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 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.

Restaurant Owners Indicted Over Minimum Wage Ripoff

US Attorney's Office

San Juan

Press Release

 SAN JUAN, P.R. - On March 2, 2017, a Federal Grand Jury in the District of
Puerto Rico returned an indictment charging José Manuel Abreu-Ramírez and
Milagros De los Santos-De Abreu with obstructing a U.S. Department of Labor
investigation into their failure to pay minimum wage and overtime to their em-
ployees at the restaurants José José and El Catador D’Abreu in violation of the
Fair Labor Standards Act of 1938. Both restaurants were owned and operated
by the defendants and located in San Juan, Puerto Rico.

The United States Attorney for the District of Puerto Rico, Rosa Emilia Rodrí-
guez Vélez and Special Agent-in-Charge Michael Mikulka of the U.S. Depart-
ment of Labor, Office of Inspector General, New York Regional Office made
the announcement.

The 25 count Indictment charges Abreu-Ramírez and De los Santos with eight
counts of false statements to a federal agency, three counts of wire fraud, eight
counts of aggravated identity theft and five counts of tampering with a witness,
victim or informant by intimidation, threats, corrupt persuasion or misleading
conduct.

The allegations in the indictment indicate that instead of making payment to
the employees in the amounts the defendants had agreed to pay pursuant to an
investigation conducted by the Wage and Hour Division of the U.S. Department
of Labor and the Office of Inspector General of the U.S. Department of Labor,
the defendants made their employees endorse checks that had been issued to
prove compliance with federal law and then withheld the checks from the em-
ployees. Abreu‑Ramírez and De los Santos either cashed or deposited the end-
orsed checks into their own bank accounts and kept the funds for their own be-
nefit. The amounts Abreu‑Ramírez and De los Santos unlawfully retained from
their employees in violation of the Fair Labor Standards Act of 1938 was appro-
ximately $23,448.47.

According to the Indictment, on different occasions between April and July, 2014,
Abreu‑Ramírez and De los Santos also procured the signature of U.S. Department
of Labor forms from 20 employees. In those forms the employees were coerced to
falsely represent to the U.S. Department of Labor that they had been paid amounts
owed to satisfy minimum wage and overtime payment obligations under federal
law. Abreu‑Ramírez delivered those forms and other fraudulent documents in per-
son and through email communications to the Wage and Hour Division of the U.S.
Department of Labor knowing that they contained false statements.

The Indictment also alleges that Abreu‑Ramírez and De los Santos forged the sig-
nature of an employee in forms and documents submitted to the Wage and Hour
Division of the U.S. Department of Labor.

“This Indictment is evidence of our commitment to work closely with our law en-
forcement partners to enforce U.S. Department of Labor programs and protect wor-
kers from unscrupulous employers. We will support federal agencies in their efforts
to uphold the workplace protections and wages to which workers are entitled under
federal law,” said Rosa E. Rodríguez-Vélez, U.S. Attorney for the District of Puerto
Rico. “The United States Attorney’s Office will vigorously prosecute individuals
who exploit their employees and attempt to conceal their actions by obstructing in-
vestigations into employer compliance with federal law.”

“An important part of the mission of the Office of Inspector General is to investi-
gate alleged obstruction of Department of Labor agencies, including the Wage and
Hour Division. We will continue to work with our Department of Labor and law
enforcement partners to vigorously investigate these types of allegations,” stated
Special Agent-in-Charge Michael Mikulka of the New York Regional office of the
U.S Department of Labor, Office of Inspector General.

The investigation was conducted by the United States Department of Labor’s Wa-
ge and Hour Division and Office of Inspector General in coordination with the U-
nited States Attorney’s Office for the District of Puerto Rico. Assistance has been
provided by the United States Marshal Service and the case is being prosecuted by
Assistant U.S. Attorney Dennise N. Longo Quiñones of the Financial Fraud and
Corruption Unit.

Pursuant to the charges, Abreu- Ramírez and De los Santos face potential penalties
of up to five years of imprisonment for making false statements to a federal agency,
up to 20 years of imprisonment for conspiracy to commit wire fraud, a mandatory
minimum term of two years of imprisonment for aggravated identity theft, and up
to a term of imprisonment of 20 years for tampering with a witness. Indictments
contain only charges and are not evidence of guilt. Defendants are presumed to be
innocent unless and until proven guilty.



https://www.justice.gov/usao-pr/pr/owners-fine-dining-restaurants-indicted-obstructing-federal-labor-department

Puerto Rico News Digest For September 6, 2016

HIGH WINDS KILL MAN IN GUAYANILLA

From Caribbean Business:

"Authorities say heavy winds associated with a tropical wave moving through the
Caribbean region have killed a man in the island’s southwest region. Police said
Monday that winds ripped off a tree branch that hit 31-year-old Alvin Torres as
he cleaned a property in the coastal town of Guayanilla. Forecasters said the tro-
pical wave south of Puerto Rico was generating winds of up to 40 miles per hour
(mph)...The National Hurricane Center (NHC) said Monday that shower and thu-
nderstorm activity associated with the wave had been decreasing. However, “stro-
ng winds, possibly to tropical storm force, could still be occurring in association
with this system” over Puerto Rico and Hispaniola Monday and Tuesday..."

NATL GUARD LANGUAGE CENTER OPEN THROUGH 2017

From The San Juan Daily Star:

"Resident Commissioner Pedro Pierluisi announced last week that the effort he
has led since 2014 to prevent the closure of the English Language Center opera-
ted by the Puerto Rico National Guard (PRNG) at Ft. Allen in Juana Díaz "appe-
ars to be on a successful path.” The English Language Center was scheduled to
be closed starting in fiscal year (FY) 2016, which ended June 30, but Pierluisi’s
efforts resulted in the Language Center continuing to operate..."

PR DEMANDS EPA CLEAN UP TOXIC LANDFILLS

From Washington Examiner:

"Puerto Ricans, disgusted with the Environmental Protection Agency's "willful
dereliction" of its oversight of the island's toxic landfills, are demanding that the
head of the agency close them, saying they have lost faith in an EPA deputy in
charge of the territory. The citizens' advocacy group Puerto Rico Limpio, which
means Puerto Rico Clean, is clamoring in a letter for EPA Administrator Gina Mc
Carthy to enforce federal laws by closing the "toxic landfills." Their Sept. 1 letter
spells out a "shocking pattern of willful dereliction of federal responsibility" by E-
PA Regional 2 Administrator Judith Enck, who in newly released documents was
dismissive of the group's concerns, saying the agency took care of the problem
over the last decade..."

PR BANKRUPTICES UP 8.14% IN AUGUST

From News Is My Business:

"The number of bankruptcy cases filed in Puerto Rico was up 8.14 percent year-
over-year in August, when 929 cases were filed. So far this year, 7,038 petitions
have been filed at the U.S. Bankruptcy Court, representing a 4.25 percent jump
when compared to the same period last year, information provided by research
firm Boletín de Puerto Rico showed..."

Puerto Rico News Digest For November 4, 2015

SUSPECT KILLED IN SHOOTOUT WITH FEDS

From Yahoo! News:

"A man sought by federal authorities in Puerto Rico died on Tuesday
following a shootout that broke as he tried to evade arrest near the U.S.
territory's biggest mall, officials said. The unidentified 22-year-old sus-
pect was hit by a bullet as he tried to flee from agents who were about
to arrest him...The shooting occurred close to the popular Plaza Las Am-
ericas mall in the capital of San Juan in a heavily transited area near po-
lice department headquarters..."

TREASURY HEAD SAYS HOURS MAY BE CUT

From The San Juan Daily Star:

"Commonwealth Treasury Secretary Juan Zaragoza confirmed Monday
that the government is contemplating reducing public workers’ working
hours, which the agency calculates could save about $90 million, a sum
that will allow the government to comply with the upcoming month’s co-
mmitments...The Treasury chief said a government shutdown is not on the
table for discussion right now, but there is a contingency plan for reducti-
ons of public workers’ daily working hours to six hours or half a day (four
hours)..."

PREPA FORBEARANCE EXTENDED FOR 48 HOURS

From Caribbean Business:

"A preliminary restructuring agreement between forbearing creditors
and the Puerto Rico Electric Power Authority (Prepa) has been put on
hold for 48 hours as a deadline set to expire Tuesday at 8 p.m. approa-
ched. The extension to the forbearance agreement is intended to provi-
de time for the filing of the Prepa Revitalization Act, which is expected
to take place within the next two days..."

LUFTHANSA OPENS FACILITY IN PR

From Fox News Latino:

"German airline Lufthansa's first center for aircraft maintenance, repair
and reconditioning in the Americas was inaugurated over the weekend
in Aguadilla, a city on Puerto Rico's northwest coast, officials said. The
Lufthansa facility will attract new investment from the aerospace indus-
try to the Caribbean island thanks to the development of business allian-
ces and the arrival of other companies in the sector, the Puerto Rican go-
vernment said in a statement..."

Puerto Rico News Digest For October 23, 2015

FEDS RAID HOUSING PROJECT

As reported this morning by El Nuevo Dia, federal agents have been
carrying out an operation since early this morning at Los Claveles
public housing project in Trujillo Alto. Agents are serving four sea-
rch warrants from the Immigration and Customs Enforcement agen-
cy (ICE). The operation has to do with drug trafficking and money
laundering, but ICE did not provide much in the way of further de-
tails, other than to say that illegal material was found among the
four apartments that were searched.  

PREPA TO PROPOSE 4 CENT RATE HIKE

From The San Juan Daily Star:

"The Puerto Rico Electric Power Authority (PREPA) plans to sub-
mit a new rate structure calling for a hike of around four cents, sour-
ces inside the utility said. The utility is still working on a study that
will help it decide what would be the appropriate rate. However, the
four-cent hike was the same as proposed by one of the utility’s insu-
rance companies. PREPA Chief Restructuring Offi cer Lisa Donahue
said on Tuesday that with the savings and cuts that have been made
at the utility, it expects to be able to submit a reasonable rate struct-
ure..."

SANDERS & WARREN BLAST VULTURE FUNDS

From News Is My Business:

"The two most prominent progressives in the U.S. Senate urged the
federal government Thursday to help Puerto Rico stand up against
the “vultures” they largely blame for the island’s current fiscal night-
mare. Sen. Bernie Sanders (I-VT), the chief rival of candidate Hilla-
ry Clinton for the 2016 Democratic presidential nomination, took ti-
me out of his packed campaign schedule to engage five witnesses —
including Puerto Rico Gov. Alejandro García-Padilla — who testifi-
ed at a hearing by the Senate Committee on Energy and Natural Re-
sources. Sanders, reeling off a raft of statistics on Puerto Rico’s de-
mographic and fiscal decline, called the island’s 56 percent poverty
rate among children a “human tragedy..."

OBAMA SEEKS BANKRUPTCY FOR PR

From The Chicago Tribune:

"President Barack Obama is pressing for Congress to give Puerto Rico
sweeping powers to reduce its $73 billion debt burden through bank-
ruptcy, escalating administration involvement as the Caribbean island's
access to cash dries up. Puerto Rico would be provided with a form of
bankruptcy protection not now available to American territories. Ad-
ministration officials also called for lawmakers late Wednesday to in-
crease health-care funding for Puerto Rico, extend tax credits to the
poor and put independent oversight in place to monitor the govern-
ment's budget..."

POPULAR POSTS $84.7 MILLION PROFIT

From Caribbean Business:

"Popular Inc. on Friday reported third-quarter net income of $84.7 mi-
llion. The Hato Rey, Puerto Rico-based bank said it had earnings of 82
cents per share. Earnings, adjusted for one-time gains and costs, were
90 cents per share. The a company that runs Banco Popular and other
banks in Puerto Rico and the U.S. posted revenue of $481.8 million in
the period..."

Puerto Rico News Digest For October 19, 2015

GOV'T OFFICIALS GO BEFORE GRAND JURY

From The San Juan Daily Star:

"La Fortaleza Public Aff airs Secretary Jesús Manuel Ortiz said he
and former La Fortaleza Chief of Staff Ingrid Vila were summoned
to appear before a federal grand jury, but he stressed that Gov. Ale-
jandro García Padilla has not been cited in relation to a probe into
alleged contracts given to a huge Popular Democratic Party (PDP)
donor. The STAR learned that House Speaker Jaime Perelló was al-
so summoned, but his office did not confirm the information. Also
cited was PDP Sen. Mari Tere González, who said federal officials
requested certain information from her that she declined to divulge.
Federal officials are allegedly investigating contracts awarded to
Anaudy Hernández Pérez, who testified in the corruption case aga-
inst former judge Manuel Acevedo..."

RESERVOIR LEVELS RISE OVER WEEKEND

Rains over the weekend boosted the water levels for several reser-
voirs across Puerto Rico. La Plata, the only reservoir which is still
under a water rationing plan, saw its level increase by 39 centime-
ters to 40.58 meters. La Plata, which serves much of the San Juan
metro area, would have to reach at least 43 meters for rationing to
be discontinued.

PR BOXER IN CRITICAL CONDITION IN VIRGINIA

From Caribbean Business:

"Boxer Prichard Colón was in critical condition Sunday after suffe-
ring a brain bleed from an injury during a bout in northern Virginia,
an official said. Colón underwent surgery to relieve pressure on his
brain after his bout Saturday afternoon against Terrel Williams in the
Washington, D.C., suburb of Fairfax, Virginia, said Lou DiBella, pre-
sident of DiBella Entertainment. Within moments of showing symp-
toms in his dressing room after the fight, Colón was under the care
of emergency medical technicians and rushed to Inova Fairfax hos-
pital, DiBella said. "He suffered a brain bleed as a result of an inju-
ry during the bout and underwent immediate surgery to relieve pre-
ssure on his brain," DiBella said in a statement. "His condition re-
mains critical..."

HYATT HOUSE BEATS 1ST YEAR EXPECTATIONS

From News Is My Business:

"With prolonged and recurrent stays, the guests of Hyatt House San
Juan, located at the Convention Center District in Miramar, have pro-
pel the propert to surpass its first-year expectations, Francisco Maria-
ni, manager of Hyatt Puerto Rico said. The opening of the Hyatt Hou-
se San Juan in October 2014, introduced the tourist market to the first
and only hotel, with a select style, that offers deals in extended-stay
in Puerto Rico..."

Puerto Rico News Digest For September 16, 2015

GDB, TREASURY OUT OF MONEY BY YEAR END

From The San Juan Daily Star:

The Puerto Rico Treasury Department’s single cash account and the Go-
vernment Development Bank (GDB) are each expected to exhaust their
liquidity before the end of calendar year 2015. The information was con-
tained in a liquidity update report by Conway-MacKenzie (CM) and in
the island government’s fiscal adjustment plan. Both documents were
made public last week. The Treasury has a treasury single account (TSA)
in which it deposits and disburses amounts related to the General Fund,
certain federal funds, government agencies, general obligation debt issu-
ances (GOs) and payments, net pension benefits, and other items.

PRASA REACHES DEAL WITH US GOVERNMENT

From Caribbean Business:

Under a settlement with the U.S. Department of Justice and the Environ-
mental Protection Agency (EPA), the Puerto Rico Aqueduct and Sewer
Authority (Prasa) has agreed to make major upgrades, improve inspecti-
ons and cleaning of existing facilities within the Puerto Nuevo system and
continue improvements to its systems island-wide, according to the Justice
Department. The Puerto Nuevo sewer system serves the municipalities of
San Juan, Trujillo Alto, and portions of Bayamón, Guaynabo and Carolina.
The settlement updates and expands upon legal settlement agreements rea-
ched with Prasa in 2004, 2006 and 2010.

COCAINE FOUND ON EAST PR COAST

From Caribbean News Now:

US Customs and Border Protection (CBP) Office of Air and Marine Agents
on Friday night recovered 114 pounds (51.7 kilos) of cocaine inside four back-
packs that were ditched by smugglers on the east coast of the island. The esti-
mated value of the seized contraband is $1.4 million.  CBP units near Ceiba,
Puerto Rico found 30 individually wrapped bricks of cocaine inside two pie-
ces of luggage. “Our marine units patrol work with law enforcement partners
to detect and intercept criminal organizations that seek to introduce illegal nar-
cotics,” stated Johnny Morales, director of air operations for CBP’s Caribbean
Air and Marine Branch (CAMB). “This seizure is evidence that our persistence
 is fruitful.”

SALES TAX REVENUE OVER ESTIMATES

From News Is My Business:

Puerto Rico sales and use tax (SUT) revenues collections totaled $190.7 mi-
llion in August, the first month the new 10.5 percent rate was in effect, ex-
ceeding projections by $22.2 million, or 13.2 percent, Treasury Secretary
Juan Zaragoza said Monday. August 2015 estimates took into account the
possible effect of purchases made in advance of the rate increase. Neverthe-
less, the monetary values of the tax base subject to the SUT were very simi-
lar for August 2015 and August 2014, Zaragoza said.

Puerto Rico News Digest For August 14, 2015

PIERLUISI SEEKS PR DROUGHT RELIEF

From The San Juan Daily Star:

Puerto Rico Resident Commissioner Pedro Pierluisi on Wednesday wrote
a letter to U.S. Secretary of Defense Ashton Carter formally requesting that
the Department of Defense (DOD) review all authorities in federal law and
all available federal resources that may facilitate helping the Puerto Rico
Aqueduct and Sewer Authority (PRASA) restore water service in munici-
palities aff ected by the drought. “The drought has had many adverse conse-
quences.… Households and businesses in the greater San Juan metropolitan
area must live without running water for three days for every day their taps
are turned on,” Pierluisi stated in his letter to Carter...The letter also menti-
ons multiple ideas that have been brought forward in recent days about the
kinds of assistance that the DOD might be able to provide. This includes
deploying Navy ships to Puerto Rico that have desalinization capabilities,
and activating the U.S. Army Corps of Engineers to drill new water wells
or provide a supply of emergency drinking water that would supplement
PRASA resources.

GOVERNOR SIGNS PRO-TRANSGENDER LAWS

From HRC:

Governor Alejandro García Padilla signed two pro-LGBT executive orders
in Puerto Rico on Monday.The first would prohibit discrimination in hospi-
tals based on gender identity. The other would allow transgender people to
change their gender on their Puerto Rican driver’s license. “My administra-
tion is committed to the eradication of all forms of discrimination,” the go-
vernor said is a statement. “The lack of this type of regulation in these areas
limits the full development of citizens belonging to transsexual and transgen-
der communities, lacerating their dignity, their access to health and quality
of life. This type of discrimination directly affects aspects of everyday life
such as employment, family and safety; and that is no longer acceptable in
Puerto Rico."

COTTO VS CANELO SET FOR VEGAS

From LA Times:

Puerto Rico’s Miguel Cotto and Mexico’s Saul “Canelo” Alvarez announ-
ced Thursday they will fight Nov. 21 at the Mandalay Bay Hotel and Ca-
sino in Las Vegas, renewing a rivalry expected to be a slugfest. “I feel very
happy that Cotto and I will write our own story and continue the legacy of
great fights between Mexicans and Puerto Ricans,” Alvarez (45-1-1, 32
knockouts) told The Times in Spanish during a telephone interview with
his promoter, Oscar De La Hoya, translating. “I’m embracing this rivalry.”
HBO will televise the bout on pay-per-view, and the catch-weight limit
will be 155 pounds, five less than the middleweight limit.

MORE THAN 100 OFFICIALS LOBBY FOR PR

From News Is My Business:

Bronx Borough President Ruben Diaz Jr. on Thursday sent a letter, in
conjunction with more than 100 elected officials from across the nation,
demanding immediate action from Congress to enact legislation that will
allow Puerto Rico to enter bankruptcy. “The interests of the Puerto Rican
community, whether they are in Puerto Rico, New York, New Jersey, Ca-
lifornia, Illinois, Pennsylvania, Ohio, Florida or anywhere else are Ame-
rican interests,” the letter stated...In the letter, the officials asked Con-
gressmen Orrin Hatch, Charles Grassley and Bob Goodlatte — the law-
makers responsible for reviewing a pair of companion bills known as the
Puerto Rico Chapter 9 Uniformity Act of 2015 that seek to extend bank-
ruptcy protection to the island’s public instrumentalities — to “act imme-
diately and enact legislation.”

Puerto Rico News Digest For July 7, 2015

COURT: PR BANKRUPTCY UNCONSTITUTIONAL

From Caribbean Business:

The U.S. Court of Appeals for the First Circuit has ruled the Puerto Rico Public
Corporation Debt Compliance & Recovery Act of 2014 unconstitutional. A panel
comprising Judges Sandra Lynch, Juan Torruella and Jeffrey Howard was in char-
ge of the appeal at the Boston court. The Recovery Act intended to provide a bank-
ruptcy-like process for the commonwealth’s troubled public corporations, inclu-
ding the Puerto Rico Electric Power Authority (Prepa), which would allow them
to restructure their debt, giving the commonwealth much more flexibility to nego-
tiate repayment terms and even the ability to default on public corporations’ bonds.

[The ruling can be read here in.pdf format]

LA PLATA RESERVOIR DOWN 12 CENTIMETERS

Despite Guaynabo being added to the water rationing plan being enacted by the
island's water utility, AAA, the La Plata reservoir's level was down 12 centime-
ters over the last 24 hours as of this morning. The Carraízo reservoir was down
10 centimeters over the same period. The latest reservoir levels are above, with
Carraízo on the far left and La Plata immediately to its right (click on picture to
enlarge).

CLINTON SUPPORTS PUERTO RICO BANKRUPTCY

From Reuters:

U.S. Democratic presidential candidate Hillary Clinton said Tuesday that Puerto
Rico's public entities should be able to use U.S. bankruptcy laws to restructure
some $72 billion in debt. "Congress and the Obama administration need to partner
with Puerto Rico by providing real support and tools so that Puerto Rico can do
the hard work it will take to get on a path toward stability and prosperity," Clinton
said in a statement provided to Reuters.

PALMAS DEL MAR GOES SOLAR

From News Is My Business:

The Palmas del Mar Homeowners Association recently inaugurated a $227,000 

photovoltaic project, the first at Palmas del Mar, which will supply the electrical 

needs of it’s main building, an 11,000 square-foot facility.The project consists of 

292 solar panels of 250 watts each, which will produce approximately 117,238 Kw. 

hour per year. The PHA estimates it will save some $25,000 per year, and will see 

a return on its investment is approximately 4.5 years. The PHA received a $90,800 

incentive from the government to build the project, said Antonio Maldonado, exe-

cutive director of PHA.

Puerto Rico News Digest For June 26, 2015

LA PLATA RATIONING ZONE EXPANDS

Puerto Rico's water utility, Autoridad de Acueductos y Alcantarillados (AAA),
announced yesterday that additional areas will be added to the La Plata Sur water
rationing zone effective immediately. In the town of Naranjito, the following areas
have been added: Achiote 1, 2 & 3, Barrio Nuevo, Bunker Hill, El Cerro, Guadia-
na, Jardines de Naranjito, Lomas del Viento, Lomas García, Los Cuadrados, Mu-
litas, Sector Los Hoyos, Valle Verde Villa Embroya and Zona Urbana. In Corozal:
Abras, Barrio Pueblo, María del Carmen, Mavilla and Monterrey. Hacienda de
Dorado in the town of Dorado has also been added, along with Marzán in Vega Alta.
Most areas in Toa Alta which were not under rationing before will now join the La
Plata Sur zone as well. To verify if your area is now under rationing, check the in-
teractive La Plata rationing zone map above.

GAY MARRIAGE LEGAL IN ALL US, INCLUDING PR

This morning, the Supreme Court of the United States reached a decision which

effectively legalizes same-sex marriage in all of the United States, including any

territories under its jurisdiction. This means that gay marriage is now also legal

in Puerto Rico. Religious leaders on the island have been quick to express their

disappointment at the court's decision, while many members of the gay commu-

nity are expressing their joy at this milestone ruling. Governor Padilla has ex-
pressed his support for the Court's decision, and is expected to sign an execu-
tive order soon to facilitate the ruling's enforcement on the island.

2:30 PM Update: Governor Padilla has just signed an executive order to faci-
litate the issuing of marriage licences without distinction in 15 days.

DATA POINTS TO DROPPING SCHOOL ENROLLMENT

From The San Juan Daily Star:

"Puerto Rico Statistics Institute President Mario Marazzi on Wednesday made pu-
blic the Annual Statistics of the Puerto Rico Educational System 2012-2013 which
reveals, among other things, a reduction in the number of students enrolled in the
public school system. The statistics also highlight a rise in the enrollment of stu-
dents in the Special Education Program. “This annual report presents a statistical
profile of all educational levels (pre-primary, primary, secondary, post-secondary,
and university), both for the public sector and for the private sector and non-profits,”
Marazzi said. The data off ered by Marazzi indicates that in the public school sys-
tem the number of schools under the island Education Department during the sta-
tistical period increased from 1,451 to 1,466, while the number of students atten-
ding public schools went down from 452,740 to 434,609..."

GUN LAWS COULD CHANGE AFTER COURT CASE

From Ammoland:

"A surprising victory for gun rights in Puerto Rico has eliminated the firearms re-
gistry and licensing requirements to purchase and carry in the Commonwealth, the
Second Amendment Foundation has confirmed. As of now, according to Sandra
Barreras with Ladies of the Second Amendment (LSA), the group that brought the
lawsuit, “there is no regulation to purchase or carry (and) all purchases will be han-
dled in accordance with federal firearms regulations.” LSA is affiliated with SAF
through the International Association for the Protection of Civilian Arms Rights
(IAPCAR). The class-action lawsuit challenged various articles in Puerto Rico’s
gun law, which the court declared unconstitutional. Because of the ruling, Barre-
ras said, Puerto Ricans may now carry openly or concealed without a permit, and
they do not need to obtain a permit before purchasing a firearm..."

NEW SEA STAR CRANES ARRIVE IN PUERTO RICO

From Caribbean Business:

"Sea Star Line's newly acquired cranes arrived Thursday morning to the Port of San
Juan, as part of the shipping company's $400 million investment for the Puerto Rico
trade. Iván Burgos, chief operating officer for Sea Star, along with Ingrid Colberg
Rodríguez, executive director of the Puerto Rico Ports Authority, were at the port's
terminal to receive the equipment..."

US House Committee Hearing On Puerto Rico's Status - Watch Live

Click on the link below to watch a live video stream of the U.S. House
of Representatives' Natural Resources Committee hearing on the status
of Puerto Rico. Hearing begins at 2:15 PM Eastern/Atlantic Time.

Click here to launch video player (save and run file)

Or, click HERE to watch on the committee's page.

Puerto Rico News Digest For June 22, 2015

LEGISLATURE FUNDS RESERVOIR DREDGING

From The San Juan Daily Star:

Cancelling public hearings in light of urgency and agreement, senators from
all three parties have voted to immediately begin dredging the reservoirs and
taking other conservation and maintenance measures to ensure the island’s
drinking water supply in the future, the Senate announced Thursday. It is a
measure long overdue, and thrown into relief by the present drought threats
due to lack of rain and rapidly accumulating sediment. The vote on Senate
Bill 1047 Wednesday would create a precedent-setting public drinking-water
policy which has long been needed in Puerto Rico, according to Senate Natu-
ral and Environmental Resources Committee Chairman Cirilo Tirado, who
authored the bill. Bypassing public hearings, a precedent-setting move was
made Wednesday to establish public policy on the use and management of
reservoirs in Puerto Rico.

REP DUNCAN: BOARD SHOULD TAKE OVER PR

From The New York Times:

In one of the strongest bids yet for federal intervention into Puerto Rico’s fis-
cal woes, a member of Congress is calling for a control board to take over the
island’s beleaguered government. Representative Jeffrey D. Duncan, a South
Carolina Republican, sent a letter to his fellow lawmakers on Friday, urging
them for a solution to Puerto Rico’s financial problems that may result in “ma-
nagement changes” in the commonwealth. Mr. Duncan said Congress had the
authority to establish a control board in Puerto Rico, similar to the one it created
in Washington, D.C., in the mid-1990s.

TEACHERS STRIKE OVER SCHOOL CLOSURES

From Telesur:

Puerto Rico’s teachers union went on strike Saturday in protest against the clo-
sure of 63 schools as part of education cuts, which were undertaken to save mo-
ney as the country experiences economic crisis. The affected students also parti-
cipated in the rally against the Education Ministry’s policy that leaves dozens of
teachers out of work for the next term beginning in August.   “This is detrimental
to education, because the necessities of the community, the investment in infras-
tructure in recent years, the technology, have not been taken into consideration,
and neither the parents nor the teachers have been consulted,” said Mercedes Ma-
rines, trade union leader.

SUDDEN CHANGES IN PREPA MANAGAMENT

From Caribbean Business:

The Puerto Rico Electric Power Authority (Prepa) confirmed late Friday that
three officials resigned their posts, adding that all of them are retiring  from the
financially troubled utility. Moreover, CARIBBEAN BUSINESS sources and
several local reports indicate that the utility’s executive director, Juan Alicea, is
also set to leave the troubled public corporation, although he has yet to present
his resignation officially. Consumer representative at  Prepa’s board, Carlos Ga-
llisá, has also acknowledged the imminent exit of Alicea. Governing Board Se-
cretary María Méndez Rivera, Finance Director Luis Figueroa Báez and Legal
Affairs Director Jorge Concepción resigned Friday, a spokeswoman of Prepa
confirmed, adding that they were retiring from the authority.

ANNA'S LINENS BEGINS CLOSEOUT SALE

From News Is My Business:

Home goods retailer Anna’s Linens, which made its debut in Puerto Rico a
little more than three years ago, has begun its going-out-of-business sale as
part of a company-wide bankruptcy proceeding. Hilco Merchant Resources
& Gordon Brothers Group will be in charge of the closing, offering discounts
of up to 30 percent on all merchandise including sheets, bed pillows, comfor-
ter sets, bath and beach towels, bed and bath accessories, window treatments,
housewares, decorative home accents, storage, gifts and more.

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.

Three Individuals Arrested For Loan Fraud

Press Release

US Dept. of Justice
District of Puerto Rico


May 29, 2015

SAN JUAN, P.R. – Yesterday, a Federal grand jury returned a three-count indictment charging Alejandro Enrique Mayendía-Blanco, Nell N. Blanco-Casanovas (mother of Alejandro) and Orlando Mayendía-Díaz (father of Alejandro) for false statements in loan applications, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Immigration and Customs Enforcement, Homeland Security Investigations (ICE HSI) is in charge of the investigation. The indictment was unsealed today and the defendants were arrested.

These charges stem from schemes used by Alejandro Mayendía-Blanco and his co-defendants to obtain money from mortgage lending institutions. The settlement statements for the loans charged all indicate that the buyers (the parents) provided a payment on the day of the closing. However, per the bank records, Mayendía-Blanco refunded his parents either the same day of the transaction or the following day, using the funds obtained from the bank as seller’s proceeds. Mayendía-Blanco’s parents defaulted on the charged loans.

On or about May 24, 2007, the defendants herein and others known and unknown to the Grand Jury, aiding and abetting each other, knowingly made material false statements to First Equity Mortgage Bankers, Inc. (FEMBI), in connection with a loan application to obtain a mortgage loan in the amount of $1,320,000.00, which was to be assigned, sold, and transferred to First Bank of Puerto Rico, a federally insured financial institution.

The false statements include, but are not limited to the following: the HUD Settlement Statement Form states that Nell N. Blanco-Casasnovas (the borrower) provided $314,267.27 as cash from borrower, when in truth and in fact, as the defendants well knew, such statement was false in that Alejandro E. Mayendía-Blanco (seller), refunded Nell N. Blanco-Casasnovas on or about May 25, 2007, with the funds he obtained as the seller’s proceeds, thus making the loan proceeds the true source of the funds.

Counts two and three of the indictment charge Mayendía-Blanco and his father Mayendía-Díaz with false statements in loan applications for two loans in the amount of $140,000.00 and $148,000.00. They used the same scheme described above.

The case is being investigated by ICE-HSI and prosecuted by Assistant United States Attorney Mariana E. Bauzá-Almonte. If found guilty, defendants are facing a maximum penalty of 30 years in prison.


Indictments contain only charges and are not evidence of guilt.  Defendants are presumed to be innocent unless and until proven guilty. The investigations are ongoing.

Puerto Rico News Digest For May 28, 2015

FED CUTS THREATEN PR HEALTH SYSTEM

From The San Juan Daily Star:

Because the government fi scal crisis and the hike in the sales  and use
tax have taken over the news, the possible collapse of Puerto Rico’s
healthcare system has gone under the radar, but remains a very real pro-
blem. More than 2 million patients, or 60 percent of Puerto Rico’s po-
pulation, use Medicare, Medicare Advantage or Medicaid to pay for
their health care, but physicians have been receiving smaller reimburse-
ments than their counterparts in the mainland U.S. because of cuts pla-
nned by the federal government. On Tuesday, the island House of Re-
presentatives approved a resolution asking Congress to stop the cuts.

HORNED DORSET PRIMAVERA IN BANKRUPTCY

As reported today by El Nuevo Dia, the reknowned Horned Dorset Pri-
mavera hotel in the western town of Rincón has gone into bankruptcy
after owing its creditors $1.67 million. The filing was done under Chap-
ter 11 of the federal bankruptcy law, which implies that owner Wilhem
Sack has opten to reorganize the hotel's finances. Most of the debt is
owed to Puerto Rico's tax authority and to the power company.

NO MAJOR HURRICANES EXPECTED IN 2015

From Caribbean Business:

No major hurricanes are expected during the 2015 Atlantic hurricane sea-
son, as the National Oceanic & Atmospheric Administration (NOAA) pre-
dicts no Category 3 or higher hurricanes, which are defined as those with
winds of at least 111 miles per hour (mph). In its prediction, NOAA said
a below-average season is likely, with six to 11 named storms (winds of
39 mph or higher) and three to six hurricanes (winds of 74 mph or higher).
The hurricane season in the Atlantic officially runs from June 1 to Nov.
30. However, in a statement, NOAA said people living in hurricane-prone
areas, such as Puerto Rico and the rest of the Caribbean, should remain
vigilant.

SCHOOL TO TRAIN PR HACKERS

From News Is My Business:

By 2020 there will be 1 million more computing jobs in the United States
than students graduating in those fields, the latest figures from the U.S.
Bureau of Labor Statistics show. Puerto Ricans qualified to take advantage
of this demand stand to gain a lot, said Sofía Stolberg, founder of Piloto
151, Puerto Rico’s first co-working space for entrepreneurs and developers
and the site location for Codetrotters Academy, the first “hacker” school
in Puerto Rico and the Caribbean. The program boasts a full spectrum of
courses for techies and non-techies alike, ranging from front-end and back-
end programming to mobile development.