Former IPS president testifies, denies irregularities in hospital trust fund contract

Benigno López, former president of the Social Security Institute (IPS), has testified before prosecutors as part of an investigation into alleged irregularities in a trust fund contract for hospital construction.

The investigation, launched in 2024 following a complaint, centers on a contract signed in 2017 between IPS and Banco Atlas. López, the first former IPS president to be summoned as a witness, stated that the contract was signed after studies indicated a trust fund was the most favorable method for obtaining funds for hospital construction. He asserted that the contract met the required conditions and expectations.

Initially, the trust fund was intended for the construction of four major hospitals, including the IPS Oncology Hospital. However, the scope expanded to include "Point 5," which involved the construction of additional health centers and improvements to the Hospital 12 de Junio. This expansion reportedly received the largest portion of the funds.

While the complaint alleged irregularities and harm related to "Point 5," López maintained that the funds were invested in IPS assets, including infrastructure improvements. Prosecutor Néstor Coronel noted that it is premature to discuss damages, as capital was also injected into the institution's infrastructure. The trust fund, signed during López's tenure, saw its funds utilized by subsequent IPS presidents.

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It is very premature to talk about damages because capital was also injected into the institution's infrastructure.