By The Star Staff
The Puerto Rico Comptroller’s Office warned Monday that the Medical Services Administration (ASEM by its acronym in Spanish) could lose the Río Piedras Medical Center unless it manages its fiscal affairs adequately as it faces a $708 million deficit.
The comptroller made the remarks in a report analyzing the ASEM’s purchases and disbursements during the COVID-19 pandemic.
The report details significant non-compliance in managing state and federal funds, amounting to $10.7 million used to acquire medical materials and equipment.
In addition, the report indicates that 92% of the purchase orders lacked clauses on penalties for late deliveries, and 27% did not include delivery dates. In addition, as of Dec. 31, 2023, ASEM had accumulated debt of $1.05 billion, a situation aggravated by the need for monthly reconciliations in its accounts payable.
“The accumulated deficit of ASEM, which amounts to $708 million, reflects serious failures in internal controls and budget planning, including the absence of allocations for the payment of a line of credit of $284 million taken in 2010, whose current balance amounts to $448 million,” the report states.
The document warns that unless corrective measures are undertaken, ASEM could lose ownership of the 149 acres of land where the Puerto Rico Medical Center is located and which serves as collateral for the aforementioned line of credit.
Among other recommendations, the comptroller urged Gov. Pedro Pierluisi Urrutia, the legislative leaders, and the director of the Office of Management and Budget to intervene to address the noted deficiencies and guarantee ASEM’s financial stability.
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