From 2006 through 2008, only one of the 25 accountings presented by the company were approved, the company is responsible for the railway Belgrano Cargo because both the Transport Department and the National Commission for Transport Regulation waited the other's actions to proceed with the evaluation. So said the General Audit Office (AGN, for its acronym in Spanish) in its report published this year.
The watchdog said the Emergency Operating Company SA (SOESA), current concessionaire of the Belgrano railroad cargo services, "presents monthly accountabilities to a representative of the Secretary of Transportation." The latter entity is "responsible for the approval."
The AGN stated that "the failure of the Ministry of Transport (ST) and the lack of assistance from the National Transport Commission (CNRT) become sound in the adoption of a single accountability from the commencement of services by SOESA", i.e., from 2006. The operator had indicated that "as of November 2008 they had presented 25 renditions and that, until then, only one had been approved", the remaining were "a consideration of the Comptroller of the CNRT or a representative of ST ".
In this regard, the AGN said the "Transportation Commission does not issue its opinion-on-technical aspects of the rendering until the Secretariat establishes mechanisms for the final accountability and scope of each person," and, in turn, "the ST does not approve until they have the opinion of the CNRT". The result of this gap in the functions of each entity, results in the low approval accountabilities.
The audit stated in its report that "the legal and contractual framework is insufficient to regulate an adequate and effective process control of accountability" because "the existing agreement sets their scope or procedures of approval." In this regard, the Office of the Comptroller General (SIGEN, for its acronym in Spanish) had already pointed out the need to "devise methods and rules dictating that allows for rigorous controls."
The reports rendered of monthly expenses, made by a representative of the ST, "are presented with an average delay of 10 months from the date of delivery of the accounts and the submission of the report to the CNRT," the agency control. Furthermore, these reports lacked "supporting documentation that wires the opinion." The AGN concludes that this "hinders control".
Purchasing and Procurement
In 1999, by decree 1037 an 1099, it was awarded "the granting of direct cargo service company Ferrocarril General Belgrano Company". In 2006, a period that was extended on 2 opportunities in a "state of emergency the company filed for 180 days." During this time it "authorized the Secretary of Transportation to perform contracts as may be necessary, to extend the emergency and tried to modify the concession." In 2007, "an agreement between, Belgrano Cargo SA National and State Emergency Operating Company SA (SOESA), entrusted to the latter, operation, administration, management, and operation of emergency services held passenger loads", of Belgrano.
The auditors noted that the SOESA "contracted works, works, and services under a private regime", which allowed work to be awarded to "bidders under the public procurement regime that might be" because their system is "more restrictive".
According to the AGN, "the operator should ensure that all contracts are made with the same conditions as the State", but "the operating agreement only provided the policy framework for the works included in the Emergency Works Program, so the rest of the work was regulated by a Manual Procedure prepared by SOESA ".
Also, on the recruitment procedures used by the Society of Emergency, "it does not guarantee the general principles of procurement and omit the CNRTs participation in the selection, award and execution" of agreements. To this it is added that "the covenants made in the proceedings of Procurement are arranged unilaterally and on discretion of the operator," so they are "insufficient to ensure the principles of openness, competition, and transparency in governing field of public procurement linked to the management of state funds.”
The report notes that the AGN and the Regulatory National Transport Commission or the Secretary of Transportation “performs studies on the reasonableness of the costs of subcontracting of works, services, and supplies made by SOESA". In fact, it was remarked that "were limited to only verify compliance with the rules and procedures established by the operating company."