The Social Security Institute (IPS) is at the center of a multifaceted crisis involving allegations of irregular financial maneuvers, chronic shortages of medicines, and internal turmoil, while Congress debates emergency measures. Documents from the Ministry of Economy and Finance (MEF) reveal that after the IPS reached its legal investment limit in Ueno Bank in February 2025, other State Agencies and Entities began injecting billions in demand deposits into the institution controlled by Grupo Vázquez SAE.
Over a 30-month period, Ueno Bank, of which President Santiago Peña was a former partner, raised over G. 5 trillion in public and pension funds. These deposits, which yield virtually no interest for the state, provided massive liquidity to the bank, offsetting the mandatory reduction in transfers from the IPS, which had exceeded the 10% of its portfolio limit allowed by law.
Internally, the institution is facing a management crisis. Economist Sergio Lovera Cañete resigned from his position as advisor to the IPS presidency, accusing the head, Isaías Fretes, of not moving forward with criminal complaints for alleged asset irregularities he estimates at around US$ 50 million. Lovera stated that Fretes acts with the approval of the Presidency's economic advisor, Juan José Galeano, whom he called the real decision-maker within the institute. When contacted, Fretes merely said it was "not worth commenting on inconsistencies."
Meanwhile, the lack of essential medicines for chronic and cancer patients continues to alarm beneficiaries. In response, Congressman Mauricio Espínola presented a bill to create a permanent system guaranteeing therapeutic continuity, obliging the State to prevent shortages. At the same time, the Chamber of the Pharmaceutical Chemical Industry (Cifarma) stated, after a meeting with the IPS board, that over 20 medicines have already been delivered and another 30 will be supplied in the next 15 days, and that it is working on a payment plan for the social security entity's debt with the sector.
In Congress, the bill declaring an emergency at the IPS to expedite purchases and hiring awaits analysis. Senators have summoned Isaías Fretes to appear on July 28, demanding explanations about the financial crisis, the shortages, and measures against alleged irregularities before voting on granting extraordinary powers. President Peña reiterated his support for Fretes's management, attributing the problems to long-standing structural issues.
Amid this turbulence, the IPS itself is recording growth in its beneficiary base. Data from the first half of 2026 shows that the number of primary beneficiaries increased by 6.1%, to 1,093,415, while dependents grew by 7.7%, reaching 654,471, which expands the base of people entitled to benefits and puts further pressure on the system's financial and operational capacity.