Comptroller: AAA paid illegal severance and bonus to former presidents (CP-11-05)

On April 12, 2011, the Office of the Comptroller published Audit Report CP-11-05 on the Aqueduct and Sewer Authority (Unit 3020). It is the last in a series of reports from that audit (period Apr 1, 2004–Dec 31, 2007, with later transactions). It contains the partial result of illegally issued payments for a dismissal compensation and a bonus to former AAA presidents, plus payroll deficiencies. Audit finding ≠ charge or conviction.

Finding 1: payment of a dismissal compensation to the then Executive President contrary to law and sound administration norms. The Board authorized a dismissal disbursement of $350,000; on November 6, 2008, via Check No. 2269, the Authority paid $217,327 net (principal $350,000 minus Medicare, Social Security and tax deductions). The Comptroller classifies the payment as ultra vires.

Finding 2: authorization and payment of an illegal bonus to another former Executive President, equal to six months’ salary; a payment of $63,261 is documented and recovery of $70,000 paid as final compensation at resignation is recommended. Finding 3: deficiencies in appointing four regional executive directors (payments that may be considered improper due to illegality of the appointment).

The Comptroller ordered recoveries and review of Board acts. Improper disbursement ≠ “theft” in a criminal sense in this note. Primary: OpenDoc CP-11-05. This note sticks to the official PDF; it invents neither official names nor amounts outside the report. Topic politics. Cousin: none.

Source: Oficina del Contralor de Puerto Rico. https://iapconsulta.ocpr.gov.pr/OpenDoc.aspx?id=f2f68a1b-85b7-4de0-9e8a-5d835005147d&nombre=CP-11-05