Guatemala 'Paid Too Much' For Fuego Volcano Emergency Supplies

The opposition party Encounter for Guatemala (EG) has accused the Guatemalan government of buying emergency supplies for victims of the Fuego Volcano eruption at inflated prices.

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Nineth Montenegro, head of EG, presented a report on Thursday regarding the government's budget and concluded the purchased material was overpriced by US$320,111 (2.4 million Quetzals).

The data is available to the public at government website guatecompras.gt, which details the 364 purchase orders placed up to July 12 and amounting to US$91,565,095 (Q$686.5 million).

The audit shows that the Social Development Fund, run by the Social Development Ministry, ordered 22 purchases for over US$4,801,666 (Q36 million), none of which followed normal procedures.

"There's only an approval of the offer, a document or procedure that doesn't exist in the Law of Contracts," said Montenegro, who urged the accountability office to conduct a proper investigation.

Montenegro highlighted the lack of transparency and pointed out the possible "overvalue" of materials bought during the emergency.

The report compares acquisition prices with those recommended by the country's construction chambers. It also shows the difference is even bigger when comparing the prices paid with those of local retailers.

The Communications Ministry, in charge of roads, housing and infrastructure, has the highest assigned budget but is still missing US$34 million (Q255.4 million). The Health Ministry, meanwhile, doesn't have yet any assigned budget as part of the emergency plan.

On Monday, the executive branch opted to suspend any purchases without tender in order to avoid future legal controversies: the 'state of calamity' was never approved by Congress, due to lack of quorum.

Ministries can still make emergency purchases, but only "at their own risk," said Finance Minister Julio Hector Estrada.

In early July, Guatemala's accountability office announced it had detected at least 10 purchases that were cause for concern.

Guatemala's President Jimmy Morales promised the government would "do everything with full transparency, so everything is done with the best quality" and asked people to "dismiss rumors." "Let's pay attention to the existing needs," Morales said.