The U.S. and Puerto Rico are both lying to 9 million Puerto Ricans.
Both governments are claiming that Don Q Rum will deliver over $100 million per year to the treasury (i.e. the people) of Puerto Rico. But the exact opposite is true…$100 million per year will be stolen.
THE SERALLES SCAM
The Serallés family produces Don Q Rum.
They also had hundreds of slaves and thousands of sugarcane workers, during their reign as one of the richest families in Puerto Rico throughout the 19th and 20th centuries.
One month ago, Gov. Garcia Padilla turned over more than 34,500 acres of public land to the Serallés family in Ponce, to create an enormous sugarcane plantation. This land turnover was done through a “lease”…the exact terms of which have not been disclosed to the public, even though the 34,000 acres are public land.
In addition to planting sugar cane, the Serallés will use Acts 20 and 22 to avoid paying any interest, dividend, or capital gains taxes for the next twenty years….on their profits derived from this 34,000 acres of public land.
The Serallés mansion in Ponce, during the Great Depression
Both governments – the U.S. and Puerto Rico – issued press releases, claiming that the 34,000 land transfer will generate “300 jobs” and “10 million more gallons” of Don Q Rum.
According to the press releases, each gallon will return $10.50 to Puerto Rico, under the U.S. federal excise tax law.
This sounds like a good deal, yes?
THE REAL TRUTH
The real truth is this…
In June 2005, during the PPD administration of Gov. Anibal Acevedo Vila, a series of bonds were issued by the Puerto Rico Infrastructure Financing Authority. The bonds allowed Puerto Rico to borrow $1,332,962,916 ($1.33 billion dollars).
Page 1 of the bond financing instrument is very clear: “The Bonds are payable solely from…federal excise taxes imposed on rum and other articles produced in Puerto Rico.”
Page 20 shows a table of excise tax receipts, during the years 2000-2005, which totaled over $1.7 billion.
Page 22 states that the Serallés family is the second-largest producer of Puerto Rican rum, and that “Serallés has been producing rum in Puerto Rico since the mid 1800s.”
The last three pages show the 30-year repayment schedule of these bonds…all to be paid from the excise tax on rum, which is being pledged to the bondholders.
WHAT IS REALLY HAPPENING
Eleven years later, in 2016, the government of Puerto Rico is broke. It is defaulting on all of its bond payments…so the US is sending in a Financial Control Board.
And so, in order to generate more excise tax revenue, the Gov. Garcia Padilla took 34,500 acres of public land, and converted it into a private, for-profit use by the Serallés family.
The will enable Puerto Rico to increase their payment to the bondholders, for this $1.33 billion debt created in 2005, by Gov. Anibal Acevedo Vilá.
If the Financial Control Board succeeds in lowering the minimum wage of young workers to $4.25, Puerto Rico will return to the 1930s…with sugar cane plantations paying starvation wages, and calling it “economic development.”
So what is really happening, is the creation of indentured servants…
All working for absentee landlords…
In order to pay off a $1.3 billion “loan” to the Gov. Acevedo Vila administration.
TWO CRIMINAL ORGANIZATIONS, COVERING UP THEIR THEFT
What is also happening, is that two criminal organizations are cleaning up their mess, and covering up their crimes. Because the PNP and PPD are really one political party…the PLP…the Party of Lining their Pockets.
With the arrival of a Financial Control Board, the PLP is scrambling to cover all evidence of their crimes.
The PNP wing of the PLP will do it through two cronies who are actually sitting on the Control Board…José Carrión III and Carlos Garcia…and Carrión is the Chairman of the Board.
The PPD does not have these cronies on the Financial Control Board. They are also running out of time, because they will probably lose the governorship within three weeks. For this reason, they are desperately using the real estate of Puerto Rico (34,000 acres of public land) to try to clean up their debt. Four months ago, on June 24, they tried to do it by “privatizing” the beaches of Puerto Rico.
Please review the 2005 bond instrument…particularly the page numbers provided above.
Just like Orwell’s 1984…the people of Puerto Rico are being told that black is white, that Big Brother loves them, and that a 34,000 acre scam is for “the people’s” benefit.
9 million Puerto Ricans – on the island and the mainland – are being lied to.
For a history of the War Against All Puerto Ricans, read the book…
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