Millionaire unjustified payments in earthquake reconstruction projects

The National Electricity Corporation (Cnel) made unjustified payments totaling $ 1.1 million, according to the Comptroller’s Office.

Five years and eight months after the earthquake that destroyed Manabi cities, problems do not stop appearing. In the last report approved by the Comptroller’s Office, in December 2021, it is evidenced that the National Electricity Corporation (Cnel) made unjustified payments that add up to in total $ 1.1 million.

The special examination was carried out on the contracts signed for the reconstruction of the San Vicente substation, the relocation of transmission lines and the construction of a business unit in the province. All of this had been promised by the Reconstruction Committee to “mitigate the effects of the earthquake.”

Substation Problems

The report indicates that the reconstruction of the electrical substation in San Vicente paid for power transformers brought from China. In the special examination it was determined that the value of the equipment, plus import costs, expenses and utilities amounted to $ 543,754, but the Cnel paid $ 925,050. In other words, there were unjustified payments for more than $ 300,000 (see table).

Another observation made to the work is that the company in charge “did not support with documents the installation of 37 electrical components ”and labor costs for their assembly. The Comptroller’s Office pointed out that there was another millionaire payment for materials that were not used in the relocation of the San Vicente transmission lines.

According to the control team, the absence of complete studies for the project caused the substation to be built without drainage systems. In addition, the technical personnel who intervened in the reconstruction of the feeders did not meet the required experience.

What happened to the Business Unit?

As part of the Comprehensive Reconstruction Plan for the Affected Areas (PRIZA), on June 14, 2017 the construction of a Business Unit in Manabí was contracted. The Comptroller’s conclusion is that, Cnel made payments for materials and equipment that did not meet the technical specifications for a value of $ 140,452.

The work should have been completed within 150 days, from September 12, 2017, to February 8, 2018, but four extensions and two suspensions were authorized that delayed its delivery until June 7, 2019, 484 days after the start of the work. The CNEL did not collect fines for the delay that amounted to $ 86,320.

Burying networks

Within the special examination there are observations to an additional contract for the construction of underground electrical networks and telecommunications networks in Bahía de Caráquez. There it is indicated that there are excess payments for cuts in the asphalt layer, canalization, connections and other works that would exceed $ 162,162.

He also makes observations that distribution transformers They did not have the lightning rods and molded box type breakers that had to go inside. “Due to the above, it was evidenced that, in the aforementioned worksheets, items of civil works were included that did not comply with the Construction Manual of the electrical distribution system of underground networks” and “far from the technical specifications.”

Within the approved exam, no civil or criminal determinations have been established. The Comptroller’s Office informed LA HORA that, “A technical team of lawyers” rIt reviews everything within a process before indicating civil, administrative or criminal responsibilities and then sending the findings to the Prosecutor’s Office.

The National Anticorruption Commission, Manabí chapter regretted that there are such reports on the works that had to be carried out after the earthquake. The representative of this organization in the province, Julio Villacrés, asked the authorities to observe possible links between public entities and contractors.

He pointed out that there are tax inquiries for the action Reconstruction Committee that have not advanced. In addition, he added that they must be determined responsible and punished for the works in the failed Pacific Refinery.