By The Star Staff
Gabriel López Arrieta, a Popular Democratic Party at-large candidate for the island House of Representatives and a former administrator of the Public Housing Administration (AVP by its initials in Spanish), called on the Department of Justice to investigate serious irregularities at the AVP that were pointed out in an Inspector General of Puerto Rico report on the years 2021 to 2024.
The report exposes serious irregularities and mismanagement at the AVP, highlighting a case in which a contractor obtained millions of dollars in profits through public funds intended to improve the quality of life of the most vulnerable communities.
“It is unacceptable for the AVP not to have taken action against a contractor who obtained millions in profits at the expense of public funds that should have been allocated to improving the quality of life of our most vulnerable communities,” López Arrieta said. “The report must be sent to the Department of Justice so that responsibilities are established.”
The Inspector General’s report details million-dollar payments made by the AVP to contractors, including payments that led to profits of over $7 million for one of them. The profits resulted from a 36% to 52% markup on the hourly cost of a subcontractor’s staff, with no negotiated provision in the contracts to justify such markups.
“This report directly reflects the current administration’s lack of oversight and transparency,” the candidate said. “We cannot allow federal resources, so necessary for our island, to be mismanaged and end up benefiting a few instead of fulfilling their purpose, which is to assist Puerto Rican families in need.”
The inspector general’s analysis, which covered the period from July 1, 2021, to March 1, 2024, focused on the AVP’s use of federal funds to implement and administer the COVID-19 Income Assistance Program. The report found irregularities in the payment of $7.8 million to contractors and confirmed there were 878 cases of fraud totaling some $2.75 million.
“As public servants and representatives of the people, we are duty-bound to demand immediate accountability and take corrective measures to prevent this type of abuse from occurring again,” López Arrieta stressed. “The administration must act firmly and swiftly, implementing the Inspector General’s recommendations and ensuring that those responsible for these acts are held accountable for their actions.”
The report also noted that the AVP did not return a surplus of $1.1 million to the federal government, thus failing to comply with the stipulations for reimbursing unused funds. Moreover, it said, the AVP needs to comply with the guidelines of the Puerto Rico Innovation and Technology Service regarding government efficiency and the protection of privacy.
“It is time for difficult decisions to be made to correct course and restore the people’s confidence in their institutions,” the candidate said, emphasizing the need for transparency and efficiency in public management. “We cannot sit idly by while these injustices are perpetuated. We have to act.”
Comments