CPI: the scheme to sell COVID-19 tests

On May 28, 2020, the Centro de Periodismo Investigativo (CPI) documented a repeated pattern in purchases of COVID-19 rapid tests: a local front with ties to the New Progressive Party, local and foreign intermediaries, and the Government paying without going direct to the manufacturer. Three of the main transactions — Castro Business, Apex General Contractors and 313 LLC — failed; only one was canceled. In all, more than $40 million in public funds moved under the emergency that relaxed procurement.

According to the CPI, the Government acquired more than 1.1 million rapid tests from those three suppliers (under House and local and federal authority probes). A fourth, Maitland 175, delivered 200,000 tests to Health — the only antibody tests the Government was able to use in hospitals. Of the 1.1 million bought from the first three, little more than 10,000 finally reached health centers for patients. More than 100,000 tests were held by U.S. authorities, delaying deliveries.

At Apex, Juan Maldonado de Jesús offered one million tests for $38 million via the Emergency Management Bureau (NMEAD); intermediaries expected about $10 million in profit. Hacienda deposited $14.5 million as an advance on March 27; the CPI also reports a transfer of about $19 million stopped at a local bank before the Government canceled and recovered funds. Castro Business sold 50,000 tests at $13 each ($650,000); it delivered a quarter (later withdrawn from the market) and the rest arrived late and of another brand. 313 LLC is litigating to force Health to receive nearly 50,000 late tests; the Government demands renegotiating the price.

The scheme, the CPI says, runs through the medical Task force (Dr. Segundo Rodríguez Quilichini), Fortaleza links and emergency-procurement supervisors. A legislative probe or order cancellation is not a conviction: this note does not adjudicate criminal guilt.

An advance payment is not adjudicated theft. Canceling and recovering a deposit does not, by itself, close the rest of the failed orders.