Government Agency Faces Scrutiny Over UNOPS Project Management
Audit raises concerns about procurement and oversight of Proeri projects totaling $18 million.
The General Comptroller of the Republic has released a report indicating significant concerns regarding the management and supervision of various projects under the Emergency Risk Program (Proeri).
The audit revealed that the choice of the United Nations Office for Project Services (UNOPS) was made without a comprehensive market study to evaluate national or international alternatives that could provide equivalent services.
The report notes that both the National Emergency Commission (CNE) and the executing agencies focused solely on contracting directly with the international organization, thereby omitting a competitive selection process.
The audit highlighted deficiencies in the analysis of cost justification associated with the contract price.
The price comparisons were based on five out of seven cases using historical costs from UNOPS’s previous projects, lacking evidence of consideration for other comparable alternatives.
The total investment allocated for UNOPS's services amounts to $18 million, of which $9 million has already been disbursed.
According to the Comptroller's findings, the process deviated from established regulations that mandated the hiring of two distinct companies: one for overall implementation and another for specific project tasks, both of which should be independent.
Instead, all technical assistance services were contracted to a single body, UNOPS, which also pulled together the so-called 'Implementation Firms' for the Proeri projects.
The five agreements signed for technical assistance were directed at the same organization to fulfill roles designated for multiple implementing firms, which compromises the internal control system of the program.
The loan contract numbered 2317 specified that executing entities must operate independently.
Juan José Monge, director of the CNE, noted that the role of the implementation firms involves providing support and guidance to the involved institutions on procedural matters.
However, the Comptroller's report raised alarm over inadequate controls in the contracting process and the delineation of duties, with the contracted organizations undertaking tasks contrary to the legal framework under which the Proeri financing operates.
In its responses, the CNE clarified that the law delineates execution responsibilities among participating institutions and that the designated 'General Implementing Firm' is limited in its authority regarding administrative-financial management and contractual oversight, primarily due to resource management by the CNE.
The report expressed concerns that this arrangement could undermine objectivity and independence in the functioning of the firms tasked with implementation.
UNOPS itself noted prior to its engagement that assuming the role of a general implementation firm might not be appropriate, given that it should also control and take responsibility for specific implementations across various executing entities.
The Emergency Risk Program is funded by a $700 million credit from the Central American Bank for Economic Integration (BCIE) and encompasses 502 public works projects in urgent need of intervention, many of which were previously affected by natural disasters, including Tropical Storm Bonnie in 2017, the Intertropical Convergence Zone in the Pacific, and Hurricane Julia in 2022. The program includes rehabilitation of bridges, stabilization of slopes on mountainous roads, as well as the reconstruction of educational centers, housing, and railway infrastructure.
The audit revealed that the choice of the United Nations Office for Project Services (UNOPS) was made without a comprehensive market study to evaluate national or international alternatives that could provide equivalent services.
The report notes that both the National Emergency Commission (CNE) and the executing agencies focused solely on contracting directly with the international organization, thereby omitting a competitive selection process.
The audit highlighted deficiencies in the analysis of cost justification associated with the contract price.
The price comparisons were based on five out of seven cases using historical costs from UNOPS’s previous projects, lacking evidence of consideration for other comparable alternatives.
The total investment allocated for UNOPS's services amounts to $18 million, of which $9 million has already been disbursed.
According to the Comptroller's findings, the process deviated from established regulations that mandated the hiring of two distinct companies: one for overall implementation and another for specific project tasks, both of which should be independent.
Instead, all technical assistance services were contracted to a single body, UNOPS, which also pulled together the so-called 'Implementation Firms' for the Proeri projects.
The five agreements signed for technical assistance were directed at the same organization to fulfill roles designated for multiple implementing firms, which compromises the internal control system of the program.
The loan contract numbered 2317 specified that executing entities must operate independently.
Juan José Monge, director of the CNE, noted that the role of the implementation firms involves providing support and guidance to the involved institutions on procedural matters.
However, the Comptroller's report raised alarm over inadequate controls in the contracting process and the delineation of duties, with the contracted organizations undertaking tasks contrary to the legal framework under which the Proeri financing operates.
In its responses, the CNE clarified that the law delineates execution responsibilities among participating institutions and that the designated 'General Implementing Firm' is limited in its authority regarding administrative-financial management and contractual oversight, primarily due to resource management by the CNE.
The report expressed concerns that this arrangement could undermine objectivity and independence in the functioning of the firms tasked with implementation.
UNOPS itself noted prior to its engagement that assuming the role of a general implementation firm might not be appropriate, given that it should also control and take responsibility for specific implementations across various executing entities.
The Emergency Risk Program is funded by a $700 million credit from the Central American Bank for Economic Integration (BCIE) and encompasses 502 public works projects in urgent need of intervention, many of which were previously affected by natural disasters, including Tropical Storm Bonnie in 2017, the Intertropical Convergence Zone in the Pacific, and Hurricane Julia in 2022. The program includes rehabilitation of bridges, stabilization of slopes on mountainous roads, as well as the reconstruction of educational centers, housing, and railway infrastructure.
