Comptroller CP-07-12: AFICA / José Miguel Agrelot Coliseum — bidding and contracts

On February 22, 2007, the Office of the Comptroller published Audit Report CP-07-12 on the Authority for the Financing of Industrial, Tourist, Educational, Medical and Environmental Control Facilities (AFICA) regarding the José Miguel Agrelot Puerto Rico Coliseum (Unit 3086). It is the first report in that series on administrative controls for bidding and construction contracts (audit period July 1989–June 2006). Audit finding ≠ indictment or conviction.

The Comptroller issued an opinion that the examined bidding process and the formalization/administration of construction contracts were not conducted in accordance with applicable law and regulations; it classified findings 1 through 4 as major. On July 16, 1998 AFICA formalized Contract No. 99AFICA001 for $122,308,998 with a construction consortium. The BGF credit line (orig. AEP June 1996 for $100 million, transferred to AFICA Oct 1998, with increases of $65 million in 1998 and 2001) reached $230 million; the Legislative Assembly contributed an additional $82 million. As of April 25, 2006, $219,967,769 had been disbursed for construction.

Finding 1: deficiencies in holding, evaluating and awarding the bid (AEP began Feb 1998; two proposals, ~$120.5 million and ~$139.7 million; AFICA awarded to the Consortium) and absence of process regulations. Finding 2: change orders not filed with the Comptroller, not recorded or approved by AFICA’s Board, plus late certifications. Findings 3–4: missing clauses/information in the contract and absence of insurance policies. Examination of other Coliseum matters continued.

Construction disbursement ≠ adjudicated theft. Adverse opinion / finding ≠ conviction. Primary: OCPR CP-07-12 (2007-02-22).

Source: Oficina del Contralor de Puerto Rico. https://iapconsulta.ocpr.gov.pr/OpenDoc.aspx?id=cca91d9e-b6e8-4e21-ae2d-3be289b464c7&nombre=CP-07-12