Puerto Rico News Digest For July 13, 2016

200K ZIKA CASES POSSIBLE BY YEAR END

From The San Juan Daily Star:

"The committee created by the Puerto Rico government to confront the Zika
virus reported Monday that more than 200,000 cases of people infected with
the virus could be registered by the end of the year. According to island State
Department Epidemiologist Brenda Rivera, a drastic increase in the pattern of
infection of the virus has been noted in recent weeks. According to the most re-
cent report, an increase of 30 percent in cases have been reported..."

S&P CUTS PRASA DEBT RATING

From Caribbean Business:

"S&P Global Ratings lowered its ratings on Puerto Rico Aqueduct & Sewer
Authority’s (Prasa) series 2008 and 2012 senior-lien revenue bonds two not-
ches to ‘CC’ from ‘CCC-‘. The outlook is negative. At the same time, it low-
ered to ‘D’ from ‘CCC-‘ the rating on Prasa’s obligations that also carry a Co-
mmonwealth of Puerto Rico guarantee, as well as those obligations that are co-
mmonwealth-supported. It removed the ratings from CreditWatch, where they
were placed with  negative implications on Aug. 18, 2015..."

TOURISM BOOKINGS UP 6% THIS SUMMER

From News Is My Business:

"The Puerto Rico Tourism Co.’s fourth annual “Summer is Easy” promotion
is outpacing last summer’s bookings, generating a 6 percent rise in participa-
ting partner room night sales in May and a 7 percent rise in June, versus the
same months in 2015, the agency said Monday. Comparatively, bookings thr-
ough “Summer is Easy” partner Expedia are currently 9.7 percent above 2015
bookings. The promotion highlights how travel to Puerto Rico has never been
easier — no passport is required for U.S. citizens, more than 70 direct flights
from the U.S. to Puerto Rico daily — and how many things there are to do on
the island..."

SAMSUNG PAY NOW AVAILABLE IN PR 

From Banking Technology:

"Samsung Pay will support eligible credit cards from Banco Popular, Puerto
Rico’s largest bank, and will be available on AT&T, T-Mobile, Sprint and Cla-
ro networks in Puerto Rico. The firm says Samsung Pay is the “only” mobile
wallet that allows users to pay with their compatible Samsung smartphones at
terminals, due to both MST (magnetic secure transmission) and NFC (near fie-
ld communications) technologies.Thomas Ko, vice-president and global co-ge-
neral manager of Samsung Pay at Samsung Electronics, says users can shop in
Puerto Rico right from their phones at retail chains and independent businesses..."

Puerto Rico News Digest For July 8, 2016

ICE SEIZES COUNTERFEIT GOODS IN OSJ

From ICE:

"Special agents with U.S. Immigration and Customs Enforcement's (ICE)
Homeland Security Investigations (HSI) seized $6.5 million in counterfeit
merchandise Wednesday in Old San Juan with assistance from U.S. Customs
and Border Protection (CBP) and the U.S. Postal Inspection Service...During
the operation, HSI special agents and partner law enforcement officers target-
ed 14 retailers of counterfeit goods infringing on the trademarks of Gucci, Mi-
chael Kors, Prada, Channel, Ray Ban, Coach, Dolce & Gabbana, Oakley, Nike,
Ray Ban and the National Basketball Association. They also executed five sear-
ch warrants. The total manufacturer's suggested retail value (MSRP) of the sei-
zed goods is approximately $6.5 million. First time offenders of violating intell-
ectual property laws were served with a notification of a violation of law. In the
case of reoffenders, HSI will present their cases for prosecution..."

SCIENTISTS OPPOSE LA PARGUERA BILL

From The San Juan Daily Star:

"Opposition to Senate Bill 1621, which would permit the permanence of summer 

houses illegally constructed on public land on the La Parguera shorefront in Lajas, 

is growing as more than 50 experts in oceanography, ecology, geology, planning 

and other disciplines related to natural and environmental science signed a letter 

directed to Gov. Alejandro García Padilla asking him to veto the bill that was pas-

sed by the Puerto Rico Legislature last week..."

MELBA ACOSTA RESIGNS AS GDB PRESIDENT

From Caribbean Business:

"On Thursday, La Fortaleza announced the resignation of Government Develop-

ment Bank (GDB) President & Chairwoman Melba Acosta, effective July 31. In 

her resignation letter dated July 6, she says it is time to refocus her professional 

career, after 12 years of public service, three of which took place under the Alej-

andro García Padilla administration...With Acosta’s exit, the GDB would have 

four of its seven director posts vacant. Although it didn’t publicly announce it,

La Fortaleza filled on May 17 two vacancies with the appointment of Rafael Vé-

lez Pérez and Carlos Bonilla Agosto..."

PRASA TO START SEEKING EXTERNAL FINANCING

From News Is My Business:

"Puerto Rico Aqueduct and Sewer Authority Executive Director Alberto Lázaro 

confirmed Thursday the agency is waiting for the governor to sign the law that 

will allow it to pursue external financing to begin talking to creditors next month. 

Once the PRASA Revitalization Act is signed, the public corporation will have 

the leverage it needs to approach potential creditors for some $900 million in new 

funding to cover infrastructure improvements, payments due to contractors and 

other expenses, Lázaro said, during the monthly luncheon sponsored by the Ass-

ociated General Contractors..."

Puerto Rico News Digest For June 13, 2016

CDC DIRECTOR VISITS PR OVER ZIKA

From US News & World Report:

"The director of the U.S. Centers for Disease Control and Prevention is in Puerto
Rico to discuss the U.S. territory's response to an outbreak of the Zika virus. Tom
Frieden met with Gov. Alejandro Garcia Padilla behind closed doors Friday. It is
his second visit to the island in recent months. Puerto Rico is reporting 149 new
cases of the mosquito-borne virus in the past week. The island has more than
1,500 cases, including 182 in pregnant women. A total of 40 people have been
hospitalized..."

MST CALLS FOR CIVIL DISOBEDIENCE

From Caribbean Business:

"The Socialist Workers Movement (MST by its Spanish initials), the Work-
ing People’s Party Youth, the National Hostos Independence Movement and
other individuals on Monday were calling for civil disobedience against leg-
islation by the U.S. Congress that would establish  a financial oversight board
for Puerto Rico. “With this activity, we express our strong opposition to the fis-
cal control board that is cooking in the U.S. Congress,” the MST, which was
demonstrating across from the José V. Toledo Federal Building & U.S. Court-
house in Old San Juan, said in a statement..."

CAYEY PEAKS NOW NATURAL RESERVE

From The San Juan Daily Star:

"Gov. Alejandro García Padilla offi cially approved the demarcation of the
Planadas-Yeyesa natural reserve (known as las Tetas de Cayey) on Thursday,
thereby converting it into one of the largest protected areas in Puerto Rico with
great importance for the southern aquifer, animal species and cultural resources.
The natural reserve is so named after the names of its two large peaks -- Plana-
das and Yeyesa -- both of an approximate elevation of 2,559 feet (780 meters)
above sea level..."

WATER RATE HIKE COULD BE PUSHED BACK

From News Is My Business:

"Puerto Rico Aqueduct and Sewer Authority Executive Director Alberto Láza-
ro said Sunday the chances of an increase in water rates could be pushed back
with the approval of House Bill 2786, which seeks to address the public corpo-
ration’s funding needs for capital improvements. The so-called PRASA Revita-
lization Act is slated to be approved today, delaying the possibility of a rate hike
next month, as Lázaro had warned was a possibility earlier this year..."

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 September 2, 2015

CARRAIZO RATIONING COULD END SOON

After several days of moderate to heavy rain, first from Tropical Storm
Erika, and then from a tropical wave which affected the island yesterday,
water levels at Carraízo and La Plata reservoirs have seen significant gains.
Carraízo has gone up by 20 centimeters overnight, with today's level stand-
ing at 37.17 meters. AAA/PRASA, Puerto Rico's water utility, has indicated
that if Carraízo's  level reaches 41 meters, water rationing for its area would
likely end. La Plata, however, would need to reach 51 meters to get to its op-
timal level; it currently sits at  36.65 meters. Yesterday's tropical wave left
up to 4 inches of rain on parts of Puerto Rico.

PRASA DEBT PAYMENT EXTENDED

From The San Juan Daily Star:

La Fortaleza Chief of Staff Víctor Suárez said Banco Popular agreed to ex-
tend to Sept. 15 a $90 million payment owed by the Puerto Rico Aqueduct
and Sewer Authority (PRASA) that was due Monday. However, he could
not say when PRASA will go to the market with a $750 million bond issue
it will use in part to pay the line of credit with Banco Popular. “When con-
ditions are ripe, we will go,” he said. STAR sources, however, say that Bank
of America Merrill Lynch will probably cancel the bond issue altogether.
Meanwhile, Suárez refused to reveal whether multinational companies will
assume a greater burden as part of the five-year fiscal adjustment plan, whose
presentation was pushed back to Sept. 8.

FL SENATOR MARCO RUBIO TO VISIT PR

From Caribbean Business:

Republican presidential hopeful Marco Rubio is scheduled to visit Puerto Rico
this week, his staff said Tuesday. Spokeswoman Olivia Perez-Cubas told The
Associated Press that the Florida senator will meet with supporters on Friday
in San Juan. Rubio's one-day visit will coincide with that of Democrat Hillary
Clinton.  He is scheduled to attend a fundraiser before the rally.

TRUMP GOLF COURSE TO BE AUCTIONED

From News Is My Business:

U.S. Bankruptcy Judge Enrique S. Lamoutte-Inclan signed off Monday an 

order approving the auction of the Trump International Golf Course in Río 

Grande. Bidding will start at $2 million in November, with a final sale hear-

ing slated for December, court documents showed. The property, also known 

as Coco Beach Golf & Country Club, filed for Chapter bankruptcy protection 

in July, citing $78 million in liabilities and $9.2 million in assets.

COP ARRESTED FOR HUMAN TRAFFICKING

From Fox News Latino:

An officer of the San Juan Municipal Police was arrested by U.S. federal
authorities on charges of human trafficking for her attempt to bring a Do-
minican citizen from the island of Antigua into Puerto Rican territory ille-
gally. The U.S. attorney in San Juan, Rosa Emilia Rodriguez, said Tues-
day in a statement that police officer Luz Zoraida Rojas was arrested on
Aug. 28 after paying $1,000 to an undercover cop - who pretended to be
an immigration official - for trying to introduce a Dominican male from
Antigua into Puerto Rico.

Three Day Rationing For Carraízo Starts Next Week

Reservoir levels for today. Carraízo is on the left.

SAN JUAN (PRM) -- Amid Puerto Rico's worst drought in decades, the
water levels at the Carraízo  reservoir -- which serves a large part  of the
San Juan metro area -- continue to fall to dangerously low levels. This has
prompted the island's water utility, Autoridad de Acueductos y Alcantari-
llados, to extend the water rationing plan that Carraízo users have been
under for several weeks. According to AAA management, the Carraízo
reservoir level is now so low, that it may soon be rendered inoperative.

Starting next Wednesday, August 13th, running water will be shut off
for three days rather than the current two days, and will then be on for
one day. Of the two rationing zones the Carraízo service area is divi-
ded into, Zone B will be the first to be subjected to the three-day ratio-
ning, with Zone A following suit two days later. A map of the Carraí-
zo zones can be found below. No significant rainfall over the area is
expected for the time being, although the government announced yes-
terday that they will soon begin a program of cloud seeding, in hopes
of generating rain over the dwindling reservoirs of Carraízo, La Plata
and Cidra.

Puerto Rico News Digest For July 29, 2015

DOOR OPEN FOR EXTENDED WATER RATIONING 

From The San Juan Daily Star:

The Puerto Rico Aqueduct and Sewer Authority (PRASA) has already outli-
ned long term plans based on a future scenario in which the island will remain
under drought conditions through the beginning of 2016, which could make
water rationing plans even stricter and extended to more towns. PRASA Sou-
thern Region Director Juan Rodríguez said Monday that the public corpora-
tion has not ruled out a wider water rationing plan than the one currently in
 place for consumers that receive their water supply from the Carraízo and
La Plata reservoirs, and the southern towns of Coamo, Santa Isabel and Sali-
nas. Guaynabo is also on water rationing, going one day with water and one
day without.

MAN MURDERED IN CANOVANAS

An unidentified male was murdered early this morning in the Parcelas Campo
Rico area of Canóvanas, according to Puerto Rico Police and El Nuevo Dia. At
around 6:36 AM, gunshots were  heard in the neighborhood. When police offi-
cers arrived, they found the bullet-riddled body on the grounds of a  residence.
This is the 313th murder to be reported in Puerto Rico so far this year.

SHERATON OLD SAN JUAN CASINO TO CLOSE

From Caribbean Business:

The casino at the Sheraton Old San Juan Hotel & Casino, in the historic sector 

of Puerto Rico's capital, is slated to close its doors sometime in September, in-

dustry sources told Caribbean Business. An official announcement on  the matter  

is expected later today.

LATINO LEADERS URGE FEDS TO HELP PR

From News Is My Business:

The National Hispanic Leadership Agenda, a coalition of 39 of the U.S. main-

land’s largest Latino advocacy organizations, held a press conference Tuesday 

with Congressional, Puerto Rican, and labor leaders today calling on President 

Obama and Congress to take action “to save Puerto Rico from economic disaster.”

As Puerto Rico continues to endure a growing economic crisis that includes a $72 

billion debt, major unemployment, and population drain, Puerto Ricans and Lati-

nos on the mainland are “growing impatient with Washington as leaders have fai-

led to step up to assist millions of American citizens living on the island,” group 

representatives said.

Puerto Rico News Digest For July 15, 2015

WATER RATE HIKES BEING CONSIDERED

From Caribbean Business:

The executive president of the Puerto Rico Aqueduct & Sewer Authority (Prasa), 
Alberto Lázaro Castro, reinterpreted a statement made Monday by Jim Millstein, 
of Millstein & Co., during the Puerto Rico government’s meeting with its credi-
tors, where he alluded to a possible increase of the water bill. Although water ra-
tes are expected to rise beginning in 2018 as part of the utility’s long-term opera-
tional plan, a sooner-than-expected hike could be seen if Prasa fails to finalize a 
bond deal for much-needed liquidity to fund its capital improvement program, 
among other needs. According to Lázaro, what Millstein said at the Government 
Development Bank (GDB) meeting with investors had to do with Prasa's "finan-
cial model, which in agreement with its bondholders and its own organic law, in-
cludes possible rate adjustments." He added that "this is done in all offer docu-
ments to show what would happen if projections are not met."

PR WARNS CREDITORS AGAINST LITIGATION

From The San Juan Daily Star:

Puerto Rico government officials told creditors Monday that a lengthy litigation
process against the commonwealth will have a negative effect on the economy
that will hurt tax collections, which are the source of debt payments. “We are
trying to pre-empt that with an open transparent process with you all,” one of
the government advisers told creditors during a question-answer portion of Mon-
day’s meeting with creditors as part of the process to convince them to renego-
tiate new debt repayment terms for the $72 billion debt.The event was live-strea-
med from a Government Development Bank (GDB) link. GDB President Melba
Acosta, former World Bank chief economist and former International Monetary
Fund (IMF) deputy director Anne Krueger, as well as economist and American
University Prof. Andrew Wolfe briefed members of the investment community
on Krueger and Wolfe’s recently published report on Puerto Rico’s fiscal condi-
tion.

JOURNALISTS SUE OVER HEDGE FUNDS

From News Is My Business:

The Center for Investigative Journalism filed a civil suit Monday against the go-
vernment over its refusal to provide the names of the hedge funds that are getting
ready to renegotiate or demand complete payment of Puerto Rico’s public debt. The
lawsuit filed in San Juan Superior Court names Gov. Alejandro García-Padilla and
Government Development Bank President Melba Acosta as defendants and asks the
court to order them to turn over documents and information about the hedge funds,
the amount of bonds they hold, the names of the investors who make up the so-ca-
lled Ad Hoc group negotiating with the government, as well as certain other docu-
ments. In the nine-page document, the CPI, as the nonprofit is known by its initials
in Spanish, details how it has spent the last four months unsuccessfully requesting
information from the government, including lawmakers, about the identity of the
groups behind Puerto Rico’s $73 billion debt.

SCORES OF DEAD SARDINES AT LA PLATA

From Fox News Latino:

Almost 7,000 sardines have died over the last two days in a reservoir in northern
Puerto Rico due to the drought that has been shrinking the water supply for two
months, making this the third massive dying off of this fish species in less than
two weeks. The secretary of the Natural and Environmental Resources Department,
Carmen Guerrero Perez, reported the situation Tuesday in a statement that said the
fish perished in the Wildlife Refuge of La Plata Reservoir in Toa Alta. "We ask ci-
tizens not to consume or come in contact with these dead fish, since they decompose
rapidly and can put their health at risk," Guerrero said.

Puerto Rico News Digest For July 10, 2015

THREE GUILTY OF FIREARMS OFFENSES

From US Dept. of Justice:

After an eight-day jury trial, José Cepeda-Martínez, Peter Rosario-Serrano and
Juan Tanco-Baez were found guilty of firearm offenses, announced United States
Attorney Rosa Emilia Rodríguez-Vélez. United States District Court Senior Judge
Daniel Domínguez presided over the trial. According to the evidence presented at
trial, on or about March 26, 2014, the Puerto Rico Police Department (PRPD) arres-
ted Cepeda-Martínez, Rosario-Serrano and Tanco-Báez for weapons violations and
for the murder of an individual which occurred at the Román Baldorioty de Castro
Expressway in Carolina, PR  on the same day.

In the morning of March 26, 2014, a 911 call alerted the PRPD about a rapid gun-
fire reported at the Baldorioty Expressway. The call also alerted about a Jeep Che-
rokee fleeing the scene and going towards San Juan. Officers who were patrolling
the area noted and identified the license plate of the Jeep Cherokee, and immediate-
ly pursued the vehicle. The individuals ended up fleeing the scene and later were
arrested. A total of three Glock Pistols, two of them modified to fire as automatic
weapons, ammunition, marihuana and three cellular phones were seized upon arrest.

PRASA CANCELS CONSTRUCTION CONTRACTS

From Caribbean Business:

The Puerto Rico Aqueduct & Sewer Authority (Prasa) canceled contracts with compa-
nies in charge of the Capital Improvements Program, which could affect the construc-
tion industry and the agency's services, New Progressive Party Sen. Larry Seilhamer
said Thursday. The senator revealed the information in a statement in which he stre-
ssed that it is up to Prasa Executive President Alberto Lázaro to explain what will end
up happening with the program, as companies that manage it, such as CH Caribbean,
Black & Veatch, Malcolm Pirnie and CSA Group, have been left without contracts.
"These massive cancellations represent a mortal blow to the crumbling construction
industry because it affects almost all projects. Preconstruction, which includes plann-
ing, permits and design, has been left with almost zero projects," Seilhamer said.

KRUEGER: GROWTH ESSENTIAL TO RECOVERY

From News Is My Business:

he loss of Section 936 tax breaks, combined with overly indulgent local labor laws and
a federal policy that encourages people to stay on the dole rather than work, have all
contributed to Puerto Rico’s current fiscal nightmare. But only through drastic measu-
res that spur real, sustained growth can the island beat this crisis, said prominent econo-
mist Anne O. Krueger. In a speech at the Washington-based Heritage Foundation, Kre-
uger warned that time was running out for a solution. “Without restoring growth, there
is no possibility of turning around the fiscal crisis. These must be addressed simultane-
ously,” said the former International Monetary Fund executive. “As we speak, the go-
vernment’s cash balances are critically low, and further delays will reduce the room
for maneuvering and the chance they can get out of this without further damage.”

BUSINESSES MUST KEEP BATHROOMS OPEN

From San Juan Daily Star:

Even though most of the San Juan metropolitan area is under a water rationing plan
due to a severe drought, the Health Department has reiterated that businesses must
have their sanitary services open to customers. Visits to several businesses by a local
TV news crew showed that bathroom facilities were in fact closed, with signs posted
on the bathroom doors saying “Bathroom closed due to the water rationing plan.” The-
se establishments are breaking the Health Department’s Environmental Health Division
regulations. From fast-food outlets and shopping malls to restaurants and clothing stores,
all businesses must have at least one bathroom operating that is clean and with a water
supply to enable patrons to flush the toilet and wash their hands. “If a business doesn’t
have a reserve of potable water, then it can’t open, especially a food establishment,”
Health Department Environmental Health Division Director Carlos Carrazo said.