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 May 29, 2018

THE VIOLENCE CONTINUES: MAN SHOT TO DEATH IN CAROLINA

As reported by El Vocero, a man was found shot to death early Tuesday morning on 73rd Street in the Villa Carolina neighborhood of the municipality of Carolina. The victim -- who remains unidentified -- was described as being dark-skinned, about 5 feet, nine inches tall and weighing approximately 140 pounds. He was dressed in a black shirt, red and white pants and black athletic shoes. An anonymous 911 call alerted police to the sound of gunshots in the area shortly after midnight. Police are investigating.

ROSSELLO AND BOARD DEFEND LABOR CHANGES

From El Nuevo Dia:

"Governor Ricardo Rosselló Nevares rejected yesterday that the repeal of the Unjust Dismissal Act (Law 80-1976) would leave the island´s working class in a vulnerable position, especially women and senior employees, because there are other labor laws to protect them..."

PREPA BUDGET FACES FIVE YEARS OF SHORTFALLS

From Caribbean Business:

"The Institute for Energy Economics and Financial Analysis (IEEFA) said Friday that the approved fiscal-recovery plan for the Puerto Rico Electric Power Authority (Prepa) faces billions in financial risks that will hinder the transformation of the grid..."

PUERTO RICO RETAIL SALES GROW 6.7% FOR JANUARY

From News Is My Business:

"Puerto Rico’s retail sales for the month of January 2018 totaled $2.8 billion, representing a 6.7 percent growth when compared to the same period in 2017, when total sales were $2.6 billion..."

Puerto Rico News Digest For August 8, 2017

FAMILY KILLED IN DORADO NIGHTMARE

Fall victim to shooting between crooks; Feds may take over

A young married couple, Zuleika Rivera Negrón, age 27 and her partner Angel Pérez Polanco, age 30 were killed along with three of their children last Friday in the town Dorado as the result of a shooting on the same road, with only the couple's 12-year-old daughter surviving. Jaime Joel Ferrer Rivera, a 38-year-old man with an extensive criminal record, was shot at by unidentified assailants as he drove his Land Rover, causing him to lose control of his vehicle, which then crashed into the family's 1992 Toyota Tercel. The family's vehicle then violently smashed against a tree, killing the five victims. Ferrer Rivera died at the scene due to the shooting, after which the perpetrators escaped. Due to Ferrer Rivera being a federal convict, having been sentenced to 30 months in prison in 2004 for stealing shipments of air conditioners, US Attorney for the District of Puerto Rico Rosa Emilia Rodríguez stated that her office may take over the investigation.

PUERTO RICO SUED OVER CONTOL BOARD'S POWERS

From Caribbean Business:

"Puerto Rico was hit with two lawsuits Monday that for the first time challenge the constitutionality of a federal control board overseeing the island’s finances and its power to start a bankruptcy-like court process for some of  the U.S. territory’s more than $70 billion public debt..."

FEMA OK'S FUNDS FOR SALINAS AQUIFER PROJECT

From News Is My Business:

"The Federal Emergency Management Agency has approved a $2.8 million hazard mitigation project for the island’s  southern coastal area, which considers its adaptive capacity, and uses surface and ground water to reduce the need for future water rationing in the town of Salinas..."

PPD PROPOSES UNITED FRONT TO FIGHT FURLOUGHS

From The San Juan Daily Star:

"Popular Democratic Party (PDP) President Héctor Ferrer announced on Friday that he is willing to join efforts and accompany Gov. Ricardo Rosselló Nevares to the courts if he decides to sue the federal Financial Oversight and Management Board if the reduction of public workers is implemented..."

JOINT VENTURE TO MANUFACTURE POT PRODUCTS IN PR

From Area Development:

"Tropizen, a grower and manufacturer of medical marijuana in Puerto Rico, will partner with WonderLeaf, a Colorado company that makes raw cannabis concentrates and oils, to establish a cannabis manufacturing plant  in Puerto Rico..."

Puerto Rico News Digest For July 17, 2017

WEEKEND BLOODBATH

12 DEAD BETWEEN FRIDAY AND SUNDAY ACROSS PUERTO RICO

Twelve people across Puerto Rico died in suspected homicides between Friday morning and Sunday morning, according to police. Three separate murders were registered in Río Piedras, Humacao and the Hato Rey area of San Juan on Friday. The Humacao victim has been identified as 27-year-old Luis O. Fontanez  López. On Saturday, one murder each took place in Toa Alta and in the Puerto Nuevo section of San Juan. In the Toa Alta case, three masked men in a white car gunned down Ángel Joel Vázquez Hernández age 34, killing him. The victim's 13-year-old daughter was also injured in the brazen attack. Later that day, a decomposing body was found in a field in Caguas, near Road 175.

On Sunday, two young men were executed just past midnight near the Liborio Ortiz housing project in Aibonito, while another man was shot to death less than two hours later at a basketball court in the Piñones sector of  the town of Loíza. The victim was identified as César Orlando González Correa, age 32. He had just left a niece's birthday party at the court; several individuals followed him out to the facility's parking lot and shot him with various firearms, including an assault rifle, over 70 times. Another murder took place at 3:28 that same morning in Ponce, where the bullet-riddled body of  Walter Sánchez de Jesús was found inside a car.

Daylight provided no respite from the parade of horrors, as a woman's body was found in a field close to 10:00 AM on the grounds of Maria Auxiliadora Church in Santurce's gritty Cantera neighborhood. The victim's body showed signs of head trauma, and a bloodied cinderblock was found nearby. Scarcely half an hour after this gruesome discovery, a bullet-riddled body was found inside a white Acura SUV in the Jardines de Country Club neighborhood of Carolina. The victim was identified as Eduardo Luis Mercedes Carrión, a 27-year-old man from San Juan. The murder tally for the year now totals 361, one more than at this time last year.

ECONOMIC CRISIS HITS MAYAGÜEZ ZOO

From Caribbean Business:

"The economic crisis afflicting Puerto Rico for the last decade has also taken a toll on the island’s only zoo, with critics saying it is sorely understaffed and struggling to care for its animals on a limited budget..."

EPA PROPOSES CLEANUP FOR UTUADO SUPERFUND SITE

From News Is My Business:

"The U.S. Environmental Protection is proposing a cleanup plan to address sources of chemical contamination at the Papelera Puertorriqueña Inc. Superfund site, a paper and plastic goods manufacturer in Utuado, the agency confirmed..."

BOARD APPROVES LIQUIDATION OF GDB

From Reuters:

"Puerto Rico's financial oversight board late on Friday approved a plan to wind down the island's Government Development Bank (GDB), bringing the defunct fiscal agent a step closer to settling more than $5 billion in debt..."

Puerto Rico News Digest For July 15, 2017

WHO'S THE REAL ANIMAL?

Crazed dog-killer murders pooch in middle of road

File photo

Toa Alta resident David Mercedes, age 20, sits in jail after chasing a neighbor's pitbull which had entered his property out onto the street and brutally killing the dog. The pooch succumbed to injuries caused by a heavy wooden object which the disturbed perpetrator used to beat it over the head several times. Responding Toa Alta police were shocked at the scene when they arrived to investigate. The violent dog-hater remains at the Bayamón jail after having failed to pay a $10,000 bond.

AIBONITO, NOT SO BONITO...MAN SHOT TO DEATH 

Joseph Rosario Rivera, age 29, fell victim to a drive-by shooting near the entrance to the Las Flores neighborhood of Aibonito, on Road PR-722, on Thursday night. At about 10:35 that night, mulitple individuals with firearms shot at Rivera from inside the car, striking him several times. A good samaritan drove the victim to a local hospital, where he died. The bloody incident has been tallied as the 352nd murder in Puerto Rico for 2017, seven less than at this time last year.

PIP LAWMAKERS: STOP DUMPING TOXIC COAL ASH!

From The San Juan Daily Star:

"Legislators Juan Dalmau Ramírez and Denis Márquez Lebrón of the Puerto Rican Independence Party (PIP) announced  Thursday the introduction of steps in the island Senate and House to stop the dumping of toxic coal ash and remedy the ineffectiveness of Law 40 of 2017..."

SENATE PRESIDENT TO FOCUS ON MUNICIPALITIES

From Caribbean Business:

"Senate President Thomas Rivera Schatz has defined the course of the upcoming legislative session by pointing out that his priority, as of August, will be to address the fiscal and structural challenges of Puerto Rico’s  78 municipalities..."

RICH PEOPLE RUSH IN TO PICK PUERTO RICO'S BONES

From Bloomberg:

"Distressed-mortgage investors are descending on troubled Puerto Rico. There are big names among them: Goldman Sachs Group Inc. and Perella Weinberg Partners and TPG Capital. What’s luring them is the opportunity to scoop up home loans and foreclosed properties for pennies on the dollar..."

Austerity Doesn't Work

Commentary

W.A. Delgado

Originally published March 16, 2017

When a nation or jurisdiction runs into problems with debt, the pres-
cription usually recommended by the banks, investors, hedge fund
managers and rich lender governments is usually the same: cut costs
by slashing social spending and raise taxes on the poor and middle
class. But these approaches, as has already been demonstrated -- in
Greece, for example -- usually end up tanking the target economy
even further. A society in economic recession or depression isn't go-
ing to get better by making the most vulnerable people suffer, and its
economy won't return to prosperity by leaving working class people
(who usually spend most of their income, putting the money back in-
to the economy) with less money to spend. Austerity doesn't create
employment or growth, and it certainly doesn't create better living
conditions for the bulk of the population. But for the masters of ca-
pital, how average people are doing is just an "externality".  Debts
must be paid, in full and on time, no matter what. The rich can never
suffer, even a bit.  Rather, the poor must always pay the price.

In a world where many governments are "democratic" only in appea-
rance, true democracy continues to erode. Institutions everywhere are
increasingly more beholden to the dictates of the very few and very
privileged, while the wishes of the masses continue to be drowned
out by lofty talk of the rules of the "free market". The orthodoxy of
the inscrutable market must always be obeyed, human beings be
damned. Who cares if people starve, as long as the numbers look
the way they're supposed to look, for the right people?

Recently, Puerto Rico's unelected fiscal control board warned about
the severityof the island's cash flow, and suggested "emergency mea-
sures" be taken. Measures like maybe taxing expensive real estate at
higher rates, or taxing foreign corporations and big box retailers mo-
re? No, of course not. What is needed is to reduce teachers' hours, cut
health services for the sick and slash pensions for the old. So how
will austerity make for a better society? It won't. But it will make
for better financial returns for the masters of capital.

What Puerto Rico really needs in the long term is not austerity, or en-
trepreneurs (another fabled cure for everything). We don't need more
rights and giveaways for the international and local investor classes
or platitudes about "innovation" or personal responsibility. What we
need is true democracy, where the people -- the ones who really keep
society running -- can have a direct say in how the government func-
tions, how its budget is spent, and how (and to whose benefit) the
economic resources of the nation are to be utilized.


W.A. Delgado is a staff writer for the Puerto Rico Monitor.

If Puerto Rico Thinks Bankruptcy is a Better Solution, They Have a Rude Awakening Coming!

   Commentary

   Richard Lawless

One should look no further than the Puerto Rico Electric Power Authority’s (PREPA) pending bankruptcy.

All credible financial analysts agree that PREPA only needs slightly more than a 10% reduction in debt service to continue paying its bills and operating as expected.  Over a three-year period, the utility negotiated with their bond holders for a 15% reduction in debt.  This consensual agreement gave the utility almost 50% more than it needed to get back on track. 

If the bankruptcy judges execute the hearings without personal or political bias, PREPA will get only what it needs to operate safely.  That number should reflect about a 10% reduction in debt, far less than was offered to the utility in their consensual negotiations with their bond holders.

For PREPA to receive a more favorable outcome in court they will have to shape an argument based on the following factors:

1.     PREPA has allegedly been over charging its customers every year for high quality crude oil while paying and taking delivery of sludge oil.  The difference in cost is hundreds of millions of dollars each year. That money is unaccounted for.   (Business wire 4-16-16, RICO Lawsuit)

2.     PREPA must pay unusually high accounting fees to KPMG to produce misleading financial statements each year. 

(KPMG lead auditor, Puerto Rico Senate Hearing 6-24-15)

3.     PREPA must pay unusually high bond rating fees each year to secure misleading bond ratings for their new bond offerings.  

(Puerto Rico Monitor 4-5-16, FINRA Settlements, on-going SEC Investigations)

4.     PREPA must pay unusually high sales fees to the major Wall Street Banks for them to knowingly market troubled bonds as safe investments.

(Reuters 6-28-17)

5.     PREPA budgets hundreds of millions of dollars each year for equipment maintenance and the money disappears while the repairs are rarely done. 

(SEC Whistleblower Financial Audit 1-18-16)

6.     The Puerto Rico Fiscal Control Board although mandated through legislation to approve consensual agreements with Puerto Rico’s Creditors, the Board has elected to ignore the legislation costing PREPA many millions in future litigation.

(Puerto Rico Fiscal Control Board 6-27-17)

7.     PREPA has numerous law suits, FBI and SEC investigations going on now, costing PREPA tens of millions in legal and consulting expenses.

(AlixPartners $28 million, etc.…)

8.     PREPA has massive unfunded pension obligations, although the pension contributions are budgeted every year they rarely contribute what was promised.

The PREPA attorneys and accountants will have to shape an argument that if they are to maintain their current level of mismanagement and malfeasance, more money must be taken from the innocent bondholders.

In an honest legal system, PREPA is unlikely to prevail.

Richard Lawless is a former senior banker who has specialized in evaluating and granting debt for over 25 years. He has a Master’s Degree in Finance from the University of San Diego and Bachelor’s Degree from Pepperdine University. He sits on several Corporate Boards and actively writes for several finance publications.

Puerto Rico News Digest For May 3, 2017

BANKRUPTCY!

GOVERNOR SAYS PR TO SEEK TITLE III PROTECTION

Governor Ricardo Rosselló announced at a press conference this morning that he has notified the Fiscal  Control Board of the intention of the Puerto Rican government to trigger Title III of the PROMESA federal law, a move similar to bankruptcy, in order to safeguard essential government services and payroll. The announcement comes in the wake of the expiration on May 1 of the island government's immunity to lawsuits related to its staggering debt load. Bondholder groups have already sued the government since the deadline passed. Governor Rosselló expressed his willingness to continue a dialogue with bondholders, and stated that the Title III decision was made because it would be "the way to defend the main interests of the people of Puerto Rico." He also declared that the Board had received the government's petition and would act on it "immediately".

PROTESTER ARRESTED FOR POPULAR CENTER VANDALISM

From US Attorney's Office:

"Today, United States Magistrate Judge Silvia Carreño-Coll authorized a criminal complaint against Nina Droz Franco, charging her for damaging or attempting to damage by means of fire a building engaged in  activity affecting interstate commerce[...]During the course of the protest [on Monday] on Ponce de Leon  Street, numerous individuals vandalized the Popular Center building...after several individuals broke windows of the building, two individuals approached one of the broken windows and attempted to light a  fire. Specifically, a female and a male approached one of the broken windows and lit a flame. All of these  events were captured on video[...]Assistant United States Attorney Alexander Alum is in charge of the prosecution of the case. If convicted, the penalties Droz Franco is facing are a minimum term of imprisonment of five years, and a maximum term of 20 years, a supervised release term of not more than 3 years, and a fine not to exceed $250,000..."

GUAYNABO MAYOR CASE TO SPECIAL PROSECUTOR

From The San Juan Daily Star:

"The island Justice Department recommended on Monday the assignment of a special prosecutor to investigate  possible corruption related to a sexual harassment complaint involving Guaynabo Mayor Héctor O’Neill. After completing a preliminary investigation, Justice concluded that the longtime mayor could have committed  a total of 20 violations of the law..."

GOV'T PUBLISHES NEW OFFER FOR GO CREDITORS

From Caribbean Business:

"The government of Puerto Rico presented Monday a new debt restructuring offer, individually, to general obligations (GOs) creditors. The counteroffer reduces to 30% the suggested cut to principal, known as  haircut, to the debt guaranteed by the commonwealth’s constitution. The government offered about 50 cents on the dollar in its first proposal. However, the government has yet to reach an agreement with its creditors..."

Puerto Rico News Digest For May 1, 2017

MAY DAY! 

ENRAGED PROTESTERS VENT THEIR ANGER

Photo by @Tatymailine

As part of the massive general strike which was called for May 1st, scores of citizens took to to the streets across Puerto Rico today -- mainly in the San Juan metro area -- to protest the brutal austerity measures sought by the Financial Control Board and the administration of Governor Rossello, as they deal with the island's debt crisis. Labor, academic, religious, feminist, student and other groups took part in the demonstrations, which took place at the University of Puerto Rico in Rio Piedras, La Fortaleza in Old San Juan, Luis Muñoz Marín International Airport and other locations. At the latter, protesters blocked the entrance to the airport early this morning. Several of the marches around San Juan converged around noon at Hato Rey's "Milla de Oro" financial district, where some protests turned violent. Many protesters converged in front of the Seaborne Building, where the Financial Control Board is based. Several buildings in the area were vandalized, with Banco Popular's building taking the brunt of it, as protesters threw rocks, broke glass and had confrontations with building security staff. Police dispersed protesters with tear gas and rubber bullets.

Photo by @carlaamarie


Later in the afternoon, Plaza Las Americas closed the mall's parking facilities as a safety measure. On nearby Roosevelt Avenue, protesters blocked the road with large stones and other debris, while on Muñoz Rivera Avenue, someone started a small fire in a lane of traffic. Some individuals on Muñoz Rivera refused to vacate the roadway despite the Police's barrage of gas and rubber bullets. SWAT teams, along with regular Police, had been deployed all over the area throughout the day. Various businesses in Hato Rey, including a CVS pharmacy, shut down due to the situation. Some of them were vandalized with graffiti or had their windows broken. Rocks were also thrown through the windows of the old headquarters of the New Progressive Party. Close to 5 PM, Police were able to retake Muñoz Rivera Avenue, after several arrests were made. At around this time, Governor Rossello took part in a press conference at La Fortaleza, in which he condemned the "violent incidents".

Puerto Rico Statehood In The Age of Trump

Commentary

Rosa Bravo

Originally published March 8, 2017

The cause of Puerto Rican statehood, already battered by the island's enormous economic crisis, has run into a new obstacle: the election of Donald Trump as President. While the President cannot change Puerto Rico's status on his own,his election -- and the tenor of the political discourse under which he was elected -- has made the Republican-majority Congress more implicitly hostile to Puerto Rico's statehood prospects. I believe Trump's rhetoric and actions have set the tone that Congress will follow for at least the  next four years.

It is not a secret that President Trump is a xenophobe who has little regard for Hispanics.That alone would prejudice him against supporting the admission of three-plus million Spanish speakers into the Union. But besides that, his goal of restoring America's economic might would steer him away from incorporating a territory with tens of billions of dollars in crippling debt that, in his view and of those like him, would contribute little to the federal treasury. But the biggest issue here may be Trump's almost total ignorance regarding Puerto Rico, its history and its issues. The President is a man famous for not reading and for losing his patience quickly. It is almost certain he has never taken an interest in the island, other than whatever he needed to know to build his now  defunct Rio Grande golf club. In his simple mind, Puerto Ricans are probably just welfare queens to be shoved aside; after all, they're not "real Americans". I think that Trump's election put PR ever closer to the unilateral granting of independence for the island, despite that option finding next to no support among Puerto Ricans. He can't do it himself, but he can certainly goad his Republican acolytes in Congress to do so.

The current government of Puerto Rico would do well do ask for very little from thecurrent federal government. And it should certainly not even bring up the issue of Puerto Rico's status or ask for Puerto Rican statehood. Because if they do, the answer from the USA may very well be: "No. But thanks for reminding us that you're still hanging around. Goodbye, you're free to go". This is why I think a status referendum in Puerto Rico right now is a ridiculous idea. As a supporter of statehood, I fear that no good would come from poking that hornet's nest. The best thing to do would be to keep our heads down, try to get our financial house in some kind of order and just wait out the Trump storm. A better climate will come.

Rosa Bravo is a staff writer for The Puerto Rico Monitor. The opinions expressed in the preceding
piece are strictly her own and do not necessarily represent those of The Puerto Rico Monitor, its
editors or advertisers.

Puerto Rico News Digest For April 24, 2017

PONCE COP DIES AFTER SHOOTING

From Officer.com:

"A Puerto Rico police officer succumbed Wednesday of injuries he sustained in a shooting Sunday. Agent Benjamín De los Santos-Barbosa and three other officers attempted to stop a vehicle with an illegal window tint when the driver led them on a pursuit, according to The Officer Down Memorial Page. The driver -- who was on parole for narcotics charges -- led the officers on a pursuit until he encountered a broken down vehicle. The suspect then backed into the patrol car and opened fire as he exited his vehicle, hitting De los Santos-Barbosa in the head. Other officers returned fire, striking the suspect. The man was taken into custody and charged with 15 counts including murder, narcotics violations and weapons violations..."

GROUP TO FORGE AHEAD WITH DEBT AUDIT

From Caribbean Business:

"The Frente Ciudadano por la Auditoría de la Deuda, a group that is pushing for Puerto Rico’s debt to be audited, announced Friday that it will join a University of Puerto Rico (UPR) student protest to demand that the public debt be investigated and to defend public education. The “family-oriented, artistic” and educational event will take place Sunday, April 23..."

PR GROUPS VISIT CUBA FOR BAY OF PIGS CELEBRATION

From Telesur:

"A delegation of 40 members from the Juan Rius Rivera Brigade representing several social organizations in Puerto Rico celebrated the 56th anniversary of the Bay of Pigs victory last week in Cuba, showing their commitment to the elimination of foreign military bases in the world including the illegally occupied U.S. base at Cuba's Guantanamo Bay.At the site of the failed military invasion of Cuba by the CIA-sponsored paramilitary forces, Puerto Rican activists showed solidarity with Cuba and the ideals of the Cuban revolutionary leader Fidel Castro. The brigade seeks to highlight the solidarity between to the two island nations by organizing delegations to Cuba every year..."

Puerto Rico News Digest For April 17, 2017

FEDS WANT COMMONWEALTH IN STATUS REFERENDUM

From Caribbean Business:

"Including the commonwealth in the June 11 political-status plebiscite, as demanded by the U.S. Justice Department, has affected work procedures for the Puerto Rico State Elections Commission (CEE by its Spanish acronym)...Gov. Ricardo Rosselló and his advisers evaluated Saturday U.S. Deputy Attorney General Dana Boente‘s observations, in which he overrode the referendum as enacted for excluding the territorial status as a viable alternative. The governor said his administration will make the necessary adjustments to be backed up by the federal government, and Senate President Thomas Rivera Schatz affirmed these amendments will be approved as early as next Tuesday..."

PREGNANT WOMAN GUNNED DOWN IN VIEQUES

Brenda Concepción Gerena, age 19 and four months pregnant, was shot at around 2:15 on Sunday morning along with her 17-year-old stepsister in front of their house in the Esperanza sector of the island municipality of Vieques. The pregnant woman died at Centro Médico in Río Piedras about four hours later, after both women were taken there by helicopter. The deceased victim's stepsister, María Jiménez Gerena, was not critically injured. The two victims had been involved in a dispute with unidentified people in a different part of town earlier that evening. So far in 2017, Puerto Rico has tallied 188 reported murders.

POLICE DETAINS FOUR MIGRANTS IN MONA PASSAGE

From AP/NZ Herald:

"Police say they have detained four migrants in a northwest coastal area commonly used by people from the Dominican Republic to get into this U.S. territory. Officers said they detained a man and a woman Saturday afternoon aboard a 28-foot wooden boat with an outboard motor just off an area beach. They said another man and a woman were detained at a nearby landing area on the beach. The travelers' country of origin was unknown..."

Austerity Doesn't Work

Commentary

W.A. Delgado

When a nation or jurisdiction runs into problems with debt, the pres-
cription usually recommended by the banks, investors, hedge fund
managers and rich lender governments is usually the same: cut costs
by slashing social spending and raise taxes on the poor and middle
class. But these approaches, as has already been demonstrated -- in
Greece, for example -- usually end up tanking the target economy
even further. A society in economic recession or depression isn't go-
ing to get better by making the most vulnerable people suffer, and its
economy won't return to prosperity by leaving working class people
(who usually spend most of their income, putting the money back in-
to the economy) with less money to spend. Austerity doesn't create
employment or growth, and it certainly doesn't create better living
conditions for the bulk of the population. But for the masters of ca-
pital, how average people are doing is just an "externality".  Debts
must be paid, in full and on time, no matter what. The rich can never
suffer, even a bit.  Rather, the poor must always pay the price.

In a world where many governments are "democratic" only in appea-
rance, true democracy continues to erode. Institutions everywhere are
increasingly more beholden to the dictates of the very few and very
privileged, while the wishes of the masses continue to be drowned
out by lofty talk of the rules of the "free market". The orthodoxy of
the inscrutable market must always be obeyed, human beings be
damned. Who cares if people starve, as long as the numbers look
the way they're supposed to look, for the right people?

Recently, Puerto Rico's unelected fiscal control board warned about
the severityof the island's cash flow, and suggested "emergency mea-
sures" be taken. Measures like maybe taxing expensive real estate at
higher rates, or taxing foreign corporations and big box retailers mo-
re? No, of course not. What is needed is to reduce teachers' hours, cut
health services for the sick and slash pensions for the old. So how
will austerity make for a better society? It won't. But it will make
for better financial returns for the masters of capital.

What Puerto Rico really needs in the long term is not austerity, or en-
trepreneurs (another fabled cure for everything). We don't need more
rights and giveaways for the international and local investor classes
or platitudes about "innovation" or personal responsibility. What we
need is true democracy, where the people -- the ones who really keep
society running -- can have a direct say in how the government func-
tions, how its budget is spent, and how (and to whose benefit) the
economic resources of the nation are to be utilized.


W.A. Delgado is a staff writer for the Puerto Rico Monitor.

Puerto Rico News Digest For March 9, 2017

BOARD TO GOV: PR IS NEARLY BROKE

From The Washington Post:

"A federal control board warned on Wednesday that Puerto Rico’s govern-
ment needs to take “major emergency actions” to avoid shutting down be-
cause its cash flow is critically low. The comments published in a letter to
Gov. Ricardo Rossello are the sharpest yet made by a board that recently
began overseeing the U.S. territory’s finances..."

WOMEN'S DAY PROTESTERS  BLOCK ROAD

From Caribbean Business:

"More than 100 women clad in purple T-shirts blocked [Las Américas Ex-
pressway] yesterday as they linked arms and marched through the capital
of San Juan at dawn. The group clutched large purple flags emblazoned
with the female symbol and used bull horns to decry chauvinism and de-
mand more reproductive rights...”

ACLU SLAMS FASTING & PRAYER DECREE 

From The San Juan Daily Star:

"The American Civil Liberties Union is challenging a decree passed by Pu-
erto Rico legislators that calls for 40 days of fasting and prayer. The organi-
zation said in a statement Tuesday that the decree violates the concept of se-
paration of church and state. The decree was approved in February after Pu-
erto Rico’s House of Representatives President Carlos “Johnny” Méndez
said the island needed divine intervention as it struggles through an econo-
mic recession..."

Puerto Rico Statehood In The Age of Trump

Commentary

Rosa Bravo

The cause of Puerto Rican statehood, already battered by the island's enormous
economic crisis, has run into a new obstacle: the election of Donald Trump as
President. While the President cannot change Puerto Rico's status on his own,
his election -- and the tenor of the political discourse under which he was elec-
ted -- has made the Republican-majority Congress more implicitly hostile to
Puerto Rico's statehood prospects. I believe Trump's rhetoric and actions have
set the tone that Congress will follow for at least the  next four years.

It is not a secret that President Trump is a xenophobe who has little regard for
Hispanics.That alone would prejudice him against supporting the admission of
three-plus million Spanish speakers into the Union. But besides that, his goal of
restoring America's economic might would steer him away from incorporating a
territory with tens of billions of dollars in crippling debt that, in his view and of
those like him, would contribute little to the federal treasury. But the biggest issue
here may be Trump's almost total ignorance regarding Puerto Rico, its history and
its issues. The President is a man famous for not reading and for losing his patien-
ce quickly. It is almost certain he has never taken an interest in the island, other
than whatever he needed to know to build his now  defunct Rio Grande golf club.
In his simple mind, Puerto Ricans are probably just welfare queens to be shoved
aside; after all, they're not "real Americans". I think that Trump's election put PR
ever closer to the unilateral granting of independence for the island, despite that
option finding next to no support among Puerto Ricans. He can't do it himself,
but he can certainly goad his Republican acolytes in Congress to do so.

The current government of Puerto Rico would do well do ask for very little from
thecurrent federal government. And it should certainly not even bring up the issue
of Puerto Rico's status or ask for Puerto Rican statehood. Because if they do, the
answer from the USA may very well be: "No. But thanks for reminding us that
you're still hanging around. Goodbye, you're free to go". This is why I think a st-
atus referendum in Puerto Rico right now is a ridiculous idea. As a supporter of
statehood, I fear that no good would come from poking that hornet's nest. The
best thing to do would be to keep our heads down, try to get our financial house
in some kind of order and just wait out the Trump storm. A better climate will
come.


Rosa Bravo is a staff writer for The Puerto Rico Monitor. The opinions expressed in the preceding
piece are strictly her own and do not necessarily represent those of The Puerto Rico Monitor, its
editors or advertisers.

Puerto Rico News Digest For September 26, 2016

THREE MURDERED IN CAROLINA ON SUNDAY

As reported by El Nuevo Dia, three people were murdered Sunday night at around
7:30 PM on Road PR-857, in the Canovanillas sector of Carolina. A 911 call alerted
the police to three people who had been shot. Upon arriving, police found the bodies
of Julio M. López Castro, age 41, and Jonathan J. López Pizarro, age 22. A 23-year-
old man, Jonathan Rodríguez Cabrera, was taken to Centro Médico in Río Piedras
with various gunshot wounds. He died while receiving treatment. These three killi-
ngs were part of seven overall murders registered across the island during this past
weekend. The number of murders for the year in Puerto Rico now stands at 484, 70
more than at this time last year.

TOURISM COULD FACE LOSSES FROM BLACKOUT

From Caribbean Business:

"Despite the lengthy lines thousands of Puerto Ricans did on hotels and restaur-
ants after the island remained partially dark for more than 40 hours, the final bal-
ance of the incident isn’t necessarily positive for Puerto Rico’s tourism industry,
much less for the general economy. While hundreds of hotels saw a significant in-
crease in their occupancy since Wednesday, others have had to cancel reservations
due to the outage or have had to send guests to a different accommodation because
their electric plants didn’t work, exploded, or simply couldn’t tolerate the emergen-
cy usage, revealed economist Jorge Elguera to Caribbean Business. Similar incide-
nts occurred at some restaurants that didn’t have electric generators or hadn’t given
them maintenance..."

PPT CANDIDATE CALLS FOR PLACITA AGREEMENT

From The San Juan Daily Star:

"Puerto Rican Working People’s Party (PPT by its Spanish initials) candidate for
the San Juan municipal assembly Jorge Farinacci Fernós on Thursday proposed
reaching a “consensual agreement” that will allow the harmonization of the inter-
ests of the diff erent sectors at the Placita de Santurce. “We have to recognize that
we are all part of the same community, so we have to try a reach a consensual agr-
eement,” Farinacci Fernós said, referring to the public dispute between the reside-
nts and business owners in the area. Farinacci Fernós noted that certain issues need
to be cleared up regarding the aff ected parties and the interests involved, such as the
fact that residents of the area have a right to be able to rest and to the “tranquility they
deserve after a long day at work;” the businesses and their staff s, which are trying to
make a living, and the people who visit the establishments to enjoy one of the only
open public spaces remaining in Puerto Rico..."

UNITED WAY: ECONOMY STRANGLING NON-PROFITS

From News Is My Business:

"In Puerto Rico’s embattled economy, everyone is at risk. Nonprofit organizations
are no exception.To survive, organizations are cutting staff, services and administra-
tive costs, maxing out their credit cards and even borrowing from their board mem-
bers. Those are among the findings of a recent informal survey conducted by United
Way of  Puerto Rico, a coalition of 131 charitable organizations. “There was nothing
surprising [in the survey] since we constantly receive financial reports and do moni-
toring. What does worry us is that there is too much dependence on government fun-
ds,” said United Way President Samuel González..."

History Is Repeating Itself and America May Not Survive

Commentary

Richard Lawless











In 2006 a financial crisis of unprecedented magnitude hit America.

Wall Street, with at least complicit support from our legislators, the DOJ and re-
gulatory agencies began to create new financial instruments to sell to the Ameri-
can people.  Unfortunately, these new investments consisted of pools of troubled
mortgages.

What made this all possible was that the three big credit rating agencies handed
out high investment grade credit ratings that allowed the complicit banks to sell
these investments to the general public. It really was that simple.  Today there is
universal agreement that Moody’s, S&P and Fitch provided fraudulent credit ra-
tings.

Could you image what would happen to a real estate appraiser that knowingly
issued home values that were hundreds of thousand higher than the value of the
property and a dishonest borrower that borrowed millions based on these phony
valuations.  The Banks would incur millions in losses and the borrower and app-
raiser would go to jail.

As of 2016, not one employee or executive at the rating agencies were ever
charged.

Our legislature is the recipient of tens of millions per year in political contribu-
tions and paid speeches.  None of that money comes without strings. Our Cong-
ressmen and Senators did what they were paid to do and protected their Wall St-
reet friends.  The DOJ and regulatory agencies are run by these very same legis-
lators and were prevented from prosecuting anyone.

Six trillion dollars in lost wealth, six million homes lost to foreclosure and mill-
ions of jobs lost.

Well, the Credit Rating Agencies are at it again and this time our country does
not have the resources to withstand another major crisis.

It has been a few years now since the start of the wholesale financial collapse of
Puerto Rico.  Sufficient time has passed allowing Individuals, companies, regul-
atory agencies and our legislators the time to understand the root causes of his
crisis.

That’s right, you guessed it!  All of the credit ratings issued on Puerto Rico debt
were either misleading or outright fraudulent.  But it does not end there, a quick
review of bond ratings from Chicago, Connecticut, California and New York re-
flect similar concerns.

The municipal bond market is $4,2 trillion dollars.  Preliminary indications sugg-
est that as much as 60% of these bonds were sold to investors with an inappropri-
ate or misleading credit rating.

Once again our regulatory agencies, the DOJ and our legislators have circled th-
eir wagons around Wall Street.  No matter how many American’s need to be thro-
wn under the bus, our government will not move against their friends.

So far tens of billions have been lost by our senior citizens who purchase these bo-
nds to supplement their modest retirement incomes.  It will not end with Puerto Ri-
co; Puerto Rico is only the beginning.


Mr. Lawless is a career Banker and CEO of Commercial Solar Power, Inc.  Mr. Lawless has been 
working with the SEC, the FBI, The U.S. Attorney’s Office and the Treasury Department to un-
cover the reasons for Puerto Rico’s $70-billion-dollar bond default.  Mr. Lawless has held Senior 
and Executive positions with Wells Fargo Bank, Home Savings and Washington Mutual Bank 
specializing in the issuance of debt instruments.  Mr. Lawless holds a BA from Pepperdine Uni-
versity and a Master’s Degree from the University of San Diego.

The opinions expressed in the preceding commentary are exclusively those of the author and
do not necessarily reflect those of The Puerto Rico Monitor, its contributors or advertisers.

Puerto Rico News Digest For August 23, 2016

OLYMPIANS PARADE THROUGH SJ TODAY

Photo: PR Olympic Committee

From Caribbean Business:

"The Puerto Rican Olympic delegation will celebrate on Tuesday the end of the
2016 Río de Janeiro games with a parade through San Juan. The participating
athletes include Javier Culson, Jaime Espinal, Franklin Gómez and Mónica Puig.
The caravan is slated to begin on Baldorioty de Castro Avenue and end at the Pu-
erto Rico Coliseum. The event is expected to begin at 2 p.m. and includes a stop
at the San Jorge Children’s Hospital and then continues toward the coliseum via
Fernández Juncos Avenue..."

UP TO 270 ZIKA MICROCEPHALY CASES EXPECTED

From The San Juan Daily Star:

"U.S. health experts estimate that as many as 270 babies in Puerto Rico may be
born with the severe birth defect known as microcephaly caused by Zika infecti-
ons in their mothers during pregnancy. The estimate is the first to project the po-
tential impact of Zika on Puerto Rico, which has borne the brunt of the outbreak
in the United States. Puerto Rico had 13,186 laboratory-confirmed cases of Zika,
including 1,106 pregnant women, as of Friday. Rising infection rates of the virus
in Puerto Rico prompted the U.S. government to declare a state of public health
emergency last week..."

ECONOMISTS TO DISCUSS PROMESA IMPACT

From News Is My Business:

"The Puerto Rico Economists Association wiil address the impact of the Puerto
Rico Oversight, Management and Economic Stability Act (PROMESA) and pre-
sent, through successful cases, the recipe to achieve economic revitalization dur-
ing its upcoming annual conference, the organization announced. The 33rd ann-
ual meeting will take place Aug. 26, when, under the slogan of “The New Econ-
omic Recipe: Strategies for Economic and Social Revitalization,” several panels
comprising representation from government, academia and private industries will
discuss a range of topics..."

SAN JUAN ACTIVISTS PROTEST TAX EXCEPTIONS

From Democracy Now:

"In Puerto Rico, activists disrupted a business conference in San Juan on Friday
to protest laws that give new residents and some business owners complete exc-
eptions on a slew of taxes. The activists were also protesting against the PROM-
ESA law, which creates a new financial control board to oversee the island’s fin-
ancial affairs. During the protest, activists carried banners reading "The People
Before the Debt." The protest shut down the conference’s event registration for
parts of the day..."