, told EL VOCERO last June that the expense for these small special elections fluctuates between $3,000 and $4,000.
“They are not planned, they are additional expenses, but they impact allocations that are not in deficit and that we had available,” he expressed at that time.
“Currently, we are at close to $80,000 among all the events, particularly because that of Néstor Alonso (former New Progressive representative accused of corruption) was the one that cost us the most. It cost us close to $56,000 because it was island-wide,” specified the head of the CEE.
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