An IESS full of dependants

Ecuadornews:

The second president in charge of the Directory of the Ecuadorian Institute of Social Security (IESS) during the nine months of the Government of President Lenin Moreno. Wilson Rodas, who replaces Richard Espinosa in office, yesterday assumed the leadership of the institution over which there are claims regarding financial and administrative management. The official was owned by the Superintendent of Banks, Cristhian Cruz.

Transparency.

1. One of the pending is the lack of transparency that has existed in terms of the accounts managed by social security for the execution of its different benefits. In this regard, different sectors have made several observations. Last Thursday, social organizations sued before the Constitutional Court for the unconstitutionality of the ruling in force since 2016, by means of which the Superintendency of Banks declared the actuarial reports of the IESS as reserved. Organizations are concerned about the sustainability of the institution, taking into account that actuarial studies allow to know if the income that the IESS has will reach to cancel the future obligations of the entity.

Investments.

2.Other aspects that are pending and that will be part of the obligations of the new director is to make known how the investments made by the institution are, as well as the Bank of the Ecuadorian Social Security Institute (Biess). There is concern that several of these investments have been made in works carried out by the previous Government. In addition, it was invested in the purchase of government bonds. Last year the IESS made investments for an amount of 644’356,835 dollars, and for this year it is planned to invest 624’266,183 dollars. It is required that the “IESS stop being the petty cash of the governments of the day”.

Bank of the IESS. 

3. The bank has also made several investments. According to the authorities of the institution, the objective was to give performance to the money of the affiliates. However, there are questions to these decisions.

An example of this is the investment in the Toachi-Pilatón hydroelectric project, where the Biess invested 250 million dollars. The work has been paralyzed since 2015. In addition, the Biess is in charge of 78 trusts of strategic, industrial, real estate, health, and construction projects, among others. According to the Civic Anti-Corruption Commission, there would be investments for more than 1,600 million dollars whose performance is not yet known.

State Debt 

4. Up to now it is a ‘mystery’ which is the total amount owed by the State to the IESS. One of the figures that were known was cause for the Comptroller to request the dismissal of the former president of the Board, Richard Espinosa, and 17 other officials of the institution, who participated in an “adjustment of the accounting entries of the IESS”, which left zero a debt to be charged to the Government that amounted to 2.507 million dollars of contributions to the health fund. Its restitution was ordered plus the generated interest, which surpassed the 3,000 million dollars.

However, until now it is not known if they have already been restored. In this regard, the Finance Minister, Carlos de la Torre, objected to the Comptroller’s report on the existence of such debt. It is not known if the money has already been returned.

Hospitals 

5. Several retired, social and professional organizations request a complete audit of the investment that has been made by the IESS for

the construction of hospitals and health centers of the Social Security.

There are reports of overpricing in construction and poor management of resources. In addition, it was claimed that the former president of the Board, Richard Espinosa, has traveled abroad to ask for loans to complete the works. Between 2015 and 2016, 14 new IESS health buildings were built. At the beginning of this year, the Insurance hospital was delivered in the south of Quito. (I)

Source: http://www.expreso.ec/actualidad/iess-presupuesto-pendientes-transparencia-auditoria-XK2048770