Articles

“(Municipalities) don't do annual inventories and, if you don't have an inventory, you can't know if something was lost or stolen”

An analysis by the Office of the Comptroller confirms that all kinds of irregularities continue in awarding contracts, acquiring goods and even paying private bills such as water and electricity with public funds

While the guilt of the former mayor of Guaynabo, Ángel Pérez, for accepting bribes in exchange for favoring the former contractor Oscar Santamaría is still being digested, an analysis by the Office of the Comptroller (OCPR) arising from multiple accounting audits shows that bad habits — with public money — continue to be the order of the day in the municipalities.

Comptroller Yesmín M. Valdivieso compiled the most common findings that the OCPR's auditors have found in the municipalities and recently presented the report at the College of Certified Public Accountants (CCPA). In summary, it could be said that one out of every three municipalities audited between July 1, 2019 and December 30, 2022 did not follow the laws and regulations already in force.

For example, in the area of permanent works, the OCPR's auditors found that the works were carried out without a permit; they did work without formalizing contracts, information was missing on the invoices and feasibility studies were conspicuous by their absence.

TRICKS TO EVADE BIDS
One of the most common findings is the practice of splitting the cost of construction work to evade the caps that require holding bids for each job. They also found, frequently, that in the municipalities professional services are paid without a contract in place and, in certain services — public relations, engineering, architecture, plumbers and electricians — people who lack the proper licenses required by the state are contracted. Another frequent failure is that, when requisitioning goods, they are requested with too much specificity. For example, instead of requiring the purchase of a vehicle, details such as the brand they want to acquire are included.
‍
“If you want to say you want an SUV, then you don't have to say it should be of such-and-such brand. When we see that they describe too much what they want, it is also considered wrong because the idea is not that you buy the car you want, it's that you buy one that can meet the entity's needs,” Valdivieso said. In the municipalities, likewise, it is frequent to find employees appointed for too long in temporary positions and improper payments for leave liquidation.

PAY CHARGED TO THE MUNICIPALITY
Another common finding relates to the theft of public funds. In her report, the Comptroller detailed how one of the most common findings in the municipalities is the appropriation of public funds and using the municipality's bank accounts to pay private bills for water, electricity, cable and personal loans.

In addition, according to the OCPR, the loss of property and even thefts that are reported very late to the authorities are the order of the day. According to Valdivieso, one of the reasons why the loss of public goods is so common is that the municipalities do not have a registry of municipal property.

“In several reports we have said that not all losses are being reported, and the reason they are not reported is because they don't do annual inventories and if you don't have an inventory, you can't know if something was lost or stolen,” she affirmed.

The OCPR's reports are public and, in case of having findings, they are referred to the Department of Justice and to other oversight entities. Valdivieso acknowledged that she is not pleased to see the same observations repeated in the audits year after year. “I am not entirely pleased. No one can question that I have put the necessary tools in their hands; we give monthly trainings because now — the contracting course is mandatory — they are eight hours. We are providing the tools. It's not that we are demanding things and leave them there to see how they survive,” said the CPA.