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Shameless Corruption and Impunity in INPREUNAH

INPREUNAH is on of the living examples of how poor administration can endanger the sustainability of institutions of vital importance for the citizenry.

INPREUNA, the social retirement system for the University, counts 3000 employees as members, members whose retirement funds have been endangered by bad administration.

At least three major cases of corruption have been documented by the current authorities of the institution, who have been determined in the recuperation of part of the funds, and who have begun pursuing legal action in the corruption cases.

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"In legal language we speak of capital at risk and recoverable funds. The capital at risk is when we have become involved in value that has been contracted and, in consequence, if INPREUNAH does not act, the value could be demanded of us," explained the manager, Warren Valdemar Ochoa (pictured right).

This institute is working with an current deficit of more than 500 million lempiras, and Ochoa says they have reduced the deficit in 2002 by more than 60 million lempiras. "This reduction in the deficit is due in part to the growth of liquid investments, to the construction of liquid reserves," and furthermore, "many university employees eligible for retirement have not retired, and this diminished the institution's obligations. But to do so by the sacrifice of people's rights is not a sane or right way to do it."

In addition to this huge deficit, INPREUNAH also suffers the financial damage of the unpaid debt and interest from the University for more than 200 million lempiras worth of employer contribution that were never paid.

The Merendon Project, San Pedro Sula

The Merendon Project is a housing project that was supposed to be executed in 2000 in San Pedro Sula (a city in the north of Honduras).

The execution of this project was assigned, without heed for the legal contracting requirements and without authorization from the Board of Directors of INPREUNAH, to the National Engineers company. The National Engineers, despite evidence of financial irregularity, received a budget of 14.5 million lempiras between March and May of 2001.

Another 7 million lempiras was offered as reimbursement "for materials that never appeared in any workshop," reported the "Social Retirement" magazine, edited by INPREUNAH, in August of 2002.

The total cost of the work, which never progressed beyond breaking ground, cost 40 million lempiras.

"We demand to be released from this contract and we expect National Engineers to pay the damages caused to INPREUNAH because of this contract," explained Ochoa.

"Our demands are for the total capital at risk, for release from the contract obligations and for repayment of all that we gave them," he added.

Currently, the capital at risk in INPREUNAH is over 145 million lempiras "due to irregular decisons made by the previous administration," actions that have been "totally investigated and proved by the monitoring agencies of the State."

"We hope, given that we believe we have sufficient proof of the damage suffered by INPREUNAH and of the irregular contracts they signed, to recover not less than 70 million lempiras," said Ochoa.

Case against Capital Insurance


Ochoa has also started legal proceedings against the company Capital Insurance (a subsidiary of National Engineers) for the restitution of more than 18 million lempiras for insurance premiums that were overpaid by more than 2.8 million lempiras plus the payment of life insurance and personal injury claims that were rejected without administrative or legal justification.

INPREUNAH is also denouncing other irregularities:
· 1) The varying application of interest rates resulting from alterations in the renewal processes for policies of life insurance and personal injury insurance between 1998 and 1999.
· 2) Changes in the lists of one group the insured from 3,954 to 10,479. INPREUNAH authorities say they have never had a number of employees similar to that number.
· 3) Payment in excess of 20 million lempiras for insurance premiums.
· 4) Violation of the rules of eligibility for insurance plans established by INPREUNAH and the contracting of people who should not have been permitted to participate in the system.

Demand for the Surrender of Bills

There is judicial action against the company Office Solutions and Equipment (ESO) to demand the surrender of bills for 5.5 million lempiras for the maintenance of 60 photocopy machines in the university.

The demand requests explanation for the destination of 39,000 reams of paper, worth 1.7 million lempiras. The demand also lists in question one million lempiras worth of supplies, 2.4 million lempiras in rented office equipment and 10.6 million lempiras for which there is no official report.

Denouncement to the Public Ministry

In addition to pursuing legal action, the current INPREUNAH administration says it has denounced those responsible for the anomalies to the Public Ministry, and they express the hope that these accusations, once documented by the Public Prosecutor, will be included in legal proceedings against these individuals.

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