Dominican Govt. agency overseers find 90% cost overrun
Santo Domingo.- The Oversight Committee of the State Works Supervisory Engineers Office (OISOE) on Monday said construction cost on some schools have skyrocketed 90% above budget, in violation of the law.
In a letter sent July 14 to Presidency chief of staff Gustavo Montalvo quoted by elcaribe.com.do, committee members said the irregularities in some schools are as high as 90% over budget.
They said the school at the Savica sector of the capital was budgeted at RD$54.5 million but has cost RD$99.6 million thus far, or RD$45.1 million more, for a 82.83% jump.
"We understand that the process used to allocate the construction of schools does not guarantee transparency in the process of construction. We suggest the lottery process to strengthen and serve to select a short list that will compete by presenting a budget that requires them to work according to what they have committed to do the same," the overseers warn.
Delayed information
In the letter, observers Radham?s Mej?a, Jes?s Moreno, Mariluz Arias, Addys Then and Daniel ?scar also complained of delays to hand over requested information on the current status of constructions.
i posted, some time back, that the push to build all these schools by the Medina administration had a nice, cheery countenance, but it was just a cash cow for the kleptocratic elements which form the government. well, here you have it. 90% cost overruns, in certain cases.
so, the arithmetic is simple. when you spend all the money on fixed capital expenditure, there will be nothing left for recurrent expenditure, namely paying teachers of any meaningful quality.
there are several working papers which state, with cross country studies, that the more corrupt a government is, the more it spends on fixed capital projects. here you have some proof.
Santo Domingo.- The Oversight Committee of the State Works Supervisory Engineers Office (OISOE) on Monday said construction cost on some schools have skyrocketed 90% above budget, in violation of the law.
In a letter sent July 14 to Presidency chief of staff Gustavo Montalvo quoted by elcaribe.com.do, committee members said the irregularities in some schools are as high as 90% over budget.
They said the school at the Savica sector of the capital was budgeted at RD$54.5 million but has cost RD$99.6 million thus far, or RD$45.1 million more, for a 82.83% jump.
"We understand that the process used to allocate the construction of schools does not guarantee transparency in the process of construction. We suggest the lottery process to strengthen and serve to select a short list that will compete by presenting a budget that requires them to work according to what they have committed to do the same," the overseers warn.
Delayed information
In the letter, observers Radham?s Mej?a, Jes?s Moreno, Mariluz Arias, Addys Then and Daniel ?scar also complained of delays to hand over requested information on the current status of constructions.
i posted, some time back, that the push to build all these schools by the Medina administration had a nice, cheery countenance, but it was just a cash cow for the kleptocratic elements which form the government. well, here you have it. 90% cost overruns, in certain cases.
so, the arithmetic is simple. when you spend all the money on fixed capital expenditure, there will be nothing left for recurrent expenditure, namely paying teachers of any meaningful quality.
there are several working papers which state, with cross country studies, that the more corrupt a government is, the more it spends on fixed capital projects. here you have some proof.