Social Security audit to address forecast deficits.

AN EXTERNAL audit of  Panama’s Social Security system (CSS) financial situation has been ordered to help it address its impending deficits. And to uncover any irregularities  in  spending by the agency.

Director Estivenson Girón said that four audit companies have been contacted about the work. They would each audit a program overseen by the entity.

Girón said that in the case of the Invalidity, Old Age and Death (IVM) program, the report will allow the entity to make realistic projections about its viability, reports La Prensa.

Although studies have indicated that the reserves of the IVM will last until 2025, the information is not solid because there have been no audits of the financial statements of the institution since 2012.

At the same time, he stressed that increasing contributions or raising the retirement age may not be the most successful way to address its financial issues. Instead, he said that improving the performance of its investments may be a more prudent course of action.

Social Security Chairman Néstor Vega said he supported the decision to hire the auditors and that they will also be looking for irregularities in spending by the agency.

Girón does not need the approval of the Board of Directors for hiring the auditors because the expense is under $250,000.