Fiscal Observatory detects overpricing in purchases of alcohol gel, stretchers and masks

State purchases have always been the subject of analysis, whether by how long it takes to pay suppliers or whether the chosen option is the most convenient considering the cost it means to the treasury. Considering the global health crisis scenario, this relationship was even more stressed.

For this reason, the Fiscal Observatory carried out an analysis of the behavior of purchases in the health sector, since under the crisis it was subjected to greater pressure to make purchases against time, which a priori, generates the possibility that prices have also undergone major changes.

The analysis, carried out by Sergio Lucero, a data scientist and researcher associated with the Observatory and coordinated by José Mora, a data analyst at the Observatory, focused on the price behavior of three categories of products: stretchers, alcohol gel and masks. These three products were chosen for their initial importance to face the pandemic.

In March they represented 2.6% of purchases in direct relation to the Covid-19 health crisis, rising to 13.2% in June.

In general terms, it was detected that of the total amount traded for these three products, $ 94,712 million, 44%, “was probably paid with a surcharge”, while there is a large amount of purchases that it was not possible to classify (53% ).

According to this formula, the total premium paid -excess spend- was $ 24,667 million between January and June 2020, equivalent to US $ 30.3 million. The above is broken down into $ 15,839 million in masks (US $ 19.5 million), $ 8,754 million in alcohol gel (US $ 10.8 million) and $ 74 million in stretchers.

Among the main buyers, the Central Nacional de Abastecimiento (Cenabast) stands out as the entity that acquired with a premium, as well as Recalcine, Ortopedic and AlBranding as the main suppliers.

As the main conclusion of this analysis, the need to have a homogeneous and standard record of the products and their details is highlighted, including the unit prices and the units in which they are purchased, since currently approximation techniques must be used, as applied in this analysis.

The data analyst of the Fiscal Observatory, José Mora, explains that “with the current data collected in the Public Market platform, it is very difficult to establish a cause of why overpricing occurs. However, given that the selected products (masks, alcohol gel and stretchers) correspond to basic necessities to face the health emergency, a large percentage of this surcharge is due to market action, which in the face of high demand and inflexible initial supply , generates a price hike ”.

On the other hand, it states that “through the study, we have corroborated the poor quality of the price and product data of the Public Market platform. This creates an opacity in which there could be inefficiencies or possible conflicts of interest that are very difficult to detect, and that could be affecting the price ”.

Mora also emphasizes that “it is important that progress is made in a national registry of final beneficiaries, with the aim of knowing who the owners of the companies are and quickly detecting possible conflicts of interest. Especially in contracts that have a lower level of control, and there is room for discretion in the decision, such as direct deals and framework agreements ”.