The governor of Puerto Rico, Ricky Roselló, recently announced his plan to “privatize” PREPA…in other words, to sell the island’s entire energy system to Wall Street.
The best way to assess this “privatization” plan, is to study how other plans have done. Have they benefited Puerto Rico?
These plans are often called P3s, or public private partnerships. The latest P3 was engineered by two governors from BOTH political parties: Alejandro Garcia Padilla (PPD) and Luis Fortuño (PNP).
And now Gov. Ricky Roselló will pull off the EXACT same scam, by selling off PREPA.
Ricky Roselló, dancing while Puerto Rico burns
Fortuño and Garcia Padilla used the island’s most profitable highway, PR-22, in order to steal $1.25 BILLION DOLLARS for Goldman Sachs and Abertis Corporation.
Here is how…
PR-22, aka José de Diego Expressay, is 51 miles long. It runs from Santurce to Hatillo, passes through San Juan, and is the island’s busiest highway. Every day, more vehicles pass through PR-22, than any other road in Puerto Rico.
The annual toll revenues from PR-22 are $85 million.
In 2011, Luis Fortuño turned PR-22 into a “public private partnership” (aka “P3”) with Goldman Sachs and a Spanish corporation named Abertis.
This P3 gave Goldman Sachs and Abertis a 40-year lease on PR-22 and PR-5, for which they would receive 50% of the toll revenues (roughly $1.8 billion) in exchange for a $1.4 billion investment, for a profit of approximately $400 million.
AND THEN THEY GOT SLICK
The ROI (return on investment) on this deal seemed reasonable…but now in 2016, the deal suddenly changed.
In the immortal words of Johnny Guitar Watson, “Somebody doing something slick…downtown.”
Five years into the deal, in April 2016, Gov. Garcia Padilla quietly altered the initial contract.
LET’S DO THE MATH
Under the new terms, in exchange for an additional investment of only $115 million, the governor decreased the island’s revenue share on PR-22 from 50% to 25%, and extended the lease term for an additional 10 years.
So for 35 years, Goldman/Abertis will receive an additional 25% annually…
For 10 new additional years, they will receive 75% of 85 million.
The math works out like this:
25% additional of $85 million per year x 35 years = 21 x 35 = $735 million
75% of 85 million x 10 years = 63 x 10 = $630 million
The total added revenue is thus $1,365,000,000 ($1.365 billion), on an investment of $115 million…for a new, additional profit of $1.25 BILLION.
Did you hear about this?
I certainly didn’t.
Somebody doing something slick…downtown.
LET’S BRIBE THE $16 BILLION DOLLAR MAN!
Eight months after this “New Deal” for Goldman Sachs and Abertis, in December 2016, a little news item emerged in Caribbean Business. Luis Fortuño had been named onto the board of directors of Abertis, because Abertis allegedly wanted “independent directors on its board…seasoned experts with a variety of professional profiles.”
Fortuño is certainly seasoned.
He marinated himself in public debt, during his brief stint as governor, by “borrowing” $16 billion from Wall Street. In just 4 years, Fortuño “borrowed” more money from Wall Street, than any other governor in Puerto Rican history.
$9 billion of that money was spent on “private contracts” which, to this day, have not been accounted for.
So at the precise moment that a new $1.25 billion scam goes public, one of the key players hires Fortuño for a “board membership” that will provide elegant vacations to Spain for Fortuño’s family, and hefty board fees to Fortuño.
Fortuño was bribed – some would say “hired” – to provide Abertis and Goldman Sachs with additional influence over the PROMESA Financial Control Board (FCB), which is supposed to “investigate” these questionable deals.
A WORD TO THE JUSTICE DEPARTMENT
Puerto Rico allegedly “owes” $72 billion, and the FCB was created to “help them” pay it.
One of the best ways to do this is to investigate, annul and even prosecute any questionable deals which provide extraordinary and unexplainable profits to a few individuals and private entities, at the expense of the entire Commonwealth.
The PROMESA Control Board did not investigate or prosecute this $1.25 BILLION DOLLAR SCAM… which involved a foreign corporation, a US investment bank, and two governors from both major parties in Puerto Rico.
And now, a NEW P3 scam will devour the island’s energy system. The “privatization” of PREPA will not be a P3.
It will be a P5: a Public Private Partnership for the Plunder of Puerto Rico.
The $300 million Whitefish contract was just a dress rehearsal.
For a history of the War Against All Puerto Ricans, read the book…
Si prefiere ver la página web en español por favor visite: http://www.guerracontratodoslospuertorriquenos
Why is this SOB still in office where are the people.Get him out. who the hell is he to sell anything. Puertorianos are losing
there heart. Has anyone asking where is the hundred million that they misplaced.
No Freggin way!!! This company should be oversought by island citizens board of directors and owned by a Puerto Rican entity and no mainland Americanos.
THIS is the same tactics his father was doing. So that explains who’s the real puppet Master Ricky Roselló father, Smh.
Reblogged this on It Is What It Is and commented:
“PREPA” … and the pillaging continues!!
‘The governor of Puerto Rico, Ricky Roselló, recently announced his plan to “privatize” PREPA … in other words, to sell the island’s entire energy system to Wall Street.’
Bottom line … corruption in both local parties which are both on cahoots with the American enterprises in Wall Street!!
Squeeze, squeeze, squeeze!!
Bro, you are right on target
……And the abuse continues. Have returned to my island, have been here for the last six months and how this island has changed – for the worse. Is there any hope for my island? If it’s not enough that it has been oppressed by a hypocritical Bully, but the ones that govern it and are suppose to look after it’s wellness are nothing but criminals. Why oh why aren’t these criminals prosecuted? What an embarrassment for our island. My people what is it that you want? Remember, we chased the most powerful navy in the world out of our island of Vieques. Your voices need to be heard. IT IS UP TO US.
Number one qualification to be a governor in Puerto Rico is to be a thief for the colonial system other wise you don’t stand a chance to represent.
Why can’t we get a special prosecutor to investigate this? Based on your statements, it definitely looks like something is going on. There is blatant conflict of interest. PREPA has been run by the unions and their leadership doesn’t care much for the well-being of the island. We have no gust to do what is right. It’s sickening.
And the treasonous Puertorican politicians always get what they want. Disgusting behavior. Nothing New! Go ahead and sell your souls. Hell awaits you!
What did this so-called Governor do for Puerto Rico? in its time of need.
Well said, these are the layers and layers of lies and corruption that as time passes it becomes more difficult to peal and to remember, which is exactly what the government desires so that they can continue with their self profit agenda.
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Well said, it is the layers and layers of hidden truths that as time passes it becomes more difficult to peal, therefore making the public to forget and agree with changes and new scams
The question is does this clown own this island. Who is he to sell anything on that island? Should get rid of him? My family fought for that island along with many others Borinquenos. and don’t think that he should be selling what is not his . he is the Governor and a clown at that. Puerto Ricans need to grow balls.
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Vende-Patria Roselló doesn’t have to “steal” anything for Wall Street! All has already been stolen long, long ago! How can it happen anew? The Republicans and Roselló and Wall Steet, The Bunchista, have always had the Island and the people de la Raza safely enconsed in the Slave Quarters since they took over. Phase 1 of “The War Against All ………….” .
The God of Our Fathers has some surprising plans for the current Bunche. Amen.
Don’t bother about hiding my e-mail address. I enjoy watching the Worms squerm in their idiotic attempt to work against TRUTH.
How and why do these scams and fraud go uninvestigated and prosecuted is mind-boggling. The FCO is the Fox watching the hen house.
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