PREPA…The entire electrical grid of Puerto Rico…sold by FRAUD to Wall Street

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

11 Comments on “PREPA…The entire electrical grid of Puerto Rico…sold by FRAUD to Wall Street

  1. Reblogged this on It Is What It Is and commented:
    PRIVATIZATION IN THE HORIZON!! “PREPA” … Puerto Rico Electric Power Authority
    ‘…the political party (PNP) – Partido Nuevo Progresista (pro-statehood) that is selling PREPA is the one that destroyed it … and committed FRAUD to do it.

    Like

  2. This is the 21st Century and we have the Technology to capture the Blessings of God our Common Wealth in Puerto Rico. The land and the rain, the sun,and the wind that falls and passes over the land is our Common Wealth as Stakeholders in a Nation/State. The resource is free so why would want a Private Company capturing your blessings and selling the things of God back to you for a profit. We must move from Corporations to Cooperatives with the people having ownership and build through Community Development Corporations owned by local communities to distribute the Royalties/Dividends for being a Stakeholder/Stockholder. We need smaller electric grids within communities. Today a Home can be its own power plant.

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  3. Thank you for all your hard work! Am just so proud of you. Grew up in the town of Lares i the 60’s and my fondest memories are of my child hood there with my grandparents. Was born in Yonkers,N.Y. but there I never felt as an immigrant. Have read your book and recommended to others. I thank God for a brother like you. Keep up the good work.
    Godspeed always.
    Again, am just so proud!

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  4. As far as privatizing PREPA, I’m all for it! It sure as hell can’t get any worse! Total mismanagement and ineptness on the government’s part, red and blue parties both. They tried to privatize the AAA many years ago and the French company basically gave it back to them because they misrepresented the condition of the utility. And as far as borrowing money to pay the interest on the debt, of course it’s what they did…they didn’t know anything else to do. This government (red or blue) is unfit to run this island. We need a manager to take over this island and get it back in shape….it can be done…but not within the present structure.

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  5. I meant to say, how much money does the union president makes?

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  6. My own personal opinion is that both political parties are to blame. It is time to stop the political games and start administrating better.
    I also think that the unions are all about money
    . How much the union makes a year?

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  7. It couldn’t have been plotted and planned more perfectly. It’s the type of setup that can only match what
    t r u m p and the republican “masters” have been pulling on our stateside as well as our Island brothers, sisters, mothers, father’s …..ETC. since before they, now OPENLY have come to power. It smells like the current Whitehouse Scum had it all prepared years in advance.
    Another continuation in The War Against All…….Volume 2!

    I’m sure the current Partito de Vende-Patria Ltd. will “spin” the facts and blame the whole thing on Obama and take all the way back to Munos Marin’s fault.

    World War 3 has now begun against the Puerto Ricans.

    F. Harrison Clark

    Like

  8. It’s like health insurance you pay for your yearly plan, and you also pay out of pocket money to inflate the corrupt health plan doctors, lobbyists, and pharmaceutical industry. You can’t win any way you try. It’s a corrupt system with no change in sight. Politicians in Puerto Rico and the United States are all handing it over to the Wall Street vultures, which in turn are handing it over to the 1%. If you try to stand up and fight , the govt. wil eventually kill you like they did to Don Pedro Albizu Campos and the Nationalist movement. Whether you believe it or not it is what it is.

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  9. It’s like using your credit card to pay out a loan. Absolutely ridiculous. Paying interest with borrowed money that in turn will pay more interest. It’s a death spiral.

    Like

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