Ecuador: Court fines Recapt; annuls contract with IESS

Quito’s Administrative Contentious Court has annulled the contract held between the Ecuador Institute of Social Security (IESS) and private contractors Recapt SA. The contract, won by Recapt in 2012, assigned it the tasks of telephone management of patient appointments, valued at $19.4 million USD through 2014.

The same contract was further scrutinized by competition authority SCPM, which has imposed a $2.3 million fine on Recapt. The regulator has accused the company of simulating a contest with its rival Solnet SA in order to secure the IESS contract. The agency has also reported on approximately $4.6 million dollars paid to Recapt on account of “ghost callers”, as well as over $3.1 million in miscalculated fees for calls that were received but did not result in a doctor’s appointment.

María Teresa Torres, legal counsel for Recapt, has already presented a request for clarification to the Tribunal regarding the kind of studies undertaken to determine her client’s responsibility. Besides, she argued, if the contract is considered null and void, the SCPM’s competition objections should be dismissed. Recapt is currently engaged in a different, $17.4 million dollar contract with IESS.

Full Content: El Universo

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