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Irregularities of the Treasury are highlighted in payment to Apex

The Department of Finance would have authorized a transaction without bail and without meeting the criteria of the Regulation 31 of the agency in the failed purchase of a million tests to detect the COVID-19 with the company Apex General Contractors, as it was revealed today at a hearing of the Health Commission of the House of Representatives.

During the hearing investigating the purchase of these tests with a construction company with the Department of Health, the central accounting assistant secretary of Estate, Alfonso Rossy, justified the advance payment of $ 19 million to Apex and that even though it was requested after a call from Adil Rosa Rivera, then assistant secretary of Health Administration, the agency’s processes were followed. The official would also have requested that the payment be made through a wire transfer and not by ACH, the usual method of payment at the Treasury.

“Is this process common in the Department of the Treasury?” Morales asked Rossy. “It is not something that is done every day but it works,” Rossy replied. He also indicated that after receiving the call from Rosa Rivera, he contacted Jeira Belén, assistant secretary of the treasure. The wire transfer It had to be approved by the Treasury, but the advance payment request is evaluated by the Central Treasury Accounting office.

He also admitted that he received a conference call from Lillian Sánchez, undersecretary of the government; of Mabel Head, ex Chief of Staff of health; and from Rosa Rivera, to “find orientation” on advance purchases from the Department of Health. According to Rossy, at that time they were evaluating requests for Prepayment to the companies Maitland 175, 313 LLC and another company that you did not remember. The representative Juan Oscar Morales asked him if it was Castro Business but could not specify. Rossy also couldn’t answer Head’s position upon receiving her call. This would be another instance in which there would have been an intervention by Cabeza in the process of purchasing evidence, who due to discrepancies with the then Secretary of Health Concepción Quiñones de Longo was sent to La Fortaleza prominently. However, in other views of the Health Commission, testimonies have been offered in which the participation of Cabeza, from La Fortaleza, in the Health purchasing process is raised.

Firstly, Morales rebuked Rossy on the reasons for authorizing the advance transaction of $ 19 million to Apex. The transaction with the company was $ 38 million for a million tests, but the company requested the fifty% of the amount in an advance payment. The official indicated that the agency only had to meet one of the three criteria of Regulation 31, which were that it deals with commercial practice, that it is stipulated in the contract and that it is a single supplier. Rossy first said that the prepayment request met the sole supplier criteria because it was the only company that could produce a million tests. However, upon Morales’ questions, Rossy could not justify compliance with said criterion.

Later, Rossy assured that they met the first two criteria since the regulation does not require strict compliance with all three.

“The practice is to pay in advance?” Asked Morales. “No, but practices are modified due to the declaration of emergency,” Rossy replied.

For his part, the official again argued that the emergency declaration caused them not to request a bond to secure the transaction in advance. “We were in quarantine and those surety companies couldn’t bail,” said Rossy.

“Could that money have been at risk of being lost?” Morales asked again. “It could have happened,” Rossy confessed.

In the face of all the controversies, Rossy assured that he was satisfied with the way the Treasury handled the transactions. And he commented that the correct processes were followed despite the irregularities indicated.

Admits improper payment on freight

Likewise, Rossy admitted that an improper payment may have been authorized for the payment of freight and taxes and that the Department of Health has not requested the required exemptions.

According to Morales, Salud would have carried out two transactions in favor of the company. Maitland 175 for freight payment and Florida state tax, from $ 355,000 and another of $ 718,000.

Rossy admitted that — on April 16 she received a message by Telegram from Belmarie Martínez de Salud— to find out how you could request a waiver or a waiver for not paying Florida state taxes. According to the official, the regulations of said state aim that the other jurisdictions must request said exemption since it is not automatic.

Last week, Morales showed several documents that indicated that the agency had overpaid the company. Maitland 175.

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