The Auditor General of Salta assessed the financial management from 2006 to 2008 of the municipality of Isla de Cañas. According to the report, no money entered the state and there were unjustified payments. The two mayors involved made no comment or clarification on the observations made by the watchdog.

One of the issues identified by the auditors was that in 2007, "the Municipality issued deferred payment checks for the 'Finando SRL firm", i.e., it agreed to pay in the future in exchange for the delivery of money today. According to the report, the amount was "$ 73,091, of which a net value of $ 66,045 was obtained, as fees were paid to the company for $ 7,046." The money "did not enter the bank account of the municipality."

In this regard, the watchdog said irregularities as "the amount of commissions paid" and that "there was no evidence of whether the mayor had the authority or power to carry out such operations."

Since the municipality is also "granted two loans amounting to $ 24,299." Beside the fact they granted the loans, they never returned the money. The report notes that "the payment orders lack the signature of the Mayor, the Treasurer, and the beneficiary, and the link –between these people- with the Municipality is unknown." The audit said that the granting of loans "is not compatible with the purposes of the state nor is it a public good."

Meanwhile, it is stated that in 2007 the firm paid Calchaquies Valley Communications SRL $ 80,000.00, "although" there is no kind of evidence to determine the existence of the performed tasks. "There was only a reference to broadband deployment. The auditors found that, at the time of control tasks, "there was no internet service."

Isla de Cañas "has no technical dossiers and documents that support the execution of works" and "implementation in the budget" does not have "bundles-of-detail or performing contracts." In addition, the agency added, "Payment Orders for purchases and service contracts, no invoices or supporting documentation" and that "for 2006 totaled $ 160,748.40 and $ 101,685.77 in 2007".

Moreover, the report explains that "in 2006 and 2007 there were no budgetary or economic accounting records, which explains why, audit assignments were made based on the information provided in the budget execution and payment orders, invoices, receipts, and bank statements." In addition, states that "the City did not issue Treasury Balance Sheet, Statement of Debt Situation, and Status of State Property, corresponding to the finances of 2006, 2007, and 2008, reason why the audit "refrains from expressing an opinion "about it.

Complaint Report For Embezzlement

The Audit could not access the necessary documentation for their work since it was added in the judicial file a criminal complaint filed against the former mayor in October 2009, "for lack of documentation and records supporting the housing movement in the Municipality" in the transfer of management in December 2007. Precisely the complaint in justice is about misappropriation of public funds and disloyal administration to the detriment of the municipality.