IPS audit reveals massive irregularities and payments to deceased pensioners in Paraguay

The Comptroller General of Paraguay, Camilo Benítez, has presented a report to Congress detailing significant administrative and financial irregularities within the Instituto de Previsión Social (IPS). A primary finding involves the payment of more than 50,000 million Guaraníes in pensions to over 11,000 deceased individuals.

The audit also revealed a 45% discrepancy in pharmaceutical stocks, valued at over 600,000 million Guaraníes, suggesting medicines were either misrecorded or disappeared. Additionally, the report notes USD 25 million in expenditures related to judicial agreements used to bypass standard procurement laws for expired medication contracts. Benítez specifically pointed toward previous administrations, including that of former president Vicente Bataglia, noting that legal actions and search warrants were required to access certain information.

Financial concerns extend to a floating debt of approximately 1 trillion Guaraníes. Gladys González, Director of Government Control, warned that without intervention, the institution could face an operational collapse by 2046, leaving it unable to pay pensions. These findings arrive as legislators debate declaring the IPS in a state of emergency.