The "Severe General Situation" Of Bids for Water Works In the City
<p style="text-align:justify">A report from the Audit of the City of Buenos Aires indicates that "almost all the adjudications present a series of deficiencies that presume unjustified increases in the prices," as in the case of the work in the Arroyo Vega, that increased by 107% in less than ten months. In addition, the study concludes that the "lack of an objective in the management does not favor in any way the credibility" of the government to the neighbors.</p>
According to the General Audit of Buenos Aires (AGCBA, for its acronym in Spanish), works to improve the city's storm water network present "deficiencies" that lead to a "widespread situation of almost all adjudications." The agency points out those irregularities in the projects, determination of the money to be invested, and the execution deadlines and "the legality of the actions, presume unjustified price increases."
At the mouth of the Arroyo Vega, for example, the sheets were approved before having a project of the work to be tendered. The AGCBA says that, thus, "the adjudication was facilitated without compulsa" and it benefited, "directly", the same contractor that already operated in the River neighborhood, DICASA S.A. For this complementary work, a budget reserve of $ 11,666,832 was established, but the control body points out that the studies that led to calculate this amount do not appear in the file. However, the works were awarded for $ 24,116,038.83 "at 2003 values", clarifies the Audit and adds: "It is very difficult to explain that (the price) had an increase of 107% between March and December. In the same period, construction, materials and labor costs rose by only 8.4%, 4.1% and 15.5% respectively, and the wholesale price index increased by an average of Even smaller."
The audited program is 3031 of the General Directorate of Hydraulics which, according to the AGCBA, registers a "high under-execution" in its budget. Likewise, despite the fact that the government programmed works that favored the southern part of the city, there was a 77% underreporting, "substantially greater" than that detected in the northern part of 21%.
In 2004, the Audit warned that there was "unpredictability, lack of project and planning" in the workings of the White River basin. In the most recent work, approved this year, the agency found that "legal gaps and implementation difficulties were deepened," with negative financial and budgetary implications. In that project the contractor was exempted from providing electromagnetic pumps for the pumping station and the State had to take charge of buying the equipment. This led to another call for tenders and "it was a wrong decision of the government (because) resulted in administrative irregularities and noticeable delays in carrying out the tasks," the report said.
The flood control program is financed by the Inter-American Development Bank (IDB), but, based on the "lack of foresight" in White's case, the Executive had to dispense with the loan and use its own funds, "underestimating the possibility that the reallocation of resources could harm other programs, and contribute to generating deviation in the budget." On the other hand, the AGCBA indicates that a plan to prevent floods and the necessary works of electricity in the pumping station was not planned: "The lack of foresight represents a recurring violation of Article 4 of Law 13.064 (National Public Works), not to tender works with complete projects, "concludes the Audit, adding that, with the predetermination of the price and purchase of the pumps, the government had to spend 197% more of the money it had planned.
On the other hand, the construction of the relief channel of Arroyo San Pedrito did not take into account the observations made by the IDB on how the bidders were evaluated, and the companies were notified of the prequalification result "without the prior approval of the Bank". Thus, the international body suggested "reviewing the award decision of the City Government", but in this case, the Executive also renounced external financing.
The plans of hydraulic infrastructure have the objective of reducing the vulnerability of the population against the combined phenomena of heavy rains and rises of the River Plate. The AGCBA completed its report stating that "the lack of a management objective does not favor the credibility of the government" to the neighbors.