Barceloneta municipality overpaid by over $1.5 million for contracts, purchases

By The Star Staff

The Puerto Rico Comptroller’s Office reported Tuesday that the Municipality of Barceloneta overpaid more than $1.5 million for contracts and purchases between July 1, 2019 and Dec. 31, 2023. The audit, with five findings, resulted in the issuance of a qualified opinion due to significant, though not widespread, noncompliance.

The report details that the municipality overpaid $1.4 million for the purchase of a property valued at $13.5 million, without reviewing or submitting the appraisal reports to the Municipal Tax Collections Center, as required by regulations.

Some $148,485 was also overpaid for the purchase of air conditioning consoles, despite the original contract being for $50,000. The contractor invoiced for purchases made up to eight months after the contract expired.

The municipality disbursed another $29,060 for debris removal, without amending the original contract, and paid $501,882 for professional services from an engineer for construction at Dr. Francisco Susoni School that was never performed.

The audit also reveals that the municipality failed to collect $146,162 from a corporation for extracting material from the municipal lumberyard. After the audit, the municipality recovered $46,824, leaving an outstanding balance of $99,338.

It also notes the payment of $203,649 to a pensioner who was reinstated in her position, even though the law stipulates that she should receive only half of her base salary. After a consultation with the Retirement Board, the pension was suspended and the refund of the money improperly received was ordered.

The Comptroller recommended that the Office of Management and Budget ensure compliance with the Comptroller’s Office Corrective Action Plan in the Municipality of Barceloneta.

The municipality’s budget was $27.5 million in 2020, $26.1 million in 2021, $26.5 million in 2022, $30.9 million in 2023, and $32.1 million in 2024.