In autumn of 2014, PREPA hired Lisa Donahue as its “Chief Restructuring Officer.” Between September 2014 and August 2016, Donahue was paid $ 36.7 MILLION to restore PREPA’s “fiscal and operational health.”
So what does Puerto Rico get for paying $36.7 million to Lisa Donahue?
Let’s go through the list…
Was the PREPA debt resolved ? NO.
Was the PREPA infrastructure improved ? NO.
Has PREPA stopped the use of toxic sludge oil ? NO.
Has anyone been jailed for “sludge oil kickbacks” from Petrobras ? NO.
Has the debt service on PREPA’s debt been reduced ? NO.
Were the number, duration and severity of blackouts reduced ? NO.
Did the electrical rates go down ? NO.
In fact, the electrical rates negotiated by Donahue will rise yet another 15-20% over the next six months, and the number of blackouts increased by 449% in 2014-2015…precisely during the time period of Donahue’s employment.
COMPARE PREPA WITH NEW YORK CITY
Here is the raw Kilowatt Hour rate for New York City residents in August 2016:
7.742 cents per Kilowatt Hour
Here is what Puerto Ricans are paying on the island, before the scheduled 15-20% increases:
20.118 cents per Kilowatt Hour
In other words, the residents of Puerto Rico are paying nearly 300% more for their electricity, than the residents of New York City.
However the per capita income of NYC residents was $59,472 in 2014. In Puerto Rico, the 2014 per capita income was barely $15,200.
Please note those figures:
While New York City residents make 400% the income of Puerto Rico residents, the electricity rates are 300% higher in Puerto Rico than in New York City!
LISA DONOHUE’S REAL JOB DESCRIPTION…THE CLEANER
Clearly, Donahue is not “restructuring” PREPA for the benefit of electrical consumers.
A 15-20% rate hike over the next six months will prove that, very convincingly.
But Donahue is getting and sharing $36.7 million for something…and here it is.
When the new Sheriff gallops into town (the Financial Control Board) PREPA will have its audited financial statements, all in neat little rows, and in accordance with GAAP (generally accepted accounting principles).
PREPA’s illegal Triple A bonds, all issued between 2009 and 2013, will not appear as a 4 billion dollar Ponzi scheme – which is exactly what they were.
Instead, the bonds will all be SEC compliant and Dept. of Justice approved. The corporate media will praise Wall Street – bond traders, hedge funds, distressed asset specialists – for their empathy and noblesse oblige.
The rating services (Standard & Poor’s, Moody’s, Fitch) will reprise their 2007 sub-prime theatrics.
If anyone goes to jail, it will be a hapless bureaucrat (sacrificial lamb) with inadequate courage or resources to fight back.
Lisa Donahue will whitewash PREPA for decades of corruption and mismanagement, and shield Wall Street from any major inquiries or indictments.
She will reconcile the books so professionally, that an entire generation of journalists will apologize for dreaming that Caleb Brett Labs would falsify 600 oil analysis reports; or that the PPD and PNP would poison their own people with toxic sludge oil; or that William Clark, or Luis Fortuño, or anyone would take bribes from a fuel oil cartel.
In the end, Lisa Donahue will perform the role of Harvey Keitel in Quentin Tarantino’s Pulp Fiction.
Donahue is a cleaner.
For a history of the War Against All Puerto Ricans, read the book…
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