New IESS hospital chief named amidst corruption allegations; Investigations are underway

Olmedo Fernando León has been named new general manager of Cuenca’s José Carrasco Arteaga hospital following the resignation of Héctor Martínez on Saturday. The hospital, part of Ecuador’s Social Security system, is the focus of corruption and mismanagement allegations.

José Carrasco Arteaga IESS hospital in Cuenca.

León served as Coordinator of Administration Planning at the hospital before his new appointment and is the former district health ministry director in Cañar Province.

In his resignation statement, Martínez claimed he was the target of “slander and threats made by people who do not show their faces.” During questioning last week by National Assembly members from Azuay Province, Martínez said repeatedly that he was unable to provide answers on short notice and would respond in writing.

Cuenca National Assemblyman Leonardo Berrezueta said Martínez is not personally suspected of corruption, only of mismanagement. “He must have been aware of questionable practices going on at the hospital, including irregularities in the purchase of medicine and medical equipment, as well as with vending machine contracts.”

During a June 25 meeting, Assembly members questioned Martínez and other hospital officials about shortages of medicines and supplies, poor treatment of patients, vending machine contracts and cases of nepotism. More than half the questions were met with requests to respond in writing.

Rosa Argudo heads the employee union at Cuenca’s IESS hospital.

The most intense questioning was aimed at head of the hospital employees’ union, Rosa Argudo. Although she refused to answer most questions, she admitted that five of her family members are employed at the hospital, a possible violation of nepotism laws. Among questions she did not answer regarded her relationship with vending machine companies and how she could afford to buy several properties in Quito on her salary of less than $1,500 a month.

Assembly members gave Argudo 20 days to provide a full accounting of how union fees are collected and spent.

On Monday, Berrezueta and Assemblywoman Sofía Sánchez said they were concerned that Argudo and some of her family members working at the hospital were planning to leave the country. “We know from reliable sources that Argudo and her relatives have suddenly requested vacation time and that they have booked flights to Miami,” Sánchez said.

Sánchez acknowledged that there was no legal basis for interrupting the group’s travel plans since investigations by the Comptroller and Attorney General’s office are just beginning.