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Montevideo, the capital of Uruguay, is at the heart of a dispute about the Casino Parque Hotel’s 150-slot machine lease. Claiming that they violate Article 15 of the Ordered Text of Accounting and Financial Administration (Tocaf), the Court of Auditors of the Republic (TCR) has been questioning the legality of these expenditures since 2013. Following a meeting at the Departmental Board of Montevideo in which Mayor Mauricio Zunino had to outline the financial state of the city, the matter received attention.
The Court of Auditors Notes
The TCR notes that the yearly rental of the equipment, done without an invitation to bid and by direct purchase from the companies ICM and FAMOSTAR, falls outside the Tocaf exemptions. Expenses can only be incurred without available credit under Article 15 in emergency cases such as epidemics, floods, fires, disasters, or unexpected incidents needing prompt Executive Branch action.
The court contends, however, that there is no ground for viewing the renting of the equipment as an “unforeseen emergency.” Furthermore, the TCR pointed out that the Intendancy lacks enough financial availability to meet these costs, hence a bookkeeping aberration exists.
The TCR raises also the contracting process’s lack of openness. Contracts of this type, says articles 33 and beyond of the Tocaf, have to be subjected to an open tendering procedure; this has not happened in the previous 12 years. The court pointed out that the Intendancy had continuously violated the existing rules by reappointing the contract without a public competition.
The Present Agreement and the Casino Parque Hotel’s Losses
Totaling UYU 15,372,000 (about USD 360,882), the current six-month contract for the 150 slot machines rental runs from January 1 to June 30, 2025. These funds join several dubious expenditures the Montevideo City Government has made over several decades.
The economic condition of the Casino Parque Hotel is also something to worry about. The City Government issued a balance sheet at the end of 2024 showing a loss of UYU 87 million in 2023. The same figure is more than USD 2.1 million. Politicians and people have criticized the repeated losses of the city casino, asking whether a loss-making company should be given priority among urban issues including rubbish collection, street upkeep, and mobility.
Political Critique and Suggestions for Shutdown
One of the most vocal opponents of the Casino Parque Hotel operations has been Uruguayan deputy Martín Lema, candidate for the Montevideo City Government on the Republican Coalition. Rather than keeping a city casino that loses money, Lema contends the municipal government should give more important attention to fundamental services including infrastructure and urban cleaning for the population.
Lema said recently that if chosen he will shut the Casino Parque Hotel. Not only would the deputy say that it doesn’t make any sense whether you are not collecting the garbage, not fixing the streets, not caring about the sidewalks, not improving traffic flow then turning to a local casino or a television channel.
The rental of slot machines to the Casino Parque Hotel illustrates several issues in the financial management of the Montevideo City Government. While the financial losses of the municipal casino call the project’s feasibility into inquiry, the Court of Auditors’ remarks underlines the lack of openness and non-compliance with contractual norms.
Though the city administration insists on keeping the casino, opposition from legislators like Martín Lema and the unhappiness of the populace indicate that the priority should be the well-being of individuals. Particularly with the municipal elections around the corner, the debate regarding the fate of the Casino Parque Hotel threatens to stay fierce.
Source: YogoNet
