Dictatorship in the Caribbean: the U.S. prepares a “Financial Control Authority” to rule over Puerto Rico

War Against All Puerto Ricans: Revolution and Terror in America’s Colony

 

Recently, three US Senate committees held public hearings on Puerto Rico’s economic crisis: the finance, judiciary, and energy/natural resources committees.

After a month of hearings, the Republican chairs of those three committees – Orrin Hatch (Utah), Charles Grassley (Iowa) and Lisa Murkowski (Alaska) – co-sponsored a Senate bill called the “Puerto Rico Assistance Act of 2015.” Here is the bill, all 159 pages of it:

https://www.govtrack.us/congress/bills/114/s2381/text

The bill offers some minor assistance: a temporary reduction in payroll taxes and an “economic development” fund of $3 billion. But the real purpose of this bill is the installation of a six-member Financial Control Authority, that will rule over Puerto Rico.

According to this bill, five members will be appointed by the President of the U.S. The sixth member will be the Secretary of the U.S. Treasury, who will also serve as Chairman of the Authority. (p. 43) The Chair will have two votes on all matters, and the other five members will each have one vote. (p. 46)

What happened to Puerto Rico?

ABSOLUTE BUDGET POWERS AND POLITICAL CONTROL

Neither the Chair, nor any of the Authority members, will be accountable or liable to the government of Puerto Rico. (pp. 58, 61, 132)

The Authority will “re-structure the workforce of the Commonwealth government” (p. 37), reduce or freeze public pensions (pp. 9, 152), and ensure “the payment of debt obligations.” (p. 38)

It will also supervise the budget and finances of the entire Commonwealth government (p. 38), its pension system (pp. 39, 152), courts (p. 39), legislature (p. 39), public authorities (p. 42), and all leases, union contracts, and collective bargaining agreements. (p. 114)

The Authority will also make “recommendations” with respect to all of the financial affairs of Puerto Rico. This will include the salaries of all personnel, firing of workers, reduction of pensions, elimination of services, and the use of “alternative service delivery mechanisms, including privatization and commercialization.” (pp. 121-122)

If the governor or legislature of Puerto Rico resist any of these “recommendations,” the Authority can “take such action as it determines to be appropriate.” In other words, the Authority can implement any “recommendation” that it wants, regardless of the Puerto Rican government. (p. 125)

Anyone – public official or otherwise – who defies or obstructs the Authority will be found guilty of “criminal misdemeanor,” (p. 56) and will be subject to suspension without pay, and removal from office. (p. 57)

The Authority makes a “recommendation” to Puerto Rico

CREATION OF DEBT, WITH NO ACCOUNTABILITY

The Authority can also encumber the physical infrastructure of Puerto Rico.

It can issue debt – bonds, notes, or other obligations – and keep them in an escrow account, which it would make available to Puerto Rico “at such times as it considers appropriate.” (p. 127)

Alternatively, these funds could be used for “any other purpose that the Authority considers appropriate.” (p. 127)

In addition to issuing debt, the Authority will “pledge or grant a security interest in revenues to individuals or entities purchasing bonds, notes, or other obligations.” (p. 128) In other words, the physical infrastructure of Puerto Rico (highways, bridges, schools, prisons, electrical grid, water supply, public housing, prime coastal real estate) will all be available as “collateral” for the debt decisions of this Authority.

The Senate Bill is careful to mention that “the United States is not responsible for any principal or interest on any bond, note, or other obligation issued by the Authority” (p. 132). This means that Puerto Rico – its taxpayers and its physical infrastructure – will be solely and exclusively responsible for repayment of the Authority’s debt.

PUBLIC PROSECUTOR

The Authority will also have prosecutorial powers.

It is authorized to “conduct necessary investigations” into the government of Puerto Rico. (p. 37).

It is empowered to hold hearings, secure government records, demand evidence, take testimony, subpoena witnesses, and administer oaths (under penalty of perjury) to all witnesses. (pp. 51-52)

Anyone who fails to appear, refuses to testify, or withholds evidence, can be held in contempt of court. (pp. 54-55)

The result of any Authority investigation can lead to criminal and civil penalties – including, but not limited to, getting fired from your job. (pp. 56-57)

GOVERNOR ALEJANDRO GARCIA PAYASO

The governor of Puerto Rico, Alejandro Garcia Padilla, was recently reported as saying that “he would accept a federal fiscal oversight body, as long as it respects Puerto Rico’s autonomy.”

http://www.bondbuyer.com/news/washington-budget-finance/republican-senate-and-house-members-offer-bills-to-help-puerto-rico-1091434-1.html

It would thus appear, finally and forever, that the governor is a clown.

Governor Alejandro Garcia Payaso

This Financial Control Authority, aka the “Puerto Rico Financial Responsibility and Management Assistance Authority,” will be the governor, banker, judge, jury, and prosecutor of Puerto Rico.

It will manage the entire Puerto Rican economy.

It will be accountable to no one on the island.

It will extend the governor an occasional “allowance,” if and when it feels like it.

It will tell the entire Puerto Rican government what to do, when to jump, and how high.

It will do nothing about Jones Act reform, Chapter 9 bankruptcy relief, the privatization of the island’s public schools, or the hedge funds that will own the physical infrastructure of Puerto Rico – its schools, prisons, highways, electrical grid, and water authority.

It will issue debt, spend the funds in any manner it sees fit, and leave Puerto Rico to pay the bill.

This is where our “Commonwealth” relationship to the US has gotten us: a dictatorship in the Caribbean, created in Washington, operated from Wall Street, all disguised as a “management assistance authority.”

Congratulations, Gov. Alejandro Garcia Payaso.

You are now the headwaiter of La Fortaleza, catering parties for U.S. businessmen.

 

For a history of the War Against All Puerto Ricans, read the book…

War Against All Puerto Ricans: Revolution and Terror in America’s ColonyBuy it Now

Si prefiere ver la página web en español por favor visite: http://www.guerracontratodoslospuertorriquenos.com

 

13 Comments on “Dictatorship in the Caribbean: the U.S. prepares a “Financial Control Authority” to rule over Puerto Rico

  1. Pingback: Puerto Rico gets a Financial Control Board | WAR AGAINST ALL PUERTO RICANS

  2. This is exactly what a estate is, just in a legal gibberish mombo jombo ki d of way.

    Like

  3. That’s exactly what being a state is in other mombo jombo legal gibberish or BS.

    Like

  4. An 8 Billion annual budget should be more than enough to run the Islands government, but up to now it’s not. Hmmmm, something smells rotten, very…

    Like

  5. The only good thing I see of this is that Puerto Won’t become a State for at least another 100 years or more. The people of Puerto to Rico have to really get on their behind for Independence and not be a Modern Island of SLAVES to the rich of this country like we are RIGHT NOW. You Need to Stop Slavery “NOW.”

    Like

  6. so even if the jones act was repealed, independent shipping businesses would then be strangled by this oversite board…?

    Like

  7. Eric
    March 9, 2016

    I cry dry every day, USA please remove JONES ACT !! Why the US keeps going backwards. Look at what we’re dealing with anyhow look at the bunch of Republican clowns left to Run ! They can’t figure out there own things out , look at the misfit act they put on during debate. I as an American am embarrassed. PR is Screwed for ever !!!

    ERIC, PR WILL BE “SCREWED FOREVER” FOR NOT HAVING THE GUTS TO STAND UP TO TYRANNY IN NUMBERS THAT COUNT. AS LONG AS THE ISLANDERS SIT AROUND AND KEEP COMPLAINING, IT’S JUST GOING TO GET WORSE. SOMEONE MENTIONED BEFORE… THAT THERE IS A “SOCIOPATHIC” VS “EMPATHETIC” RELATIONSHIP GOING ON HERE. SOCIOPATHS NEVER GET BETTER. THEY’LL KEEP VICTIMIZING UNTIL THERE ARE NONE LEFT TO VICTIMIZE. WHAT’S THE CATHOLIC CHURCH HAD TO SAY ABOUT ALL THIS?? I HAVEN’T HEARD ANYTHING FROM THEM ON THIS…

    Like

  8. I cry dry every day, USA please remove JONES ACT !! Why the US keeps going backwards. Look at what we’re dealing with anyhow look at the bunch of Republican clowns left to Run ! They can’t figure out there own things out , look at the misfit act they put on during debate. I as an American am embarrassed. PR is Screwed for ever !!!

    Liked by 1 person

  9. Senators Orrin Hatch and Charles Grassley, should both be put out to pasture, their ideas are outrageous. As for Senator Lisa Murkowski she should stick with Alaskan Indian affairs instead of Puerto Rican affairs. In 2007 she was caught in a Kenia River Land scam in Alaska . I smell another scam coming up. Once a scammer always a scammer.

    Liked by 1 person

  10. No puertorrican should be happy for this but, how did we get to this point? Is there anyone sure that we have competent and able politicians to get us out of this situation? Does anyone really thinks our constitution gave us the power to self govern? Is anyone under the impression that we are a free country? Have anyone look up the definition of “Territory” under the US constitution?

    Like

  11. This is not only a problem it’s a big problem! The Island now has been pushed back to the Carpeta Days.

    Like

  12. Reblogged this on It Is What It Is and commented:
    This is a ruse!!! “Orrin Hatch (Utah), Charles Grassley (Iowa) and Lisa Murkowski (Alaska) – co-sponsored a Senate bill called the “Puerto Rico Assistance Act of 2015.”
    …. it’s no help!! “the real purpose of this bill is the installation of a six-member Financial Control Authority, that will rule over Puerto Rico.”
    #NoToFinancialBoard ….

    Like

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