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DonViejo

(60,536 posts)
Sun Oct 29, 2017, 11:34 AM Oct 2017

UPDATED: Puerto Rico governor calls for cancellation of $300 million contract...

Source: The Washington Post


Puerto Rico governor calls for cancellation of $300 million contract with small Montana firm to repair power lines

By Washington Post Staff October 29 at 11:31 AM

Puerto Rico Gov. Ricardo Rossello said that the contract with Whitefish Energy was a distraction after critics in the electric power industry, Congress and the Federal Emergency Management Agency raised questions. The power authority, also known as PREPA, opted to hire Whitefish rather than activate the mutual aid arrangements it has with other utilities.

This is a developing story. It will be updated.

Read more: https://www.washingtonpost.com/news/post-nation/wp/2017/10/29/puerto-rico-governor-calls-for-cancellation-of-300-million-contract-with-small-montana-firm-to-repair-power-lines



UPDATE:

Puerto Rico governor wants Whitefish contract cancelled ‘immediately’

BY BRETT SAMUELS - 10/29/17 10:59 AM EDT

-snip-

Gov. Ricardo Rossello on Sunday asked the Governing Board of the Electric Power Authority to cancel the contract, according to the governor’s official Twitter account.

“There cannot be any distraction that alters the commitment of raising electric system as soon as possible,” Rossello said of the contract, which came under scrutiny last week.




The island will begin coordinating with Florida and New York to reinforce brigades, Rossello said.

Rossello also asked for “a detailed and thorough investigation” into the recruitment process for emergency services, which led to the Whitefish contract, and for the installation of a trustee in the area of procurement and contracts.

more
http://thehill.com/blogs/blog-briefing-room/news/357702-puerto-rico-governor-wants-whitefish-contract-cancelled
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UPDATED: Puerto Rico governor calls for cancellation of $300 million contract... (Original Post) DonViejo Oct 2017 OP
k and r..story says it all.. Stuart G Oct 2017 #1
He can't end it himself? SHRED Oct 2017 #2
It's hard to void a contract. Scruffy1 Oct 2017 #3
Who signed it? SHRED Oct 2017 #4
Since the utility is government-owned BumRushDaShow Oct 2017 #7
As I understand it BumRushDaShow Oct 2017 #6
What a surprise... BlueIdaho Oct 2017 #5
Two words: world wide wally Oct 2017 #8
Ramos also said...........FEMA had approved....... riversedge Oct 2017 #9
Whoever approved this contract should go to jail. It has cost Puerto Rican lives. SunSeeker Oct 2017 #10

Scruffy1

(3,256 posts)
3. It's hard to void a contract.
Sun Oct 29, 2017, 12:16 PM
Oct 2017

In general there are very narrow grounds for doing so. You would have to prove bribery or other fraud. My own city once cancelled a contract before work was started and ended up paying the full value for nothing. 34 million IIRC. I think there is corruption involved so maybe the parties will agree to void the contract to avoid further publicity. If both parties agree then it can be done. I'm sure the Trumpers that run the company are getting heat fron Washington for making Republicans look bad.

BumRushDaShow

(129,064 posts)
7. Since the utility is government-owned
Sun Oct 29, 2017, 12:33 PM
Oct 2017

there is almost always (if not always) a means for tracking and auditing included that in this case was explicitly (even childishly) forbidden in this contract... which will probably be grounds for it getting killed. If this had been a private utility entity, then I expect it could possibly go through quite a bit of muster-passing (unless there are local laws requiring oversight in that case), but not a government-owned one.

BumRushDaShow

(129,064 posts)
6. As I understand it
Sun Oct 29, 2017, 12:24 PM
Oct 2017

the Electric utility is overseen by a Commission (as of 2014) appointed by the governor and confirmed by their local Senate. The utility essentially defaulted over the summer and after this latest debacle, an emergency manager was put in place last week.

I expect any contract has to be navigated by that bureaucracy to get cancelled and with the language that was reported in there (given the utility is government-owned), I expect any suit by that company from Zinke's home town would probably lose in court.

It would be interesting to see which entity signed it - someone from the Commission or someone from the utility itself.

The fact that the governor is calling this debacle "a distraction" raises red flags and given his demeanor during the crises with Drumpf (vs the mayor of San Juan), it makes one wonder whether some primarying needs to go on.

BlueIdaho

(13,582 posts)
5. What a surprise...
Sun Oct 29, 2017, 12:22 PM
Oct 2017

You mean the rules are rigged for the corporate interests and against government? What a surprise...

riversedge

(70,239 posts)
9. Ramos also said...........FEMA had approved.......
Sun Oct 29, 2017, 01:30 PM
Oct 2017

Interesting. as I did not know that. It will be an ongoing story, that is for sure.



..............Power company Director Ricardo Ramos has said that Puerto Rico's Electric Power Authority reached a deal with Whitefish just days before the hurricane struck, saying that he spoke with at least five other companies that demanded similar rates, in addition to a down payment the agency did not have. Ramos also said the Federal Emergency Management Agency had approved of the deal, something the agency has denied.

FEMA said it has not approved any reimbursement requests from the power company for money to cover repairs to the island's electrical system. The contract said the utility would not pay costs unallowable under FEMA grants, but it also said, "The federal government is not a party to this contract.".........................



Democrats also have questioned the role of HBC Investments, a key financial backer of Whitefish Energy. The Dallas-based company's founder and general partner, Joe Colonnetta, has contributed thousands of dollars to Trump and other Republicans. Chiames has said Colonnetta's political donations were "irrelevant" and that the company would cooperate with any federal authorities.

This week, Rep. Rob Bishop, the Utah Republican who heads the House Natural Resources Committee, sent the power company director a letter demanding documents, including those related to the contract with Whitefish and others that show what authority the agency has to deviate from normal contracting processes.
A Bishop spokesman did not immediately return a message for comment on Sunday........................

http://www.sfchronicle.com/news/world/article/Puerto-Rico-gov-seeks-to-cancel-300M-Whitefish-12315281.php

SunSeeker

(51,564 posts)
10. Whoever approved this contract should go to jail. It has cost Puerto Rican lives.
Sun Oct 29, 2017, 02:13 PM
Oct 2017

Over one month without power so Zinke's buddies could steal from taxpayers!

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