Tuesday, August 11, 2020

Prepa Retirees Blast $9M Extension to Donahue Contract

By on August 9, 2016

SAN JUAN – The Puerto Rico Electric Power Authority’s (Prepa) board will renew the contract extended to AlixPartners and utility Chief Restructuring Officer Lisa Donahue for six months, at a time when Prepa needs money to repair and maintain powerlines.

The president of the Prepa Pensioners Association, Ernesto Santiago Perez, denounced the board’s plans in a statement Tuesday.

Lisa Donahue, Prepa Chief Restructuring Officer

Prepa Chief Restructuring Officer Lisa Donahue

Prepa, he said, was having a meeting Tuesday afternoon to consider renewing Donahue’s contract for $9 million. If approved, it will be the fifth extension to Donahue’s contract. According to the commonwealth comptroller’s records, Donahue and AlixPartners have been paid $38 million, an amount that will go up to $46 million if the contract is renewed.

Santiago Pérez urged the public corporation and its executive director, Javier Quintana, to prioritize economic resources and address the “truly urgent and important issues for the good of the country, as ensured by optimum electrical service.”

Santiago Pérez said the agreement negotiated by Donahue and AlixPartners to restructure the utility’s $9 billion debt have led to residential, commercial and industrial rate hikes.

“It is terrible that as this happens, Prepa’s directors claim there is no money to address the problems with trucks and helicopters, or to acquire the necessary materials for the maintenance of our plants,” Santiago Pérez said.

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