Puerto Rico News Digest For July 12, 2017

FAKE COPS ROB VILLALBA RESIDENTS

In two separate incidents at around 3:00 AM on Tuesday, three people were robbed in their homes by four criminals, two of  which were dressed as police officers. The individuals first came to a man's house in the town of Villalba, and after entering the house, informed the victim that they had a search warrant. They them threatened him with a gun and tied him up with an electrical cord before robbing him. The criminals then made their way to the house next door, were they threatened a couple. After a search, the men found $3,000 inside a vehicle, which they took along with a phone before fleeing the scene.

MAN FOUND SHOT TO DEATH IN CAROLINA

The body of 27-year-old Darwin Méndez Mize was found around noon yesterday on the side of Road 860 in the Martín González sector of Carolina. The man, who was shot in the head five times, was a resident of the Loma Alta neighborhood of the same city and had a criminal record. Police are investigating and no suspects have been identified as of yet.

PR TO OKAY POT FOR THE NON-TERMINALLY ILL

From The San Juan Daily Star:

"A law to allow terminally ill patients to use marijuana is now in effect in Puerto Rico, but Gov. Ricardo Rosselló Nevares promises it will soon be amended to include less serious conditions. The governor signed a law Sunday to regulate the use of medicinal cannabis..."

PR AMENDS PR TAX INCENTIVE LAWS

From Caribbean Business:

"Puerto Rico’s governor has signed several amendments to laws meant to lure more investors and attract new companies amid a deep economic crisis. One of the amendments signed by Gov. Ricardo Rossello requires $5,000 a  year in donations to nonprofits to qualify for a break..."

MENNONITE HEALTH BUYS SAN LUCAS HOSPITAL

From News Is My Business:

"Following a period of much analysis and evaluation, the Mennonite Health System reached an agreement with the Episcopal San Lucas Health System to purchase the assets and operation of the Episcopal San Lucas Hospital in  Guayama..."

GOVERNOR CREATES LGBT AFFAIRS COUNCIL

From Pasquines:

"While Governor Ricardo Rosselló’s party is usually considered socially conservative, he took a big step forward  last week in the interest of LGBT people in Puerto Rico. On July 5 Governor Rosselló signed an executive order on Facebook live Broadcast which created an LGBT Affairs Advisory Council..."

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 June 20, 2016

ROSSELLO TO ASK FOR DECOLONIZATION

From Caribbean Business:

"The president of the New Progressive Party (NPP), Ricardo Rosselló, will 

return Monday to the United Nations to deliver his message in favor of deco-

lonization. “Following the results of the 2012 plebiscite, this forum acquires

more relevance due to Puerto Ricans’ interest in solving the colonial problem.

It is now even more important because the Supreme Court of the United Sta-

tes confirmed the commonwealth has no sovereignty, which has been a decep-

tion, as we have been saying,” the party president said Sunday. In 2013, Rosse-

lló testified before the UN, after delivering to the entity in November 2012 the

results of the referendum in which the statehood option won a majority of votes..."

GROUP BUSINESS UP DESPITE ZIKA

From News Is My Business:

"Puerto Rico’s group business closed off what has come to be known as the

initial Zika period (March to May), “very much open for business,” with 57 

new booked pieces of business including events, conferences, annual meet-

ings and sports activities from now through 2017, Meet Puerto Rico offici-

als said Thursday. This represents a total direct spend of potentially $20.4 

million into the local economy, Milton Segarra, president of Meet Puerto Ri-

co, the Destination Marketing Organization responsible for attracting meeti-

ngs, conventions, trade shows, sporting events and incentive groups to Puer-

to Rico..."

ZIKA CONTRACEPTIVES FAIL TO REACH WOMEN

From Fox News:

"Only a small fraction of contraceptives donated in Puerto Rico to prevent 

Zika-related birth defects are expected to get to the women who need them 

this month, public health officials told Reuters. The donations - tens of thou-

sands of intrauterine devices and birth control pill packs - came from major 

healthcare companies as the virus spreads rapidly through the island. The de-

livery delays illustrate the struggles of Puerto Rico's healthcare system, which 

is faltering amid the commonwealth's financial crisis...

CAR RENTAL TAX GOES FORWARD

From The San Juan Daily Star:

"The island House of Representatives on Thursday approved with a voice
vote the bill to impose a tax of $3.50 per day for the rental of motor vehicles
in Puerto Rico. House Bill 2867, authored by Popular Democratic Party Rep.
Ángel Matos, establishes that the surcharge would be for the first 30 days of
rental and for those who do not have a driver’s license issued by the common-
wealth..."

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..."

___________________________________________________________________


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.

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.”

Woman Sentenced To Prison For Defrauding The IRS

Press Release

US Attorney's Office - San Juan

SAN JUAN, P.R. – Today, March 16, 2016, defendant Mariely
Malavet-Rivera was sentenced by United States District Court
Judge Francisco A. Besosa to serve a term of imprisonment of
34 months and was ordered to pay restitution in the amount of
$103,632.10 for defrauding the Internal Revenue Service (IRS),
announced Rosa Emilia Rodríguez-Vélez, United States.

Malavet-Rivera pled guilty on October 2, 2015, to twenty-four
counts of wire fraud, one count of theft of public money, and one
count of aggravated identity theft. These charges stemmed from a
scheme utilized by Malavet-Rivera from 2010 until 2013 to submit
false Federal tax returns seeking the additional child tax credit (AC
TC) in order to obtain fraudulent tax refunds from the IRS via check
and direct deposit. Personal identification information including in-
dividuals’ names, dates of birth, and social security numbers were
utilized without the knowledge or consent of the individual in order
to request and obtain the fraudulent tax refunds.

The false Federal tax returns contained defendant’s own postal address
and bank account information so that the fraudulent refunds would be
deposited via wire transfer to bank accounts Malavet-Rivera controlled
and the physical checks would be mailed to her postal address. The de-
fendant then used a fraudulent driver’s license or voter registration iden-
tification to cash the fraudulent refund checks through an intermediary
company.

The fraudulent tax refund scheme had a total value of approximately
$227,653.22.

The case was prosecuted by Assistant United States Attorney Seth A.
Erbe and investigated by the Internal Revenue Service, Criminal In-
vestigation (IRS-CI).

Puerto Rico News Digest For November 11, 2015

EX-GOV VILA CRITICIZES AGP ADMINISTRATION

From The San Juan Daily Star:

"Former Gov. Aníbal Acevedo Vilá on Monday said it is time for the
island government to accept that there is no money to pay the public
debt, while also suggesting that it must pressure the Obama adminis-
tration even further to help Puerto Rico deal with its fiscal crisis. In
fact, Acevedo Vilá criticized the administration of Gov. Alejandro
García Padilla for “sequestering the [people’s] tax returns” and for
hiking the sales and use tax (IVU by its Spanish acronym), because
the effect on the economy is that the salaried working class has lowe-
red their income tax retention rates while consumers are purchasing
less..."

LEGISLATURE TO VOTE ON FISCAL BOARD BILL

From Caribbean Business:

"The Puerto Rico Legislature could be voting as soon as Wednesday,
Nov. 11, on a bill that seeks to enable a self-imposed fiscal control bo-
ard on the commonwealth, although lawmakers are expected to see a
watered-down version when compared to the proposed legislation sub-
mitted by La Fortaleza Oct. 15. Legislative sources have told CARIB-
BEAN BUSINESS that planned amendments are to significantly tone
down the measure, particularly relating to its investigative, approving
and budgetary powers. Moreover, several majority lawmakers, inclu-
ding Senate President Eduardo Bhatia and House Speaker Jaime Pere-
lló, have already anticipated the bill would be “simplified” before vo-
ting on it..."

REALTORS BACK TAX EXCLUSION BILL

From News Is My Business:

"This week, National Association of Realtors President Chris Polychron
and Puerto Rico Association of Realtors President Edgar Morales sent a
letter to the island’s House of Representatives to show support for Bill
2566, which would exclude real estate brokerage services from the com-
monwealth’s Sales and Use Tax and the Value Added Tax. “This legisla-
tion recognizes that a tax on brokerage services is a tax on homeowner-
ship,” said Polychron. “Instead, we should strive to lower barriers for mi-
ddle-class families looking to buy or sell a home...”

PREPA NEEDS INSURERS ON BOARD BY TUESDAY

From Bloomberg:

"The Puerto Rico Electric Power Authority needs to get insurance compa-
nies that guarantee a portion of the utility’s debt against default to endor-
se a conditional restructuring agreement by Thursday to avoid the risk of
the deal with bondholders falling apart. If MBIA Inc., Assured Guaranty
Ltd. and Syncora Guarantee Inc. don’t sign on to the debt exchange fina-
lized with some investors last week, then the utility known as Prepa, its
fuel-line lenders and the bondholder group will work to implement a reco-
very plan “through a mechanism to be agreed among the parties that may
include, without limitation, a judicial process, including an enforcement
proceeding under applicable law,” according to the Nov. 5 agreement pos-
ted on the Municipal Securities Rulemaking Board’s website..."

Puerto Rico News Digest For October 2, 2015

CARRAIZO LEVEL CONTINUES TO DROP

The Carraízo water reservoir's level dropped dramatically overnight once
again, leaving it less than a meter away from the reestablishment of water
rationing for households served by the lake. Carraízo dropped 11 centime-
ters, to settle at 37.93 meters at 5:00 AM today, according to AAA, Puerto
Rico's water utility. Once it reaches 37 meters, a 24-hour water rationing
program would have to be started again for Carolina and Trujillo Alto, as
well as parts of San Juan, Canóvanas and Gurabo. Copious rains a few
weeks ago had raised the water level enough that rationing could be called
off, but the last couple of weeks have seen little rain over the area, taking
the situation back to square one.

REPORT HIGHLIGHTS PERVASIVE CORRUPTION 

From The San Juan Daily Star:

"Corruption has become so widespread and commonplace that there are
thousands of people in Puerto Rico engaged in corrupt acts, according
to a Civil Rights Commission report. Corruption is closely related to
civil rights because it is anchored to a number of activities that affect
government coffers and services to the people, according to the report
titled “Human Rights and Corruption” that was entrusted to attorney
Víctor Rivera Hernández, former representative Víctor García San Ino-
cencio and the late former Police Superintendent Pedro Toledo, who died
several years ago. Since the study began in 2009, Puerto Rico has been
shaken by acts of corruption including the case of former Sen. Jorge de
Castro Font and revelations about schemes involving the private sector,
federal arrests of offi cials who use the U.S. mail to facilitate the entry
of weapons and drugs, the arrests of some 100 police offi cers for protec-
ting drug traffickers, the arrests of more than 500 residents in Lares for
committing insurance fraud, as well as allegations of corruption against
mayors, public officials and government contractors..."

SUMMIT IN ORLANDO TO ADDRESS PR CRISIS

From Caribbean Business:

"The Summit on Puerto Rican Affairs will hold its annual meeting in Or-
lando this year. The summit, which is slated for Oct. 14, is expected to
host guests from Florida, Puerto Rico, Washington D.C., Georgia, Cali-
fornia and Illinois at its workshops, as it has in past years. Bond Buyer re-
ported Thursday that retired Detroit bankruptcy Judge Steven Rhodes and
three U.S. House members will participate in the two-day meeting in Flo-
rida “to come up with some solutions to address Puerto Rico’s fiscal and
health care crises...”

ENERGY COMMISSION REJECTS RATE HIKE

From News Is My Business:

"The Puerto Rico Energy Commission issued a resolution Thursday deny-
ing a petition by the National Public Finance Guarantee Corp., which in-
sures $1.4 billion in Puerto Rico Electric Authority bonds, for a rate review
and establishment of a temporary rate increase of at least 4.2¢ per kilowatt
-hour. National, the successor in interest to MBIA Insurance Corporation,
filed the request on Sept. 17, asking for the PREC to also order PREPA to
respond to the petition within 14 days of service, and to complete the con-
solidated rate review proceeding within four months of the filing of Natio-
nal’s petition..."

GDB GOES TO COURT OVER LOCAL TAXES

From The New York Times:

"A new front opened in Puerto Rico’s debt battle as the island’s powerful
Government Development Bank went to court, seeking $400 million in
local property tax revenue it said was being illegally held by a local collec-
tion agency. The development bank said the money was crucial to its abi-
lity to make coming payments to bondholders. The agency that collects pro-
perty taxes on the island, the Municipal Revenue Collections Center, or
CRIM, appears to have the $400 million in hand. But its board decided late
in June not to release the money to the bank. The development bank, which
handles Puerto Rico’s borrowing and cash flows, said the move was illegal
and asked the Superior Court in San Juan to require the agency to turn over
the money. The legal documents were filed Wednesday night..."

Puerto Rico News Digest For September 30, 2015

US SENATE HOLDS HEARING ON PR 

From Caribbean Business:

If one thing was made clear after the two-hour Senate Finance Commi-
ttee hearing on Puerto Rico’s fiscal and economic issues, it is that the
Republican-controlled Congress wants more-transparent financial data
on the commonwealth in order for U.S. lawmakers to be in a better po-
sition to make decisions that will help the island tackle its fiscal and
economic woes. “I believe Puerto Rico faces a number of specific eco-
nomic challenges, and these challenges will not go away if the strategy
is simply to shave obligations to debtors and obtain more federal tax in-
centives and funds for various benefit programs. So I’m looking for pro-
growth policies that can promote economic activity in Puerto Rico,” co-
mmittee Chairman Sen. Orrin Hatch (R.,Utah) stressed during the hear-
ing. It remains to be seen if it is yet another pro forma exercise by a Con-
gress that seems each day more unlikely to move forward on such topics
as granting Chapter 9 bankruptcy protection to the island and increasing
federal healthcare spending in the commonwealth...

10 COPS ARRESTED FOR CORRUPTION

From FBI:

Ten Puerto Rico police officers have been indicted for their alleged parti-
cipation in a criminal organization, run out of the police department, that
used their affiliation with law enforcement to make money through robbe-
ry, extortion, manipulating court records and selling illegal narcotics, ann-
ounced U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Pu-
erto Rico. The indictment, returned on Sept. 24,  2015, by a federal grand
jury in the District of Puerto Rico, includes 11 charges against the follow-
ing police officers: Shylene López-García aka “Plinia;” Ángel Hernández-
Nieves, aka “Doble;” Xavier Jiménez-Martínez, aka “Negro;” Alvin Mon-
tes-Cintrón, aka “Vinillo;” Ramón Muñiz-Robledo, aka “Marmota;” Gui-
llermo Santos-Castro, aka “Caco Biftec;” Luis Flores-Ortiz, aka “Piquito;”
José Neris-Serrano; Manuel Grego-López; and David Centeno-Faría, aka
“David Bisbal”.

The defendants are charged with conspiring to violate the Racketeer In-
fluenced and Corrupt Organizations (RICO) Act. Other charges against
certain defendants include extortion under color of official right, narco-
tics trafficking, civil rights violations and false statements to federal ag-
ents. According to the indictment, the officers charged with RICO cons-
piracy were members of a criminal organization who sought to enrich
themselves through a pattern of illegal conduct. The officers worked to-
gether to conduct traffic stops and enter homes or buildings used by per-
sons suspected of being engaged in criminal activity to steal money, pro-
perty and narcotics...

TRUCKERS PROTEST AGAINST TAX, CSP

From The San Juan Daily Star:

A group of truckers held a demonstration early Monday against the Pu-
blic Service Commission (CSP by its Spanish acronym) and the four
percent business-to-business (B2B) tax. The protest, a caravan of trac-
tor trailers and tow trucks that began in theSan Juan ports area and pro-
ceeded to the Capitol building in Puerta de Tierra, caused a fairly large
morning rush hour traffi c jam, mainly on the José de Diego Highway
and Kennedy Avenue. The demonstration was headed by the Authentic
Central Transportation Union (CAT by its Spanish acronym), which is
calling on lawmakers to pass legislation that would remove them from
CSP jurisdiction. They are also protesting the implementation of the bu-
siness-tobusiness tax, which could be approved by the island Legislature
on Thursday...

WOMEN'S SUMMIT TO TAKE PLACE IN SAN JUAN

From News Is My Business:

More than 500 women will meet in San Juan, Puerto Rico, this Friday to
participate in Animus, an innovation platform designed to maximize wo-
men’s economic and personal development. Inspired to search solutions
to effect significant positive change, entrepreneurs Lucienne Gigante and
Carlos Cobián have joined forces to launch Animus and its first summit
Oct. 2, at the Caribe Hilton Hotel from 8 a.m. to 5 p.m. More than 30 sp-
eakers — world-class professionals and leaders — will share their stories,
teachings and advice in three main areas: “Mindset and  Mindfulness,”
“Innovation,” and “Entrepreneurship.”...

Puerto Rico News Digest For September 28, 2015

NEVERMIND: CARRAIZO RATIONING COULD RETURN

Users served by the Carraízo water reservoir could see  a return to 24-
hour water rationing in about 20 days, if its water levels continue to
drop at the same pace that has been seen over the last week, about nine
centimeters a day. Carraízo's level stands at 38.32 meters, about a meter
and a half away from entering Phase I rationing. Recent rains have bene-
fited the La Plata reservoir, while largely bypassing Carraízo. Water ra-
tioning for the area was only lifted about a week ago. The Carraízo reser-
voir serves about 160,000 users in the towns of Trujillo Alto and Caroli-
na, as well as parts of San Juan, Canóvanas and Gurabo. The other reser-
voir that serves the bulk of the San Juan metro area, La Plata, saw its le-
vel decrease by three centimeters overnight. La Plata users are still under
a rationing plan.

COUPLE CHARGED WITH PROSTITUTION, INCEST

From Yahoo! News:

A Puerto Rico couple has been charged with prostitution, incest and human
trafficking in a case authorities say involved their four young children. Police
said Friday that the 30-year-old suspects are accused of prostituting their 11-
year-old daughter in front of the other children who range in age from 6 to 9
years old. The couple was identified as Kenneth Martinez and Tanya Figueroa...

BAR ASSOCIATION SUES TREASURY OVER TAX

From The San Juan Daily Star:

The Puerto Rico Bar Association announced earlier this week that it has
sued the commonwealth Treasury Department to stop the imposition of a
4 percent tax on legal services tax that goes into force on Oct 1. The asso-
ciation says the new tax goes against current laws that protect the access
to Justice. La Fortaleza Chief of Staff Víctor Suárez said there is a bill
pending approval at the Legislature that would amend Law 72 (Tax Re-
form) pending approval but such changes were technical ones to avoid
double taxation...

NASAA HOLDS CONFERENCE IN SAN JUAN

From Caribbean Business:

Experts in finance and investment, securities regulation and public policy
came together for the North American Securities Administrators Associa-
tion’s (NASAA) 98th Annual Conference, themed “Regulation for the A-
ges,” Sept. 27-29 in San Juan’s Caribe Hilton Hotel. The three-day confe-
rence is co-chaired by Damaris Mendoza, director of the Securities Regu-
lation and Registration Division within the Puerto Rico Financial Instituti-
ons Commissioner’s Office (OCIF by its Spanish acronym), and Joseph
Borg, director of the Alabama Securities Commission. Featured speakers
include Arthur Levitt, the longest-serving chair of the U.S. Securities and
Exchange Commission (SEC), and Chris Farrell, financial commentator
and author...

Puerto Rico News Digest For September 25, 2015

20,000 TAX REFUNDS PUT OFF UNTIL 2016

From The San Juan Daily Star:

Treasury Secretary Juan Zaragoza acknowledged Wednesday that up to
20,000 island taxpayers may not receive their tax refunds by the end of
the calendar year due to the agency’s lack of liquidity and the need to
comply with “other commitments,” including paying public workers. In
a radio interview, the Treasury chief said it is highly unlikely that the a-
gency will be able to complete the deposit and dispatch of refunds befo-
re November. “I don’t think they will be all out by November. They mi-
ght be all sent out by December, but we could be crossing the line and
extending this past the calendar year,” Zaragoza said...[MORE]

1-1/2 POUND BABY BORN ON CRUISE SHIP

From Caribbean Business:

A Utah woman who unexpectedly gave birth on a cruise ship months before
her due date says she wrapped towels around the 1 1/2-pound boy with the
help of medical staff in a desperate effort to keep him alive until the ship
reached port. Emily Morgan, of Ogden, said Thursday that doctors didn't
expect her son Haiden to live, but thanks to strong lungs, a makeshift incu-
bator and an early arrival in Puerto Rico, the baby made it. He's now recei-
ving care at a neonatal intensive care unit in Miami...[MORE]

SHERATON OLD SAN JUAN CHANGES HANDS

From News Is My Business:

The 240-room Sheraton Old San Juan Hotel & Casino will be changing own-
ers as part of an agreement that transfers the property to an affiliate of Tish-
man Hotel Corp., hotel officials announced Thursday. The financial terms of
the agreement were not disclosed. The details of a planned renovation of the
property will be disclosed in coming months. However, as part of the transac-
tion, the new owners — which intend to continue the asset’s affiliation with
the Sheraton flag — will restructure the property, closing the casino to make
way for retail space. Some 95 employees will  be affected by the overhaul...

PR WORKING GROUP SEEKS SINGLE DEAL

From Reuters:

A Puerto Rico working group, composed of local and senior officials, anno-
unced on Thursday that it would seek a consensual negotiation that would
ultimately result in a single, comprehensive exchange transaction. The gr-
oup met with Governor Alejandro Garcia Padilla and members of the Puer-
to Rico legislature to discuss its ongoing efforts to support fiscal stability
and economic growth in Puerto Rico. It said it wanted to avoid a piecemeal
strategy that could result in uncoordinated and inconsistent agreements with
creditors...[MORE]

WOULD-BE HUSBAND KILLER EXTRADITED TO PR

From Star Tribune:

A Puerto Rican woman accused of hiring a hit man to kill her wealthy Cana-
dian husband was extradited to the U.S. territory Thursday after a lengthy in-
ternational manhunt. Aurea Vazquez Rijos arrived with her month-old baby
and was escorted by FBI agents just hours before she appeared in court. She
flew in from Spain, where a court ordered her extradition nearly two years
ago on the condition she doesn't receive the death penalty or life imprison-
ment without parole if convicted...[MORE]

Puerto Rico News Digest For September 14, 2015

CARRAIZO RATIONING CUT TO ONE DAY

Alberto Lázaro, President of AAA, Puerto Rico's water utility , announced
that users served by the Carraízo water reservoir in Trujillo Alto will go back
to Phase I water rationing starting tomorrow. This means that water service
will only be interrupted for 24hours at a time, rather than the current 48 hours.
Carraízo serves Trujillo Alto, Carolina and parts of San Juan, Gurabo and Ca-
nóvanas. Lázaro stated that rains produced by the remnants of Tropical Storm
Grace raised the reservoir's level by half a meter.

PROPERTY TAXES COULD GO UP

From The San Juan Daily Star:

Mayors Association President Rolando Ortiz Velázquez said Thursday that if
funds are taken away from municipalities as part of the fiscal adjustment plan,
residents will pay for it through increases in property taxes. The five-year fis-
cal adjustment plan proposes the repeal of subsidies to the University of Puer-
to Rico, to municipalities and to non-profit groups. Ortiz, who is the mayor of
Cayey, said they are waiting for legislation that implements the fiscal adjust-
ment plan but anticipated a fight against the measures that could trigger the
dismissal of municipal employees and curtail direct services to citizens.

POLL: PUERTO RICANS FEELING PESSIMISTIC

From Caribbean Business:

According to a poll conducted by consulting company Gallup, 6% of Puerto
Rico residents believe economic conditions on the island are getting better.
This figure ranks the island far below “the least optimistic state,” West Vir-
ginia, where 24% say economic conditions are getting better. Puerto Rico
also fares poorly compared with countries in Latin America and the Caribbe-
an, where it ranks last in economic optimism, along with Venezuela, Gallup
found. Poll results reveal Gov. Alejandro García Padilla’s approval on the is-
land to be low as well. “Fewer than one in five Puerto Ricans (19%) say they
approve of the way García Padilla is handling his job,” Gallup said in a relea-
se on its findings.

PIRATES, MARLINS MAY PLAY IN PR IN 2016

From Sporting News:

Major League Baseball is headed back to Puerto Rico next season. The Pira-
tes and Marlins will play "all or part" of a scheduled four-game series on the
island in 2016, the Los Angeles Times reports. The teams are scheduled to
play in Miami from May 30-June 2, according to schedules released last week.
The games would be moved to San Juan to celebrate Pirates legend Roberto
Clemente, the island's favorite son.

CRUISE SHIP WORKER ARRESTED FOR RAPE

From Yahoo! News:

A Carnival cruise ship worker was detained Saturday in Puerto Rico on accu-
sations he raped a woman onboard, according to authorities. Police said the
alleged rape occurred in one of the cabins of the Carnival Liberty ship that is
docked in San Juan. The unidentified man has not been charged.

Entrenched Corruption in Puerto Rico Will End American Support

Commentary

Richard Lawless

I recently wrote to the Puerto Rico Treasury (Hacienda) Department and
shared with them that we have  documents and testimony that indicates
PREPA’s Officers and Managers may have stolen up to one  billion dollars
in public funds. The alleged thief means that there is likely over $400,000,
000 in uncollected taxes as well.

I asked the Puerto Rico Hacienda if they would be interested in pursuing
those individuals and possibly collect some of the unpaid taxes for the peo-
ple of Puerto Rico. There has been no response from  Puerto Rico's Hacien-
da.  They have no interest.

It appears that PREPA executives along with the political leadership in Puer-
to Rico are not the only parties getting rich on the back of Puerto Rican citi-
zens. The alleged corruption appears to be invasive and widespread.

Bond Holders and U.S. taxpayers are becoming increasingly aware of the
sad state of affairs in Puerto Rico.  Unless there is a wholesale change in po-
litical leadership and a re-staffing of all government departments with honest
and ethical leaders, I fear Puerto Rico will find little support in America or
elsewhere.

The U.S. Attorney, the SEC, the EPA, the U.S. Treasury Department, the
FBI and the IRS will likely be the means to a new beginning for Puerto Rico.
For those that hope for an independent Puerto Rico or for Statehood will see
why Puerto Rico is ready for neither.

Richard Lawless is CEO of Commercial Solar Power, Inc. The opinions expressed in the 
preceding article are exclusively his own.

Puerto Rico News Digest For July 6, 2015

NO RELIEF FROM DROUGHT THIS WEEK

A tropical wave that is likely to pass over the south of the island on Tuesday is
not expected to leave significant rainfall behind, according to the island's water
utility and the National Weather Service. Water rationing was expanded last
Thursday to cover Guaynabo, parts of Bayamón and Montehiedra in Río Piedras.

RESIDENT ASSOCIATIONS EXEMPT FROM NEW TAX

From Caribbean Business:

A House bill that calls for exempting condominiums, cooperatives and resident
associations from the 4% professional services tax set to kick in October 1 was
signed into law by La Fortaleza, avoiding a potential hike to maintenance fees
for hundreds of thousands of Puerto Rico residents. Although H.B. 2534, led by
New Progressive Party (NPP) House Minority Leader Jenniffer González, was
part of a list of key bills the Senate didn’t vote on during the last day of the past
legislative session, the lower chamber decided the same day to concur with the
upper chamber’s original amendments to the bill, allowing the House to send
the measure to the governor’s desk for immediate enactment.

GOV'T MAKES PAYROLL WITH TRANS

From The San Juan Daily Star:

Government workers should not worry about their paychecks because the govern-
ment will keep paying them, at a cost of $250 million every 15 days, House Spea-
ker Jaime Perelló says. A key bill that has secured legislative passage and that is
expected  to be signed into law this week will boost cash flow for government
operations by allowing it to raise $400 million in tax and revenue anticipation no-
tes (TRANs). The government will raise the cash for the notes from three public
nsurance corporations, according to various media outlets.

PASTAFARIAN CHURCH COMES TO PR

As reported by Metro PR, the satirical and liberal leaning Church of the Flying
Spaghetti Monster has been officially registered as a non-profit organization with
the Puerto Rico Department of State. The religion's adherents, known as  Pastafa-
rians, claim to promote a culture of peace and diversity. The Church has stated that
it will conduct same-sex weddings in Puerto Rico.

Puerto Rico News Digest For July 1, 2015

'IVU' SALES TAX JUMPS TO 11.5% TODAY

The 'Impuesto sobre Ventas y Uso' sales tax, or 'IVU', increased to 11.5% at
midnight today. Long lines could be seen at stores all over the island yester-
day, as consumers rushed to purchase home improvement materials, school
supplies, tires and numerous other goods before the tax increase. Most non-
prepared food items are exempt from the tax, although prepared foods are
not. The tax increase, voted in recently by the legislature after some acrimo-
nious debate, has so far proved to be very unpopular among many sectors of
the population. The tax was passed into law with the aim of increasing reve-
nue for the financially desperate island government.

SPANISH LANGUAGE BILL DEFEATED 

From The San Juan Daily Star:

The legislation that would declare Spanish as the official language and English
the second official language was defeated in the Senate late last week. Senate
Bill 1177 would have required the use of Spanish in all three branches of gov-
ernment in detriment to the 22 percent of island residents whose first language
is English and may encounter roadblocks in their dealings with the government.
An amended version of the bill was passed in a voice vote but the bill was de-
feated after it got a vote of 12-10 with three abstentions, falling short of the 26
votes needed for approval. The legislation seeks to repeal a 1993 law that decla-
red Spanish and English as offi cial languages of the Government of Puerto Ri-
co, returning to the state of the law in 1902. The 1993 law had the effect that the
government can use either of the two languages in offi cial documents and ins-
criptions.

GOVERNMENT UPDATES FINANCIAL, DEFICIT INFO

From Caribbean Business:

The Puerto Rico government filed late Tuesday a supplement to its quarterly
report submitted May 7 that updates the financial condition of the common-
wealth amid recent developments that have affected the government’s overall
fiscal picture. Among the document’s disclosures, the Government Develop-
ment Bank (GDB) states that the most recent projections point to a fiscal year
2015 budget deficit of $705 million to $740 million, after taking into consi-
deration tax refunds paid “in excess of the reserve included in the budget for
fiscal year 2015.” The government bank had previously estimated to close this
fiscal year with a deficit amounting to about $191 million. The projected de-
ficit doesn’t include nearly $291 million in tax refunds that are currently pen-
ding payment. Moreover, the report adds this figure may be “significantly
higher,” if U.S. generally accepted accounting principles (GAAP) were used.

DEM CANDIDATE O'MALLEY CALLS FOR PR HELP

From PJ Media:

Democratic presidential candidate and former Maryland Gov. Martin O’Malley
wants the U.S. to step in and bail out Puerto Rico. ”As a nation we must help our
fellow U.S. citizens not only because it’s the right thing to do, but because our re-
gion’s economic stability depends on it,” O’Malley said in a statement today, ur-
ging President Obama and Congress to act. “Those who attempt to exploit this
situation to gain a financial or political advantage” would find that “Puerto Rico
will be united against you,” the governor warned creditors. “While Governor Gar-
cia Padilla has taken the courageous first steps to steer Puerto Rico through this
crisis, we must act now to avoid Puerto Rico’s economic collapse,” O’Malley said.

Puerto Rico News Digest For June 24, 2015

GDB CHAIR DAVID CHAFEY RESIGNS

From Caribbean Business:

"Government Development Bank (GDB) Chairman David Chafey Jr. has resigned 

from his post, effective June 30, Vice Chairwoman & President Melba Acosta con-

firmed Wednesday. His exit from the debt-ridden and cash-strapped government 

bank comes amid much discussion over the tough decisions it faces in the near fu-

ture as it maneuvers through the fiscal challenges affecting the commonwealth, par-

ticularly during fiscal year 2016, which begins July 1. Moreover, Senate Bill 1350, 

which aims to enhance oversight faculties and  immunity protections for GDB offi-

cials, secured legislative passage late Tuesday and now moves to the governor’s 

office for its enactment. The much-debated immunity language came amid reports 

that several GDB directors were threatening to leave the bank if they were not pro-

vided with the enhanced protections."

POLICE REPORT SMOOTH 'NOCHE DE SAN JUAN'

Puerto Rico Police have said that last night's traditional 'Noche De San Juan' festivi-

ties went relatively smoothly at beaches all over the island, and that no major inci-

dents were reported. There were no reported instances of drownings or violence, al-

though attendance at island beaches seemed to have been down compared to last 

year. Despite the fairly quiet night, Victor J. Vega Sterling (aka "Goliat"), one of 

Puerto Rico's most wanted criminals, was arrested at a Río Grande resort where he 

was celebrating Noche De San Juan. Sterling, who has been linked to a brutal San 

Juan drug gang, was wanted on murder and firearms charges. 

TREASURY 'READY' TO HANDLE LARGER IVU

From News Is My Business:

"The Puerto Rico Treasury Department is prepared to handle the change rate of the 

Sales and Use Tax to 11.5 percent, from the current 7 percent, when it goes into e-

ffect July 1, agency Secretary Juan Zaragoza said Tuesday.“At Treasury, we’re rea-

dy to work the applicability of the changes established by Act 72 that amended se-

veral sections of the Puerto Rico Internal Revenue Code of 2011. Monthly SUT fi-

ling and programming aspects in the Integrated Merchant Portal (known as PICO) 

have been reviewed,” he said.“I must emphasize that we will continue strengthe-

ning oversight efforts so that the level of SUT uptake continue to increase,” he 

said."

PREPA EXECUTIVE DIRECTOR RESIGNS

From ABC News: 

The executive director of Puerto Rico's heavily indebted public power company 

has stepped down. Juan Alicea Flores resigned Tuesday after spending two years 

overseeing the Electric Energy Authority.

Puerto Rico News Digest For May 26, 2015

SENATE PASSES SALES TAX BILL

From Bloomberg:

Puerto Rico’s Senate approved a bill, with amendments, that increases
the cash-strapped island’s sales tax, potentially raising revenue that will
help balance the fiscal 2016 budget.The Senate passed the measure Mon-
day in a 14-12 vote, with an amendment to exempt certain processed foods.
The amended bill now goes back to the House of Representatives, which
narrowly approved the sales-tax hike last week. Governor Alejandro Gar-
cia Padilla and lawmakers from his ruling Popular Democratic Party agreed
on a framework for the tax boost May 14. The bill would raise the levy to
11.5 percent from 7 percent through March, after which it would transition
into a value-added tax.

SOCIAL PROGRAMS FACING CUTS

From The San Juan Daily Star:

The island government intends to cut over $55 million from non-profit
organizations, social programs and college scholarships as part of the
$674 million in cuts in the new budget. The cuts will affect more than
120 public and non-profit organizations and programs in Puerto Rico as
government allocations will be  reduced to about $75 million from about
$130 million. La Fortaleza Chief of Staff Víctor Suárez said many agen-
cies may engage the services of some of these entities.

PUERTO RICO COMIC CON A SUCCESS

From Caribbean Business:

The Puerto Rico Comic Con (PRCC), touted as the premier entertain-
ment and pop culture event in the Caribbean, filled the Puerto Rico
Convention Center during its latest edition held this past weekend,
along the way generating about $4 million in economic activity, acc-
ording to estimates. Ricardo Carrión, executive producer of the PRCC,
told local media outlets that at least 38,000 people attended the event
this year, which took place May 22-24. The annual event has steadily
drawn larger crowds since its inception in 2002. Part of the larger atten-
dance numbers stemmed from the organizers’ decision to extend the
event to three days, starting Friday; previous editions were held only
Saturday and Sunday. Carrión added that, on Friday alone, the event
drew in about 9,000 people.

PANEL TACKLES HIGH ENERGY COSTS

From News Is My Business:

In the United States, electricity costs 10¢ to 12¢ per kilowatt-hour
(kwh), while in Costa Rica, it’s 15¢ per kwh and higher in Honduras
and Nicaragua, Central America’s poorest countries. Yet a top State
Department official said the region is now in an ideal position to cut
costs by introducing alternative sources like natural gas and renewable
energy. “Things that five years ago were not even possible are availa-
ble today. Some methods of transporting containerized natural gas ha-
ve come down in cost considerably,” said Robin Dunnigan, deputy
U.S. assistant secretary for energy diplomacy. Dunnigan was one of
four officials who spoke at a May 7 conference hosted by Washing-
ton’s Inter-American Dialogue. Nearly 150 people attended the pa-
nel, “Ener-gy in Central America and the Caribbean,” including di-
plomats from 13 Washington-based embassies.

RESERVOIR LEVELS FOR TODAY

Carraizo is on the far left, in yellow. No significant rain is expected
over the area for several days.

PR Government Files Budget For 2016

Caribbean Business

LUIS J. VALENTÍN & DENNIS COSTA

The Puerto Rico government submitted to the Legislature a $9.8 billion 

budget proposal Wednesday that calls for $674 million in spending cuts 

amid the island's fiscal crisis. The submitted budget bill for fiscal 2016 

contemplates a consolidated budget of $28.8 billion, $9.8 billion of which 

would correspond to the commonwealth's General Fund. It is about $235 

million higher than the current fiscal year's budget. The bill, which pro-

poses $674 million in government spending cuts, also allocates about 

$1.54 billion toward servicing the commonwealth's debt, an increase of 

$400 million over the previous year's budget.

The budget proposal also includes clauses that tie it to the tax bill being 

considered in the House, which calls for increasing the 7% sales & use 

tax (IVU by its Spanish acronym) to 11.5%...[CONTINUE READING]

Puerto Rico News Digest For May 15, 2015

TRIPLE MURDER IN AGUAS BUENAS

As reported today by  El Nuevo Dia, two men and a woman, ranging
in age from 25 to 30, were murdered late last night on Road PR-792
in the Las Villas sector of Aguas Buenas. The crime occurred at
around 12:40 AM and was reported to the Police through an anony-
mous phone call. It is believed the deceased were taken to a dark and
solitary area specifically to be shot to death. The bodies were found
lying on the pavement. A loaded .40 caliber pistol was found at the
scene. The victims were not carrying identification and have not been
named.

GOVERNOR AND LEGISLATORS AGREE ON TAX

From Bloomberg:

Puerto Rico Governor Alejandro Garcia Padilla and lawmakers reached
an agreement on a proposal to raise the island’s sales tax, a move that
may help it sell debt and ease a cash crunch. The plan would boost the
levy to 11.5 percent from 7 percent for nine months, in a transition to
implementing a value-added tax, the governor and members of his Po-
pular Democratic Party told reporters late Thursday in San Juan. The
increase is expected to bring in $1.2 billion of revenue. Lawmakers
also agreed to recommend $500 million in spending cuts as part of a
$9.8 billion budget for fiscal 2016.

STUDENTS PROTEST UPR CUTS IN SAN JUAN

From UPI:

A massive demonstration protesting budget cuts to Puerto  Rico's
state university filled a Capitol plaza in San Juan. Thousands of peo-
ple enrolled or employed at Puerto Rico University (UPR) met at the
Capitol building and marched to the home of the U.S. commonwealth's
chief executive Wednesday. The government has threatened a 20 per-
cent budget cut to the university. Julio Muriente, leader of the pro-inde-
pendence Hostosian National Independence Movement, attended the
demonstration, saying, "We want people to know the importance of the
university for the country, the value of the UPR, and this event is proof
of what the institution is."

SLOTS OPERATORS OPPOSE VIDEO LOTTERY

From The San Juan Daily Star:

Puerto Rican Commercial Recreation Businesses Inc. (EMPRECOM by
its Spanish acronym) members have categorically rejected Gov. Alejandro
García Padilla’s plan to pass new regulations for the operation of  enter-
tainment machines without holding public hearings, which they say opens
the door for the “video lottery” business. “We have been charging that La
Fortaleza was working on a new Operational Regulation for the Additio-
nal Lottery, which is nothing more than ‘bringing the video lottery in
through the kitchen,’” EMPRECOM President Pablo Rivera said in a
written statement. “The governor has given instructions so that this action,
which allows for the elimination of all  entertainment machines that are
currently in operation on the island, and thus makes way for the ‘video
lottery,’ is not talked about.”

$59M IN PROPERTIES AT AUCTION 

From News Is My Business:

Los Angeles-based Premiere Estates Auction Company announced
Thursday a multi-property auction that includes sprawling beachfront
sites in Aguadilla and Cabo Rojo, with a combined listing price of $59
million. The portfolio includes a 507-acre master planned destination
resort property overlooking Boqueron Bay in Cabo Rojo with a listing
price of $50 million, that has been pre-approved for a 600-room resort
hotel, 18-hole golf course, a 200-slip marina, retail village, 1,150 residen-
tial villas and 222 home sites.

Government Furloughs Expected As Bond Deadline Nears

Bloomberg

Michelle Kaske

Representative Rafael Hernandez, chairman of the House Treasury Committee.

Time is running out for Puerto Rico. The island’s government needs to
start unpaid furloughs of its workers to make a July payment on its junk-
rated bonds, the chairman of the House’s Treasury Committee said. The
Caribbean territory of 3.5 million people faces a $630  million payment
on its general-obligation bonds on July 1, according to Sergio Marxuach,
public-policy director at the Center for a New Economy in San Juan. To
make that payment, the government will need to start furloughing public
workers because the island’s constitution stipulates that revenue must first
be used to repay general-obligation debt, Representative Rafael “Tatito”
Hernandez said in an interview...[CONTINUE READING]