Hiding payroll in Petroecuador to avoid extortion raises doubts about transparency

The transparency of Petroecuador’s data was affected by the lack of publication of payrolls and salaries in the Transparency section.

The Public Expenditure Observatory reported a few days ago that Petroecuador decided to remove important information from its payrolls. The problem arose in 2023, but the entity insisted on providing an explanation, which was received only on January 24.

The problem arose when searching for data on the payroll of the state oil company and the monthly budget allocated for the payment of benefits, since no file was found from the institutional directory or record of payment of benefits, documents that every public institution is required to publish. On the contrary, documents without information were found with “BLANK” highlighted. Petroecuador introduced the opacity of its workers’ data in 2023, but the measure was retroactive in scope, abruptly eliminating historical information from 2013 to the third quarter of 2023.

According to the Observatory, “this action left a significant gap in the records, affecting the transparency and traceability of data on the state company’s personnel.” The lack of detailed wage and salary data over a decade “raises serious questions about the accountability of a company facing several corruption scandals.”

According to the Observatory, Petroecuador was asked to explain the reasons for hiding the above information. Just this Wednesday, January 24, they answered us that the problem arose due to the need to protect the data of their workers who were exposed to extortion by criminals.

In addition, the Observatory stated that from 2023 salary records were displayed in code. The names of the officials appeared in codes composed of capital letters and numbers: ABAANACO-000, ACOAYUDO-0029, COEAUDID-0010047. Institutional positions handled shorter codes, such as JESU16 and ORAU48. Budget item numbers for each worker were not shown, but salary data was available.

Furthermore, in the month of November, with the information updated at the end of October 2023, Petroecuador once again displayed the data in its directory and personnel distribution records, but continued to hide the data from the payroll records. In addition, the data from 2013 to 2022 is still being hidden.

David Almeida, executive secretary of the National Association of Energy and Petroleum Workers (ANTEP), said the integrity of workers must be protected, as many reported being extorted and there were criminals who could access their personal information. It clarifies that jobs, codes and salaries are published. Additionally, it explains that data can be accessed upon personal request.

For Almeida, there are payroll issues related to differences between workers who came from companies such as Petroproducto, Perenco, Petrobrás and Oxy. As well as the absence of an approved salary table, and even a lack of staff. He clarifies that he is not asking for all wages to be raised, but for a technical study to be made in line with what is happening in the oil and gas industry. He explains that Petroecuador’s payroll is equal to 6% of Petroecuador’s budget, which is roughly $4 billion. For Almeida, it is not true that the payroll is inflated, and he assures that, according to rough calculations, at least 1,000 more workers would be needed to be able to work shifts and thus not pay overtime, which is paid with an allowance.

Indeed, according to the Observatory of Public Expenditures, there are at least 43 workers in Petroecuador who earn more than what the President of the Republic earns, who receives a salary of $5,072 a month. Even if they are not managers, there are service chiefs, mayors, coordinators who earn between $5,131 and $6,120.

The president’s salary is $5,072, according to Carondelet public records. In accordance with the seventh general provision of the Organic Law on Public Service (Losep), the rule that governs human resources and remuneration issues throughout the public administration of Ecuador, no person who works for the state on a temporary or permanent basis “can receive a single monthly compensation (… ) greater than or equal to that of the President of the Republic.”