The Final Compliance Audit Report published yesterday by the Comptroller General of the Republic (CGR)in charge of the controller Camilo Benitezabout the LPN SBE tender No. 170/21 promoted by the Social Security Institute (IPS)detected a financial loss of G. 2,555,121,195 due to differences between the quantities of works paid for and those actually executed.
At the same time as uncovering this missing millionaire, the controlling entity confirmed that the verification of these constructions was the non-delegable responsibility of the IPS, separating Banco Atlas of the mismanagement found.
Missing and serious flaws
The General Directorate of Public Works Control of the CGR verified on site the works administered by the Maintenance Directorate of the pension entity.
The survey found that more than G. 2,555 million for unfulfilled items in four establishments: the San Ignacio Health Unit (G. 1,818,826,792), the San Juan Bautista Health Unit (G. 341.201.022), the headquarters of Employer Worker Contribution in San Juan Bautista (G. 269,204,873) and the Ayolas Regional Hospital (G. 125,888,508).
In addition to certifying larger amounts than those executed, the Comptroller’s Office documented important deficiencies, such as having allowed the execution of electrical installations without requiring contractors to have a responsible engineer registered with the ANDE.
Likewise, they showed that the IPS accepted “as-built plans” that did not reflect the actual pre-existing infrastructuredemonstrating a total ignorance of the structural conditions of the buildings.
Contract exempts the fiduciary
Faced with this technical lack of control, the CGR was categorical in delimiting responsibilities on the ground.
In its report, the Comptroller’s Office invoked at the beginning of its observations the Clause 2.4 subsection b of the trust contractremembering that said provision verbatim establishes that “the Trustor-Beneficiary (the IPS) is the only one responsible for compliance with what is established in this point and expressly releases the Trustee (Banco Atlas) from all responsibility in this regard.”
In this way, the report buries the narrative that sought to hold the financial entity responsible for construction failures.
Rejection of excuses
The lapidary report also thwarted the attempts of officials and former administrators of the IPS for evading his guilt.
In their formal defenses before the CGR, those responsible tried to hide behind the argument that the Internal Audit of the IPS and the Contracting Operational Unit (UOC) had the legal obligation to carry out a “pre-payment control” of the certificates, based on Law No. 1535/99.
However, the CGR totally rejected this justification. The controlling entity ruled that the “Contract Administrator” and the inspector – figures defined by DNCP Resolution No. 2595/2017 and Law No. 1533/00 – are directly responsible for ensuring the correct execution of the work on the ground.
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For the CGR, attempting to transfer exclusive responsibility for these operational and physical failures to the Internal Audit is “unsustainable and contrary to operational reality.”
The Comptroller’s Office concluded categorically that these serious omissions were a “faithful reflection of the attitude imposed on the control of the works by those in charge of ENFORCEMENT of what was contracted.”
Lies are not supported by papers
The securitization, administration and payment trust contract “IPS-Sickness-Maternity Fund” was signed in December 2017, during the government of Horacio Cartesfor G. 828,800 million, more than US$ 110 million.
The contract was questioned from the beginning of the government of Santiago Penaeven going so far as to appear before the Bicameral Investigation Commission of alleged money laundering, better known as the “Garrote” commission, in order to persecute adversaries.
However, several resolutions published on the IPS website as well as other documents in the pension archives show the contradiction.
The first aspect is Clause 2.4, which, as the CGR document points out, states that the IPS is solely responsible for contractual execution.
Read more: Documents debunk Chartist fable about trust with IPS
The second aspect questioned by the officials is that the payments to those responsible for the Maintenance Directorate have been validated. The CGR also confirms that They were, indeed, responsible for doing it. However, the document also makes it clear that it was this agency that did not carry out effective control, leading to the certification of unfulfilled items.
