Comptroller: Guaynabo Awarded $7 Million in Contracts Without Bidding and Left $2.8 Million Unbonded

The Puerto Rico Comptroller's Office published audit report OC-27-14 on August 6, 2026, revealing that the Municipality of Guaynabo awarded approximately $7,035,757 in construction work and improvements without conducting the public auctions required by law ¹. The report, covering the period from January 1, 2021 through June 30, 2024, identifies five major findings and three special comments under the administrations of former mayor Angel Perez Otero and current mayor Edward O'Neill Rosa.

Comptroller Carmen Vega Fournier issued a qualified opinion on the municipality's fiscal operations, meaning the irregularities found are significant enough to affect the reliability of its financial statements ¹.

The major findings

The most serious finding involves the $7,035,757 in construction contracts awarded without going through the public bidding process required by the Municipal Code and Bidding Regulations ¹. Amendments to existing contracts exceeded legal limits without Bidding Board approval.

Additionally, the audit identified $458,709 in excessive payments stemming from retroactive contract amendments and professional service agreements lacking proper documentation ¹. In another case, the municipality allowed a bidder to withdraw their offer after a public auction, resulting in $369,425 in additional costs and $27,006 in uncollected claims ².

Calculation errors in construction billing totaled $144,570 in overpayments ¹. Perhaps most alarming, contract amendments were executed without obtaining required performance bonds, leaving $2,856,918 in contract value completely unprotected for the municipal treasury ¹.

Special comments: suspended engineer and oversight failures

The report also includes three special comments. The municipality contracted professional inspection services through a corporation whose principal engineer had held a suspended license since 2015 ¹. In other words, for nearly a decade, a disqualified professional was overseeing construction projects paid for with public funds.

Mayor O'Neill's response

Mayor Edward O'Neill Rosa responded by attributing the irregularities to the previous administration of convicted former mayor Angel Perez Otero. "These findings are not products of practices established by our administration," O'Neill stated ³. As evidence of corrective action, the municipality points to two lawsuits filed to recover improper payments, adoption of new procurement regulations, and referrals to the appropriate authorities ³.

What this means for you

If you live in Guaynabo, this audit reveals that millions of your municipal tax dollars were spent without basic transparency controls. The $7 million in contracts without bidding means there was no price competition -- you potentially paid more than necessary for public works projects. The $2.8 million without performance bonds means that if a contractor abandons a project or does it poorly, the municipality has no financial backing to complete or correct it. And an inspection engineer with a license suspended since 2015 raises questions about the quality and safety of the projects he supposedly oversaw.

How to take action / Checklist

1. Read the full report OC-27-14 on the Comptroller's Office website (ocpr.gov.pr) to learn all the details.
2. Attend Guaynabo municipal legislature sessions and ask about the corrective action plan and the status of lawsuits to recover funds.
3. Check whether construction projects in your community were part of the flagged contracts -- you can request information under the Transparency Act.
4. Report any irregularities to the Comptroller's Office through their online complaint portal or by calling (787) 754-3030.
5. Demand that your municipal legislator reactivate the audit commission and publish periodic follow-up reports.

What comes next

The Comptroller may conduct follow-up audits to verify that corrections are implemented. Meanwhile, the municipality's lawsuits to recover improper payments will continue through the courts. It remains to be seen whether the state Legislature intervenes with public hearings on the case.

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Sources ¹ Puerto Rico Comptroller's Office, Audit Report OC-27-14, Municipality of Guaynabo (August 6, 2026) ² NotiCel, "Guaynabo otorgo $7 millones en contratos sin subasta, dice la Contralora" (August 7, 2026) ³ NotiCel, "Edward O'Neill achaca al convicto Angel Perez irregularidades detectadas por la Contralora" (August 7, 2026)