Pierluisi Announces $34 Million in Federal Funds for Six Puerto Rico Universities

Press Release

Sept. 27, 2016

Funds will be provided over next five years and will be used to help 

students in fields of science, technology, engineering, or mathematics

Washington, DC—Resident Commissioner Pedro Pierluisi announced today 

that the U.S. Department of Education has awarded a total of $34 million in 

federal funding, to be provided annually over the next five years, to assist stu-

dents at six universities in Puerto Rico.  The funding is being provided pursu-

ant to the Hispanic Serving Institutions Science, Technology, Engineering and 

Mathematics (HSI STEM) program, which aims to increase the number of His-

panic and low-income students who attain a four-year or two-year degree in 

STEM fields. 

Specifically, the Universidad Interamericana de Puerto Rico, Recinto de Baya-

món; Universidad del Este; Universidad Central de Bayamón; and Universidad 

Politécnica de Puerto Rico-San Juan will each receive approximately $1.2 milli-

on annually, or $6 million over five years; Humacao Community College will 

receive approximately $1.1 million annually, or $5.5 million over five years; 

and Dewey University-Carolina will receive nearly $1 million annually, or ab-

out $5 million over five years.

“Improving access to STEM programs for university students in Puerto Rico is 

of paramount importance.  It is critical that our nation’s most valuable asset, na-

mely our talented young men and women, continue to earn degrees in these com-

petitive fields, which are more relevant than ever before.  This significant fede-

ral funding will help our students to compete successfully in the global job mar-

ket,” said Pierluisi. 

Is Independence Imminent For Puerto Rico?

Commentary

Rosa Bravo

Originally published January 12, 2016


I am proud of my United States citizenship and I have long supported
the idea of statehood for Puerto Rico. But at this point, even I have to
admit that my home island becoming the 51st state seems like an in-
creasingly remote possibility. I'm not pessimistic about statehood be-
cause of the language difference, or the possibility of losing our "na-
tional" Olympic team, or because of Puerto Rican voters' long runn-
ing indecisiveness regarding the future of their island. I'm pessimis-
tic about statehood because the one entity that could grant such a thing,
the US Congress, will not let it happen. And with every day that passes,
Congress feels less and less willing to admit Puerto Rico as a state.

And who can blame them? Puerto Rico's financial woes have made
headlines regularly over the last several years. Holders of Puerto Rico
bonds are bracing themselves for the worst, will billions of dollars yet
to be lost. During the island's budget and debt debacles, some of Puerto
Rico's seemingly intractable institutional corruption has been brought to
light for the whole world to see. Puerto Ricans continue to leave the is-
land for the mainland in droves. Puerto Rico is still much poorer than the
poorest state in the union. Besides all of this, the US's incentives for hol-
ding on to this Caribbean territory have largely disappeared.

During the 20th century, Puerto Rico's location made it a key to protec-
ting the then US owned Panama Canal. After World War II, its strategic
value appreciated further, as Cuba went communist and the US needed to
pay close attention to the Caribbean and Central America. Puerto Rico was
also a hub for manufacturing, as tax incentives and cheap labor yielded bi-
llions in profits for American corporations. But those incentives are gone.
The Cold War is long over, and whatever geopolitical challenges the US
faces -- or expects to face in the near future -- are not present in the Ame-
ricas, but rather in the Middle East and Asia. American businesses found
labor cheaper than Puerto Rico's long ago, in Mexico, China, India...even
right next door in the Dominican Republic. Plus, Congress took away
many of the tax incentives.

The United States has taken plenty from Puerto Rico over the decades,
including scores of lives lost by Puerto Rican soldiers in American wars.
But now that they find they can't squeeze any more juice from their main
Caribbean possession, they are probably asking themselves what the point
is any longer. Sure, Puerto Ricans still pay plenty of taxes to Uncle Sam,
even if we don't pay Federal Income Tax (although many of us do have to
pay). American businesses still make billions in the island. But the old re-
turn on investment is no longer there. Many a right-wing blowhard in DC
will think "Why do we keep sending billions in federal funds into a black
hole? Why do we even still have this island of latino freeloaders any lon-
ger?". They look at Puerto Rico's super-corrupt elites and increasingly poor
population and wonder whether it might not be time to cut their losses. Ne-
vermind that that same corrupt elite grew initially under US auspices (Puer-
to Rico had no self-rule at all until 1952, and even then it was severely li-
mited) and that the US-favored colonial status is largely responsible for
keeping Puerto Ricans trapped in poverty. Historical memories are short
in Washington.

Will Congress suddenly be afflicted with an attack of conscience, and
grant Puerto Rico statehood (provided a majority of us finally and with-
out reservation ask for it)? Will they consider America's decades-long ill
treatment and neglect of Puerto Rico and do the morally right thing, and
say yes to admitting millions of US citizens into the union as equals? I
wouldn't bet any money on it. While the statehood conversation would be
taken a lot more seriously if at least 75% of Puerto Rican voters said yes
to statehood (nope, 51% doesn't cut it and never will), it would still be a
battle. Congress looks at the Puerto Rico of today and see millions of poor,
Spanish-speaking welfare recipients. With Cuba opening, Puerto Rico is
no longer the business-friendly Caribbean lab of the mid-century; it is a
washed-up has-been, in their eyes. But they are beginning to acknowledge
that the current colonial situation is no longer tenable. So what options are
left? A sovereign, "associated republic", a la Marshall Islands or Palau.
Or, of course, full independence. Either one would be seen in Washing-
ton as cheaper and easier than maintaining the current status, or burdening
itself with a "beggar" 51st state.

Congress may soon have the excuse that it wants to get rid of Puerto Ri-
co. Independence may be coming sooner than any of us expect, whether
we ask for it or not. The colonial master is getting anxious and is feeling
increasingly eager to get rid of what it helped create. If you don't want to
see that happen, it's time to start making some real noise for statehood.
And not in  Puerto Rico, where it won't matter what you say or who hears
you. It is people and politicians in the mainland who need to hear our voi-
ces. And do you have family or friends in the mainland  US? Of course you
do. Tell them to speak up and to always VOTE, and to let  everyone know
that they vote. We also need an organization that can promote statehood
other than the New Progressive Party, which for decades has accomplished
less than nothing in convincing Congress to seriously consider decoloniza-
tion.

If we don't take the fight for statehood to another level, get ready to make
some room for that Puerto Rico passport in your wallet. Because we're
going to be on our own.


The opinions expressed in the preceding commentary do no  necessarily reflect those 
of The Puerto Rico Monitor.

Puerto Rico News Digest For September 19, 2016

CONGRESS COULD MAKE PROGRESS ON ZIKA

From The San Juan Daily Star:

"A long impasse that has delayed money to combat Zika for months neared an
end Thursday as congressional aides said Republicans would relent and let Pla-
nned Parenthood affiliated clinics share in new funding to fi ght the virus. The
potential deal would ease the way for Congress to quit work until after the Nov.
8 election. Democrats welcomed the move, which would address their chief
complaint to a GOP plan intended to fight the virus..."

PR WAR VETERANS VISIT SOUTH KOREA

From Yonhap:

" South Korea has invited Puerto Rican soldiers who fought during the Korean
War (1950-53) to visit the country 66 years after hostilities ended, military offi-
cials said Monday. Sixteen Puerto Rican war veterans are scheduled to make a
six-day trip to South Korea from Tuesday to Sunday as part of the 131 veterans
and their families from the United States and Puerto Rico. This marks the first
time that the veterans from the Caribbean island will be visiting the country, the
Ministry of Patriots & Veterans Affairs said. While here, they will visit the truce
village of Panmunjom, the Joint Security Area (JSA), the Seoul National Ceme-
tery and historic palaces, the ministry said in a statement..."

LUGARO ENCOURAGES VOTER REGISTRATION ON FB

From Caribbean Business:

"n a Facebook video that she appeared to have recorded in her residence, indep-
endent gubernatorial candidate Alexandra Lúgaro urged people to register to vote
before the deadline Monday, Sept. 19. In her Sunday evening video, Lúgaro em-
phasizes the importance of voting with, among other examples, speaking about
the massive electoral campaigns that focus on voting as a priority in some coun-
tries...In her message, which she also recorded in sign language, Lúgaro urged
voters to record a video or post anything, “even art,” that expresses the importa-
nce of voting, adding she would share these and that some 300,000 people would
be seeing them..."

MESON SANDWICHES TO EXPAND IN CENTRAL FL

From News Is My Business:

"Mesón Sandwiches, a Puerto Rico-based fast casual restaurant that marries
the flavors of the Caribbean with an American staple, will open this week its
third Central Florida location at the Premium Outlets Vineland in Orlando. Two
other Mesón restaurants are scheduled to open next year in Lee Vista Promenade
and the Gardens on Millennia, also in the Metro Orlando area, for a total of five
locations by the fall of 2017..."

The Real Cause of Puerto Rico’s Financial Collapse Wasn’t The Economy!

Commentary

Richard Lawless











On September 27, at the Waldorf Astoria Hotel in New York, Commercial Solar
Power, one of the many victims of the Puerto Rico financial collapse, will host
a press conference detailing its findings.

Sources close to the investigations suggest that there was rampant and repeated
massive government theft of public funds going on for over a decade. The theft
of public money, along with widespread Wall Street fraud associated with the is-
land’s bond issues, resulted in $39 billion in bondholder losses.

Although all the specifics may not be known until September 27, the following
has been shared with us.

The Puerto Rico Power Authority (PREPA), one of the world’s largest govern-
ment owned utilities, has been burning lowest grade No. 6 fuel oil for over a de-
cade.  The authority has been billing its citizens for the higher grade No. 2 oil.
The payments for this oil have been wired offshore and then kicked back to gov-
ernment officials’ family members. The difference in cost between No. 2 and No.
6 oil is approximately 58 percent.  In some years the overpayments exceeded $1.6
billion.

Our source also states that the ongoing EPA testing results could only occur with
the utility burning low grade sludge oil and that the equipment needed to burn No.
6 fuel oil is different than the equipment needed for the burning of higher grade No.
2 fuel.  A quick walk through of PREPA’s plants showed that PREPA was indeed
using equipment for fuel No. 6, which requires preheating.

[Note: Number 6 fuel oil is a high-viscosity residual oil requiring preheating to
220–260 °F (104–127 °C). Residual means the material remaining after the more
valuable cuts of crude oil have boiled off. The residue may contain various unde-
sirable impurities including two percent water and one-half percent mineral soil…
literally the bottom of the barrel.]

Additionally, a review of the agencies financial statements shows hundreds of mi-
llions of dollars in public funds missing from the equipment purchase and mainte-
nance accounts each year.

PREPA alone is responsible for almost $2 billion a year in missing or stolen public
funds.

An inter-agency review of Puerto Rico’s other agencies reflected similar activity.
It is estimated that as much as $3 billion a year in public funds are unaccounted
for in Puerto Rico.

Reviews of the various agencies’ financial statements indicate those agencies were
all technically bankrupt as early as 2007.  Normally, bankrupt entities would not be
able to secure any credit rating, let along investment grade ratings.  Without invest-
ment grade ratings the agencies could not issue bonds to raise more capital.

The typical fee for a credit rating is 1-2 percent but, by paying the rating agencies
as much as 9 percent, the Puerto Rico municipal agencies were able to secure good
credit ratings.

These fraudulent credit ratings allowed Puerto Rico to issue new debt ultimately
resulting in the financial collapse and a loss to the original bondholders of $39 bi-
llion.

I have been told that all members of both the Congress and the Senate knew this
when they voted to revoke all legal rights for the victims, the bondholders.

It is reasonable to expect, when a full disclosure is finally made, that Wall Street
and Washington will have some explaining to do.


Mr. Lawless is a career Banker and CEO of Commercial Solar Power, Inc.  Mr. Lawless has been 
working with the SEC, the FBI, The U.S. Attorney’s Office and the Treasury Department to un-
cover the reasons for Puerto Rico’s $70-billion-dollar bond default.  Mr. Lawless has held Senior 
and Executive positions with Wells Fargo Bank, Home Savings and Washington Mutual Bank 
specializing in the issuance of debt instruments.  Mr. Lawless holds a BA from Pepperdine Uni-
versity and a Master’s Degree from the University of San Diego.


The opinions expressed in the preceding commentary are exclusively those of the author and
do not necessarily reflect those of The Puerto Rico Monitor, its contributors or advertisers.

Puerto Rico News Digest For July 20, 2016

MAN CONVICTED FOR CARJACKINGS AND MURDER

From US Attorney's Office:

Today, Carmelo Velázquez-Aponte a.k.a. “Boty,” was found guilty of four
carjackings, carrying a firearm during and in relation to a crime of violence
(carjacking), and possession of a stolen firearm...According to the testimony
on June 18, 2011, the defendant stole the licensed firearm belonging to Rich-
ardson Mieses-Pimental and his vehicle, and then executed him. After that
event, Velázquez-Aponte committed other carjackings. During his attempt to
escape his arrest on June 20, 2011, he also stole a police officer’s gun and shot
a Police officer. The defendant also stole a police cruiser and engaged in two
other shootouts with police officers, until he was arrested. The defendant fired
the stolen weapons at the police officers..."

PREPA CUTS POWER AT HOUSING PROJECTS

From The San Juan Daily Star:

"In keeping with the eff ort to collect unpaid bills, the Public Housing
Administration (AVP by its Spanish acronym) announced Monday that
during the past week electrical service has been suspended to clients in
public housing projects in the regions of Mayagüez, Arecibo, Caguas
and Ponce. The AVP also announced that more than 30,000 public hou-
sing residents are late in paying their electricity bills. The heavily indeb-
ted Puerto Rico Electric Power Authority (PREPA) said nearly 170 cus-
tomers were affected by Monday’s action..."

UPR PROFESSOR SKEPTICAL OF NALED SPRAYING

From Caribbean Business:


"The Centers for Disease Control (CDC) has exaggerated the risk levels
associated with the Zika virus to justify the aerial spraying of the insecti-
cide Naled over Puerto Rico, a University of Puerto Rico (UPR) profes-
sor said Tuesday. Cruz María Nazario, a professor in the Department of
Epidemiology and Biostatistics at the University of Puerto Rico Medical
Sciences campus, accused the CDC of a lack of scientific rigorousness,
following CDC statements that allegedly overstate the risk for pregnant
women with the Zika virus of having babies with microcephaly. “The le-
vel of risk that has been employed to put fear in communities is wrong,”
said the UPR professor during a press conference in which other academ-
ics and politicians discussed the dangers of Naled, a substance that has
been banned for several years in the European Union..."

PIERLUISI: TASK FORCE CHAIR TO BE NAMED

From News Is My Business:

"Puerto Rico’s Resident Commissioner in Washington, Pedro Pierluisi, said
Tuesday that U.S. House Speaker Paul Ryan could name the lawmaker who
will steer the work of the Puerto Rico Congressional Task Force this week.
With that person in place, the Task Force created by the Puerto Rico Oversi-
ght,  Management and Economic Stability Act (PROMESA) will begin wor-
king in a more formal manner, he said. The eight Congressional lawmakers
who will sit on the Task Force — Pierluisi, Rep. Tom MacArthur (R-NJ),
Rep. Sean Duffy (R-WI), Rep. Nydia Velázquez (D-NY), Sen. Marco Rubio
(R-FL), Sen. Orrin Hatch (R-Utah), Sen. Bob Menéndez (D-NJ), and Sen.
Bill Nelson (D-FL) — were announced last week, and have been communi-
cating informally since, Pierluisi added..."

Puerto Rico News Digest For July 15, 2016

STILL NO DECISION ON MOSQUITO SPRAYING

From The San Juan Daily Star:

"Local health officials are in discussions with federal officials over the advisa-
bility of spraying the insecticide Naled on the island to combat the mosquito-
borne Zika virus, La Fortaleza Chief of Staff Grace Santana said Wednesday.
“After the fumigation with Naled was recommended by the Centers for Dise-
ase Control and Prevention … as the most effective measure to control the A-
edes aegypti mosquito, we have kept up conversations with state and federal
experts on the matter,” Santana said. “It being a public health emergency, we
are responsibly studying the concerns of all the sectors of the country, aiming
to consider all the interests in conflict...”

PIERLUISI APPOINTED TO ECONOMY TASK FORCE

From Caribbean Business:

"Resident Commissioner Pedro Pierluisi announced today that he has been
appointed by House Democratic Leader Nancy Pelosi to the “Congressional
Task Force on Economic Growth in Puerto Rico,” which was established by
Section 409 of Public Law 114-187, the Puerto Rico Oversight, Management,
and Economic Stability Act (Promesa). The Task Force consists of eight mem-
bers of Congress—two Senate Republicans appointed by Senate Majority Lea-
der Mitch McConnell, two Senate Democrats appointed by Senate Democratic
Leader Harry Reid, two House Republicans appointed by House Speaker Paul
Ryan, and two House Democrats appointed by Leader Pelosi. Speaker Ryan will
designate one of the eight members to serve as the chair of the Task Force..."

PR RETAIL SALES DOWN 2%

From News Is My Business:

"Puerto Rico’s retail sales reflected a reduction of $71.5 million, equivalent to
a 2.25 drop when compared to March 2015, Puerto Rico Trade and Export reve-
aled Thursday. Total retail sales in March 2016 totaled $3.10 billion, while in
2015 this figure was $3.17 billion, agency Executive Director Francisco Chév-
ere confirmed..."

PR GIVES AWAY $519M TO SEED CORPORATIONS

From Investigative Reporting Workshop:

"Millionaire enterprises, including Monsanto, Pioneer Hi Bred and nine other
multinational producers of transgenic and hybrid seeds, benefited from over
$519.7 million in Puerto Rican public funds throughout the last 10 fiscal years.
They took advantage of corporate welfare while the country headed toward a
$69 billion debt that cannot be paid to its bondholders, which prompted the en-
forcement of the Fiscal Oversight Board by the U.S. Congress..."

Is Independence Imminent For Puerto Rico?

Commentary

Rosa Bravo


Originally published January 12, 2016


I am proud of my United States citizenship and I have long supported
the idea of statehood for Puerto Rico. But at this point, even I have to
admit that my home island becoming the 51st state seems like an in-
creasingly remote possibility. I'm not pessimistic about statehood be-
cause of the language difference, or the possibility of losing our "na-
tional" Olympic team, or because of Puerto Rican voters' long runn-
ing indecisiveness regarding the future of their island. I'm pessimis-
tic about statehood because the one entity that could grant such a thing,
the US Congress, will not let it happen. And with every day that passes,
Congress feels less and less willing to admit Puerto Rico as a state.

And who can blame them? Puerto Rico's financial woes have made
headlines regularly over the last several years. Holders of Puerto Rico
bonds are bracing themselves for the worst, will billions of dollars yet
to be lost. During the island's budget and debt debacles, some of Puerto
Rico's seemingly intractable institutional corruption has been brought to
light for the whole world to see. Puerto Ricans continue to leave the is-
land for the mainland in droves. Puerto Rico is still much poorer than the
poorest state in the union. Besides all of this, the US's incentives for hol-
ding on to this Caribbean territory have largely disappeared.

During the 20th century, Puerto Rico's location made it a key to protec-
ting the then US owned Panama Canal. After World War II, its strategic
value appreciated further, as Cuba went communist and the US needed to
pay close attention to the Caribbean and Central America. Puerto Rico was
also a hub for manufacturing, as tax incentives and cheap labor yielded bi-
llions in profits for American corporations. But those incentives are gone.
The Cold War is long over, and whatever geopolitical challenges the US
faces -- or expects to face in the near future -- are not present in the Ame-
ricas, but rather in the Middle East and Asia. American businesses found
labor cheaper than Puerto Rico's long ago, in Mexico, China, India...even
right next door in the Dominican Republic. Plus, Congress took away
many of the tax incentives.

The United States has taken plenty from Puerto Rico over the decades,
including scores of lives lost by Puerto Rican soldiers in American wars.
But now that they find they can't squeeze any more juice from their main
Caribbean possession, they are probably asking themselves what the point
is any longer. Sure, Puerto Ricans still pay plenty of taxes to Uncle Sam,
even if we don't pay Federal Income Tax (although many of us do have to
pay). American businesses still make billions in the island. But the old re-
turn on investment is no longer there. Many a right-wing blowhard in DC
will think "Why do we keep sending billions in federal funds into a black
hole? Why do we even still have this island of latino freeloaders any lon-
ger?". They look at Puerto Rico's super-corrupt elites and increasingly poor
population and wonder whether it might not be time to cut their losses. Ne-
vermind that that same corrupt elite grew initially under US auspices (Puer-
to Rico had no self-rule at all until 1952, and even then it was severely li-
mited) and that the US-favored colonial status is largely responsible for
keeping Puerto Ricans trapped in poverty. Historical memories are short
in Washington.

Will Congress suddenly be afflicted with an attack of conscience, and
grant Puerto Rico statehood (provided a majority of us finally and with-
out reservation ask for it)? Will they consider America's decades-long ill
treatment and neglect of Puerto Rico and do the morally right thing, and
say yes to admitting millions of US citizens into the union as equals? I
wouldn't bet any money on it. While the statehood conversation would be
taken a lot more seriously if at least 75% of Puerto Rican voters said yes
to statehood (nope, 51% doesn't cut it and never will), it would still be a
battle. Congress looks at the Puerto Rico of today and see millions of poor,
Spanish-speaking welfare recipients. With Cuba opening, Puerto Rico is
no longer the business-friendly Caribbean lab of the mid-century; it is a
washed-up has-been, in their eyes. But they are beginning to acknowledge
that the current colonial situation is no longer tenable. So what options are
left? A sovereign, "associated republic", a la Marshall Islands or Palau.
And of course, full independence. Either one would be seen in Washing-
ton as cheaper and easier than maintaining the current status, or burdening
itself with a "beggar" 51st state.

Congress may soon have the excuse that it wants to get rid of Puerto Ri-
co. Independence may be coming sooner than any of us expect, whether
we ask for it or not. The colonial master is getting anxious and is feeling
increasingly eager to get rid of what it helped create. If you don't want to
see that happen, it's time to start making some real noise for statehood.
And not in  Puerto Rico, where it won't matter what you say or who hears
you. It is people and politicians in the mainland who need to hear our voi-
ces. And do you have family or friends in the mainland  US? Of course you
do. Tell them to speak up and to always VOTE, and to let  everyone know
that they vote. We also need an organization that can promote statehood
other than the New Progressive Party, which for decades has accomplished
less than nothing in convincing Congress to seriously consider decoloniza-
tion.

If we don't take the fight for statehood to another level, get ready to make
some room for that Puerto Rico passport in your wallet. Because we're
going to be on our own.


The opinions expressed in the preceding commentary do no  necessarily reflect those 
of The Puerto Rico Monitor.

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..."

___________________________________________________________________


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 24, 2016

VOTE ON CONTROL BOARD TOMORROW

From The San Juan Daily Star:

"The U.S. House of Representatives Natural Resources Committee confir-
med that it will hold a hearing Wednesday to vote on legislation that impo-
ses a fiscal control board on Puerto Rico. In an official statement issued late
last week by the committee chaired by Rep. Rob Bishop (R-Utah), the comm-
ittee established that it would begin the mark-up of the bill on Tuesday at 5
p.m. and the process would extend until Wednesday between 10 a.m. and
12:30 p.m., according to a report by CyberNews..."

'LOS LOBOS' GANGSTERS CAUGHT NEAR MEX BORDER

From Breitbart:

"Two members of a dangerous Puerto Rican gang that operates in a manner
similar to a drug cartel  have been arrested near the Texas border. Federal au-
thorities recently arrested Carlos E.  “El Negro” Carrion Nieves and Orlando
“Elvin” Martinez Nunez near this border city. The two men are named in a six-
count federal indictment out of Puerto Rico, accusing 17 members of the group
with multiple crimes in furtherance of the criminal organization. While federal
authorities do not refer to the Puerto Rican criminal organization as a cartel, a
close look at the indictment reveals that their method of operation is very simi-
lar to those used by drug cartels in Mexico..."

SAN JUAN MAYOR GETS 'F' ON FINANCES

From Caribbean Business:

"Puerto Rico Comptroller Yesmín Valdivieso blasted San Juan Mayor Car-
men Yulín Cruz on Monday, giving a grade of “F” to the mayor’s handling
of the capital city’s finances and refuting the mayor’s claims of having a sur-
plus in the municipal coffers. During an AM news radio interview in Notiuno
630, Valdivieso said that Cruz had earned a failing grade because “she is car-
rying a debt of [around] $888 million as of June 2014.” The comptroller added
that the mayor’s claims of a surplus were “not real because the so-called surplus
is the result of a loan...”

GOVERNOR PITCHES $9.1 BILLION BUDGET

From News Is My Business:

"Puerto Rico Gov. Alejandro García-Padilla on Monday unveiled a proposed
budget for Fiscal 2017 of $9.1 billion, down $700 million from the original
budget that was approved last year and $192 million less than the adjusted cu-
rrent budget. The proposed budget — which must be approved by the Legisla-
ture by June 30, the end of the current fiscal year — is based on an actual pro-
jection of revenues and includes a reduction in the government’s operating ex-
penses of nearly $3 billion, compared with the last spending budget filed by
the previous administration..."

Puerto Rico News Digest For May 12, 2016

AGP MEETS WITH CREDITORS IN NYC

From News Is My Business:

"Puerto Rico Gov. Alejandro García-Padilla met with a group of unidenti-
fied advisors to the Commonwealth’s creditors to communicate, first hand,
the need for Puerto Rico reach a broad restructuring of its $70 billion public
debt to sustainable levels, his office said Tuesday. At the meetings, the go-
vernor emphasized that Puerto Rico is only willing to accept agreements lea-
ding to “sustainable long-term restructuring that will result in economic gr-
owth for the island...”

US HOUSE BILL ON PR FACES DELAYS

From Reuters:

"Republicans on a U.S. House of Representatives panel said they were ma-
king progress on a Puerto Rico debt relief bill that will take the same basic
approach as an earlier failed version, despite cancelling plans to unveil new
legislation on Wednesday...House Democratic leadership now expects legis-
lation from the committee before the end of the week. Competing forces have
fought over the bill and raised concerns that creditor rights and long-establi-
shed municipal bond market hierarchy would be set aside in a broader plan to
fix Puerto Rico's festering debt problems that have resulted in a breakdown in
the island's social services..."

NPP REP WANTS PROBE OF JETBLUE DELAYS

From Caribbean Business:

"New Progressive Party (NPP) Rep. Uroyoán Hernández announced Wednes-
day that he filed a resolution seeking to investigate the complaints of several
JetBlue passengers about the allegedly constant delays of the airliner’s flights
departing from the Puerto Rico capital. “During the past few weeks, we’ve
heard dozens of Puerto Ricans who’ve made their voices heard,” Hernández
said. “Whole families have had to wait for hours in the airport terminal ascri-
bed to JetBlue...because there are no pilots available and they must be flown
in from Orlando, Florida, or due to a mechanical failure in the plane. There’s
always an excuse...”

GOVERNOR SAYS BUDGET READY 'SOON'

From The San Juan Daily Star:

"Gov. Alejandro García Padilla said Tuesday that the budget for the next fis-
cal year “is being worked on in a responsible way” and that it will be delive-
red to the Legislature “soon.” In a written statement distributed by La Forta-
leza, the governor said he is “close” to presenting the budget to the Legisla-
ture. The statement came after Senate President Eduardo Bhatia criticized La
Fortaleza for the tardiness in delivering the budget..."

Puerto Rico News Digest For May 10, 2016

RECESSION TO LAST INTO 2017

From The San Juan Daily Star:

"More red ink is in store for Puerto Rico, according to an island Planning
Board statement issued late last week that projected negative growth in the
gross domestic product (GDP) of minus 1.2 percent for fiscal year (FY) 2016
and a minus 2.0 percent contraction for FY 2017. In FY 2015, at current pri-
ces the local economy measured by the GDP generated $68.52 billion, repre-
senting a growth of 0.1 percent with relation to FY 2014..."

EIGHT-YEAR-OLD GIRL SHOT DEAD IN CIALES

From Fox News Latino:

"A little 8-year-old girl died of a gunshot to her head while another 14 peo-
ple suffered multiple bullet wounds in two unrelated incidents during a vio-
lent weekend in Puerto Rico...The death of the 8-year-old, local authorities
said Monday in different reports, occurred Sunday night, though the circums-
tances of the shooting are as yet unknown...One or more unknown persons
shot at a vehicle carrying the little girl and her parents as they arrived home
in the town of Ciales on the north side of the island...They took their daugh-
ter to a  hospital where she was pronounced dead..."

NO URGENCY FROM CONGRESS ON ZIKA FUNDS

From Caribbean Business:

"Republicans from states at greatest risk, such as Florida, Texas, Louisiana
and Georgia, have been slow to endorse Obama’s more than 2-month-old re-
quest for $1.9 billion to battle the virus, which causes grave birth defects. The
Centers for Disease Control and Prevention currently reports more than 470
cases in the continental U.S., all so far associated with travel to Zika-affected
areas. Polls show that the public isn’t anywhere nearly as scared of Zika as it
was about the Ebola outbreak in...2014. Aides to GOP lawmakers, even those
representing Southern areas most vulnerable to Zika, say they’ve yet to hear
from many anxious constituents..."

PR SENATE HANDS PREPA PROBE TO FBI

From ABC News:

"A special commission looking into fuel purchases by the financially troubled 

electric utility in Puerto Rico has turned over its findings to U.S. federal autho-

rities for further investigation, the majority leader of the island's Senate said 

Monday...The special Senate investigative commission has been looking into 

allegations that the utility overcharged customers by hundreds of millions of 

dollars while amassing about $9 billion in debt in recent years. Utility officials 

appearing before the commission denied wrongdoing..."

Puerto Rico News Digest For May 5, 2016

DEMOCRATS PUSH FOR PR DEBT MEASURE

From Bloomberg:

"House Democrats are stepping up pressure on Republicans to advance legis-
lation addressing Puerto Rico’s worsening debt crisis by issuing a report ar-
guing that austerity cuts can’t be sustained and have made the island more
vulnerable to the mosquito-borne Zika virus. Health-care cuts in response to
the $70 billion debt crisis have created a potentially “disastrous” outcome for
residents and show how further sharp reductions in government spending can’t
be a part of a legislative solution, according to the report released Wednesday
by Democrats on the House Natural Resources Committee..."

TAXI DRIVERS PROTEST UBER IN SAN JUAN

From The San Juan Daily Star:

"The streets of San Juan were clogged with traffic Tuesday during a protest
carried out by taxi drivers against the possible arrival on the island of the com-
panies Uber and Lyft. The demonstration, organized by the Puerto Rico Fede-
ration of Taxis, began Tuesday morning at Luis Muñoz Marín International Air-
port in Isla Verde and proceeded to the Capitol in San Juan. Juan de León, pre-
sident of the federation, said the protest took place because the government so-
ught to “leave behind a sector that has been growing with the development of
our country and has contributed to the treasury to allow the entrance of com-
panies that take out money and don’t contribute anything...”

FEDS WANT PIERLUISI TO RETURN MONEY

From Caribbean Business:

"The Federal Election Commission (FEC) wants Puerto Rico’s Resident Co-
mmissioner in Washington, Pedro Pierluisi, to return more than $91,000 in ge-
neral election donations to his reelection campaign for resident commissioner,
Politico magazine reported Wednesday. The FEC contends that, since Pierluisi
is retiring from his nonvoting position in Congress to run for Puerto Rico gover-
nor, there is no need for him to retain those funds. The Office of Electoral Comp-
troller in San Juan, which oversees campaign fundraising, has also begun an in-
vestigation into Pierluisi’s gubernatorial campaign, specifically whether he rai-
sed money from Wall Street executives and lobbyists without reporting it, Poli-
tico said..."

PR IRKED BY BASEBALL SERIES UNCERTAINTY

From The Tribune-Review:

"Puerto Rico officials on Wednesday expressed indignation over the potential
cancellation of a Pittsburgh versus Miami baseball series scheduled on the is-
land, saying concerns about the Zika virus are overblown. Calling off the ga-
mes would be disrespectful to the family of the late Pirates star Roberto Cle-
mente and, more importantly, could cost the cash-strapped U.S. territory mi-
llions of dollars in lost revenue, lawmakers and tourism officials said. “It's an
outrageous situation,” Rep. Angel Matos, head of the tourism commission for
Puerto Rico's House of Representatives, told the Tribune-Review..."

Credit Rating Agencies Throw Our Senior Citizens Under the Bus And Congress Pulls Out All Stops to Protect Their Wall Street Friends!

Commentary

Richard Lawless










Once again we are faced with one inevitable truth.  Our legislators protect Wall
Street, not us.

The municipal bond market is approximately $4.2 trillion dollars. Municipal
bonds are a favorite of retired Americans and Senior Citizens for their double
tax free income.  80% of the bonds issued are either directly held by these folks
or held through a mutual fund.

Senior Citizens rely on this income to supplement their social security and pen-
sions.  The average bond holder has a household income of $30,000 or less.

There is clear and compelling evidence of massive municipal bond fraud on the
part of S&P, Moody’s and Fitch.  The Puerto Rico financial collapse spurred a
number of Senatorial Hearings in Puerto Rico.  In these hearings there was di-
rect sworn testimony from municipal agency executives that the rating agencies
knew they were bankrupt but for the right fee would issue a good credit rating
for their bonds.  Subsequent accounting audits of the bond issues verified that
the entities were technically bankrupt when S&P, Fitch and Moody’s issued good
credit ratings to them.  $56 billion of the $70 billion in bond debt issued, is held
by Americans in the fifty states.

In addition to first hand testimony and audits there is abundant evidence of coll-
usion between the rating agencies.  Much like the results of a DNA test; 10,000,
000 to 1 probabilities, the odds that the three rating agencies got the same things
wrong across so many bond issues, leaves no doubt, there was collusion. Make no
mistake, the evidence is overwhelming and this is a massive criminal enterprise in-
volving hundreds of billions of dollars.

All of our Congressman and Senators have been given the testimony and the audits.
The legislatures are aware of the SEC and FBI investigations and are doing every-
thing they can do to obstruct any progress on that front.  There are even CIA recor-
dings that implicate the Puerto Rico FBI and US Attorney offices in this criminal
enterprise.

While most of our Representatives do nothing, a small but powerful group of Con-
gressman and Senators are aggressively throwing us under the bus to protect their
contributors.

A complete and full report was also sent to the House and Senate Oversight Co-
mmittees. I recommend that all Americans call the numbers below and let them
know, “WE ARE MAD AS HELL AND WILL NOT TAKE IT ANY MORE”.


House Committee on Oversight                           Senate Committee on Oversight
2157 Rayburn House Office Building                   340 Dirksen Street (Senate Offices)
Washington, DC 20515                                        Washington, DC 20510

Phone: (202) 225-5074  Fax: (202) 225-3974        (202) 224-4751



Mr. Lawless has twenty-five years of experience in performing forensic accounting reviews.  Mr. 
Lawless received his Bachelor of Science Degree from Pepperdine University and a Master’s in 
Business Administration with a focus on finance from the University of San Diego.  Richard has
had a long banking career as a commercial lender and has served as a senior and executive ma-
nager for major banking institutions. In these roles Mr. Lawless was responsible for billions of 
dollars in assets.  Mr. Lawless has also served as Chairman and CEO for a number of non-ban-
king companies some of which have been in the energy sector. Mr. Lawless' opinions are exclu-
sively his own and do not necessarily represent those of Th Puerto Rico Monitor, its contributors 
or advertisers.

Congressional Gold Medal Ceremony for the 65th Infantry Regiment (Video)

From C-SPAN:

"Congressional leaders presented the Congressional Gold Medal in
honor of the 65th Infantry Regiment, known as the Borinqueneers,
which was made up of predominantly Puerto Rican soldiers. Presi-
dent Obama signed a bill in June 2014 awarding the medal."

Scroll down in window below to watch video (approximately 1 hour
and 8 minutes).

Puerto Rico News Digest For April 14, 2016

HOUSE COMMITTEE RELEASES PR FINANCE BILL

From Caribbean Business:

"The U.S. House Committee on Natural Resources released Tuesday H.R. 

4900, the Puerto Rico Oversight, Management, and Economic Stability Act 

(PROMESA), which if passed as is will impose a seven-member financial 

oversight board over Puerto Rico that would be appointed by the president

and will have broad encompassing powers over the island. The Financial 

Oversight & Management Board’s members would be selected from a list 

of candidates submitted by the U.S. House speaker, Senate majority leader, 

and minority leaders of the House and Senate. The board, which will have 

offices in Puerto Rico and anywhere else needed, will appoint an executive 

director. The governor of Puerto Rico would be an ex-oficio member with-

out voting powers..."

PR NAMED AS TEST SITE FOR 2020 CENSUS

From News Is My Business:

"The U.S. Census Bureau announced Tuesday it plans to conduct a test
census in selected areas within Puerto Rico beginning February 2017. The
Census Bureau will test new technologies, operations and procedures for the
2020 Census of Puerto Rico, the agency said. The test will take place in three
towns within the San Juan metro area — Carolina, Loíza and Trujillo Alto --
which represent some 123,000 housing units..."

POLICE SEIZE $13M WORTH OF COCAINE

From Fox News Latino:

"Authorities in Puerto Rico say they have seized $13 million worth of cocaine
and arrested four men after a chase off the island's southeast coast. Police said
Wednesday that some of the cocaine was seized from a boat located near the
town of Patillas. Police said two Dominican men aboard the boat threw a por-
tion of the drugs into the ocean and were arrested..."

PR CHURCH STRIPS TEACHERS OF PENSION

From The San Juan Daily Star:

"Archdiocese officials in recent weeks informed...several hundred current and
retired teachers that their pensions will be eliminated because payouts excee-
ded contributions. Enrollment at Catholic schools in Puerto Rico has plunged
with so many families leaving the island for the U.S. mainland amid the island’s
economic crunch. It has been a devastating blow to Catholic school teachers who
had counted on those pensions to supplement the Social Security checks they’ll
be getting..."

Is Independence Imminent For Puerto Rico?

Commentary

Rosa Bravo


I am proud of my United States citizenship and I have long supported
the idea of statehood for Puerto Rico. But at this point, even I have to
admit that my home island becoming the 51st state seems like an in-
creasingly remote possibility. I'm not pessimistic about statehood be-
cause of the language difference, or the possibility of losing our "na-
tional" Olympic team, or because of Puerto Rican voters' long runn-
ing indecisiveness regarding the future of their island. I'm pessimis-
tic about statehood because the one entity that could grant such a thing,
the US Congress, will not let it happen. And with every day that passes,
Congress feels less and less willing to admit Puerto Rico as a state.

And who can blame them? Puerto Rico's financial woes have made
headlines regularly over the last several years. Holders of Puerto Rico
bonds are bracing themselves for the worst, will billions of dollars yet
to be lost. During the island's budget and debt debacles, some of Puerto
Rico's seemingly intractable institutional corruption has been brought to
light for the whole world to see. Puerto Ricans continue to leave the is-
land for the mainland in droves. Puerto Rico is still much poorer than the
poorest state in the union. Besides all of this, the US's incentives for hol-
ding on to this Caribbean territory have largely disappeared.

During the 20th century, Puerto Rico's location made it a key to protec-
ting the then US owned Panama Canal. After World War II, its strategic
value appreciated further, as Cuba went communist and the US needed to
pay close attention to the Caribbean and Central America. Puerto Rico was
also a hub for manufacturing, as tax incentives and cheap labor yielded bi-
llions in profits for American corporations. But those incentives are gone.
The Cold War is long over, and whatever geopolitical challenges the US
faces -- or expects to face in the near future -- are not present in the Ame-
ricas, but rather in the Middle East and Asia. American businesses found
labor cheaper than Puerto Rico's long ago, in Mexico, China, India...even
right next door in the Dominican Republic. Plus, Congress took away
many of the tax incentives.

The United States has taken plenty from Puerto Rico over the decades,
including scores of lives lost by Puerto Rican soldiers in American wars.
But now that they find they can't squeeze any more juice from their main
Caribbean possession, they are probably asking themselves what the point
is any longer. Sure, Puerto Ricans still pay plenty of taxes to Uncle Sam,
even if we don't pay Federal Income Tax (although many of us do have to 
pay). American businesses still make billions in the island. But the old re-
turn on investment is no longer there. Many a right-wing blowhard in DC
will think "Why do we keep sending billions in federal funds into a black
hole? Why do we even still have this island of latino freeloaders any lon-
ger?". They look at Puerto Rico's super-corrupt elites and increasingly poor
population and wonder whether it might not be time to cut their losses. Ne-
vermind that that same corrupt elite grew initially under US auspices (Puer-
to Rico had no self-rule at all until 1952, and even then it was severely li-
mited) and that the US-favored colonial status is largely responsible for
keeping Puerto Ricans trapped in poverty. Historical memories are short
in Washington.

Will Congress suddenly be afflicted with an attack of conscience, and
grant Puerto Rico statehood (provided a majority of us finally and with-
out reservation ask for it)? Will they consider America's decades-long ill
treatment and neglect of Puerto Rico and do the morally right thing, and
say yes to admitting millions of US citizens into the union as equals? I
wouldn't bet any money on it. While the statehood conversation would be
taken a lot more seriously if at least 75% of Puerto Rican voters said yes
to statehood (nope, 51% doesn't cut it and never will), it would still be a
battle. Congress looks at the Puerto Rico of today and see millions of poor,
Spanish-speaking welfare recipients. With Cuba opening, Puerto Rico is
no longer the business-friendly Caribbean lab of the mid-century; it is a
washed-up has-been, in their eyes. But they are beginning to acknowledge
that the current colonial situation is no longer tenable. So what options are
left? A sovereign, "associated republic", a la Marshall Islands or Palau.
And of course, full independence. Either one would be seen in Washing-
ton as cheaper and easier than maintaining the current status, or burdening
itself with a "beggar" 51st state.

Congress may soon have the excuse that it wants to get rid of Puerto Ri-
co. Independence may be coming sooner than any of us expect, whether
we ask for it or not. The colonial master is getting anxious and is feeling
increasingly eager to get rid of what it helped create. If you don't want to
see that happen, it's time to start making some real noise for statehood.
And not in  Puerto Rico, where it won't matter what you say or who hears
you. It is people and politicians in the mainland who need to hear our voi-
ces. And do you have family or friends in the mainland  US? Of course you
do. Tell them to speak up and to always VOTE, and to let  everyone know
that they vote. We also need an organization that can promote statehood
other than the New Progressive Party, which for decades has accomplished
less than nothing in convincing Congress to seriously consider decoloniza-
tion.

If we don't take the fight for statehood to another level, get ready to make
some room for that Puerto Rico passport in your wallet. Because we're
going to be on our own.


The opinions expressed in the preceding commentary do no  necessarily reflect those of 

The Puerto Rico Monitor.