It is no secret to anyone that the Puerto Rico Fiscal Board was intentionally comprised of individuals that contributed much to Puerto Rico’s financial collapse. With an alleged unspoken agreement that the Department of Justice will neither investigate or prosecute those responsible, the Board can act with impunity to preserve the status quo.
Nothing illustrates this better than the Board’s refusal to approve the Puerto Rico Electric Power Authorities (PREPA) voluntary agreement with its creditors.
PREPA is the goose that lays the golden eggs. It is the one government entity where allegedly hundreds of millions of dollars go unaccounted for every year. It was not enough that PREPA could allegedly issue fraudulent bonds with immunity. The board senses an opportunity to steal even more funds from the innocent bondholders and do away with the new internal controls that the current settlement agreement requires.
PREPA is the only entity that has reluctantly negotiated a settlement with its bond holders and the Fiscal Board will have none of it.