Puerto Rico Cancels Reconstruction Contract With Trump-Affiliated Company

After much criticism from members of Congress and FEMA, Puerto Rico governor Ricardo Rosello canceled a $300 million contract that was awarded to a small and understaffed company from Whitefish, Montana.

Whitefish has connections to the secretary of the interior, Ryan Zinke, who bid for them to rebuild part of the island’s power grid that was destroyed during Hurricane Maria. The majority of the island’s 3.4 million U.S. citizens are still without power.

Rossello, through the Puerto Rico Electric Power Authority (PREPA), canceled the contract with Whitefish Energy Holdings this Sunday, two days after FEMA issued a statement criticizing the deal.

FEMA claimed the contract had “significant concerns” and also warned that they would hold out on payment if the contract was found to be improper. “I am making this decision because it is in the best interest of the people of Puerto Rico,” Governor Rosselló said at a news conference.

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Ricardo Ramos, PREPA’s chief executive, defended the deal, which he himself had awarded to Whitefish. On Sunday, however, he claimed to understand the governor’s decision to cancel it because of the negative publicity it had garnered.

Mr. Ramos also said that Whitefish had requested security protection due to people throwing rocks and bottles at the company’s crew members on the island. Many believe that there was nepotism involved when the contract was awarded.

“If you are in your house without power, and there’s a sense that the energy authority gave away $300 million to a company that either had or did not have experience, the reaction is not positive, and we’re seeing that,” Mr. Ramos said.

When Carmen Yulín Cruz, the mayor of San Juan- Puerto Rico’s capital – started pointing out the inconsistencies in the contract via Twitter. She got attacked by the company, who threatened to withdraw its workers from her town.

Realizing how bad this made Whitefish look, and was probably the detonator for the cancellation of the contract, they released an apology to the mayor and the people of Puerto Rico.

Mrs. Yulín Cruz has had to grow a thick skin during the last weeks. Her commitment to the people of San Juan has come under heavy criticism, not just from the company, but by President Donald Trump himself, who referred to the mayor as “nasty”.

Hopefully, politics will be put to the side soon, and the people of Puerto Rico will get the help they need. It’s been six weeks since the hurricane, and the citizens are still without power. After sundown, the whole island plunges into darkness.

Article inspired by The New York Times // Puerto Rico Cancels Whitefish Energy Contract to Rebuild Power Lines