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:
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…
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