Comptroller: Tourism — possible Penal Code violations and ACH control failures ($804 million)

On June 10, 2014, the Office of the Comptroller published Audit Report CP-14-21 on the Puerto Rico Tourism Company (Unit 3155). Sixth report in that series; audited period July 1, 2007 through December 31, 2012. As to use of information systems for private purposes (Finding 1-a), the Comptroller opines those operations were not conducted in accordance with applicable law and regulation; the remaining operations covered by the report were substantially compliant except Findings 1-b through 4.

Finding 1: possible violations of the Constitution and the Penal Code by the Accounting Manager for using public property and funds for purposes outside public management — among other things, use of the assigned desktop computer and emails with attachments tied to private activity between January 2007 and December 2011. An audit finding ≠ formal charge or conviction in this note.

Findings 2 to 4: absence of written procedures and a user register, plus access-control deficiencies in the electronic payments system; unrecorded disbursements and other deficiencies in ACH transfers; deficiencies in ACH authorizations, including disbursements to hotels with casinos. The Office of Fiscal Affairs made 5,925 disbursements totaling $804,360,148 via ACH in the cited examination.

The Report includes a special comment on deficiencies in the Company’s accounting records. The Executive Director and Board Chair answered draft findings before the final write-up. The focus is internal control and possible violations — not a closed criminal judgment. This note sticks to the Comptroller’s official OpenDoc PDF without inventing amounts outside the audited report. Topic politics after mapping corruption. An ACH disbursement is not equivalent to theft. Primary: OpenDoc CP-14-21. Cousin: none.

Source: Oficina del Contralor de Puerto Rico. https://iapconsulta.ocpr.gov.pr/OpenDoc.aspx?id=aa6d65cd-0c32-4baf-8bf0-a4aedb2e1f00&nombre=CP-14-21