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Gov’t Readies Chiefs of Promesa’s Covered Entities

By on October 7, 2016

SAN JUAN — For more than two hours, the chiefs of the public instrumentalities placed under the immediate control of Puerto Rico’s fiscal board met Friday morning at La Fortaleza, where they discussed what does it mean to be a covered entity under the federal law Promesa.

According to a government spokeswoman, the meeting was led by Secretary of State Víctor Suárez, who is also in charge of the Financial Advisory & Fiscal Agency Authority—an entity that is also placed under the fiscal board’s control.

Meanwhile, the administration’s most recent version of its fiscal plan was not discussed during Friday’s meetings. Gov. Alejandro García Padilla will present the board with a draft of the document on Oct. 14, when the body will hold in New York City its second official conclave. Details of this meeting are still unknown, including how the governor will unveil the document to the board.

See also Uncertain how governor will present fiscal plan to board http://caribbeanbusiness.com/uncertain-how-governor-will-present-fiscal-plan-to-board/

As for the periodic information required to the local government by the board during its first meeting, including a weekly report on expenditures and revenues, the governor said Friday that “we will provide it to the extent it is available and the terms in which it is available.”

It is still uncertain when the government will deliver this document. At 2:00 p.m. Friday—one week after the board made the requirement—La Fortaleza had yet to answer to Caribbean Business’ inquiries over the status of the weekly report.

During a public activity in San Juan, García Padilla stressed that the administration was working so that “the plan is approved this year,” which he considered as extremely important because “Promesa gives until Feb. 15 to renegotiate the debt, and we lose protection against [creditor] lawsuits.”

However, the governor expects the board to submit comments and modifications, so he anticipates “an exchange that would last a few months.”

“I have a very good relationship with [board members]. But the board doesn’t govern,” he noted, adding that whoever says otherwise, “hasn’t read the law [Promesa].” For the governor, “if the commonwealth does things the right way,” the board would not intervene.

During its first official meeting on Sept. 30, the board called for the government’s fiscal plan to be delivered Oct. 14, and placed as covered entities the island’s three retirement systems, the University of Puerto Rico, all public corporations and other commonwealth instrumentalities.

Under Promesa, the board may require periodic reports, budgets and fiscal plans specific to each covered instrumentality.

Instrumentalities covered under Promesa

  • The central government
  • Employees Retirement System
  • Teachers Retirement System
  • Judiciary Retirement System
  • University of Puerto Rico (UPR)
  • Aqueduct & Sewer Authority
  • Electric Power Authority
  • Children’s Trust
  • Convention Center District Authority
  • Economic Development Bank
  • Government Development Bank
  • Financial Advisory & Fiscal Agency Authority
  • Highways & Transportation Authority
  • Housing Financing Authority
  • Industrial Development Co.
  • Infrastructure Financing Authority
  • Municipal Financing Authority
  • Ports Authority
  • Public Buildings Authority
  • Public Broadcasting Corp.
  • Supervision & Insurance of Cooperatives Corp. (COSSEC)
  • Public Financing Corp.
  • Sales Tax Financing Corp.
  • State Insurance Fund
  • University Plaza (UPR)
  • Tourism Co.

 

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