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According to the Commonwealth Comptroller of Puerto Rico, 50% of the 278 organizations across the three government branches failed to rectify or address issues related to contracts, which could render those contracts unlawful.
In a specialized report, the comptroller pointed out that the inability of half of these organizations to solve objections within the designated timeframe for the fiscal year 2023 carries serious consequences for Puerto Rico’s public sector. By law, all government contracts are required to be submitted to the commonwealth comptroller to ensure their legality.
An objection serves as a formal notification to the liaison officer of the entity, informing them that the contract submitted to the comptroller is either incomplete or contains erroneous information. There are currently 2,511 contracts with noted objections registered in the system, some of which have been awaiting a response for over 30 days. The value of contracts with objections amounts to $1.16 billion owed and $16 million expected to be received.
These circumstances, previously addressed in Special Report DA-15-11 dated Oct. 24, 2014, hinder contracts from being treated as public documents and obstruct the Comptroller’s Office from receiving revised contracts as mandated by law.
The verification revealed that 64% of primary officials provided incorrect information under oath in the Annual Certification. This certification is required to be forwarded to the Comptroller’s Office by Aug. 31 at the conclusion of each fiscal year. The auditors noted discrepancies amounting to 902 fewer contracts in the application compared to 227 additional contracts in the Annual Certification. The application serves as the electronic registry where organizations enlist and submit their contracts.
This situation may lead to fund disbursements under contracts that violate Law 18 of 1975, according to the comptroller. Moreover, it fosters the creation of fraudulent certifications, which can be considered a felony under Article 258 of the Penal Code of Puerto Rico.
The Three-Result Report confirmed that 26% of the entities did not submit the Annual Certification for 2023, even after an extension until Sept. 15, 2023. Furthermore, 13% of the entities missed the deadline for submission of the Annual Certification.
In light of these findings, the Comptroller’s Office recommends that the executive director of the Government Ethics Office take appropriate measures as deemed necessary.
