SAN JUAN – In the twelfth Transition Hearing of the Municipality of San Juan, it transpired that the outgoing administration did not opt for the payment of pressing debts such as the retirement of the San Juan pensioners, it was reported this Monday.
Instead, the excess received in Special Additional Contribution (CAE) funds was used to pay debts to private banks. The debts paid with the CAE funds could be refinanced until 2038. The Municipality had budgeted $ 56 million for the Pay As You Go payment, but at the moment it does not have a reserve to issue the payment.
“This is a major administrative failure. The most prudent thing should be to protect the services offered by the Municipality and ensure payment to pensioners. Instead, the Municipality used 93 million dollars to pay the banks. It is about priorities and good administration of resources, something that has definitely not been present in the outgoing administration, ”said the president of the Outgoing Committee, the former controller and CPA, Manuel Díaz Saldaña in a written communication.
The president added that “we are in a year that due to the pandemic, there is a great unknown to establish the collections. This is reason enough not to drop a single penny for debt payments. It is a matter of logic and making good use of existing funds ”.
It was also said that the Municipality lacks a Fiscal Plan and according to the income estimate – which does not have an economic analysis – the municipal income is well below the estimate. Furthermore, for the current fiscal year, the Municipality does not have a budget reserve.
It transpired that the Municipality of San Juan has to pay around 1.2 million dollars for liquidations to trusted employees. This amount does not include the payment of liquidations of the mayor or 20 employees of the Municipal Legislature.