Three Billion Dollar fraud at PREPA …will be repaid by Puerto Ricans

Book - 12-10

 

For the next ten years, Puerto Rico will pay a so-called “debt” of $72 billion to the US. Most of this “debt” is unconstitutional, inflated, and/or outright fraudulent. A prime example of this is the astonishing admission of financial fraud, on the website of the Puerto Rico Electrical and Power Authority (PREPA).

The web site shows how three billion dollars were stolen “for the benefit of the financial community.” And now, a Financial Control Board will ensure that Puerto Rico will reward Wall Street…for its own theft.

This theft in broad daylight was cleverly engineered, so that the taxpayers of Puerto Rico will have to pay for it.

THE SEVEN PREPA BONDS

The shocking information appears in every PREPA bond offering from 2010 to 2013, while Luis Fortuño was governor.
 

Luis Fortuño, man of the people

 
In the current PREPA website, seven bond instruments are fully visible:

http://www.aeepr.com/INVESTORS/DOCS/Financial%20Information/Official%20Statement/PREPA%20Revenue%20Bonds%20Series%202013A.pdf

http://www.aeepr.com/INVESTORS/DOCS/Financial%20Information/Official%20Statement/PREPA%20Revenue%20Bonds%20Series%202012A.pdf

http://www.aeepr.com/INVESTORS/DOCS/Financial%20Information/Official%20Statement/OS%20Series%20DDD_PRElectricPowerFIN1.pdf

http://www.aeepr.com/INVESTORS/DOCS/Financial%20Information/Official%20Statement/OS%20Series%20EEE%20PRElectricPowerFIN[1].pdf

http://www.aeepr.com/INVESTORS/DOCS/Financial%20Information/Official%20Statement/OS%20Series%20EEE%20PRElectricPowerFIN[1].pdf

http://www.aeepr.com/INVESTORS/DOCS/Financial%20Information/Official%20Statement/PREPA%20Revenue%20Bonds%20Series%20YY.pdf

http://www.aeepr.com/INVESTORS/DOCS/Financial%20Information/Official%20Statement/PREPA%20Revenue%20Bonds%20Series%20ZZ.pdf

All seven of them state, in their “Plan of Financing” sections, that the bonds will be used to “refinance” the existing debt, to “capitalize” current interest, and to “pay future” interest.

Some of the bonds claim that they’ll also “fund capital improvements.” But in June 2015, the legislature of Puerto Rico issued a 23-page report…which found that only 15% of the funds were ever used for capital improvements from 2004 to 2008, and only 18% from 2009 to 2012.

The rest was used to pay interest – and only interest – on the prior PREPA bonds. In other words, during the administration of Luis Fortuño, nearly 85% of all PREPA borrowing was used to pay interest to Wall Street.

CONVICTED BY SIMPLE ARITHMETIC

Simple arithmetic shows the following: the seven bonds totaled $3.67 billion, and 18% of this is $660 million. Therefore, over $3 billion (3.67 billion minus 660 million) of these funds were used to pay off the interest on pre-existing debt.

As of today, the outstanding principal on the PREPA bonds is still unpaid. The total comes to $9 billion, and the people of Puerto Rico will be forced to pay it.

How will they pay it?

Here is a hint: negotiations are already underway with PREPA bondholders, which include yet another hike in electricity rates. In 2017, these rates are scheduled to increase by 22%…even though electricity rates in Puerto Rico are already 300% higher than in New York.

LUIS FORTUÑO… TURNING THEFT INTO “REFORM”

The numbers are very clear.

As shown above, from 2010 to 2013 – during the administration of Luis Fortuño – Puerto Rico issued over Three Billion Dollars in PREPA debt, to pay interest to people on Wall Street.

Fortuño was hailed in the US corporate press, and by Republicans in Washington, as a great “government reformer.” He now makes millions of dollars as a partner in the Washington, D.C. law firm of Steptoe & Johnson.

Fortuño also has the gall to write articles in Fox News, such as this one: Puerto Rico has a Spending Problem.

And now the people of Puerto Rico will pay…

For Luis Fortuño’s $16 billion in Wall Street borrowing, and his $3 billion “reform” at PREPA.

 

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

 

11 Comments on “Three Billion Dollar fraud at PREPA …will be repaid by Puerto Ricans

  1. Puerto Rico should not pay for something that was underwritten fraudulently….The investors new it; they are supposed to be savvy investors.

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  2. Para esto es que yo desempleado, tengo que hacer arreglos de pago con Hacienda de Puerto Rico? …sin tener un ingreso? y estos charlatanes PPD y PNP se convierten en millonarios en nuestra cara? …ASÍ NO SE PUEDE ,!! señor … señora, …humildemente, …ya no vote por los PNPs ni por los PPDs, … hágalo por sus nietos coño !!!!

    Like

  3. Su versión en español es diferente a la que presenta en inglés. La versión en inglés sería más interesante ante la situación actual. Aunque la de español no deja de ser preocupante.

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  4. I did not understand the 2004-2008 expenses/debt accrued while Acevedo Vila’s term. Can somebody explain his responsibility in this matter?

    Like

  5. Pingback: Electrical Blackout in Puerto Rico…ALL of Puerto Rico | WAR AGAINST ALL PUERTO RICANS

  6. This thug of a governor not only still money from Puerto Rico and did. Lot of bad governing that now he is with the Republican Congress to do all
    He can to against Puerto Rico. History will put him in the place that he belongs as a traitor of his own country.

    Like

  7. What really bothers me is that Fortuño and his economists wont get a day in court, for they were backup by the greatests Cocodrilos in the world of robbery. The usa, mafia. They knew everithing that was going on, but never put a foot forward. There’s the issued. Now they want to collect the dues for their friends and supporters [shareholders] and won’t care if the people of P.R. suffers the consequences. Fortuño, fought to have his friends on the Board so they can hide his wrongdoings. That’s how we get paid for our blood in usa wars.

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  8. The people of Puerto Rico should sue Luis Fortuño for every penny he has, and also sue the United States government for incompetence. Both have done nothing for the island. They just got rich on the human suffering of a people. Both together are the devils advocate.

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  9. And Fortuño was supposed to be a great governor? BS. Also , the actual governor has proven to be so stupid that he hired thousands of new employees, knowing very well that there was no money, and then blames the past administration for it. What an AH!

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  10. Reblogged this on It Is What It Is and commented:
    … and so it starts!!
    “For the next ten years, Puerto Rico will pay a so-called “debt” of $72 billion to the US. Most of this “debt” is unconstitutional, inflated, and/or outright fraudulent. A prime example of this is the astonishing admission of financial fraud, on the website of the Puerto Rico Electrical and Power Authority (PREPA).”

    Like

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