Puerto Rico News Digest for July 5, 2018

TROPICAL STORM BERYL FORMS

According to the National Hurricane Center, Tropical Depression Two has now become Tropical Storm Beryl, the second tropical storm of the 2018 Atlantic hurricane season. According to the NHC's 2:30 PM AST update, the system reached maximum sustained winds of 40 mph early this afternoon, putting it in tropical storm status. As of this morning, the storm was expected to dissipate east of the Lesser Antilles sometime early next week. Keep checking this website and our Twitter feed  for any changes in the storm's status or forecast track. No watches or warnings have been issued so far. The latest stats on Beryl as of 3:45 PM AST are: 

LOCATION...10.3N 42.3W
ABOUT 1330 MI...2140 KM ESE OF THE LESSER ANTILLES
MAXIMUM SUSTAINED WINDS...40 MPH...65 KM/H
PRESENT MOVEMENT...W OR 275 DEGREES AT 16 MPH...26 KM/H
MINIMUM CENTRAL PRESSURE...1007 MB...29.74 INCHES

SENATE REJECTS REPEALING LAW 80

From El Nuevo Dia:

"Not even 24 hours after Rosselló called for an extraordinary session, the Senate rejected, for the third time, the bill that would repeal the compensation for unjustified dismissal act (Law 80-1976), and that would have allowed the  Government to comply with the agreement reached with the Oversight Board..."

PR GOVT TO CHALLENGE BOARD'S BUDGET IN COURT

From Caribbean Business:

"In a statement issued by his office, La Fortaleza, Puerto Rican Gov. Ricardo Rosselló announced Thursday that “the Government of Puerto Rico” was asking the court to “defend” the budget approved by the island’s legislature, which he signed, and decide whether it or the budget certified by the island’s fiscal oversight board should be implemented..."

PARTS OF EL YUNQUE FOREST TO REOPEN FOR SUMMER

From San Juan Daily Star:

"[Forest Service Interim Chief Vicki Christiansen]...announced that another area in the forest, Yokahu Tower, was to reopen to the public on July 4. In addition to Yokahu Tower, La Coca Falls along PR-191 and the Puente Roto and Angelito trails on road PR-988 are the few forest attractions available for visitors at this time..."

MAN SHOT TO DEATH IN CIDRA HOUSE

A still unidentified male was shot to death shortly after 2:00 AM today in the mountain town of Cidra. Local police were alerted to the shooting by a phone call, and upon arriving at the residence on Girasol Street, in the Campo Bello sector, found the bullet-riddled body of the victim inside his house. Caguas homicide detectives are investigating.

Puerto Rico News Digest for June 28, 2018

PUERTO RICAN SOCIALIST HEADED TO CONGRESS?

Alexandria Ocasio-Cortez's Tuesday night victory over congressman Joe Crowley in the Democratic Party primary election for New York's 14th House District puts the young victor of Puerto Rican descent within striking distance of becoming the youngest woman ever elected to the U.S. House of Representatives. Ocasio-Cortez, who was outspent by Crowley during the campaign by a ratio of 10 to 1, has espoused democratic socialist ideas and was able to garner strong grassroots support in the 14th district, which includes parts of The Bronx and Queens. As her congressional district is solidly Democratic, Ocasio-Cortez is the favorite to win the seat in November's general election.

MAN SHOT TO DEATH FOUND IN OROCOVIS

As reported by El Vocero, a murder was reported shortly before 10 PM last night on road PR-156, in the Las Marianas sector of the mountain town of Orocovis. A 911 call alerted police to the shooting, and upon arriving, they found the body of 35 year old Edwin López Rosario, who was a local resident. The victim had been shot several times in different parts of his body.

NUMBER OF GOVERNMENT WORKERS DROPS BY OVER 12K

From El Nuevo Dia:

"In one year, the number of public servants in Puerto Rico was reduced by 12,033 workers, according to the most recent Registry of Occupied Positions prepared by the Office of the Comptroller. This figure  represents a 6 percent decrease in the government's workforce..."

LAW 80 FIGHT CONTINUES BETWEEN GOVERNOR, LEGISLATURE

From Caribbean Business:

"Gov. Ricardo Rosselló said Thursday that dialogue over the repeal of Act 80 of 1976–on compensation for dismissals without just cause–remains open. “I want to reach a resolution that benefits the people of Puerto Rico. And I will use all the mechanisms that are available: Call for an extraordinary session,  dialogue or whatever to be able to find a solution that can comply with the agreement [with the island’s fiscal oversight board]. I hope all colleagues are willing to have that conversation,” the governor told the media..."

TRANSPORTATION DEPT TO OFFER SERVICES THROUGH APP

From News Is My Business:

"The Puerto Rico Department of Transportation has launched the CESCO Digital Mobile application to enable users to conduct transactions that until Monday could only be done in person at Driver Services Centers (CESCO,) the Treasury Department or via complicated websites. The tool was developed by students from the University of Puerto Rico in Bayamón, Gov. Ricardo Rosselló confirmed upon unveiling the new mobile technology..."

Puerto Rico News Digest For August 20, 2017

CAUGHT IN THE ACT AND NEARLY KILLED

THUGS TRY TO ROB GAS STATION, GET SHOT BY COPS

A police officer who happened to stop at a Total gas station in the Corujo sector of Bayamón inadvertently walked in on two individuals who were in the process of robbing the establishment at around 10:00 AM today.  Sergeant Pedro Colón Burgos was soon followed by a municipal police officer and a member of the state police's canine unit. A gunfight quickly broke out between the two parties, and one of the criminals was injured by gunfire in several parts of his body. The man's uninjured accomplice ran off, but was soon arrested by the roadside as he tried to flag down a car to steal. Both men are now in custody, and a stolen vehicle was impounded at the scene. The police officers were not hurt.

ROSSELLO: PR WILL BE STATE IN 5 YEARS

From Caribbean Business:

"In celebration of the 50th anniversary of the New Progressive Party (NPP), Gov. Ricardo Rosselló Nevares stressed that change is a constant in that party and predicted that in five years Puerto Rico will become the 51st state of the United States..."

CORRECTIONS OFFICER DIES DURING RIOT TRAINING

From Officer.com:

"A Puerto Rico corrections officer died after suffering a medical emergency while participating in riot control training this week. Corrections Officer David Torres-Chaparro began complaining of a strong pain in his chest during a training exercise

CHARBONIER PUSHES TO UPDATE DOMESTIC VIOLENCE LAW

From The San Juan Daily Star:

"New Progressive Party (NPP) Rep. María Milagros Charbonier said Thursday that she is still pressing for several amendments to Law 54 of 1989, also known as the Domestic Violence Prevention and Intervention Law, designed to prevent violence against women..."

PR BEATS BAHAMAS IN WOMEN'S BASKETBALL

From Tribune 242:

"The Bahamas couldn’t stop the up-tempo game from host Puerto Rica and ended up getting blown out  by 64 points. The only thing that the undefeated Puerto Ricans didn’t do in their near flawless feature  game on day three of the championships on Thursday night was reach the 100 century mark in pulling oftheir 99-35 massacre over the Bahamas..."

Puerto Rico News Digest For August 30, 2016

PERELLO RESIGNS AS HOUSE SPEAKER

From Caribbean Business:

"Jaime Perelló resigned from his position as Speaker of the Puerto Rico House
of Representatives Monday afternoon. He announced his resignation in the Ca-
pitol rotunda next to an original text of the Puerto Rico Constitution...Perelló
left his position after meeting with 16 lawmakers at the Capitol to discuss a tr-
ial underway in federal court of three former House employees under his dire-
ct supervision who were charged in a pay-for-play scheme to benefit the form-
er speaker’s fundraiser, Anaudi Hernández. During the trial Monday, Hernán-
dez said he raised more than $60,000 in cash for Perelló as part of a pyramid
scheme organized by attorney Irvin Faccio in which he was required to raise
$75,000 for the House leader..."

PUIG HEADS TO US OPEN AFTER GOLD MEDAL

From Bloomberg:

"Tennis player Monica Puig, who won the commonwealth’s first Olympic gold
medal in Rio de Janeiro earlier this month, competes Monday in her first match
this year at the U.S. Open in Queens, New York. Puig’s Olympic victory comes
amid dire Puerto Rico headlines of escalating debt, a broke pension system, a Zi-
ka outbreak, and a 10-year economic recession. Thousands of cheering fans gree-
ted her at the airport in San Juan when she arrived on Aug. 20, a week after her
win..."

BERNABE: AGRICULTURAL REFORM "URGENT"

From The San Juan Daily Star:

"Working People’s Party (PPT by its Spanish acronym) Rafael Bernabe said
late last week that the destruction of the island’s agriculture has been one of the
greatest tragedies in Puerto Rico’s recent history. Speaking at a forum sponsored
by the Puerto Rico Agriculture Association during its annual assembly, Bernabe
laid out some of the PPT’s proposals for the agricultural sector. “It’s a scandal that
today we import 85 percent of our food and that with the ability to export much
more and having a much broader food industry, we don’t do the first, and we don’t
have the second,” he said, according to an Inter News Service report. He added that
the reconstruction of island agriculture, with an agro-ecological emphasis, “is an ur-
gent and crucial task...”

LIBERTY GOES SOLAR AT LUQUILLO HQ

From News Is My Business:

"Oak Leaf Solar X LLC, a Yarotek entity, has installed 2,444 solar panels at Li-
berty Puerto Rico’s facility in Luquillo, making the provider’s operations more
sustainable and “reaffirming the companies’ respective commitments to Puerto
Rico and the environment,” the company announced Monday. Liberty entered
into a long-term power purchase agreement to buy its solar power from Oak Le-
af Solar X, an independent power producer and developer focused on solar energy..."

Puerto Rico News Digest For April 29, 2016

PR GOVT MAY DEFAULT ON MAY 1ST

From Forbes:

"Speaking to reporters on Wednesday, Governor Alejandro Garcia Padilla
said “there will be a default on Monday,” adding, “I don’t think there is a
deal on the table that avoids a default.” Puerto Rico’s Government Develop-
ment Bank, the island’s primary fiscal agent, owes creditors $422 million on
Monday, a payment Garcia Padilla has said the bank cannot afford. The loo-
ming default is part of a broader economic crisis in the Caribbean haven pla-
gued by $70 billion in total debt, a shrinking population and a 45% poverty
rate..."

ZIKA OUTBREAK GROWS, PREGNANT WOMEN WORRY

From USA Today:

"Nowhere in the U.S. has been hit harder by the Zika outbreak than
Puerto Rico, where 570 people have been diagnosed with the virus,
including 48 pregnant women. The true number of Zika cases in Puerto
Rico, where the virus is spreading among local mosquitoes, could be
much greater. Only about one in five people with Zika develop symptoms,
so most of those with the virus are unaware they've been infected,
according to the Centers for Disease Control and Prevention..."

ENVIRONMENTAL GROUPS BACK BOTTLE BILL

From The San Juan Daily Star:

"The Sierra Club and the Basura Cero Puerto Rico (Zero Garbage Puerto
Rico) project are backing a bill in the island House of Representatives to
establish a five cent deposit on glass, aluminum and plastic containers to
prevent them from reaching Puerto Rico’s landfills. The bill, authored by
Rep. Víctor Vasallo and sponsored by Rep. José Báez, is called the Recep-
tacle Recycling Promotion Law, better known as the “Bottle Bill” in English,
and is under consideration by the House in the current session..."

PUERTO RICO RETAIL SALES DOWN 3.71% 

From News Is My Business:

"Puerto Rico retail sales started 2016 in a slump, reflecting a 3.71 percent
year-over-year drop in January, or $113.3 million less than what was gene-
rated during the same month in 2015, Puerto Rico Trade and Export repor-
ted Wednesday. Total retail sales January totaled $2.9 billion, while in 2015
this figure was a little more than $3 billion, agency Executive Director Fran-
cisco Chévere said..."

Puerto Rico News Digest For March 1, 2016

ZIKA CAN INFECT 1 IN 5 PUERTO RICANS

From The Washington Post:

"There are 117 confirmed cases of the virus in Puerto Rico, four times the
number at the end of January. The island territory, which has a population
of 3.5 million people, is “by far the most affected area” in the United States,
Tom Frieden, director of the Centers for Disease Control and Prevention
(CDC), said Friday...Experts say urgent action is needed before mosquitoes
reach their peak with the start of the rainy season in April. Experts from the
CDC estimate that 700,000 people — about 20 percent of the population —
could be infected across the island by the end of the year..."

STEM CELL BILL UNDER CONSIDERATION

From The San Juan Daily Star:

"The Health Committee of the Puerto Rico House of Representatives is
investigating the viability of establishing stem cell banks through private
and public collaboration in a bill entitled “Anatomical Donation Law.” The
measure would authorize mthe extraction of blood from placentas and umbi-
lical cords of newborns, with the goal of utilizing the mother’s cells for re-
search and for the treatment of more than 70 illnesses, according to Inter
News Service..."

ROSELLO CRITICIZES PDP ON IVA TAX

From Caribbean Business:

"Gubernatorial candidate for the New Progressive Party (NPP) Dr. Ricardo
Rosselló reacted to Gov. Alejandro García Padilla’s State of the Common-
wealth address Monday by stating that “the governor has missed the oppor-
tunity to repent and admit the mistakes of his administration. He should
have taken back his failed public policy. However, he continues lying to
the people and with his stubbornness to continue raising taxes and squee-
zing the poor, hard-working and productive class of our island,” the NPP
leader said after the governor’s message..."

FORUM TO EXPLORE FISCAL LAW FOR PR

From News Is My Business:

"Chile’s former finance minister and an ex-lieutenant governor of New York
will be among five panelists appearing Wednesday in Washington, D.C., to
discuss how a Fiscal Responsibility Law (FRL) might help stabilize Puerto
Rico’s public finances and overhaul the island’s fiscal infrastructure. The fo-
rum, organized by the San Juan-based Center for a New Economy (CNE), is
to take place at the National Press Club..."

Governor Signs Prepa Revitalization Bill Into Law

Caribbean Business

Eva Lloréns Vélez 


SAN JUAN – Gov. Alejandro Garcia Padilla signed late Tuesday night the
Puerto Rico Electric Power Revitalization Act, paving the way for a major
$9 billion debt restructuring of the public utility’s debt.

The Senate concurred Tuesday with amendments the House made to the bill,
which was rushed to La Fortaleza because under the terms of the restructuring
agreement, creditors could walk away from the deal had it not been enacted by
midnight Tuesday.

The legislation creates a separate corporation, the Prepa Revitalization Corp.,
which will issue new bonds to be exchanged for the Prepa bonds that are curr-
ently on the market...[CONTINUE READING]

DOJ Says a Confession is Not Good Enough For a Prosecution

Commentary 

Richard Lawless


In June 24, 2015 the government of Puerto Rico issued a 23-page legisla-
tive report that is no less than a detailed confession. The report details how
government officials in Puerto Rico conspired with Wall Street firms to co-
mmit $11 billion dollars in financial fraud.  After reviewing this document
and other evidence for many months, the FBI is claiming that the best prose-
cutors in the DOJ have not yet found criminal grounds to move forward.

Let’s look at the confession:

· “Investors allowed PREPA to issue bonds, then, PREPA borrowed from
private banks to pay the bond’s interests; then, borrowed from the Govern-
mentDevelopment Bank (from herein “GDB”) to pay back the private bank
loans, and the GDB, in turn, issued more bonds to refinance all.”

“This practice could constitute a fraud scheme for which the federal agen-
cies that regulate financial instruments and the Security Exchange Commi-
ssion could take action against and/or pursue civil suits against these
institutions.”

The legislature is describing a Ponzi Scheme.

· “Therefore, the institutional bondholders bought this debt with the know-
ledge and with consent of what was going on financially in the corporation,
which was ailed with technical insolvency or bankruptcy.”

This means the Wall Street firms bought these bonds knowing they were no
good and they in turn resold them to retail investors. Puerto Rico is clearly
saying these firms conspired with them.

· “This goes to show that the financial intermediaries and the institutio-
nal holders, despite being fully aware of PREPA’s fiscal situation, had no
qualms with Unjustly Enriching themselves and with having the conse-
quences of their negligent acts be paid for by the people of Puerto Rico”.

Why did the Wall Street firms participate? According to Puerto Rico “to
unjustly enrich themselves (fee income).

· “in the face of the credit houses, whom, knowing this, and therefore
PREPA’s technical insolvency, allowed this public corporation, and thus
the people of Puerto Rico, to continue running into debt”.

(Credit Houses is a reference to Moody’s, S&P & Fitch Credit Rating 
Services.)

To clarify, the credit houses issued unjustified credit ratings to earn
fee’s according to the report.

· “Said debt was sold at discount, a large quantity of it between .60 to
less than .50 cents to the dollar”

Once the scheme was uncovered, the investors that owned the bonds lost 40
to 50 cents on the dollar.  With $11 billion outstanding that is around
$5 billion in losses.

· “That this Report be forwarded to the Justice Department of the Common-
wealth of Puerto Rico and the United States of America for their correspon-
ding actions;”

“That this Report be forwarded to the United States Securities Exchange
Commission for its corresponding action;”

Legislature is clearly suggesting a criminal act occurred and should be 
investigated.

The report gives many, many more specifics.  Given all this information, the
DOJ believes there may not have been any actual crimes. Umm?



Richard Lawless is CEO of Commercial Solar Power, Inc. in Temecula, CA. The opinions  expressed  in the 

preceding commentary are exclusively his own and do not represent the  opinions of The Puerto Rico Monitor, 

its editors or advertisers.

Puerto Rico News Digest For January 11, 2016

LAST PR LEGISLATIVE SESSION BEGINS

From Caribbean Business:

"The seventh and last ordinary session of the Puerto Rico Legislature for
the 2012 to 2016 term begins Monday at 1 p.m., with both the House of Re-
presentatives and the Senate having left several measures on the table.  Am-
ong these is the controversial legislation to restructure the Puerto Rico Elec-
tric Power Authority (Prepa), which had been expected to be addressed in an
extraordinary session that did not materialize. Senate President Eduardo Bha-
tia and Rep. Jesús Santa have both said the measure will  be considered this
month..."

PIERLUISI URGES STATEHOOD VOTE

From The San Juan Daily Star:

"Resident Commissioner and New Progressive Party (NPP) gubernatorial can-
didate Pedro Pierluisi is calling on new Popular Democratic Party (PDP) Pre-
sident and gubernatorial candidate David Bernier to push for an up or down vo-
te on statehood. “I invite you to review the [friend of the court brief] presented
by the Department of Justice of the United States in the case People vs. Sánchez,
before the Supreme Court of  the United States,” Pierluisi said in a letter dated
Jan. 5. “In a crystal clear manner the federal Department of Justice exposes how
the Constitution of the Free Associated State is not a sovereign status, nor does
it change the territorial status of the island...”

LAW TO BOOST GOV'T BUYS FROM SMALL BIZ

From News Is My Business:

"A bill amending Law 62 of 2014 calling for an increase in government pur-
chases from local small and mid-sized businesses from 20 percent to 30 per-
cent starting this year has been signed into law, House Speaker Jaime Perelló
announced. The bill also included amendments to facilitate and streamline
permits processes for the sector..."

POWERBALL JACKPOT KEEPS GROWING

From NBC News:

"The ever-surging Powerball jackpot has grown to a record $1.3 billion after
Saturday night's drawing which had no bigger winner. But should you wind
up with the winning jackpot in Wednesday's record-breaking draw, odds are
good that you won't be able to hold on to your anonymity. With Powerball ti-
ckets sold in 44 states, as well as in Washington, D.C., the U.S. Virgin Islands
and Puerto Rico, all but six states require lottery winners to come forward
publicly..."

Puerto Rico News Digest For December 29, 2015

COP KILLS THREE AT PONCE POLICE HQ

From Reuters:

"A Puerto Rico police officer shot dead three colleagues on Monday and
was in critical condition after being shot himself in the police department
building in the city of Ponce, authorities said. The suspect, Guarionex Can-
delario Rivera, was on duty when he walked into Commander Frank Roman
Rodriguez's office to speak with him, but the senior officer was unable to do
so immediately and the situation escalated, Puerto Rico police spokesman
Axel Valencia said. Candelario Rivera eventually shot Roman Rodriguez,
Lieutenant Luz Soto Segarra and agent Rosario Hernandez de Hoyos, he
added. Further details were still being investigated..."

MORE PR CHILDREN RUNNING AWAY 

From The San Juan Star:

"A commonwealth Family Department study shows that more younger chil-
dren are running away from home in Puerto Rico, and experts say the find-
ing is alarming. The most recent cases took place when two boys, ages 11
and 9, ran away, apparently together, from a foster care home in Hatillo.
They have not been found. The study shows that regardless of whether the
children are running away from the home of their biological parents or from
a foster home, the reality is that they are running away at very young ages,
younger than in prior years..."

PDP LEGISLATOR NOT TO RUN FOR REELECTION

From Caribbean Business:

"Angered at how some of his fellow Popular Democratic Party (PDP) mem-
bers manage government and political issues, Rep. José Báez has decided not
to run for reelection and thus return to his private practice as an attorney be-
cause he has no say in the party. Currently, the president of Precinct 4 in San
Juan, Báez said he is retiring because there is serious tension within the PDP
with a sector that, little by little, has broken everything in front of everybody
and no one is saying anything for fear of losing the election..."

PREPA, CREDITORS AGREE TO RESTRUCTURING

From News Is My Business:

"The Puerto Rico Electric Power Authority announced early Thursday that it
has reached an agreement with creditors holding approximately 70 percent
of its financial debt on a plan to execute a restructuring that, among other
things, will reduce the utility’s principal debt burden of more than $600 mi-
llion. As part of the lengthy negotiations that took about 15 months, PREPA
amended its previously announced restructuring support agreement, or RSA,
to include an agreement with monoline insurers Assured Guaranty Corp. and
National Public Finance Guarantee Corp., as well as the Ad Hoc Group of PRE-
PA bondholders — comprising traditional municipal bond investors and hedge
funds — its fuel line lenders and the Government Development Bank for Puer-
to Rico..."

Puerto Rico News Digest For December 11, 2015

BHATIA CONDEMNS GOP FISCAL BILL

From Caribbean Business:

"If Congress does not approve Chapter 9 protections for Puerto Rico
before the end of the year, Bhatia said that the commonwealth will
have to default on Jan. 1 and deal with the legal consequences.“The
proposals set forth by Republicans are not acceptable to anyone at
the moment. I think we have to reject them or amend them,” Bhatia
said in a radio interview. “There is a lot of work to be done during
this week and the next to amend that [bill], and obtain acceptable
proposals for Puerto Rico,” he added. The Puerto Rico Assistance
Act provides short-term tax relief to workers and makes $3 billion
in funds available to the commonwealth, but stops short of granting
the commonwealth access to Chapter 9 bankruptcy protection..."

PR SHOPLIFTING LOSSES AT $490M

From News Is My Business:

"Puerto Rico retailers and the government are losing some $490 million
in annual revenue as a result of shoplifting and organized crime, mem-
bers of the Puerto Rico Marketing, Industry and Food Distribution Cham-
ber said Wednesday. The problem also affects consumers, who pay higher
prices as businesses attempt to compensate for the costs. A portion of tho-
se losses are also attributed to uncollected sales and use tax revenue that
the Puerto Rico Treasury Department is failing to receive..."

PREPA RESTRUCTURING EXTENSION EXPECTED

From San Juan Daily Star:

"As the Puerto Rico Electric Power Authority (PREPA) secured another
extension from bondholders to get insurance companies to sign onto an
agreement to restructure the agency’s $8.2 billion of debt and for comm-
onwealth lawmakers to approve the proposal, financial analyst Daniel
Hanson said Wednesday that he is not surprised by the news. The agree-
ment extends termination dates on an earlier accord between PREPA and
investors owning about 35 percent of the agency’s bonds to Dec. 17, the
utility said in a statement. The pact, which was set to expire Thursday,
was extended for a third time since being signed last month..."

FIRST SAME SEX ADOPTION APPROVED

From Latin Correspondent:

"A court in Puerto Rico has allowed adoption by same-sex couples for
the first time in the country’s history. Judge Ladi Buono De Jesús today
answered Ángeles Judith Acosta Rodríguez’s request to adopt her partner
Carmen Milagros Vélez Vega’s biological child Juliana. The minor will
remain in the national registry under both women’s surnames, according
to Vanguardia.  This was the second time that the couple attempted the
claim..."

COMERIO TWITTER TROLL ARRESTED

From Fox News Latino:

"A Puerto Rico man accused of creating 300 Twitter accounts to harass
people online has been arrested in the first case of its kind for the U.S.
territory, authorities said Tuesday. The island's Justice Department said
27-year-old Omar Falcon Torres is suspected of operating under the na-
me "MedeaBot" for two years. He faces charges that include stalking,
misappropriation of identity and intimidating witnesses in part by send-
ing people "violent sexual imagery" and using violent language, authori-
ties said..."

Puerto Rico News Digest For November 11, 2015

EX-GOV VILA CRITICIZES AGP ADMINISTRATION

From The San Juan Daily Star:

"Former Gov. Aníbal Acevedo Vilá on Monday said it is time for the
island government to accept that there is no money to pay the public
debt, while also suggesting that it must pressure the Obama adminis-
tration even further to help Puerto Rico deal with its fiscal crisis. In
fact, Acevedo Vilá criticized the administration of Gov. Alejandro
García Padilla for “sequestering the [people’s] tax returns” and for
hiking the sales and use tax (IVU by its Spanish acronym), because
the effect on the economy is that the salaried working class has lowe-
red their income tax retention rates while consumers are purchasing
less..."

LEGISLATURE TO VOTE ON FISCAL BOARD BILL

From Caribbean Business:

"The Puerto Rico Legislature could be voting as soon as Wednesday,
Nov. 11, on a bill that seeks to enable a self-imposed fiscal control bo-
ard on the commonwealth, although lawmakers are expected to see a
watered-down version when compared to the proposed legislation sub-
mitted by La Fortaleza Oct. 15. Legislative sources have told CARIB-
BEAN BUSINESS that planned amendments are to significantly tone
down the measure, particularly relating to its investigative, approving
and budgetary powers. Moreover, several majority lawmakers, inclu-
ding Senate President Eduardo Bhatia and House Speaker Jaime Pere-
lló, have already anticipated the bill would be “simplified” before vo-
ting on it..."

REALTORS BACK TAX EXCLUSION BILL

From News Is My Business:

"This week, National Association of Realtors President Chris Polychron
and Puerto Rico Association of Realtors President Edgar Morales sent a
letter to the island’s House of Representatives to show support for Bill
2566, which would exclude real estate brokerage services from the com-
monwealth’s Sales and Use Tax and the Value Added Tax. “This legisla-
tion recognizes that a tax on brokerage services is a tax on homeowner-
ship,” said Polychron. “Instead, we should strive to lower barriers for mi-
ddle-class families looking to buy or sell a home...”

PREPA NEEDS INSURERS ON BOARD BY TUESDAY

From Bloomberg:

"The Puerto Rico Electric Power Authority needs to get insurance compa-
nies that guarantee a portion of the utility’s debt against default to endor-
se a conditional restructuring agreement by Thursday to avoid the risk of
the deal with bondholders falling apart. If MBIA Inc., Assured Guaranty
Ltd. and Syncora Guarantee Inc. don’t sign on to the debt exchange fina-
lized with some investors last week, then the utility known as Prepa, its
fuel-line lenders and the bondholder group will work to implement a reco-
very plan “through a mechanism to be agreed among the parties that may
include, without limitation, a judicial process, including an enforcement
proceeding under applicable law,” according to the Nov. 5 agreement pos-
ted on the Municipal Securities Rulemaking Board’s website..."

Rep. Vargas Passes Away After Auto Accident

From Caribbean Business:


Popular Democratic Party (PDP) Rep. Carlos Vargas Ferrer died Monday
after an auto accident in San Juan’s Hato Rey sector. He was 44. Accor-
ding to police investigators, Vargas Ferrer was taking Exit 18 from Las
Américas Expressway toward Jesús T. Piñero Avenue when, at around
9:20 a.m., he lost control of the vehicle, hit a newspaper vendor and cra-
shed against an electric utility pole. The circumstances that led to the fa-
tal crash are as yet unclear...[CONTINUE READING]

Puerto Rico News Digest For August 21, 2015

HURRICANE DANNY GETS TO PR TUESDAY

Hurricane Danny, now with maximum sustained winds of 85 mph, is ex-
pected to reach the southern coast of Puerto Rico sometime early on Tues-
day. As of today's 5 AM advisory from the National Weather Service, Da-
nny is located at 13.7N 47.4W, about 985 miles east of the Leeward Islan-
ds. It is moving to the west/northwest at about 10 mph, and has a minim-
um central pressure of 987 mb. Danny is a small hurricane, with hurrica-
ne force winds extending outwards only about 10 miles from its center.
Some strengthening is expected today, but the storm will likely weaken
during Saturday. There are no coastal watches or warnings in effect at
this time. Keep checking this blog and our Twitter feed for more on Hu-
rricane Danny.

11:00 AM UPDATE: Danny strengthens to 105 mph maximum sustai-
ned winds, becoming a Category 2 hurricane. It is still moving WNW at
10 mph, with more of a westerly turn expected on Saturday. Pressure has
dropped to 976 mb. Coordinates are 14.0N 48.2W, about 930 miles east
of the Leeward Islands. The next advisory will be issued by the National
Weather Service at 5:00 PM.

2:00 PM UPDATE: Hurricane Hunter aircraft are reporting that Danny's
maximum sustained winds have increased to 115 mph, making this a
category 3 hurricane. The National Weather Service states: "No additio-
nal intensification is expected, as Danny is moving into an area of unfavo-
rable upper-level winds, and a weakening trend is expected to begin later
today.  Consequently, no adjustment to the forecast intensities from the
previous advisory is required". Current coordinates: 14.3N 48.6W, about
900 miles east of the Leeward Islands.

MORE TOWNS DROUGHT DISASTER AREAS

From NBC News:

On Wednesday, U.S. Secretary of Agriculture Thomas Vilsack declared
an additional six municipalities in Puerto Rico as natural disaster areas
due to worsening drought conditions. The municipalities affected include
Corozal, Morovis, Naranjito, Orocovis, Toa Alta, and Vega Alta. The ann-
ouncement comes in the wake of several other drought disaster declarati-
ons by Secretary Vilsack, bringing the total to 36 affected  municipali-
ties on the island.

TRIBUTE PAID TO FORMER SPEAKER JARABO

From Caribbean Business:

The House of Representatives paid tribute Thursday to José Ronaldo 

"Rony" Jarabo Álvarez for his work and political, cultural and social 

contribution to Puerto Rico. In celebrating the occasion of his 30th 

anniversary since presiding the chamber, an act was held in the Capi-

tol. It was attended by Gov. Alejandro García Padilla, former Gov. 

Rafael Hernández Colón, Senate President Eduardo Bhatia Gautier, 

Resident Commissioner Pedro Pierluisi and House Speaker Jaime Pe-

relló Borrás. The governor spoke of the body of work developed by 

the politician, who chaired the House from 1985 to 1992. The gover-

nor said the vision and optimism that characterizes the former House 

speaker is the same that inspires him "to seek unity, alliances and con-

vergence to meet the challenges the country faces today."

TODAY'S WATER RESERVOIR LEVELS

Click picture to enlarge.

Carraízo is at 33.90 meters, while La Plata stands at 34.69 meters.

Both reservoirs serve the San Juan metro area. Hurricane Danny is

expected to bring considerable rain with it early next week, which

may help boost reservoir levels. Users served by both Carraízo and

La Plata are currently under water rationing plans.

Puerto Rico News Digest For June 15, 2015

LA PLATA WATER RATIONING MORE LIKELY

Reservoir levels for today, June 15th. Carraizo is on the far left, La Plata is to its right.

From The San Juan Daily Star:

The level of La Plata Reservoir continues to descend, which could lead the
Puerto Rico Aqueduct and Sewer Authority (PRASA/AAA) to make an ann-
ouncement next week on water rationing for customers supplied by the Toa
Alta reservoir. “This morning La Plata had fallen 16 centimeters [to 41.39
meters) so the tendency is that it is continuing to descend, which places us in
a position of making some kind of announcement to our clients that receive
their water supply from this reservoir as soon as early next week,” PRASA
Vice President of Operations Francisco Martínez said. La Plata reservoir su-
pplies water to some 70,000 consumers in the towns of Toa Alta, Naranjito,
Vega Alta, Comerío, Barranquitas, Aibonito, Cidra, Cayey, Bayamón, Cata-
ño, Toa Baja and parts of Guaynabo.

PR LAWMAKERS PUSH FOR MEDICARE PARITY

From Caribbean Business:

Puerto Rico legislative leaders participated Friday in several events and meet-
ings intended to push the federal government to address the federal funding
disparity issues on the island under the Medicare programs. The Centers for
Medicare & Medicaid Services (CMS) recently upheld its decision to cut by
11% Medicare Advantage (MA) premiums for Puerto Rico beneficiaries star-
ting in January, which pushes local MA rates to $488 per beneficiary per mo-
nth, down from $528 this year and 38% less than the U.S. national average.
Meanwhile, the CMS increased overall rates in other U.S. jurisdictions by as
much as 3%.

MORE THAN 1M ATTEND NY PUERTO RICAN PARADE

From Fox News:

Entertainer Rita Moreno took Roman Catholic Cardinal Timothy Dolan for
a dancing spin Sunday in the middle of Fifth Avenue by St. Patrick's Cathe-
dral. At 83, atop a convertible car, Moreno was the grand marshal of the fes-
tivities that turned more than 1 million spectators into a sea of red, white and
blue. Topped by a single star, they're the colors of the Puerto Rican flag that
also were splashed across 20,000 marchers moving up the avenue from 44th
Street to 79th Street. Puerto Rico's governor, Alejandro Garcia Padilla, was
followed by New York City Council Speaker Melissa Mark-Viverito, a Puer-
to Rico native dancing to the pounding Latino soundtrack of the 58th annual
parade.

Puerto Rico News Digest For June 12, 2015

LAWMAKERS HALT VIDEO LOTTERY BILL

From The San Juan Daily Star:

Two of the Popular Democratic Party (PDP) lawmakers who broke rank
with their party to oppose the governor’s original tax reform proposal --
Carlos Vargas and Ángel Matos -- said Wednesday that Treasury Secretary
Juan Zaragoza does not have the legal wherewithal to authorize and imple-
ment the video lottery gaming system. Zaragoza plans to put the system in
place by the first week of July with the goal of generating some $100 million
in revenues. Based on these premises, the lawmakers have filed House Con-
current Resolution 58 in which they “strongly” reject the executive branch’s
claim that the Treasury secretary has the legal power to establish the video
lottery game through regulations.

GOVERNOR AND MCCONNELL DISCUSS BANKRUPTCY

From Caribbean Business:

Gov. Alejandro García Padilla met with U.S. Senate Majority Leader Mitch Mc
Connell, R-Ky., and fellow Sen. Roger Wicker, R-Miss., to discuss approval
of HR 870, the measure submitted to the U.S. Congress that seeks to include
the Puerto Rican government under Chapter 9 provisions of the federal bank-
ruptcy code. In addition, the governor promoted the bill to Senate Judiciary
Committee Chair Chuck Grassley, R-IA.

NEW COMPANY SEEKS TO MARKET LOCAL FOOD

From News Is My Business:

Viandharina, a new agro-industrial company based in Salinas, has opened for
business in the south following a $1.6 million investment in a plant that
seeks to substitute imports of several Puerto Rican food staples, including
sweet and green plantain and breadfruit “tostones.” During a news conference
at the plant located at the former Aguirre sugar plantation, company Presi-
dent René Soto-Torres said the goal is to “cut by 5 percent the importation
of manufactured agricultural products, which mostly come from Central and
South America.” He said close to 2.5 million pounds of frozen “tostones” are
imported monthly, and another $400 million in manufactured agricultural pro-
ducts are imported annually.

NBA STAR BRINGS NEW PRO SOCCER TEAM TO PR

From News West 9:

NBA star Carmelo Anthony announced Thursday that he is bringing a profe-
ssional soccer team to Puerto Rico for the first time in three years. The new
club, called Puerto Rico FC, will begin playing in the Division II North Am-
erican Soccer League in fall 2016. "It is an honor for me to bring back soccer
to Puerto Rico, my beloved island, birthplace of my father," Anthony, who
plays for the New York Knicks, said at a news conference in the U.S. territo-
ry. "To the thousands of fans in Puerto Rico that have been waiting for soccer
to come back, I can promise a world-class organization in a world-class league."

SEA TURTLE NESTS AT PEAK NUMBERS

From Fox News Latino:

The number of leatherback sea turtle nests spotted this year on San Juan's
beaches is the highest on record, thanks to monitoring and conservation e-
fforts by hundreds of residents and volunteers along the shores of Puerto
Rico's capital. So far, 22 leatherback nests have been located, compared to
the record 18 found last year, Deborah Feliciano, a leader of the 7 Quillas
community group, told Efe, citing Department of Natural and Environmen-
tal Resources, or DRNA, figures.

Puerto Rico News Digest For May 26, 2015

SENATE PASSES SALES TAX BILL

From Bloomberg:

Puerto Rico’s Senate approved a bill, with amendments, that increases
the cash-strapped island’s sales tax, potentially raising revenue that will
help balance the fiscal 2016 budget.The Senate passed the measure Mon-
day in a 14-12 vote, with an amendment to exempt certain processed foods.
The amended bill now goes back to the House of Representatives, which
narrowly approved the sales-tax hike last week. Governor Alejandro Gar-
cia Padilla and lawmakers from his ruling Popular Democratic Party agreed
on a framework for the tax boost May 14. The bill would raise the levy to
11.5 percent from 7 percent through March, after which it would transition
into a value-added tax.

SOCIAL PROGRAMS FACING CUTS

From The San Juan Daily Star:

The island government intends to cut over $55 million from non-profit
organizations, social programs and college scholarships as part of the
$674 million in cuts in the new budget. The cuts will affect more than
120 public and non-profit organizations and programs in Puerto Rico as
government allocations will be  reduced to about $75 million from about
$130 million. La Fortaleza Chief of Staff Víctor Suárez said many agen-
cies may engage the services of some of these entities.

PUERTO RICO COMIC CON A SUCCESS

From Caribbean Business:

The Puerto Rico Comic Con (PRCC), touted as the premier entertain-
ment and pop culture event in the Caribbean, filled the Puerto Rico
Convention Center during its latest edition held this past weekend,
along the way generating about $4 million in economic activity, acc-
ording to estimates. Ricardo Carrión, executive producer of the PRCC,
told local media outlets that at least 38,000 people attended the event
this year, which took place May 22-24. The annual event has steadily
drawn larger crowds since its inception in 2002. Part of the larger atten-
dance numbers stemmed from the organizers’ decision to extend the
event to three days, starting Friday; previous editions were held only
Saturday and Sunday. Carrión added that, on Friday alone, the event
drew in about 9,000 people.

PANEL TACKLES HIGH ENERGY COSTS

From News Is My Business:

In the United States, electricity costs 10¢ to 12¢ per kilowatt-hour
(kwh), while in Costa Rica, it’s 15¢ per kwh and higher in Honduras
and Nicaragua, Central America’s poorest countries. Yet a top State
Department official said the region is now in an ideal position to cut
costs by introducing alternative sources like natural gas and renewable
energy. “Things that five years ago were not even possible are availa-
ble today. Some methods of transporting containerized natural gas ha-
ve come down in cost considerably,” said Robin Dunnigan, deputy
U.S. assistant secretary for energy diplomacy. Dunnigan was one of
four officials who spoke at a May 7 conference hosted by Washing-
ton’s Inter-American Dialogue. Nearly 150 people attended the pa-
nel, “Ener-gy in Central America and the Caribbean,” including di-
plomats from 13 Washington-based embassies.

RESERVOIR LEVELS FOR TODAY

Carraizo is on the far left, in yellow. No significant rain is expected
over the area for several days.

Puerto Rico News Digest For May 22, 2015

HIGLER'S FAMILY IN PR FOR HEARING

L: Laurens Higler. R: Gerardo de La Paz.

Relatives of Laurens Higler, the Dutch globetrotter and sailor who was
killed in a hit and run car accident in  March, are in Puerto Rico to attend
a court hearing for 49-year-old Gerardo De La Paz, the man accused of
hitting Higler with his car by the side of the road in Guayama and fleeing
the scene. Mother Rianne Higler stated "It is unforgivable that he didn't
stop the car, that he didn't call 911 and that he didn't help my son", in re-
gards to De La Paz, as reported yesterday by El Nuevo Dia. Laurens
Higler would have turned 27 years old on May 20.

At the hearing, De La Paz -- who is free but wearing an ankle monitor --
opted to go directly to trial for the charges of negligent homicide and vio-
lating the recently amended Article 5.07 of Transit Law 22. He was also
driving with an expired driver's license. The judge set the trial date for
June 26. De La Paz could face prison time, but there is  also the possibility
that he might only get a suspended sentence. After the hearing, De La Paz
agreed to meet the late Higler's family in private, but after the brief encoun-
ter, De La Paz hurried out of the building accompanied by his lawyers.

HOUSE APPROVES 11.5%  'IVU' TAX

From Caribbean Business:

After much debate and opposition, the House of Representatives app-
roved Thursday the tax bill that calls for the implementation of an
11.5% sales tax at cash registers, up from the current 7% paid under
the sales & use tax (IVU by its Spanish acronym), after introducing
several amendments on the floor. The final vote count was 26 in favor
and 24 against, including two Popular Democratic Party (PDP) legisla-
tors, Reps. Carlos Vargas and Angel Matos, and the New Progressive
Party minority delegation. It now moves to the Senate, where discussi-
on on the amended bill is expected to take place Friday, with the upper
chamber's session slated to begin at 10 a.m.

ACOSTA BLASTS MOODY'S GDB DOWNGRADE

From News Is My Business:

Government Development Bank President Melba Acosta came down
hard on Moody’s Investors Service’s decision to downgrade the Co-
mmonwealth’s credit rating deeper into junk status by saying the move
shows “ratings agencies are totally out of tune with what’s happening”
in Puerto Rico. Reading off an email she said she received earlier in the
day from a banker who expressed to her that markets were reacting fa-
vorably to the proposed increase in the sales and use tax — up to 11.5
percent from 7 percent approved Thursday by the House — and about
the budget, Acosta called Moody’s decision “a bit ironic.”

BUS OWNERS INDICTED FOR BID-RIGGING

From FBI:

A federal grand jury in San Juan, Puerto Rico, returned an indictment
against five individuals for participating in bid rigging and fraud cons-
piracies at an auction for public school bus transportation contracts in
Puerto Rico’s Caguas municipality, the Department of Justice announ-
ced today. A seven-count felony indictment was filed yesterday in U.S.
District Court of the District of Puerto Rico in San Juan against five bus
transportation company owners: Gavino Rivera-Herrera, Luciano Vega-
Martínez, Alfonso Gonzales-Nevarez, José L. Arroyo-Quiñones and
René Garay-Rodríguez.

Count one charges the bus owners with participating in a conspiracy
to rig bids and allocate the market for public school bus transportation
services in the Caguas municipality. The second count charges the bus
owners with conspiracy to commit mail fraud and counts three through
seven charge the bus owners with committing mail fraud. According to
the indictment, the defendants and others defrauded, and conspired to
defraud, the Puerto Rico Department of Education and the Caguas mu-
nicipality, among others, in order to fraudulently obtain contracts for
school bus transportation services.

PR Government Files Budget For 2016

Caribbean Business

LUIS J. VALENTÍN & DENNIS COSTA

The Puerto Rico government submitted to the Legislature a $9.8 billion 

budget proposal Wednesday that calls for $674 million in spending cuts 

amid the island's fiscal crisis. The submitted budget bill for fiscal 2016 

contemplates a consolidated budget of $28.8 billion, $9.8 billion of which 

would correspond to the commonwealth's General Fund. It is about $235 

million higher than the current fiscal year's budget. The bill, which pro-

poses $674 million in government spending cuts, also allocates about 

$1.54 billion toward servicing the commonwealth's debt, an increase of 

$400 million over the previous year's budget.

The budget proposal also includes clauses that tie it to the tax bill being 

considered in the House, which calls for increasing the 7% sales & use 

tax (IVU by its Spanish acronym) to 11.5%...[CONTINUE READING]

Puerto Rico News Digest For May 15, 2015

TRIPLE MURDER IN AGUAS BUENAS

As reported today by  El Nuevo Dia, two men and a woman, ranging
in age from 25 to 30, were murdered late last night on Road PR-792
in the Las Villas sector of Aguas Buenas. The crime occurred at
around 12:40 AM and was reported to the Police through an anony-
mous phone call. It is believed the deceased were taken to a dark and
solitary area specifically to be shot to death. The bodies were found
lying on the pavement. A loaded .40 caliber pistol was found at the
scene. The victims were not carrying identification and have not been
named.

GOVERNOR AND LEGISLATORS AGREE ON TAX

From Bloomberg:

Puerto Rico Governor Alejandro Garcia Padilla and lawmakers reached
an agreement on a proposal to raise the island’s sales tax, a move that
may help it sell debt and ease a cash crunch. The plan would boost the
levy to 11.5 percent from 7 percent for nine months, in a transition to
implementing a value-added tax, the governor and members of his Po-
pular Democratic Party told reporters late Thursday in San Juan. The
increase is expected to bring in $1.2 billion of revenue. Lawmakers
also agreed to recommend $500 million in spending cuts as part of a
$9.8 billion budget for fiscal 2016.

STUDENTS PROTEST UPR CUTS IN SAN JUAN

From UPI:

A massive demonstration protesting budget cuts to Puerto  Rico's
state university filled a Capitol plaza in San Juan. Thousands of peo-
ple enrolled or employed at Puerto Rico University (UPR) met at the
Capitol building and marched to the home of the U.S. commonwealth's
chief executive Wednesday. The government has threatened a 20 per-
cent budget cut to the university. Julio Muriente, leader of the pro-inde-
pendence Hostosian National Independence Movement, attended the
demonstration, saying, "We want people to know the importance of the
university for the country, the value of the UPR, and this event is proof
of what the institution is."

SLOTS OPERATORS OPPOSE VIDEO LOTTERY

From The San Juan Daily Star:

Puerto Rican Commercial Recreation Businesses Inc. (EMPRECOM by
its Spanish acronym) members have categorically rejected Gov. Alejandro
García Padilla’s plan to pass new regulations for the operation of  enter-
tainment machines without holding public hearings, which they say opens
the door for the “video lottery” business. “We have been charging that La
Fortaleza was working on a new Operational Regulation for the Additio-
nal Lottery, which is nothing more than ‘bringing the video lottery in
through the kitchen,’” EMPRECOM President Pablo Rivera said in a
written statement. “The governor has given instructions so that this action,
which allows for the elimination of all  entertainment machines that are
currently in operation on the island, and thus makes way for the ‘video
lottery,’ is not talked about.”

$59M IN PROPERTIES AT AUCTION 

From News Is My Business:

Los Angeles-based Premiere Estates Auction Company announced
Thursday a multi-property auction that includes sprawling beachfront
sites in Aguadilla and Cabo Rojo, with a combined listing price of $59
million. The portfolio includes a 507-acre master planned destination
resort property overlooking Boqueron Bay in Cabo Rojo with a listing
price of $50 million, that has been pre-approved for a 600-room resort
hotel, 18-hole golf course, a 200-slip marina, retail village, 1,150 residen-
tial villas and 222 home sites.