translated from Spanish: How did the ISSSTE bankrupt?

The Institute of security and social services of the workers of the State (ISSSTE) has a liability of almost 19 billion pesos, caused by a neglect of previous Governments who left give resources and dismantled it, said the director of Administration and Finance of that body, Pedro Zenteno Santaella.
Because of this financial crisis, the ISSSTE is in bankruptcy and can only guarantee their operation until next July, warned the official to appear on April 22 before the Health Commission of the Senate.
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Zenteno said that “neo-liberal” Governments of the latest federal administrations led to the Institute to a financial bankruptcy, what remains in evidence to review the liabilities of the past six years: from 2012 to 2017 maintained an average of six billion of weights, and 2018 amounted to almost 19 billion.
“He left to pay, give resources to the Institute; I do not think bad, if it has been by the election year”, said the official.

He added that much (without specifying how much) of that liability was generated without having budget failure, which would mean that the authorities responsible for the Institute in past administrations committed against property damage; He said that “at the time” will be announced the names of those responsible and shall proceed in accordance with the law.
“There can be no impunity. The ISSSTE is no-man’s-land (…) dismantled the institution, until the anesthesia cart is subrogated. The reality exceeds fiction in the ISSSTE”, said the official.
Red flags
Director of regulation, administration, and finances of the ISSSTE explained the causes from “financial collapse” in which it is located, starting with discretion in purchases.
“We have the problem of the delegations, which, under cover of the management autonomy, free made many purchases and there is probably very important sources of corruption,” he said, and admitted that in the current administration there is no evidence that these practices have been completed.
He pointed out that the Institute has been a political loot for groups who “gave them is” candidates who lost an election to Governor or Deputy, and pledged to generate, in the new Government, you need to place administrative order and deliver results.
“I hope that in October we meet again we can do them an approach very clear how he has progressed, but I reiterate the bankruptcy of the Institute, we are not magicians”, said.
Another cause which the official said was the contract the ISSSTE signed with the SILODISA supplier, providing you services of distribution of medicines and material healing, with entry into force June 6, 2017, to June 5, 2020, in the amount of three thousand 331 thousand lones. This company, he said, costing the Institute 13 thousand 370 million pesos a year, being a service that the institution could carry out on its own.
“We must remember that we have the ISSSTE has no supply chain, warehouses, were dismantled which led to the hiring of this company, was subrogated or privatized. We talked with the director general of the need to recover the chain of storage and distribution of the Institute, we have substantial savings,”he said.
Another affectation to the Institute is that 200 works are open and in process of settlement, which not is has successfully completed by irregularities in the construction process, “by corruption of the companies”.
Also affects it that procurement is decentralized to discretion in purchases which resulted, and many of them make surcharge, as in the Hospital on November 20, where assured that you purchase a two thousand fungicide antibiotic 640 pesos, When in the central area is acquired in 208 pesos: 1,168% more expensive. “We need control, centralize, tidying,” he reiterated.
He added that there are outstanding payments in the personnel branch; debts by vouchers for end of the year, by the savings fund civilian personnel and proportional parts of Christmas by more than a thousand 600 million pesos. Labor liabilities, meanwhile, amounts to four thousand 635 million pesos, which the ISSSTE have 17 thousand 488 labour trials underway, “who put the Institute in a very serious situation from the budgetary point of view”, said.
IMSS and PEMEX also reported abandonment
In the appearance before legislators were also attended by representatives of the Mexican Social Security Institute (IMSS) and Petroleos Mexicanos (Pemex), while the oil company has its own health service for their workers. Flavio Cienfuegos, director of administration of the IMSS, reported that between 2013 and 2019 (the administration of the former President Enrique Peña) almost 70% of purchases of drugs was only five suppliers, amounting to 150 billion pesos.
He added that some purchases, such as latex gloves, there is overexpenditure of 174 million pesos, which would have been sufficient to pay 425 General nurses or the income of 418 additional ambulances in one year.
In addition, the official said that 114 suppliers awarded the IMSS, 96 have had some non-compliance, with an amount that exceeds the 400 billion pesos.
At the time, Roberto Lehmann, Deputy Director of health services of Pemex, said that his Administration receives a health sector where the maintenance “does not exist”, with hospitals that have not received maintenance for four or six years, on the grounds of that there are no resources to do so.
He agreed that another big problem in public health institutions is the overexpenditure on purchases, which in Pemex becomes 10 or 15 times the actual cost; and said that the State oil company has a debt of a thousand 100 million pesos in surrogacy contracts.
“We have obsolete equipment which do not give adequate function. The poor planning that gave us medical service has no budget allocated for renovation of technology, therefore we can redirect resources. Lack of human material, doctors with years doing commissions without basis. “Don’t ask me why but thats what I got”, said Lehmann Mendoza.
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Original source in Spanish

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