Paraguay's Social Security Institute (IPS) is again under heavy scrutiny after revelations that it operated for years with parallel accounting systems, a practice considered incompatible with government control standards. Audits by the Comptroller General's Office (CGR) and internal assessments found that the entity simultaneously used the SAP system and the State Integrated Financial Administration System (SIAF), managed by the Ministry of Economy and Finance, in violation of Law 1535 on State Financial Administration, which requires all public institutions to use a single official financial control system.
The irregularities had already been flagged by the CGR in 2024, during the tenure of then-president Jorge Brítez. Yet amid this scenario, IPS awarded more than G. 122.765 billion for renewal, maintenance, and expansion of technology platforms linked to the SAP system and IT infrastructure. Of that total, G. 112.372 billion went to Infocenter SA for implementation and maintenance of a comprehensive contribution and collection management system, while G. 10.395 billion went to Softshop SA for hardware infrastructure.
The Executive Branch's auditor general, Alberto Cabrera, stated that the coexistence of platforms represents a direct transgression of Law 1535. Meanwhile, the new IPS Internal Audit director, Walter Laguardia, confirmed that a full review of control mechanisms is underway and said he will recommend eliminating the double-recording scheme. According to Laguardia, economic operations were first entered into SAP and then migrated to the official Ministry of Economy system, a dynamic that, according to experts, can generate inconsistencies, accounting differences, and reduced control over purchases and financial movements.
The CGR's observations also revealed million-dollar discrepancies related to savings deposit certificates at intervened entities. A report detected a difference of G. 13.395 billion between balances, physical inventories, and historical accounting records, attributed precisely to the simultaneous use of different financial systems. The SAP system contracted by IPS currently manages data for approximately 1.6 million insured individuals and about 93,000 contributing companies, as well as handling monthly collections of around US$130 million and the history of contributions and debts of contributors. The contract with the awarded companies runs until 2028, while the new authorities seek to redefine the internal control model and bring transparency to administrative processes.