Puerto Rico News Digest For May 3, 2017

BANKRUPTCY!

GOVERNOR SAYS PR TO SEEK TITLE III PROTECTION

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

PROTESTER ARRESTED FOR POPULAR CENTER VANDALISM

From US Attorney's Office:

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

GUAYNABO MAYOR CASE TO SPECIAL PROSECUTOR

From The San Juan Daily Star:

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

GOV'T PUBLISHES NEW OFFER FOR GO CREDITORS

From Caribbean Business:

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

Puerto Rico News Digest For October 4, 2016

WEATHER SYSTEM COULD BECOME STORM

F
















From The National Hurricane Center:

"Showers and thunderstorms continue in association with a low pressure area 
located about 500 miles northeast of Puerto Rico. Satellite wind data indicate 
that the low is producing winds to gale force, and the system could become su-
fficiently well organized to result in the formation of a tropical storm later today.  
The low is expected to move generally northwestward at 10 to 15 mph over the 
next few days, and upper-level winds are forecast to become less conducive for 
development. Formation chance through 48 hours...high...80 percent. Formation 
chance through 5 days...high...80 percent..."

BOARD SETS DEADLINE FOR TURNAROUND PLAN

From The San Juan Daily Star:

"Puerto Rico’s newly created federal oversight board on Friday set an Oct.14
deadline for the island’s governor to draft a fiscal turnaround plan, as protesters
at its first public meeting compared the board to “slavery” and said it was “pilla-
ging Puerto Rico.” The board asked Gov. Alejandro García Padilla to present a
plan laying out his vision for stabilizing Puerto Rico, which is grappling with $70
billion in debt, a 45 percent poverty rate and a decade-long recession..."

DONAHUE TO TESTIFY ABOUT BLACKOUT

From Caribbean Business:

"The Senate Committee on Energy and Water Resources has summoned the ch-
ief restructuring officer of the Puerto Rico Electric Power Authority (Prepa), Li-
sa Donahue, to appear Tuesday as part of the hearings that began last week to in-
vestigate the possible reasons that led to the collapse the electrical system on Sep-
tember 21 and the delay in the restoration of electrical service. The president of the
committee, Popular Democratic Party Sen. Ramón Luis Nieves, said that Donahue
should give details before the Senate panel about the work done by her firm, Alix
Partners, since it was hired by Prepa in September 2014 to restructure the utility’s
debt and transform the operations of the public corporation..."

CUSTOMS SEIZES $1.5M IN COUNTERFEIT GOODS

From News Is My Business:


"U.S. Customs and Border Protection San Juan Field Operations announced today
that 206 seizures where made of counterfeit products, valued at $1.5 million, wh-
ich were illegally imported into Puerto Rico via international mail. A wide range
of counterfeited products was seized during the enforcement effort, called “Oper-
ation Silver Snake 2,” to include: consumer products, apparel, footwear, textiles,
pharmaceuticals, and more, the agency said. Various international mail packages
inspected by CBP officers at the San Juan International Mail Branch revealed pro-
ducts that infringedintellectual property rights. The majority of the seized products
originated in China, the agency said..."

Puerto Rico News Digest For September 14, 2016

PR BEAUTY QUEEN HAS LAWSUIT DISMISSED

From BBC:

"A Puerto Rican beauty queen has lost her bid to reclaim her tiara taken from
her for poor behaviour. A judge ruled that Kristhielee Caride had violated the
terms of her contract as the island's representative for Miss Universe. She had
refused to attend a designated hair salon, and failed to appear on a TV progra-
mme because she said the traffic was too bad. Ms Caride was seeking $3m (£
2.25m) in damages from the organisers. The week-long court case has gripped
Puerto Rico. TV stations interrupted regular programming to show proceedings
in court and her testimony..."

SJ MAYOR ASKS GDB TO RETURN FUNDS

From The San Juan Daily Star:

"San Juan Mayor Carmen Yulín Cruz Soto proposed to seek a reconsideration
from Judge Aileen Navas Auger on the retention of $17.1 million by the Go-
vernment Development Bank (GDB) from the municipality of San Juan, at the
same time reiterating Monday her determination to resist the federal Puerto Ri-
co Oversight, Management and Economic Stability Act (PROMESA). “We are
going to ask for a reconsideration and then appeal,” the mayor told Inter News
Service (INS) about the multimillion-dollar retention of funds destined for ser-
vices for the residents of the capital city..."

BHATIA: PROMESA WON'T MEAN AXING GOV'T WORKERS

From Caribbean Business:

"Senate President Eduardo Bhatia said Tuesday that the Puerto Rico Oversight,
Management and Economic Stability Act (Promesa) “does not establish anywh-
ere” that government employees hired after May 4 or those who obtained their
permanent status after that date, could be let go, as previously stated by New Pro-
gressive Party (NPP) president and gubernatorial candidate Ricardo Rosselló. A-
ccording to the senatorial leader, the act establishes in Section 204 that the Fiscal
Management and Oversight Board created by Promesa could evaluate actions ta-
ken through legislation “that is contrary to the government’s ordinary course,” but
explained that in the case of permanent status granted to teachers, nurses and other
public employees who provide essential services, such cases fall under “ordinary
course” and hence do not have to be subject to employee dismissals..."

ISABELA SUN FARM STARTS PRODUCING ENERGY

From News Is My Business:

"Oriana Energy LLC, a subsidiary of Sonnedix Group, in partnership with Yaro-
tek, announced Tuesday it has commenced energization of the $160 million Oria-
na Solar Farm, a 45MW AC (58 MW) solar power plant in Isabela. With an inves-
tment in excess of $160 million, the construction of this renewable energy facility
created more than 1,000 direct jobs during construction, mostly residents of Isabe-
la and nearby communities..."

Puerto Rico News Digest For August 23, 2016

OLYMPIANS PARADE THROUGH SJ TODAY

Photo: PR Olympic Committee

From Caribbean Business:

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

UP TO 270 ZIKA MICROCEPHALY CASES EXPECTED

From The San Juan Daily Star:

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

ECONOMISTS TO DISCUSS PROMESA IMPACT

From News Is My Business:

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

SAN JUAN ACTIVISTS PROTEST TAX EXCEPTIONS

From Democracy Now:

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

Puerto Rico News Digest For July 27, 2016

INDEPENDENCE GROUPS PROTEST DNC

From The San Juan Daily Star:

"Various Puerto Rico diaspora organizations in the greater Philadelphia area
protested outside the Democratic National Convention on Monday against the
Puerto Rico Oversight, Management and Economic Stability Act (PROMESA)
and the establishment of a federal fiscal control board. “The Puerto Rico com-
munity must be heard; the Democrats should know our demands since both De-
mocrats and Republicans have been party to the crimes of the United States ag-
ainst Puerto Rico,” said Berta Joubert, the spokeswoman for the Philadelphia-
Camden Boricua Committee, according to Inter News Service..."

44 INDICTED FOR TRAFFICKING IN MAYAGUEZ

From US Attorney's Office:

" U.S. Attorney for the District of Puerto Rico Rosa Emilia Rodríguez-Vél-
ez announced three indictments and the arrest of 44 defendants charged with
conspiracy to possess with intent to distribute, and distribution of controlled
substances, and possession of firearms. The agencies in charge of the investi-
gation are Homeland Security Investigations (HSI) and the Police of Puerto
Rico (POPR). One of the indictments, returned on July 19, 2016, by a federal
grand jury and unsealed in federal court today, charges 40 individuals with co-
nspiracy to knowingly and intentionally possess with intent to distribute coca-
ine, cocaine base (crack), marijuana, Percocet and Xanax, all within 1,000 feet
of the real property comprising the Columbus Landing Public Housing Project,
all for significant financial gain and profit..."

HOUSE APPOINTS HATCH TO TASK FORCE

From Caribbean Business:

"The House has appointed Sen. Orrin Hatch (R-Utah) to serve as the chair-
man of a bicameral task force charged under the Puerto Rico Oversight, Ma-
nagement and Economic Stability Act (Promesa) with investigating the cau-
ses and possible solutions to Puerto Rico’s debt crisis. The House approved
Hatch’s appointment in a pro forma session Monday afternoon. That session
also formalized the appointments of Reps. Sean Duffy (R-Wis.) and Tom Mac
Arthur (R-N.J.) as the House Republican appointees to the task force. Rep. Ny-
dia Velázquez of New York and Pedro Pierluisi, Puerto Rico’s non-voting rep-
resentative in Congress, are the two House Democratic appointees. In addition
to Hatch, who is chairman of the Senate Finance Committee, Sens. Marco Ru-
bio (R-Fla.), Robert Menendez (D-N.J.) and Bill Nelson (D-Fla.) are members
of the task force..."

POPULAR EARNS $89M IN 2016 2ND QUARTER

From News Is My Business:

"Popular Inc., parent company of Banco Popular, on Tuesday reported net in-
come of $89 million for the quarter ended June 30, 2016, compared to net in-
come of $85 million for the quarter ended March 31,  2016. “We are pleased
to report another solid quarter with strong net income, revenue and credit me-
trics. Also our U.S. operation delivered significant loan growth while mainta-
ining strong credit quality. We are hopeful that recent legislative actions by the
U.S. Congress will be a catalyst in revitalizing Puerto Rico’s economy,” Car-
rión said..."

Puerto Rico News Digest For June 30, 2016

PROMESA PASSES SENATE, GOES TO OBAMA

From Caribbean Business:

"Congress delivered relief to debt-stricken Puerto Rico on Wednesday,
sending President Barack Obama a last-minute financial rescue package
to help the U.S. territory of 3.5 million Americans. The Senate passed the
bill on a bipartisan 68-30 vote..."

35 PEOPLE CHARGED WITH DRUG TRAFFICKING

From US Attorney's Office:

"On June 23, 2016, a federal grand jury in the District of Puerto Rico retur-
ned an indictment against 35 defendants charged with conspiracy to distrib-
ute controlled substances, announced Rosa Emilia Rodríguez-Vélez, United
States Attorney for the District of Puerto Rico. The Drug Enforcement Ad-
ministration and the Puerto Rico Police Department (PRPD), Ponce Strike
Force Unit, are in charge of the investigation. The indictment alleges that be-
ginning in 2012, the organization distributed heroin, crack, cocaine, and ma-
rihuana, at the Rafael López Nussa, Ernesto Ramos Antonini and the Dr. Ma-
nuel De La Pila Iglesias Public Housing Projects in Ponce; and the El Pino
Ward in Villalba, Puerto Rico, all for significant financial gain and profit. The
thirty-five defendants acted in different roles in order to further the goals of
their organization, to wit: leaders, drug point owners, enforcers, runners, se-
llers, and facilitators. Ten defendants are facing one charge of possession of
firearms in furtherance of a drug trafficking crime..."

PREPA TO ENACT PROVISIONAL RATE HIKE

From The San Juan Daily Star:

"The Puerto Rico Electric Power Authority government power company will
impose a provisional rate increase of 1.299 cents per kilowatt-hour on clients
in the coming weeks after winning approval from the Puerto Rico Energy Co-
mmission. The rate hike is among several requirements the utility must fulfill
as part of a proposed deal with creditors to restructure nearly $9 billion debt..."

AC HOTEL BREAKS GROUND IN CONDADO

From News Is My Business:

"The groundbreaking ceremony for the first AC Hotel by Marriott in San Juan
took place Wednesday for what will be a $45 million investment by Ashford
1369 Hospitality, LLC, an affiliate of Interlink, which acquired the former Am-
bassador Plaza & Casino property in Condado. The investment includes a com-
prehensive renovation of the property to convert it into the Marriott brand..."

Dodd-Frank Is About To Be Thoroughly Hillaried

Commentary

Richard Lawless

I can no longer sit quietly and watch this country implode from all of the Wa-
shington corruption.

Today I watched Hillary Clinton's speech, and I was appalled. I watched her 
tell the audience how she would bring Wall Street to heel and hold them acc-
ountable. I listen to her say how she would use Dodd Frank legislation to ma-
nage that process. It is all complete BS.

Hillary is fully aware of the large scale bond fraud uncovered in Puerto Rico.   
A criminal conspiracy so large that it calls into question all $70 billion dollars
of Puerto Rico debt.  Hillary is calling for a complete bailout and supports cu-
rrent legislation to do just that. She does not support prosecution.

The Puerto Rico Senate held investigative hearings in early 2015 to explore the 
financial failure of one of its largest municipal agencies. One government exe-
cutive after another testified under oath that they knew they were technically ba-
nkrupt when they issued these bonds and could not pay they back.  The witness-
es then went on to say that although the credit agencies (Moody’s, Fitch and S&
P) knew they were insolvent, they could secure good credit ratings for the bonds 
for the “right fee”. According to the same testimony, Wall Street’s biggest banks 
knew all this but for the “right sales fees” they would sell these junk bonds as sa-
fe retirement income to their retired investors.

The SEC has already performed four full audits on four bond issues and found 
the audits to be consistent with the Senate testimony.  These agencies were insol-
vent and it could not have been accidently overlooked by the Rating Agencies and 
the Banks.

We have seen this before with the 2007-2008 CMBS (mortgage bonds) crisis. The 
Rating Agencies and the Banks almost prefer to support these failing agencies be-
cause it forces them to refinance debt they can’t pay off as agreed before they have 
to admit it to their bond holders.  This “Ponzi Scheme” forces frequent and costly 
refinancing on a regular basis, generating huge fees for the Rating Agencies and 
Banks. All good, if you can continue to refinance fast enough and bring in new in-
vestors quick enough to pay off the old investors.  As in the case with Puerto Rico 
and other States and Cities, even a small hiccup causes the hold house of cards to 
collapse.

It is pretty clear that the Agencies issuing the bonds, the Rating Agencies issuing 
fraudulent ratings and the Banks selling junk bonds all broke the law and violated 
almost all of the provisions of Dodd-Frank.

All Congressman and Senators were issued this information.  Most did nothing 
but those that did, quickly stepped up to protect their Wall Street contributors. You
see, if this got out, the Rating Agencies and Banks would be held accountable for 
the tens of billions in bond losses.  Politian’s and government employees may be 
charged criminally. 

To date, there has been over $30 billion dollars in bond losses from this scam. The 
average bond holder owns less than $10,000 in bonds and that represents over 20% 
of their total savings. Not hedge funds as the Press and our Political leaders would 
have you believe.  When these bonds collapsed, after the senior citizens lost half 
their money, then the hedge funds came in to buy these bonds at 33-50 cents on the 
dollar with the hope of making money in the future.  The hedge funds are being us-
ed as a distraction to take the discussion away from the original crimes. Most Pu-
erto Rico Bonds are still held by individuals like you and I.

New York residences owned the single biggest piece of this debt at about $4 billion 
dollars, followed closely by Florida, New Jersey, Pennsylvania and Illinois. I don’t 
think any State has loss less than a few hundred million dollars. It is not a Puerto 
Rico Fraud. it is a National Fraud.

This entire thing sickens me and makes me glad that I am no longer part of the Wa-
shington two step.  The two step is a Political Dance that requires most politicians 
to add a political calculation to every vote they make.  There are three simple ques-
tions, how will this vote increase my power base, will it add to my reelection war 
chest and will it improve my personal financial statement.  There is no considerati-
on given to the masses they represent.  It is all about trading American Treasure 
and Tax Payer money for personal gain.

In this case it gets even better.  The Politicians were not happy stealing tens of bi-
llions from America’s middle class senior citizens when there is more to be taken. 
Enter the PROMESA legislation. Legislation that removes all existing legal rights 
from the innocent bond holders.  The legislation actually prevents the bond holders 
from suing. All supported by politicians that know all about this. 

Being around Washington for so long I know what most of these government offi-
cials did before securing their government jobs.

Treasury Secretary Lew and his legal counsels Weiss and Campbell worked for 
Citibank and Lazard, respectfully.  In the period that this fraud started Citibank 
and Lazard were among the first firms to sell these fraudulent bonds.  Now, using 
their position in government, all three of these gentlemen marketed congress for 
a full  bailout of Puerto Rico with Tax Payer Dollars and the innocent bond hold-
er’s money. Not once in all the committee meetings they participated in did they
site this conflict of interest while purposing solutions that benefit all their former 
employers.

Paul Ryan a professed conservative, was not supportive of any bailout or the PRO
MESA legislation.  That is until he met with Secretary Lew.  After the meeting, 
Ryan supported the legislation that violates every core principal that the Republi-
can party stands for.  What happened?  I suspect two things.  Lew reminded him
that he had a bright career and Wall Street would not forget this (contributions for 
his continued career advancement) and immediate funds for his current reelection 
campaign.  I as guessing about the former, but if you look at the contributions that 
flowed into him from Wall Street firms after the meeting, well it was impressive.  
Not surprisingly, most of the contributions came from firms directly involved with 
Puerto Rico.

It is clear that the Democrats has a strategy in place to redirect what’s left of the 
bond holders money to fund the unfunded government (union pensions).  How 
will they do this?  It is simple and the Press is going along with it.  Claim that the 
bonds were issued fraudulently and claim they shouldn’t be paid back to the bond 
holders. Float stories that the bond holders are just greedy hedge funds and not peo-
ple like you and I.  Who likes hedge funds?  Float stories that Puerto Rico is cance-
lling services from lack of money.  Kids are dying in the streets.  You have heard 
all this before.

As a debt expert, I should point out that when a family does not make its mortgage 
payment (bond payment example) that family has more cash at the end of the mon-
th, not less.  Puerto Rico has withheld hundreds of millions in payments and has mo-
re cash than you would imagine. Any cancelling of services is just another strategy 
being employed by less than honorable people.

I should mention in closing that Elizabeth Warren (claims to be anti-Wall Street) 
knew all about this but was the first to propose an amendment to an energy bill 
preventing innocent bond holders from suing.  Just follow the money for Elizabeth.

This is not just a $70 billion-dollar scam (Puerto Rico). It includes Chicago, Conn-
ecticut and many other States.  This is a Political Strategy to make up for years of 
over spending.  When legal taxes are no longer enough, steal the bond holder’s mo-
ney.  Individually the bond holders are not very powerful and they will not underst-
and what their leaders are doing to them.



Richard Lawless is a former senior banker who has specialized in evaluating and granting debt for 
over 25 years. He has a Master’s Degree in Finance from the University of San Diego and Bachelor’s
Degree from Pepperdine University. He sits on a number of Corporate Boards and actively writes for 
a number of finance publications. The opinions expressed in the preceding article are solely those of
Mr. Lawless and do not necessarily reflect those of The Puerto Rico Monitor, its editors, contributors
or advertisers.

Puerto Rico News Digest For June 15, 2016

PUERTO RICO MOURNS ORLANDO VICTIMS

From US News/AP:

"Puerto Ricans held somber vigils and prepared to bury many of their own
after authorities said nearly half of those killed at a gay night club in Florida
had ties to the U.S. territory. Officials said that while it's still unclear how ma-
ny of the 23 Puerto Ricans killed were born on the U.S. mainland or had mo-
ved there from the island, they expect many of them to be laid to rest in Puer-
to Rico in the coming days...The shooting early Sunday at the Pulse nightclub
in Orlando that killed 49 people has shaken Puerto Rico's gay community and
shocked the U.S. territory as a whole..."

US SENATE TO CONSIDER PROMESA IN JUNE

From Caribbean Business:

"Majority Leader Mitch McConnell said Tuesday the Senate will consider a
rescue package to ease Puerto Rico’s financial crisis before the U.S. territory’s
$2 billion payment to creditors is due July 1. The House overwhelmingly pa-
ssed legislation to create a new control board and restructure some of Puerto
Rico’s $70 billion debt last week. The Senate is expected to take up the same
bill “sometime before the end of the month,” McConnell, R-Ky., told reporters
Tuesday..."

FBI INVESTIGATES BANKER'S DEATH IN PR

From The New York Times:

"The Federal Bureau of Investigation has identified possible suspects in its long-
running investigation into the murder of a banker in Puerto Rico,  but it is now
asking the public for help in solving the 2011 killing. Five years ago this week,
Maurice Spagnoletti, a top executive at Doral Financial, the holding company
that owned a Puerto Rico bank, was gunned down on his way home from work
in San Juan...The F.B.I. announced on Tuesday a $20,000 reward for information
that leads to an arrest..."

LIBERTY LAUNCHES HBO NOW IN PUERTO RICO

From News Is My Business:

"Starting [yesterday], Liberty Puerto Rico’s customers will begin to enjoy HBO
NOW, a new service from HBO for internet customers who want to watch the
network’s programming but are not subscribed to a video service. Liberty Puer-
to Rico is the only telecom provider to offer this service on the island, the com-
pany said. HBO NOW is an independent streaming service from HBO Networks
that provides unlimited access to all of HBO’s programming, including series, mo-
vies, documentaries and specials..."

Puerto Rico News Digest For June 10, 2016

SUPREME COURT: PR NOT SOVEREIGN

From Caribbean Business:

"The Supreme Court says Puerto Rico remains a U.S. territory without the
independent powers of a sovereign state when it comes to enforcement of
criminal law. The justices’ 6-2 ruling on the Puerto Rico v. Sánchez Valle
case says Congress is the ultimate source of the island’s legal power even
though Puerto Rico has its own constitution. “The Double Jeopardy Clause
bars Puerto Rico and the United States from successively prosecuting a sin-
gle person for the same conduct under equivalent criminal laws,” reads the
court’s decision, which was released Thursday morning..."

US HOUSE PASSES 'PROMESA' BILL

The U.S. House of Representatives passed bill HR5278, more commonly kn-

own as 'Promesa' yesterday evening by a vote of  297-127. The bill would es-

tablish an unelected financial control board which would be involved in restr-

ucturing Puerto Rico's $70 billion in debt and managing the territory's finances. 

'Promesa' now goes to the Senate, and if approved there, would go then to Pre-

sident Obama, whose signature would turn the bill into law. Puerto Rico has a 

$2 billion debt payment due on July 1, and it is hoped that the bill can be sig-

ned into law by that time. 'Promesa' has been controversial on the island, with 

supporters claiming it is necessary to avoid a complete economic meltdown, 

while opponents have expressed concerns over Puerto Rico's government sp-

ending being under the control of an unelected board.

COUPLE ARRESTED FOR CARJACKING

From US Attorney's Office:

"A federal grand jury returned a one-count indictment [on Wednesday] agai-
nst two individuals for carjacking, announced United States Attorney Rosa
Emilia Rodríguez-Vélez. The Federal Bureau of Investigation is in charge of
the investigation. The indictment alleges that on or about June 2, 2016, in the
District of Puerto Rico, Bernard Díaz-Pérez and Jessenia Salgado-Ortiz, aid-
ing and abetting each other, with the intent to cause death and serious bodily
harm, did take a motor vehicle, to wit: a red 2008 Scion, model XD, that had
been transported, shipped or received in interstate or foreign commerce, from
the presence of F.N.R., by force, violence and intimidation, resulting in serious
bodily injury, that is, sexually assaulting a female passenger, all while using a
replica gun..."

PR LURES LGBT TOURISTS DESPITE ZIKA

From PRTC:

"The Puerto Rican Tourism Company (PRTC) is currently reporting a 100%
occupancy rate for local hotel partners in Boquerón, Puerto Rico—and the su-
rrounding areas on the west coast—with no reported cancellations, as travelers
flock to Puerto Rico in celebration of LGBT Pride weekend. Dozens of hotels
in the west region are currently booked to capacity in the area where key Pride
activities are taking place from June 9-12, 2016, even with heightened Zika
awareness..."

Puerto Rico News Digest For May 27, 2016

PROMESA ADVANCES TO HOUSE FLOOR

From News Is My Business:

"The PROMESA Act (H.R. 5278), the bill aimed to address Puerto Rico’s
debt crisis, passed in the U.S. House Natural Resources Committee Wednes-
day with bipartisan support from lawmakers. The final vote tally was 29 in fa-
vor and 10 opposed. Of the 24 Republicans on the Committee that voted, 14 --
or nearly 60 percent — voted “yes.” Of the 16 Democrats on the Committee that
voted, 15 voted “yes” and one voted “present.”..The measure was approved with
amendments that Pierluisi said will “strengthen the bill or are technical  in nature...”

PREPA RATE INCREASE SPARKS OUTRAGE

From The San Juan Daily Star:

"Puerto Rico’s heavily indebted electric company announced Tuesday that it is
seeking a more than 20 percent increase in the island’s already high power bills,
sparking outrage among many who note the agency faces numerous corruption
allegations. The Puerto Rico Electric Power Authority (PREPA) said the increa-
se would allow it to keep operating and help boost its dwindling liquidity. Offic-
ials said the additional revenue also would let the company restructure its $9 bill-
ion debt load, reduce its dependence on petroleum and renovate obsolete infras-
tructure..."

SENATE OVERRIDES GOVERNOR'S TAX VETOES

From Caribbean Business:

"The Senate on Thursday agreed to override Gov. Alejandro Garcia Padilla’s
veto on the bill that would repeal the hike to the business-to-business (B2B)
tax and the value-added tax (VAT) or IVA in Spanish. The B2B was slated to
go into effect next week. The lawmakers’ decision was made in part because
of a request made by Popular Democratic Party gubernatorial candidate David
Bernier..."

US SWIMMING DUMPS PR OVER ZIKA

From Tribu Magazine:

"Frank Busch, the U.S. national team director, sent out a letter Thursday to all
national team athletes and coaches telling them of the change. The camp will
now be held in Atlanta instead of Puerto Rico in late July. "As part of our prepa-
rations for the Olympic Games this summer, we have been closely monitoring the
current situation with the Zika virus", Busch wrote in his letter, which was obtai-
ned by The Associated Press...The U.S. team is still scheduled to hold a training
camp in San Antonio from July 11-21..."

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The Puerto Rico Monitor will be on break for the Memorial Day holiday until 
Wednesday, June 1st. See you then and have a great weekend.