Puerto Rico News Digest For May 2, 2016

PR DEFAULTS ON GDB PAYMENT 

From Caribbean Business:

"In a televised message Sunday, Gov. Alejandro García Padilla announced
he has declared a moratorium on the Government Development Bank’s (GDB)
debt service, as the commonwealth stands ready to partially default on as much
as $270 million due May 2 on the bank’s debt. The cash-strapped institution
would have faced a $400 million payment on principal, with an additional $22
million in interest. But during the past few days, the GDB pushed maturity on
roughly $30 million after reaching a deal with local credit unions, followed by
an agreement struck with a creditor group to enter into a 30-day forbearance
agreement that would cover more than $100 million of the bank’s May payment.
The GDB already stated it will pay about $22 million in interest due May 2, as
well as roughly more than $40 million in debt payments across other common-
wealth credits that also hit on Monday..."

FIRST ZIKA DEATH REPORTED IN PR

From The Guardian:

The first American has died from complications related to the Zika virus,
health officials with the Centers for Disease Control reported late Friday.
A Puerto Rican man in his 70s died in February from “complications re-
lated to severe thrombocytopenia”, the CDC reported in its Morbidity and
Mortality Weekly Report. The man, from the San Juan area, fell ill with the
Zika virus and experienced symptoms including fever, rash and joint pain.
After recovering from the Zika symptoms, the man then developed immu-
ne thrombocytopenic purpura, or ITP, an autoimmune disorder that has been
linked to the virus. The bleeding disorder that killed him was as a side-effect
of the ITP..."

BERNIER CALLS FOR IVA REPEAL

From The San Juan Daily Star:

"Popular Democratic Party (PDP) President and gubernatorial candidate Da-
vid Bernier on Thursday called on the PDP majority in the Legislature to pass
legislation to repeal the value-added tax (IVA by its Spanish acronym) slated
to go into effect in June. “To permit an increase in the value-added tax would
hurt the pocketbooks of our people and the operations of our businesses,” Ber-
nier said. “The responsible thing at this time is that the Legislature act to pre-
vent the IVA and the increase in the B2B [business-to-business tax] from being
enacted in final form.”

Puerto Rico News Digest For March 1, 2016

ZIKA CAN INFECT 1 IN 5 PUERTO RICANS

From The Washington Post:

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

STEM CELL BILL UNDER CONSIDERATION

From The San Juan Daily Star:

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

ROSELLO CRITICIZES PDP ON IVA TAX

From Caribbean Business:

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

FORUM TO EXPLORE FISCAL LAW FOR PR

From News Is My Business:

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

Puerto Rico News Digest For April 23, 2015

GOVERNMENT SHUTDOWN IN THREE MONTHS 

From Reuters:

Puerto Rico's top finance officials said the government of the U.S.
territory will likely shutdown in three months because of a looming
liquidity crisis and warned of a devastating impact on the island's
economy. In a letter to leading lawmakers, including Governor Ale-
jandro Padilla, the officials said a financing deal that could po-
tentially salvage the government's finances currently looked unlike-
ly to succeed. It warned of laying off government employees and re-
ducing public services."A government shutdown is very probable in
the next three months due to the absence of liquidity to operate,"
the officials said. "The likelihood of completing a market transac-
tion to finance the government's operations and keep the government
open is currently remote."

THOUSANDS WITHOUT MEDICATION DUE TO BUDGET

From Fox News Latino:

Thousands of Puerto Ricans with serious medical conditions enrolled in
the government-sponsored Mi Salud program are not receiving the medica-
tions they need because of the financial problems at state-owned insurer
ASES, which owes millions of dollars to providers. Lawmaker Jose Aponte,
a leader of the main opposition PNP party, told Efe that because ASES
owes money to the insurance companies that provide health-care services,
the companies, in turn, do not authorize payments to pharmacies for medi-
cations.

TAX REFORM BILL STILL LACKS VOTES

From The San Juan Daily Star:

The amended version of Tax Reform that has been filed in the island 

House of Representatives appears not to have the needed votes for 

approval for reasons rangingfrom the proposed 14 percent rate for the 

value-added tax to the payment mechanism to give municipalities their 

share of the tax. As of Tuesday, at least four legislators still opposed 

the measure. Majority Leader Carlos Hernández said at a news con-

ference held a day earlier that no vote count had been taken. Some 

lawmakers said they will not decide on their vote until they read and 

evaluate the whole bill with changes included to enable a better ana-

lysis. 

SEVEN MIGRANTS APPREHENDED IN AGUADILLA

From Latin Post:

U.S. Customs and Border Protection (CBP) apprehended seven Domini-

cans attempting to enter Puerto Rico illegally with a boat, according to 

a CBP press release. A local resident notified Puerto Rico Police about 

a boat approaching Bienvenidos beach in Aguadilla. Police contacted 

CBP reporting that a "yola," a powered makeshift  raft, had been spotted 

with an unknown number of passengers in the area. When CBP officials 

and police officers arrived at the scene they found a 20-foot yola powered 

by a 40 horsepower outboard motor. However, the passengers were not 

in sight. With the help of patrol aircraft, CBP and police found the seven 

immigrants in a near by area.

TROOPS FROM FORT BUCHANAN DEPLOYED TO M.E.

From Caribbean Business:

Approximately 21 soldiers assigned to the 271st Human Resources Company, 

U.S. Army Reserve-Puerto Rico, departed the island Wednesday on their way 

to a mobilization station in Texas before arriving to the Middle East. "I 

believe in all of you. We did an excellent job during our pre-mobilization 

training and I know we will accomplish our mission," said 1st Lt. Ayesha 

Jiménez, officer in charge of the detachment. The unit will manage the 

Theater Casualty Assistance Center, which oversees casualties across the 

Middle East.

Puerto Rico News Digest For April 20, 2015

LEGISLATORS LOOK TO LOWER IVA RATE

From The San Juan Daily Star:

Lawmakers at the island House of Representatives on Thursday continued
fine-tuning the proposed Tax Reform with the goal of incorporating mea-
sures that would help reduce the value-added tax to a rate lower than
the original 16 percent. The STAR learned that lawmakers were evaluating
how much money a proposed tax on soft drinks would produce as well as
the proposed 6 percent tax on megastores’ transfer pricing. “We are eva-
luating to see if the [value-added] tax can be reduced as much as possi-
ble,” one lawmaker said. The House is evaluating reducing the proposed
value-added tax (IVA by its Spanish acronym) to between 12 percent and
14 percent and creating a reduced sales and use tax for businessto-busi-
ness transactions.

PR BIRTH CERTIFICATES SOLD TO IMMIGRANTS

From The Bradenton Herald:

Over the last 12 months, half a dozen cases have popped up in Miami federal
court involving defendants who have illegally procured Puerto Rican birth
certificates to obtain passports or driver licenses. A State Department
spokeswoman said she was going to look into the matter, but ultimately did
not respond to an email query from el Nuevo Herald. A spokesman for the
Commonwealth of Puerto Rico Federal Affairs Administration also did not
respond to an email query from el Nuevo Herald. When the Puerto Rican birth
certificate law was enacted in December 2013, officials in San Juan said it
was a tool to combat widespread identity theft on the island.

POWERBALL JACKPOT SOLD IN PUERTO RICO

From Caribbean Business:

Saturday’s winning Powerball numbers were on a ticket sold in Puerto Rico.
It was bought in Sabana Grande’s Rodríguez Supermarket, and the holder
will be entitled to the $50 million jackpot, meaning he or she can collect
the winnings in a lump sum of $26.8 million after taxes or 30 annual pay-
ments starting Monday. The Powerball winning numbers were 13-22-23-29 -31;
the red Power number, 17; and the Power Play number, 3.

TAUBMAN INCREASES MALL OF SJ OWNERSHIP

From News Is My Business:

Taubman Centers Inc. announced the acquisition of an additional 15 percent
interest in The Mall of San Juan, pushing its ownership in the recently
opened center to 95 percent. The additional interest was acquired at cost,
while New Century Development Inc. will retain the remaining 5 percent
interest in the project, the company said.

PR NEW LUNG CANCER LOWER THAN US

From Outbreak News Today:

Puerto Rico has the lowest incidence rate of new lung cancer compared 

with all other races and ethnic groups in the United States, according 

to a study published last week in the Centers for Disease Control and 

Prevention’s Morbidity and Mortality Weekly Report.  The report also 

shows that Puerto Rico has a lower incidence rate of female breast 

cancer compared with U.S. non-Hispanic white and black women.

Puerto Rico News Digest For March 27, 2015

LUGARO'S OFFICE RAIDED BY AUTHORITIES

El Nuevo Dia

The Truillo Alto offices of América Aponte & Associates, the educational
company led by independent gubernatorial candidate and  lawyer Alexandra
Lúgaro, has been raided this morning by agents  from the FBI, ICE and the
Department of Education. The action is part of 17 such raids being conduc-
ted today on businesses across the island, and may have to do with a fraud
investigation involving companies that provide services to the Department
of Education. An FBI spokesman would not specify what the exact reason
for the raids was.

Lúgaro, who had  announced her candidacy on March 17, stated that she
was willing to cooperate with law enforcement: "I've always acted within
the law. They can take everything. I don't have anything. I've done things
correctly."

Follow our Twitter feed, @ThePRMonitor for the latest developments.

TRAFFIC HEADACHES ON PR-52 THIS MORNING

Photo: @portotay (Twitter)

The reversible lane on Luis A. Ferré Expressway (PR-52) from Caguas
to San Juan is closed this morning, causing massive traffic jams on that
stretch of road. Drivers are advised to take Road PR-1 as an alternate
route. The reason given by the Roads & Transportation Authority for
the closure was that a part in the equipment that moves the barriers to
change the lane's direction is broken. However, the agency's director
also admitted this morning that they owe money to the company that
manages the expressway, although she added that the financial issues
have "nothing to do" with today's situation. No exact time has been
given for the lane's reopening.

NPP REP: LISTEN TO MAYORS ON IVA OPPOSITION

From The San Juan Daily Star:

New Progressive Party (NPP) Rep. Gabriel Rodríguez Aguiló on
Wednesday called on Gov. Alejandro García Padilla to “use his
conscience” after mayors of the Popular Democratic Party (PDP)
who oppose the 16 percent value-added tax met with him Tuesday
at La Fortaleza and were left unconvinced by the governor on
why the tax should be implemented and why it would be good for
the salaried middle class. “I invite the governor and the PDP
majority to set aside the improvisation and work on the economic
issues with seriousness and moderation,” Rodríguez Aguiló said.

COAST GUARD SEIZED 1,100 LBS OF COCAINE

From Latin Post:

The U.S. Coast Guard last week seized a shipment of about 1,100
pounds of cocaine worth some $16 million off the coast of Puerto
Rico, Miami ABC affiliate WPLG reported. The USCGC Tahoma on
March 18 intercepted a suspicious go-fast, which had been detected by
a Joint Interagency Taskforce South maritime patrol aircraft and was
heading towards the U.S. territory, Fort Myers' Fox 4 detailed. Once
the Tahoma seized the contraband,  Coast Guardsmen arrested three
citizens of the Dominican Republic,  who were later transferred into
the custody of Drug Enforcement  Administration special agents in
Puerto Rico and are now facing charges.

PR TO RECEIVE WORLD'S TWO BIGGEST CRUISES

From UT San Diego/AP:

Puerto Rico is preparing to welcome the world's two largest cruise ships
for the first time next year. The executive director of the island's Tourism
Company says Royal  Caribbean's Allure of the Seas and Oasis of the Seas
will bring an estimated 60,000 passengers to San Juan in 2016. Next year's
visits are expected to generate an estimated $6.4 million in revenue.

Puerto Rico News Digest For March 20, 2015

PRODUCE FROM DOM. REP. QUARANTINED

From Caribbean Business:

Customs and Border Protection (CBP), through its Field Operations
Office, announced Wednesday the implementation of a federal quaran-
tine order suspending imports of fruit and vegetables from the
Dominican Republic due to the Mediterranean fruit fly, or Medfly.
The U.S. Department of Agriculture (USDA), through its Animal and
Plant Health Inspection Service (APHIS) issued a federal order
(FO-2015-14) to immediately prevent entry or the introduction of
vegetables and fruits from the Dominican Republic to the U.S. to
avoid the introduction of the fruit fly, a very damaging pest.

CROWLEY ADDS FREIGHT CAPACITY FOR PR

From News Is My Business:

Just as Puerto Rico businesses are starting to feel the pinch of a
slowdown in merchandise imports in the wake of Horizon Lines’ exit
from the market, maritime shipper Crowley announced Thursday the
addition of a new flat-deck barge capable of carrying up to 400 loads.
The barge is scheduled to arrive in San Juan on Monday with a full
load of cargo for the island. The vessel’s deployment “marks an
important milestone in Crowley’s rapid response to the sudden depar-
ture of Horizon Lines from the Puerto Rico trade,” the company said.

HOUSE SPEAKER: 12% IVA MOST VIABLE OPTION

From The San Juan Daily Star:

House Speaker Jaime Perelló said Wednesday that in all probability
the value added tax would be 12 percent and not 16 percent as pro-
vided in the Tax Transformation Act legislation fi led by Gov.
Alejandro García Padilla. The Puerto Rico House of Representatives,
after listening to more than 100 agencies and individuals, is now
in the process of amending the proposed reform. The House is eva-
luating establishing different rates of the value-added tax (IVA
by its Spanish acronym), but on Wednesday Perelló said lawmakers
are leaning toward a 12 percent rate.

MAN WHO KILLED HIGLER COULD GET 8 YEARS

Gerardo De La Paz, the driver who killed Dutch globetrotter Laurens

Higler in a hit and run last week, could face up to 8 years of jail time

without parole for leaving the scene of the accident. Police are conti-

nuing their investigation in Guayama.

More headlines on our Twitter feed.

Puerto Rico News Digest For March 18, 2015

PR GETS 1ST INDEPENDENT GOVERNOR CANDIDATE

Lawyer and businesswoman Alexandra Lúgaro, age 33, has declared
her intention to run for Governor of Puerto Rico in 2016 as an inde-
pendent candidate. This makes her the island's first ever gubernatorial
contender who does not belong to or publicly identify with any political
party. Lúgaro is in favor of gay marriage, abortion rights and marijuana
legalization, and has also expressed a desire to tackle issues such as
income inequality. Lúgaro is currently finishing a doctorate in Madrid
and is the founder of a student tutoring company in Puerto Rico.

LAURENS HIGLER'S FRIENDS' TOUCHING LETTER

The travelling companions of deceased Dutch globetrotter Laurens 

Higler, who was killed last week in a hit and run accident,  wrote a 

moving letter to the people of Puerto Rico regarding the recent 

tragic events:

LEGAL ISSUES SEEN WITH IVA RECEIPTS

From The San Juan Daily Star:

The Justice Department said Monday that Puerto Rico could
be held liable if merchants are banned from separating the
value added tax from the final price of items on receipts.
“The restriction against merchants separating the IVA [the
Spanish acronym for the value-added tax] from the final
price could be challenged in the courts because it interferes
with free speech rights,” Assistant Justice Secretary Rafael
Ortiz said. The proposed tax reform measure leaves it to the
Treasury secretary to decide whether the IVA should be dis-
played separately.

14 ARRESTED, 1.1 TONS OF COCAINE SEIZED

From Fox News Latino:

Agents of the United Rapid Action Forces, or FURA, of the
Puerto Rican police, seized 1.1 tons of cocaine and arrested
14 Dominicans, most of whom were waiting for the drug to
arrive from a boat off the northern coast of the Caribbean island,
officials said. Puerto Rican Police Chief Jose Caldero said
the boat had sailed to the estuary of Rio Grande de Loiza river
and that the drug had a street value of some $32 million.

PUERTO RICO UNEMPLOYMENT DOWN TO 12.4%

From Caribbean Business:

Puerto Rico Labor Secretary Vance Thomas announced that the
unemployment rate for January stood at 12.4%, representing the
lowest figure since 2008. "Data from the recent employment survey
show that the unemployment rate adjusted for January fell to 12.4%,
making it the lowest reported since August 2008, when it was 12.2%,"
Thomas said Tuesday. He added that the rate is 1.3% lower when
compared with December 2014 (13.7%) and 2.5% down from
January 2014 (14.9%).

UPR AGUADILLA PROVIDES TAX SERVICE

From News Is My Business:

The University of Puerto Rico in Aguadilla announced Tuesday
it will be offering free help to low and middle-class residents
to fill their federal income tax return, Saturdays from 9 a.m.
to 1 p.m. at the campus library through April 11. The UPR-Agua-
dilla Virtual Center for Assistance to Taxpayers (known in
Spanish as the VITA Center) is part of an alliance  with the
UPR-Mayagüez western region VITA Center.



More headlines on our Twitter feed.

Puerto Rico News Digest For March 13, 2015

CUBAN MIGRANTS RESCUED FROM MONITO

Photo: U.S. Coast Guard

From Local 10:

The U.S. Coast Guard rescued eight Cuban migrants from Monito Island,
Puerto Rico Wednesday afternoon, following a two-day rescue effort in the
Mona Passage. Authorities said the seven men and woman were spotted
Tuesday afternoon by a Coast Guard  pilot who was on a routine patrol
in the Mona Passage. Authorities said the group was stranded at the
bottom of a 150-foot  cliff of the uninhabited island, which is a natural
reserve and serves as a bird habitat.

DUTCH TRAVELER KILLED IN HIT AND RUN

Globetrotter and sailor Laurens Higler, age 26, was killed this
morning on Road 3 in Guayama after being struck by a car. The
driver fled the scene after the incident.  The deceased, who was
from Holland, was stopping off in Puerto Rico during his travels
around the globe.  Police have stated that they have recovered
physical evidence which could lead them to the driver who struck
Higler.

GOVERNOR DEFENDS IVA TV MESSAGE

From The San Juan Daily Star:

Gov. Alejandro García Padilla on Wednesday defended his most recent
pre-recorded televised message, in which he justified his proposed tax
reform and the 16 percent value added tax. “What this message was
about, at the end of the day, is to be  able to speak to people directly,
and there is a public purpose that is priceless,” García Padilla said in
TV interview. “We are talking about a profound transformation and
all transformations convey resistances.”

EIGHT MURDER VICTIMS IN LESS THAN A WEEK

As reported today by El Vocero, eight people were killed -- mostly in
shootings -- between Tuesday afternoon and early Friday morning.
The incidents were reported in Hato Rey, Santurce, Yabucoa, Bayamón
and San Lorenzo. This week's murders bring the total for the month to
20, five more than at this time last year. So far, 103 violent deaths have
been registered in Puerto Rico, 27 less than last year.

MOODY'S DOWNGRADES UPR BONDS

From Caribbean Business:

Moody's Investors Service said it downgraded $489 million of  University
of Puerto Rico University system revenue bonds to  Caa2 from Caa1 and
$73 million of educational facilities revenue bonds, 2000 Series A issued
through AFICA to Caa3 from Caa2. The outlook is negative.

The rating differential between the university system revenue bonds and
the educational facilities revenue bonds reflects the subordinate pledge
and lease structure of the educational facilities revenue bonds.

DORAL BANK GOES TO CHAPTER 11 BANKRUPTCY

From Reuters:

Doral Financial Corp filed for Chapter 11 bankruptcy protection  on
Wednesday to wind down its remaining operations two weeks after its
Puerto Rico-based bank subsidiary was seized by regulators. Doral
Financial's bankruptcy is the latest reminder of the financial crisis on
the island, a U.S. commonwealth, which has been mired for years in
an economic slump. The bank has also been dogged by accounting
problems and an employee was recently indicted for money laundering.



For the latest headlines, follow our Twitter feed: @ThePRMonitor

Puerto Rico News Digest For March 11, 2015

PLANE RECOVERED FROM CONDADO LAGOON

As reported by Noticel, a Piper PA-23 aircraft that crashed into
Condado Lagoon in San Juan on Monday afternoon has been re-
covered.   Pilot Rafael Pesquera, age 49, and co-pilot Ramón
Garida, also 49, were not seriously injured. Authorities dragged
the fallen aircraft to the shore of the lagoon yesterday, and it will
be taken to Isla Grande airport once fuel and the wings are remo-
ved. The exact cause of the accident is unknown, but apparently
the plane's engines stopped functioning not long after takeoff
from Isla Grande.

SOME INMATES TO LOSE VOTING RIGHTS

As reported today by El Vocero, the Chamber of Representatives
passed a bill last night that would strip prison inmates convicted
of major offenses of the right to vote in Puerto Rican elections.
Representative Carlos Vargas was behind the measure, and was
ableto get the votes to pass it as part of a deal in which he would
vote for the proposed oil tax increase, or "crudita". It is unknown
whether Governor Alejandro Garcia Padilla will sign the bill.

LOWERING IVA ON SOME ITEMS CONSIDERED

From The San Juan Daily Star:

After meeting for several hours with House leaders, Gov. Alejandro
García Padilla is now accepting the idea of amending Tax Reform to
possibly introduce reduced rates of the value-added tax to certain
products and services and obtain needed votes in the House to pass
the bill. House Speaker Jaime Perelló and Majority Leader Charlie
Hernández met with the governor hours before he was slated to go
to the airwaves in support of his tax reform.

PR JOINS DIET SUPPLEMENT PROBE 

From The Chicago Tribune:

Dietary supplements are facing more scrutiny from U.S. regulators
as two states and Puerto Rico joined New York in a probe of the
$33 billion industry after testing showed some products didn't
appear to contain key ingredients advertised. Attorneys general in
Connecticut and Indiana and the Puerto Rico Department of Consumer
Affairs will investigate industry business practices and whether
claims of authenticity and purity are valid, Attorney General Eric
Schneiderman said Tuesday in a statement.

CLARO EXTENDS BROADBAND IN YAUCO

From News Is My Business:

Telecommunications company Claro announced Monday it has extended
broadband services to eight sectors in the town of Yauco, where a
combined 965 families will have access to the benefits associated
with high-speed Internet. The sectors of Algarrobo, Caimito,
Collores, Rancheras, Cotuy, Diego Hernández, Aguas Blancas, Naranjo
and Carrizales in Yauco join the initiative being bankrolled by the
Federal Communications Commission to boost rich broadband across
regions.

New VAT System Too Complex

Editorial

Caribbean Business

Puerto Rico Treasury Secretary Juan Zaragoza has his hands full these days
as he is trying mightily to explain the reasoning behind Gov. Alejandro
García Padilla's new tax reform, which calls for a transformation to a value-
added tax (VAT, or IVA by its Spanish acronym) system. Zaragoza's job
couldn't be more difficult as the measure is drawing the broadest opposition
that this newspaper has witnessed in a long time.

Important mayors belonging to the incumbent governor's Popular Democra-
tic Party (PDP), such as those of San Juan, Caguas and Mayagüez, as well as
former PDP Govs. Rafael Hernández Colón and Aníbal Acevedo Vilá have
come out against the VAT proposal; their voices of dissent are joined by
leaders from the opposition...[CONTINUE READING]

Puerto Rico News Digest For March 5, 2015

PROTESTS AGAINST IVA AT CAPITOL

Video: Maria Rivera/YouTube

People from dozens of educational and community organizations are
protesting this morning in front of the Capitol in San Juan against the
proposed 16% Value Added Tax (or IVA, by its Spanish initials).
Schools and colleges have been particularly vocal in their opposition
to the idea of applying the new tax to educational expenses. Governor
Alejandro Garcia Padilla announced last week that the tax proposal
would be ammended to spare private education from the IVA, but
representatives from several organizations opposed to the tax have
expressed skepticism regarding that promise, as reported by El Nuevo
Dia.

DECOLONIZATION PROTEST MAR. 22 IN SAN JUAN

The pro-independence organization Comrades United For The De-
colonization of Puerto Rico ("Compañeros Unidos Para La Desco-
lonizacion de Puerto Rico") will be holding a protest march on
Slavery Abolition Day, March 22nd, at 2:00 PM. The protesters will
demand the release of Puerto Rican "political prisoner" Oscar Lopez
Rivera, as well as the decolonization of the island. The "2nd Oscar-
Mandela March" will start at the Capitol building in Old San Juan
and make its way towards the Federal Court building.

OIL SUPPLIER TO FACE JUSTICE DEPT

From The San Juan Daily Star:

The Special Senate Committee investigating the so-called “oil
cartel” at the Puerto Rico Electric Power Authority (PREPA)
referred Petro West Inc. to the Justice Department on Tuesday
after accusing it of aggravated illegal appropriation for vir-
tually stealing $1.4 million from the public utility.Petro West
is a local company with offices in Mayagüez and Hormigueros
that supplied bunker six fuel to PREPA, but it was not imme-
diately known if they still do. The probe found that the alleged
illegal appropriation took place between 2009 and 2011.

SINGAPORE COMPANY TO OPERATE PONCE PORT

From Fox News Latino:

Portek International, a Singapore-based services company, was
selected to develop infrastructure at Puerto de las Americas in
Ponce, the largest city in southern Puerto Rico, officials said.
"We have carefully evaluated offers from different companies that
showed interest in the project," Secretary of Economic Development
and Commerce Alberto Baco, who serves as chairman of the Puerto
de Ponce Authority board, said.

EMBASSY SUITES BEGINS MAJOR RENOVATION

From News Is My Business:

Embassy Suites hotels in Puerto Rico announced Wednesday the
completion of the first phase of a renovation campaign at the
Isla Verde and Dorado properties. The overhaul included a full
makeover of all 299 suites at the San Juan hotel and bathroom
upgrades in all suites at the Dorado resort. The investment made
to reboot the properties was not disclosed.

Puerto Rico News Digest For March 3, 2015

GOVERNOR GIVES OUT FIRST PARDONS

As reported by El Nuevo Dia today, Puerto Rico Governor Alejandro
Garcia Padilla granted the first pardons of his administration on
January 20th. Thirteen pardons were granted, with six total pardons
and seven conditional ones. The most serious offender who was pardoned
by Padilla was a conditional one granted to a man who had been in prison
since 1993 for first degree murder, theft, conspiracy and weapons violations.
According to the Governor's office, the pardon was granted after careful
consideration and proof of rehabilitation. The other individuals who were
pardoned all had sentences of six years or less.

INITIAL PRICE SPIKES EXPECTED UNDER IVA

From The San Juan Daily Star:

Certified Public Accountants Association President Kermit Lucena
said that when the local tax rate goes up to 16 percent in April,
people should expect an initial jump of nine points in prices for
goods, before they likely stabilize. “If you pay $1.07 now, you
will pay $1.16,” he said. “For those entities that can not absorb
the cost of the value-added tax, you will see a hike in prices.”
Lucena said he does not know whether that will lead to long-term
inflation, but has his doubts that it will. “Inflation is month by
month,” he said. “I don’t expect to see a 10 percent to 12 percent
hike month by month like in Latin America, but we will see an
initial jump.”

DORAL MADE LARGE LOAN IN FINAL WEEK

From Caribbean Business:

A week before Doral Bank was closed by federal regulators, it made
a $20 million loan to a company managed by Israeli investor Moishe
Mana for 17 different properties around Miami's Wynwood neighborhood,
according to Miami-Dade records. The 17 assorted properties owned by
Melanie Holdings LLC add up to approximately 4.9 acres of real estate.

Doral Bank was closed by the Federal Deposit Insurance Corp. (FDIC)
on Feb. 27. The bank had operations in Puerto Rico, Florida, and New
York. The FDIC entered into an agreement with Banco Popular de Puerto
Rico to sell some of the bank's assets, and is currently in two other
agreements to sell the majority of the remaining assets.

PR SENATE NIXES "ANTI-UBER" BILL

From News Is My Business:

A bill that seeks to establish public policy and regulate the operation
of mobile application-based transportation network companies, such as
San Francisco’s Uber, was struck down Monday on the Senate floor in a
13-11 vote. Bill 1209, authored and introduced last year by Sen. Antonio
Fas-Alzamora, sought to curb the arrival of these types of businesses,
known as TNCs for short, which allow consumers to submit a trip request,
which is routed to crowd-sourced taxi drivers.

WINNING POWERBALL TICKETS SOLD IN PR, USVI

From Virgin Islands Daily News:

The Caribbean was a lucky place to buy Powerball tickets this weekend
because one person in the Virgin Islands and one person in Puerto Rico
each turned a $3 investment into $2 million, according to the Powerball
website. Someone in St. Thomas, St. Croix or St. John matched five of
the six numbers in Saturday's drawing.

The numbers drawn were 11, 17, 25, 28, 46 and the Powerball number was
12, according to the website. Powerball tickets cost $2 each, and the
Powerplay option costs an extra $1. Because the Powerplay multiplier
came up as "2X," the person in Puerto Rico and the person in the Virgin
Islands doubled the $1 million they each won by matching five numbers.

Puerto Rico News Digest For February 19, 2015

THREE DEAD IN COROZAL SHOOTINGS

According to El Nuevo Dia, three individuals died last night as

a result of two separate shootings in the central rural town of 

Corozal. The town's mayor, Sergio Torres Torres, states that he

believed the shootings were related to a "quarrel among groups",

but no clear motive has emerged yet. Juan Eddie Rosado Burgos, 

age 28, was shot in front of a business in the Maria del Carmen

neighborhood at 9:11 PM, while a 24 year old man was wounded in

the same incident. Two hours later, another shooting broke out

in front of another business in the Enrique Landrón housing 

project. Jonathan Avilés Adorno, age 25, and Nuvia Vázquez 

Estrada, age 30, died as a result of that shooting, while two

others were injured. Police are investigating.

PR-CUBA FLIGHTS TO BEGIN THIS SUMMER

From Caribbean Business:

Puerto Rico Secretary of State David Bernier said a company involved 

in tourism is preparing to offer some 12 non-stop charter flights from the 

island to Cuba this summer. Bernier said Turismo Tony Pérez will provide 

charter flights to those who fit into the 12 categories established by the 

U.S., which include trips dedicated to culture, education and religion among 

others.

TOURIST DIES WHILE SURFING IN PR

From The Seattle Times:

A 28-year-old tourist from Washington state died while surfing 

along Puerto Rico’s west coast, the U.S. Coast Guard said Wednesday.

Travis Forney lived in North Bend and had flown to Puerto Rico on 

Feb. 15, according to his Facebook page. He worked as a construction 

manager for Huber Architects in Seattle, the company’s president, 

Kevin Huber, told The Associated Press.

HOUSE SPEAKER DEFENDS TAX REFORM

From The San Juan Daily Star:

House Speaker Jaime Perelló hit the airwaves Tuesday to defend the 

proposed Tax Reform and the implementation of a 16 percent value-

added tax (IVA by its Spanish acronym) “because the new tax system 

will bring much needed fi nancial relief to island’s salaried middle 

class.” In a radio interview, Perelló said that citizens’ various 

concerns, specifi cally private schools not being exempt from paying 

the IVA, will be considered during public hearings. Another concern 

is having to pay the IVA for a medical appointment, a cost that is

usually paid by health insurance providers, sometimes in total, while 

other times patients pay a low deductible.

FEDS ANNOUNCE GREEN ENERGY FUNDING

From News Is My Business:

U.S. Agriculture Secretary Tom Vilsack announced Tuesday that rural 

agricultural producers and small business owners across the mainland 

and Puerto Rico can now apply for resources to purchase and install 

renewable energy systems or make energy efficiency improvements.

These efforts help farmers, ranchers and other small business owners 

save money on their energy bills, reduce the country’s dependence on 

foreign oil, support the clean energy economy, and cut carbon 

pollution. The 2014 Farm Bill makes the resources possible.