Uruguay Prosecutor Closes Case on Party Funds but Cites Accounting Flaws

Uruguayan prosecutor Gilberto Rodríguez has archived an investigation into Senator Óscar Andrade and Deputy Daniel Diveriot of the Communist Party, who were accused of misusing funds from the Construction Workers' Housing Fund (FOSVOC) for electoral campaigns. The prosecutor stated that audits could not establish transactional links between the Communist Party, the National Union of Construction and Allied Workers (Sunca), and FOSVOC.

Furthermore, the National Secretariat for the Fight Against Money Laundering and Terrorism Financing (Senaclaft) found no evidence that individuals suspected of obtaining FOSVOC funds engaged in illicit operations for other organizations. While Senaclaft confirmed the Communist Party received undocumented income, it found no clear indications of illegality. The prosecutor's report concluded that it was not possible to determine fund diversions between the mentioned institutions.

However, the investigation did reveal significant accounting challenges within the Communist Party. The prosecutor noted that the party's lack of legal status and insufficient documentation hindered a thorough analysis of its finances. The handling of a large volume of cash transactions, both income and expenses, presented a major obstacle to determining the traceability, origin, and specific destination of the funds.

This lack of sufficient accounting records made it impossible to reconcile bank movements with the party's financial registers, as they did not adhere to uniform and reliable accounting criteria. The FOSVOC itself, established in 1967, provides housing benefits to construction sector workers through non-reimbursable aid and loans. The case originated from a complaint filed in December 2024 after unauthorized transfers to private accounts were discovered during a financial manager's leave.