Procurator General detects fraud in YLB contract worth $us 24 million that does not function
The Procurator General's Office found irregularities in a Bolivian Lithium Deposits project worth $us 24.3 million that is currently not operating. The case will be referred to the Public Ministry.
Lithium project paralysed: Procurator General points to appropriation and embezzlement of public funds
The Procurator General's Office identified alleged irregularities in a Bolivian Lithium Deposits (YLB) project whose cost exceeds $us 24.3 million, according to El Deber. Procurator Hugo César León La Faye confirmed that the infrastructure is currently not in operation.
The report, prepared jointly by the Procurator General's Office and YLB, points to anomalies in the contracting process and suggests possible responsibilities of officials who participated in it. León indicated that there are indications of facts that could have resulted in the appropriation, diversion or embezzlement of public resources.
"There has been a whole series of facts that have allowed people who were performing functions for the State to have appropriated, diverted or embezzled substantial economic resources," affirmed the procurator.
Five observations regarding the contracting process
Among the irregularities detected is an inconsistency in the evaluation of form A6, linked to the minimum equipment committed to executing the work. According to León, that equipment "never became complete."
The second observation points to a modification of evaluation criteria carried out after proposals had already been opened. "The proposals are opened and then, at that moment, the evaluation criteria are modified," explained the procurator.
The report also detected the assignment of scores without support in the parameters previously published. León maintained that those ratings were defined by officials based on "entirely subjective criteria."
A fourth observation concerns the budget: the process was initiated and developed without a budget certification that would accredit the availability of necessary resources. Additionally, the procurator mentioned indications of a "predetermined award," an element that will also form part of the antecedents referred to the Public Prosecutor's Office.
Contract awarded to Germex with a difference of $us 874,251
One of the economic data points presented by León refers to the difference between the awarded proposal and another discarded bid. The contract was awarded to the company Germex, whilst a second company was excluded from the process; between both proposals there was a difference of $us 874,251.
"A contract has been awarded to a company that is the one that has won, Germex, and another company has been arbitrarily excluded," noted the procurator.
However, León warned that the possible damage to the State should not be limited to that difference. "The economic damage is not only the difference in the award price, but the total cost of a project that is not yielding the necessary results nor is it allowing the Bolivian State to recover them," he maintained.
Under the Procurator General's analysis, the damage should also consider the resources invested in infrastructure that would not be generating the expected results, which raises the estimate to the total amount of the contract: more than $us 24.3 million.
Case proceeds to the Public Ministry
The next step will be to transfer the report to the Public Ministry. León indicated that YLB will present the antecedents so that the Public Prosecutor's Office may evaluate the complaint, identify the officials who should be investigated and determine corresponding individual responsibilities.
The Procurator General's Office also noted that it intends to promote, once those investigated have been identified and within the judicial procedure, the adoption of measures aimed at safeguarding assets in the event of eventual economic damage to the State.
Source: El Deber