Despite the many irregularities in the reinsurance hired by the state companies Rocafuerte and Sucre, who were admitted last Saturday by the regime leader, Rafael Correa, the authorities have found more complaints about the lack of actual coverage.
When an institution is assured by Rocafuerte or Sucre, they should hire a international reinsurance to back them up if there is a mishap (fire, earthquake, structural damage, etc..).
The Management Transparency Secretariat is in charge of this issue, its current owner, Diego Guzman, said there are suspicions about the fate of transfers (public funds) to certain reinsurers, as the case CELEC where Rocafuerte and Sucre were guaranteed 100% to Hidropaute and Hidroagoyan, but despite the payment of CELEC they actually were not fully covered.
Regarding this, the current insurance manager of Sucre, Gene Alcivar puts his predecessor Maximiliano Donoso as responsible. In July this year the CELEC, in the absence of guarantees of Sucre, was changed to Rocafuerte. A few weeks later there arose a new irregularity Rocafuerte had secured only 54%. The CELEC manager, Eduardo Barredo said that if the company suffered damage worth $ 100 million, Rocafuerte could only repay $ 54 million. The rest had no backup.
Given these irregularities the Superintendency of Banks (SBS) discovered forged documents of a foreign reinsurer therefore removed last August the Rocafuerte president, Paul Reyes.
During his usual Saturday broadcast, the regime leader said that among the anomalies discovered is the payment to national insurance intermediaries who are simultaneously responsible for contacting the foreign reinsurers. He added that the allegations are already in the Prosecution and the Comptroller, it is believed that there was a diversion of funds.