Governor Rosselló urges Congressman Bishop to take all parties into consideration during his evaluation of the results of the federal PROMESA Act
(April 2, 2018- La Fortaleza, San Juan) The governor of Puerto Rico, Ricardo Rosselló, addressed today a letter to Rob Bishop (R-Utah) in which he urges the congressman to adopt a balanced approach that considers all stakeholders in Puerto Rico and not just the concerns of the bondholders.
The letter sent to the also chairman of the US House Committee on Natural Resources—Congress body that addresses the issues of Puerto Rico and the territories—arises in response to a letter that Congressman Bishop sent last week to the Financial Oversight and Management Board (FOMB).
"My administration has engaged both creditors and the Board in an attempt to achieve as many consensual resolutions as possible throughout this process and will continue to do so. But grandstanding and one-sided letter-writing campaigns have no place in ensuring the people of Puerto Rico’s future successes," stated Rosselló in his letter.
The governor reviews the provisions of the federal PROMESA Act and the determination of the Federal Court in which it is clearly established that the FOMB cannot usurp the powers of the Government elected by the People of Puerto Rico.
"I am deeply dismayed that your letter (which callously pays lip service to the people of Puerto Rico as second-class citizens) expresses primary concern regarding a “lack of creditor engagement” on the part of the Oversight Board, instead of expressing support for Puerto Rico and her people (whom you refer to as your “American brethren”). By demanding that the Board usurp the function of Puerto Rico’s elected Government, your letter shows complete disregard for Puerto Rico’s Constitution, its laws and the will of the 3.4 million American citizens who live there," reads the letter of the governor of Puerto Rico.
The governor warned as well that the federal House Committee on Natural Resources now faces a fork in the road: support the PROMESA process that “has resulted in significant progress, including approval and certification of fiscal plans and budgets for the Commonwealth and its instrumentalities” or an “obstructionist behavior that would undermine the duly elected Government’s authority and legitimacy”.
“Sidelining the elected Government will result only in chaos and confusion, which bondholders will seek to capitalize on to further undermine the statutory foundation of the restructuring process. In fact, as noted below, bondholders are currently pursuing this strategy by challenging PROMESA’s constitutional underpinnings. If their ploy is successful, it will jeopardize months of progress, crippling the Government and Oversight Board’s ability to restructure Puerto Rico’s debts”, advised the governor.
Besides, in the letter, the chief executive regrets that Congressman Bishop uses the same argument that creditors have filed in court, asking that the FOMB determine what are the essential public services.
"In stark contrast to what the elected Government of Puerto Rico and the Board agree should be the key components of a viable Commonwealth Fiscal Plan, your letter suggests that a ‘good start’ would be for the Board to determine what constitute ‘essential public services’—distinctly echoing what Puerto Rico’s creditors have unsuccessfully argued in the Title III proceedings," highlighted Rosselló in his eleven-page letter.
Likewise, Rosselló rejected the allegations of Congressman Bishop regarding delays in the submitting of the Fiscal Plan and the over-invoicing of consultants in the Title III process.
"I emphatically reject the allegations in your letter claiming that my administration has not been working closely to achieve the mandates of PROMESA. Although the situation facing Puerto Rico is unprecedented, we are relentlessly striving to develop and implement creative strategies to ensure that the people of Puerto Rico can realize a bright and prosperous future," said the governor.
"Regrettably, your letter embodies everything that is wrong with this process and only serves to reinforce the dismissive and second-class colonial treatment Puerto Rico has suffered throughout its history as a territory of the United States, which undermines our efforts to address the Island’s fiscal, economic, and humanitarian crises. From the Government’s perspective, we believe a fair and balanced approach towards all of Puerto Rico’s stakeholders is required. To the contrary, your letter sends a message which seems to unfairly and disproportionately favor the treatment of mainland bondholders over the well being of the 3.4 million U.S. citizens in Puerto Rico. " added Rosselló in the communication.
Regarding the expense of lawyers, the chief executive recalled that many of the creditors have decided to sue government entities and government officials including, that the FOMB has no legal authority to represent.
The governor also recalled how Congress has not taken action on the recommendations made by the Congressional Task Force on Economic Growth in Puerto Rico, established by the federal PROMESA Act that recommended numerous steps for Congress to help the economy of Puerto Rico to stabilize and grow.
The chief executive added that "these recommendations include health care, tax policy, and entitlement reforms that are urgently needed to address Puerto Rico’s structural deficits and put Puerto Rico on equal footing with the mainland United States. Congress has taken no meaningful action on any of the Task Force’s recommendations".
Rosselló concluded by stating that his Administration is willing to continue the dialogue with the bondholders to negotiate a fair restructuring of the debt, but made it clear that " we will not be thrown into submission by false allegations and innuendo that the Government has not acted in good faith or in a transparent manner".
