Comptroller finds deficiencies in Ports fiscal operations

By The Star Staff

The Puerto Rico Comptroller’s Office (OCPR by its initials in Spanish) has issued an unfavorable opinion regarding the fiscal operations of the Ports Authority, identifying multiple deficiencies in lease management, debt collection and the granting of incentives.

According to report OC-26-03, 36% of the 258 commercial facilities at eight of the island’s nine airports have been operating under expired leases since 1993, which does not protect the interests of the public corporation. Furthermore, unlawful contractual clauses were found that allowed for the occupation of premises beyond the contract terms, through penalties and additional rents.

The audit uncovered several issues, including the Ports Authority allowing a concessionaire to place a trailer on airport land for over 16 years without paying rent. Additionally, six facilities were not included in the property inventory, and a general liability insurance policy was not mandated for eight contracts.

During the pandemic, the Ports Authority board of directors approved a 40% reduction in monthly rent for 60 days, granting $273,015 in credits to 82 facilities, 61% of which were operating without valid contracts. Furthermore, incentives under the Airport Coronavirus Response Grant program were also provided to concessionaires in similar circumstances, thereby invalidating those benefits, as stated by the OCPR.

The report also notes that it took six and a half years for a legal adviser to process a referral and issue a collection recommendation of $424,910 to a client, leading to perceptions of bias, negligence and poor management.

The OCPR highlighted that the Ports Authority accumulated deficits of $302.5 million between fiscal years 2018 and 2021. As of June 30, 2021, accounts receivable totaled $15.2 million, indicating a lack of internal controls that jeopardizes liquidity and suggests potentially inflated asset valuations.