Audit Reveals Financial Irregularities in 73 Public Entities, Capredena Tops with $49 Billion Deficit

Original article: Contraloría reportó irregularidades financieras en 73 organismos públicos: Capredena de FF.AA. tiene récord con 49 mil millones

Audit Reveals Major Financial Irregularities in Public Sector: Capredena Leads with Over $49 Billion in Deficits

A consolidated report from the Comptroller General of the Republic, auditing the financial statements of public agencies from 2020 to 2024, uncovers massive financial disorder amounting to $15.9 trillion in observations. According to El Mostrador, the oversight body refrained from issuing an opinion on 73 institutions due to insufficient evidence backing their recorded operations, hindering a reasonable judgment.

The National Defense Pension Fund (Capredena) tops the list with the highest absolute financial discrepancy at $49,408,644,263. The specific audit of this institution, responsible for managing pensions of retired military personnel, also identifies it as the agency with the most contested resources in the Defense sector, exceeding $4.2 billion in questioned operations.

The report from El Mostrador details that irregularities within Capredena include accumulated debts from overpaid pensions, unregistered real estate, unpaid payments totaling over $18,121 million, lack of control over health center resources amounting to $5,222 million, and pending recoveries of $2,692 million. Additionally, it holds receivables totaling $13,763 million (2019-2023) and $9,608 million (1995-2018), the latter possibly being time-barred.

The conclusion from the Comptroller’s office is stark. The document, referenced by El Mostrador, states that these situations “prevent the assurance of the reliability of financial information presented by the audited entities, impact their strategic decisions and reputation, and demonstrate the risk of poor financial management, mistakes, or fraud.” This has led to disciplinary procedures, investigations, and reports to the Public Ministry.

When consulted about the investigation, Capredena indicated that it recently received detailed information from the Comptroller and has initiated a “thorough review—still ongoing—of the observations made and the measures that may have been adopted to rectify them,” before providing specific information on the matter.

The report consolidates a picture of severe mismanagement. Internal sources of the Comptroller’s office described the situation as “transversal,” warning that unverified accounts are the final link in a chain of internal inspections that failed to timely detect the extent of the financial fissures within the state.

See also report by Paulina De Allende-Salazar for El Mostrador