IPS ex-council member denies responsibility for multi-million dollar construction failure

Former council member Carlos Pereira has denied any responsibility for a significant financial loss incurred by the Institute of Social Security (IPS) due to the failed construction of operating rooms at its Central Hospital. The alleged financial damage amounts to 61 billion guaraníes (approximately $9.6 million USD).

Prosecutors have indicted two former presidents of IPS, Vicente Battaglia and Jorge Brítez, along with several other former managers and directors. They are accused of authorizing irregular contract addendums with the construction company Neighpart S.A. These addendums allegedly allowed the firm to continue billing for work that could not be completed. The initial plan was to build operating rooms on the seventh floor, but a structural assessment found the building unable to support the required equipment.

“

At the same time, I requested a forensic audit, aimed at collecting legally and financially valid evidence that could form part of the criminal investigation.

In response to the accusations, Pereira stated that Brítez's administration initiated the criminal complaint. Pereira himself requested an internal inquiry into the contract's operational procedures, a request that was reportedly shelved by the administration. He also sought a forensic audit to gather legally and financially valid evidence for the criminal investigation.

The project was eventually moved to the ground floor, necessitating further contract amendments, new timelines, and payment plans for Neighpart. Pereira argued that continuing with the contract, despite the issues, was the most "healthy" option at the time.

“

Continuing with the contract was the most 'healthy' option.