The National Institute of Cooperatives and Social Economy (INAES, for its acronym in Spanish) is in charge of providing financial support to cooperatives. But the General Audit Office (AGN, for its acronym in Spanish) noted that in some cases what the money will be used for is unknown because "in the files there is no description of its use.”
The INAES is an agency under the Ministry of Social Development and is responsible for carrying throughout the country the promotion of social economy.
One of the tools for this is the system of financial support through loans or grants, provided that the project for which assistance is requested and frame is adequately described in the cases provided for in the regulations. Expenses must always surrender to account for how the benefit received was reversed.
A case in which the report of the AGN, which evaluated 2011 and the first half of 2012, is an agreement in which the file "lacks the evidence evaluation of the application for financial aid, the agreement and the Annexes do not clarify the signatures of the applicant or who it gives the benefit." It is important to note that this test performed by the technical area of INAES "is necessary" for the approval of aid.
In addition, "parts of the invoices submitted in accountability were challenged" and, as if something is missing, "there is no description of the use of the $ 15 million requested and granted."
"Incomplete renditions, without indicating the destination of the funds, with insufficient documentation and proof of expenditure rejected without further action" were also detected.
In the report adopted this year, the National Audit stated that "there are considerable delays in the management of activities" in which the relevant area recommended "sanctions of varying severity and even the cancellation of the permit to operate."
For example, there is a summary initiated on a mutual on October 28, 2012 advising the withdrawal of the authorization to operate. From November 1st of that year to May 2013, which was the time of analysis of the audit, "the record did not record movement" so that "the substance of the matter was not resolved."
"Paralyzed requests for financing without favorable resolution, rejecting any intervention or Agency" were found. Just to mention some cases, there was a request for $ 3.1 million and another for $ 476,000 without movement since July 2011 and another $ 2.1 million in late August of that year.
Finally, the AGN noted that "labor cooperatives linked to social programs developed by the government, both national and provincial and municipal, do not fit the main features contained in the legislation." For example, "they do not distribute surplus functioning of the cooperative but receive a monthly contribution made by the Government."