Last Friday the ex Director of Montevideo’s municipal casinos and two advisers were notified of the completion of an administrative investigation and given 10 working days to present their rebuttals before a decision would be taken on whether to prosecute or archive the investigation. The casinos have lost over US$15 million dollars in 5 years but the internal audit into their management does not apportion blame.

Irregularities that had been announced included the existence of five companies from which the Municipal Authority rented slot machines that had links with the two advisers. Ex Director Juan Carlos Bengoa has defended his management saying that his suggested changes to the running of the casinos had not been adopted. He also pointed out that the municipal casinos of Montevideo are the only ones in the world tied to the Pensions Fund, with a cost of US$1 million annually and onerous staffing requirements.

Despite backing from the Minister of Economy Danilo Astori, voices are now being heard calling for Bengoa’s resignation from his present position as head of the National Casino Directive. Bengoa insists that the losses were not his responsibility and that since he took over as head of casinos in Uruguay they had reported profits of US$2 million. Unfortunately the internal audit not only highlighted the monetary losses, it also showed the loss of equipment from the municipal casinos.

It seems a mistake to reward someone who was in charge whilst profits disappeared and equipment was lost with the management of casinos on a national level. Opposition politicians are now calling attention to the fact and a scandal in the making may yet implicate Astori as well as other members of the Asemblea Uruguay political party, including Bengoa. Any attempt to archive the investigation is likely to be opposed. (E-02.20.07)

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