The Energy Secretariat ‘Pesified’ Funds Not Used and Generated A Loss of 1.8 Million Dollars
<p>It was during 2015 and the money was part of the loan that made the International Bank for Reconstruction and Development (BIRF, for its acronym in Spanish) to contribute to the Energy Efficiency Project for small and medium enterprises that are geared to that end. As a positive point it is noted that the financial statements present fairly the financial position of the plan.</p>
By December 2015 96% of Funds Energy Efficiency Plan for SMEs (FONAPYMES) were inactive, i.e., unused, and in pesos. For the General Audit Office (AGN, for its acronym in Spanish), "turning into pesos the money in the account without making any investment generated a loss of 1.8 million dollars compared to the total transferred."
The project was partially funded by the International Bank for Reconstruction and Development (BIRF) with $ 7 million intended largely to "training the Argentine Energy Efficiency Fund to finance projects for SMEs that are oriented for this purpose."
With regard to compliance with the terms of the contract signed between Argentina and the IBRD, the watchdog said that "the obligations to conduct studies to identify and assess barriers to market development of energy efficiency are not met" and consequently, "no rules were implemented to overcome them."
On the other hand, the FONAPYME must "make the calls for tender for the presentation of energy efficiency projects, evaluate, approve and notify the Secretariat of Energy and the National Bank the results of each contest and disbursements."
At the closing of the audit, "of about 20 ongoing projects, only six were actually at that stage, five were rejected, six in evaluation, one was withdrawn and two were in instrumentation of guarantee."
There is a highlight in the report approved in July this year that is related to the financial statements. The AGN approved them "unqualified", this means that "they present fairly the financial position of the project.”