Conny Varela demands investigation into the awarding of security contracts at the Department of Health

By THE STAR STAFF

Representative José “Conny” Varela announced today the filing of a House Resolution to direct the Government Committee to conduct a thorough investigation into the Department of Health’s decision to cancel and not renew the security services contracts with Genesis Security Services, Inc. at the Ramón Ruiz Arnau University Hospital. 

The measure seeks to examine the economic and operational criteria justifying the transfer of these services to other companies, given that Genesis’s proposal had previously been identified by the agency itself as the most advantageous for public funds.

The decision comes after the Department of Health publicly revealed its decision not to renew Genesis’s contract at the University Hospital, and amid the apparent intention to transfer security services for the Central Offices to other corporations. According to leaked information, the new providers’ contractual costs would be higher than the rates historically offered by Genesis, and some even suggest that certain programs would be transferred to a company publicly accused of potentially overbilling the government.

“There is a duty to guarantee transparency, legality, and good governance in all public contracts. If the Department of Health concluded less than a year ago that maintaining services with this company was the most cost-effective alternative, this abrupt change of direction without a clear fiscal impact analysis is questionable and highly contradictory,” said the representative for Caguas.

The resolution highlights the contradiction in the Department of Health’s actions, recalling that in July 2025, the agency’s own secretary, Víctor Ramos Otero, explained that they had analyzed dividing security services among several companies, but concluded that fragmentation would result in a higher cost for the people of Puerto Rico. Based on that study, the Department of Health decided to renew the contract with Genesis at that time.

“We must be vigilant against potential negligent or corrupt actions in public administration. This is the type of government action that raises suspicions in Puerto Rico. This administration has become a factory of scandals and corrupt dealings surrounding contracts. We are demanding transparency and respect for public funds. The Secretary of Health must answer for this,” Varela stated.