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

Book - 12-10

Now that PREPA is targeted for privatization, we should all know how it got there.

We should know that the political party (PNP) that is selling PREPA is the one that destroyed it…and committed FRAUD to do it.

Just HOW did they destroy it?  What was the fraud?

The answer, and the evidence, is astonishingly clear. The information appears RIGHT IN THE WEB SITE 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, Governor Roselló will reward Wall Street…for their own theft.

This theft in broad daylight was cleverly engineered, so that the people of Puerto Rico will have to pay for it…with a “privatized” energy system that will be owned by Wall Street.

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.  From 2017 through 2018, 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.

They will pay with an energy system, that is sold to Wall Street.

Thanks to the politicians of Puerto Rico, the island’s energy will be owned by Wall Street.

 

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

 

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

  1. And they keep voting for the same Corupt group to keep them in power.I truly believe it’s time to for the Feds to take over the Island til everything settles and they prove trustworthy.Everybody is now against PROMESA but remember that it was representation of all 3 party’s that went to Washington begging for help.They haven’t payed the depth in 3 years and now they want to get rid of PROMESA so they can start stealing again.Fellow Ricans it’s time to start opening your eyes.

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  2. These ass politicians of Puerto rico only for what they made for them selves behind their peoples back. An he head should be made accountable along with his Fowler’s. THe n his followers don’t give a dam about los puertoicanos .

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  3. Con razón no quieren que se audite la deuda, para no encausar a los chanchulleros que hicieron esta barbaridad.

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  4. It was us the people of PR who voted for them to control our finances. And they did, the made a financial massacre with the little money we had. I hear people telling Wall Street is the one to blame and that they should carry the debt. That is a very easy way to run away from our responsibilities, and the end of any chance of making business with any entity in the future.

    Sorry guys, we have to pay our own irresponsible behavior as a country, estate, commonwealth, land, rock, or whatever you wanna call it.

    And BTW, this has been going on way before Luis Fortuño, but any investigation can only go 10 years back.

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  5. TO BAD … SO SAD … DON’T GET MAD … GET EVEN !
    MAYBE PROPERTY TAXES ARE NOW NECESSARY, INORDER TO HELP CURVE THESE HIGH ENERGY DEBTS, EXPENSES AND COST.

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  6. Hasn’t PUERTO RICO suffered enough??? Fuck this! Poor people are suppose to pay $19 billion to the richest entity in the world? For some “planned” SHIT these bastard corrupt rich politicians mismanaged years ago? Fuck you rich entitled corrupt assholes..they have no shame or empathy for what they are doing to the people!! Fuck PREPA! Puerto Ricans! My brothers and sisters, Buy generators and boycott this whole fucked up system. Do NOT allow this to happen.

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  7. The electric company owes me money. Send the paper work to get my refund when I turn the power off and it’s been 5 months and never got my deposit refund.

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  8. SO SAD! SANDERS AND OCASIO-CORT´ES ARE LOOKING INTO THIS OUTRAGE. FORTU˜NO AND COMPANY NEED TO BE SUED AND JAILED. NOW THE POOR PEOPLE, THOSE WITH GOVT PENSIONS HAVE TO FACE THE DEBT THEIR THEFT! HOW ABOUT A PRO BONO LAWYER TAKING THIS CASE!!!

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  9. 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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  10. 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 !!!!

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

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

  14. 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.

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  15. 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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  16. 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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  17. 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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  18. 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).”

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