The fund of conflicts

Ecuadornews:

Forty months after the process of transferring to Biess began, of the administration of unemployment and retirement funds, the Teacher Unemployment Fund is the only one that faces various problems and there is still discontent due to its management in part of the participants.

In the last two weeks, the 84,000 participants of the largest fund of the 54 that between May 2015 and December 2016 passed under the control of the Bank of the Ecuadorian Institute of Social Security (Biess), saw on the one hand the dismissal of a group of workers and on the other the dismissal of manager Robert Andrade.

It was he who, last May, said that an audit conducted in 2017 had shown that there were more than 80 million dollars from the institution that did not fit; all this, he said, occurred in the previous administration that ended in May 2015. The case is in the hands of Justice.

But not only the Prosecutor’s Office investigates, but the General Comptroller of the State and the Superintendency of Banks are doing special examinations to the Teachers’ Fund that has assets over 400 million dollars, but also to the other 53, smaller, that are under the administration of the Biess, which since this week also has a new manager: Eva García Fabre.

This newspaper spoke with managers of a part of the provisional funds and almost all reported profits in recent years, ranging from the increase of participants, profit and, assets 

The Workers Fund of the Central South Electric Company is one of the few that, after moving to the IESS, have not grown. On the one hand because the contribution of 3% per participant per month was lowered to one dollar and, therefore, to lower income, the same investments cannot be made to obtain resources.

But what they have lowered are the administrative expenses in many of them because they were grouped and, therefore, there are managers for two and three funds at the same time, except for the Magisterium that does not share a manager.

The external legal advisor of three of these funds, Miguel Cordero Palacios, told EXPRESO that the great success of the Security Law Reform, which forced the change of administration, is that it prevented them from mixing so that each fund has its resources separately and its participants. “Nothing can be mixed,” he says.

Alexandra Neira, in addition to South Center, administers Provida and the Workers’ Fund of the Ministry of the Interior, of Morona Santiago.

David Zambrano, for his part, administers the two Workers and Teachers Funds of the Central University of Ecuador. In both cases, he says, there has been growth, so much that last year they distributed profits, in a fund of $ 850,000 and in the other of $ 1,200,000.

Attention. Last week, he attended clients and partners normally.

The same applies to the Workers’ Funds of the Municipality of Quito, the civil employees of the Armed Forces, Petroecuador, Petrocomercial, Petroamazonas.

Although not all, a large part have websites, in which each participant can consult their individual accounts.

All funds also make quarterly financial reports.

Although in some cases there were initial gaps, as in the workers of the University of Chimborazo, the accounts were clarified.

Johana Latorre, one of the managers, assures that the change of administration has been good, mainly because the administrative structure of each fund was maintained. In some cases, good administration has led to more growth in sharers than they expected and, therefore, also increased investments in the face of more resources.

In detail

Audits

All funds at this time are under audit by the Superintendency of Banks. According to their managers, all are required to provide periodic information to the entity. The results will be presented soon. In addition, each fund performs an internal audit and pays an external audit.

Exams

The Comptroller General of the State has not yet begun the audit examinations that it announced last month to the retirement and unemployment funds. According to their managers, they have not yet asked for information. On the one hand, it would audit if the transfer was legal and on the other, the financial management of the resources. (I)

Source: https://www.expreso.ec/actualidad/fondo-administracion-conflictos-iess-magisterio-GB2366228