Puerto Rico gov’t retracts court statements over Whitefish contract
SAN JUAN — During a hearing on Oct. 25, the counsel for the Government of Puerto Rico told Judge Laura Taylor Swain that the contract between the Electric Power Authority (Prepa) and Whitefish Energy complied with Federal Emergency Management Agency (FEMA) regulations.
In light of recent developments, those comments are being taken back.
Two days after the hearing, FEMA stated it didn’t approve the $300 million contract awarded to Whitefish and had “significant concerns” with the procurement process that was followed. On Sunday, Gov. Ricardo Rosselló Nevares called for the immediate cancellation of the agreement.
Puerto Rico governor calls for cancellation of Whitefish contract
A few hours after the governor’s announcement, the counsel for the commonwealth government notified the court it “can no longer represent that they believe the Contract is compliant with FEMA regulations.”
“I believed the statement regarding FEMA compliance to be true when I made it based on an understanding regarding a provision in the Contract supporting that statement,” said Peter Friedman, a lawyer with O’Melveny & Myers, which represents the Rosselló administration in the commonwealth’s Title III proceedings.
An amendment made to the Whitefish contract on Oct. 17 said FEMA had reviewed and authorized the deal, but it was later amended to remove that language, according to Prepa Executive Director Ricardo Ramos.
During the hearing, Friedman stated that the government believed Prepa awarded the deal “in a compliant manner with FEMA regulations,” as the contract provides. He further said the island’s financial control board had requested information on the Whitefish contract and that it would be shared with it. It is still unclear if the board revised and signed off on the deal.
A U.S. Congress committee, the Office of the Inspector General (OIG) and FEMA are all investigating the contract, while the Wall Street Journal reported Monday that the Federal Bureau of Investigation (FBI) is also conducting a probe into the matter.
At the local level, the Office of Management & Budget initially reviewed the contract, but two days later the investigation was referred to the Office of the Comptroller.
The contract, of up to $300 million, with the small, Montana-based company covered work related to the restoration of Puerto Rico’s power grid following the passage of Hurricane Maria. In turn, Whitefish, which reportedly had only two employees before making the deal with Prepa, subcontracted three Florida power companies, which put forth the necessary manpower to perform the job.
Urgent Informative Motion (Text)
Related Posts
Latest News
-
The Impact of Climate Change in Puerto Rico and on Humanity
Climate change on Earth affects humanity in all of the...
- Posted May 14, 2022
-
Cowboys and Indians Revisit the Federal Realm
The recent decision by the U.S. Supreme Court that the...
- Posted May 14, 2022
-
Puerto Rico Has Highest Proportion of Tax Expenditures Globally
Study by Espacios Abiertos Reveals Cost of Economic Incentives is...
- Posted May 14, 2022
-
SSI Exclusion Leaves Puerto Rico in the Cold
Associate Justice Sees Potential Repeal of ‘Shameful’ Insular Cases The...
- Posted May 13, 2022
-
GM Sectec, UPR Sign Cybersecurity Agreement
Organizations Establish Practice Centers for Students in Cybersecurity, IT GM...
- Posted May 13, 2022
-
Government, Academia Reach Agreement to Develop Workforce
Will Provide Training for Participants of Labor Development Program Puerto...
- Posted May 13, 2022
-
Where Were You When the Lights Went Out?
“Where Were You When the Lights Went Out,” the 1968...
- Posted May 7, 2022
-
Amazon Web Services Expands Operations in Puerto Rico
Local Office Will Offer Services to other Caribbean Islands...
- April 22, 2022
-
Pierluisi Eases Most COVID-19 Restrictions
Eliminates Mask Requirement for Most Indoor Settings Gov. Pedro...
- March 10, 2022
-
García Padilla: Rubio Is No Friend of Puerto Rico
Governor Says Rubio's Remarks Confirm he Works for 'Vultures'
- February 26, 2016
- 15
You must be logged in to post a comment Login