Without Specifying Why, ANSES Bought 42 High-End Cars for More Than $3 Million
<p style="line-height: 20.7999992370605px;">The transactions were made with three companies during 2008. The General Audit Office found that the purchase orders grew over $500,000, also without justification. In addition, providers that should have been rejected were accepted; such was the case of a telecommunications company that even though it bid twice as much, it was still hired. </p>
The General Audit Office (AGN, for its acronym in Spanish) analyzed the most significant orders of the National Social Security Administration (ANSES, for its acronym in Spanish) and found that the agency requested the purchase of 42 high-end cars for $3,382,774 without justifying "the causes or destiny" of the acquisition.
The report states that through public tender, three companies were hired to provide cars for ANSES: Volkswagen Argentina SA, Igarreta SA, and Merbus SA. Not only did this acquisition not have the basic justification for the expenditure, but the "purchase order for Volkswagen grew by $270,926" and the Igarreta increased more than $239,000, again with "unjustified" causes and destination. However, ANSES previously claimed that "responsible management had assessed the need for more vehicles."
Moreover, the AGN showed that "the increase in the amount was not justified" for the recruitment of the Atlantida Editorial, where an exclusive and direct purchase was made for $390 thousand and the final value was stipulated at $406,500. Meanwhile, the Federal Watchdog added that there were other agreements for exclusivity that did not have the documentation to prove that no other company could provide the service.
The audit also noted that tenders for procurement were rejected "without determining the reasons why they did not meet the requirements." In turn, the watchdog stated that "the Evaluation Commission accepted offers that should have been rejected, for unduly burdensome", such was the case of Liefrink & Marx SA who requested $67,280 for a $32,000. The commission “requested they better their offer” and even though the company did not change the amount, they were still hired.
The report, published this year on 2008 data, showed that almost 40% of ANSES’ contracts "were founded on need and urgency." However, there were cases of "urgency" in which the processing of the tender "lasted over a year."
Payments For Legitimate Credit
Legitimate Credit is the recognition of expenditures by the Administration, after the provision of a service, which avoids bidding requirements. The AGN observed in the investigation that during the audited period 2,217 payments under this scheme were approved for a total of $39,294,592.
The audit found that the contract with Liefrink & Marx SA for a telephone center rental (operation that was hired aside from the fact that it cost twice the amount stipulated) expired in 1998 and since then the payments go through legitimate credit. Finally, the audit said that "the facts justifying" the provision of services outside the term of the contract are not verified.
