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October 14, 2022
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Itaipu: approve transfer of USD 220 million to Brazil, request data on Paraguay

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Although it is already public knowledge of the obligations that the Social Security Institute (IPS) has with its suppliers, it is no less important to highlight that this situation had an exponential ascendancy in the last four years of the government of Mario Abdo Benítez. Today the accumulated debt is US$ 240 million.

In recent years, the IPS had three people at the head of the Board of Directors, the first was Armando Daniel Rodríguez Franco, the second president was Andrés Gubetich Mojoli, and the last and current president is Vicente Mario Bataglia Araújo. Each of the pension presidents had a scandal and were widely criticized for the way they managed the institution.

Mario Abdo Benítez, Armando Rodríguez, Andrés Gubetich and Vicente Bataglia.

The health area has been experiencing substantial differences between annual income and expenses, according to global economic reports from the Sickness and Maternity Fund. In fact, the last year that a deficit was not recorded was in 2017 when there was a positive balance of G. 243,164 millionwhich in American currency represent $34 million (at current exchange).

Nevertheless, in 2018 the IPS deficit was G. 256,369 million, about US$ 36 million. This consecutive indebtedness was rising year after year in the last period, where there was no going back to the deficit.

For the year 2019 the closure was negative again with less G. 453,483 million, doubling the previous year. The same situation occurred again in 2020, when the deficit closed at G. 904,206 million, close to US$ 126 million, doubling again what was contracted with the previous fiscal year. This was the year with the greatest difference between total expenditure and declared income.

The same report states that in 2021 the Social Security Institute had a negative balance of G. 792,478 million in the health area; that is, about US$ 111 million.

In this way we see that comparatively from 2018 to last year, the indebtedness that the IPS Sickness and Maternity Fund has tripled with outsourced service providers, pharmaceutical companies, medical equipment and others.

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Let us also remember that last Wednesday the administrative manager of the pension, Jose Luis Urizar, explained to La Nación/Nación Media that, after rescheduling of fulfillment of commitments, at the end of September the total debt with suppliers amounts to US$ 240 million. However, he also indicated that, as it is being presented, the current fiscal year closes with the same trend.

Another key point is that, if this situation of such a large deficit in the health area continues, those affected would be the insured, since medical care benefits and/or the provision of medicines are at risk.

Itaipu: approve transfer of USD 220 million to Brazil, request data on Paraguay

Vicente Bataglia, president of the Social Security Institute (IPS). Photo: file.

Data from IPS Institutional Observatory They reflect that as of September there is a total of 1,513,941 insured, who, according to the senior official, could be affected in the services.

At this point it is important to highlight that currently some 5,000 patients they follow some type of cancer treatment in hospitals dependent on the social security. This population requires the most expensive first-line oncology and hematology drugs for cancer treatment therapy, which is the second leading cause of death in adults after stroke and the leading cause of death in children.

When analyzing the universe of the reality of the IPS, one important fact is to also observe who are those who owe the institution. First of all there is a historical debt of the Paraguayan State that would be approximately US$ 450 million, which was generated by the breach of the 1.5% contribution for workloadwhich is in the normative structure of creation of the social security system.

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But, on the other hand, there is also an employers’ debt. According to official reports, Until July 2022, there was a total of 69,233 contributing companies, but only 42,340 were up to date with their commitments.

This situation is one that should be addressed because not only does it risk the service for the worker, but it can also be considered a violation of the norm.

Finally, it is relevant to point out that Law 5655/16 establishes in article 3 point 2 that if the employer, after having deducted from the salary the amount corresponding to the contribution due by the worker for social security, does not enter or fails to enter the IPS Said amount will be punished with a custodial sentence of 1 to 5 years or a fine. But in the following article it adds that in especially serious cases, the prison sentence may be increased to 10 years.



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