In autumn of 2014, the Puerto Rico Energy and Power Authority (PREPA) hired a woman named Lisa Donahue as its “Chief Restructuring Officer.” Between September 2014 and August 2016, Donahue was paid $43 MILLION to restore PREPA’s “fiscal and operational health.”
Then in February 2017, Donahue simply resigned and walked away.
So what did Puerto Rico get for paying $43 million to Lisa Donahue?
Let’s go through the list…
Was the PREPA debt resolved ? NO.
Did the electrical rates go down ? NO.
Was the PREPA infrastructure improved ? NO.
Has PREPA stopped the use of toxic sludge oil ? NO.
Was the debt service on PREPA’s debt been reduced ? NO.
Were the number, duration and severity of blackouts reduced ? NO.
Was anyone been jailed for “sludge oil kickbacks” from Petrobras ? NO.
And now, PREPA will be sold off to a series of private Wall Street financiers: the same financiers that helped drive PREPA, and the entire economy of Puerto Rico, into the gutter.
LISA DONAHUE’S REAL JOB DESCRIPTION…THE CLEANER
Clearly, Donahue was not “restructuring” PREPA for the benefit of electrical consumers.
A 15-20% rate hike over proved that, very convincingly.
Donahue got and shared $43 million for something…and here it is.
When the new Sheriff rode into town (the Financial Control Board) PREPA had all its audited financial statements — in neat little rows, and in accordance with GAAP (generally accepted accounting principles).
PREPA’s illegal Triple A bonds, all issued between 2009 and 2013, did not appear as a 4 billion dollar Ponzi scheme in those financial statements — yet that is exactly what they were.
Instead, the bonds were all SEC compliant, and Dept. of Justice approved.
Lisa Donahue helped to 1) whitewash PREPA for decades of corruption and mismanagement, and 2) shield Wall Street from any major inquiries or indictments.
She reconciled the books so professionally, that an entire generation of journalists will now apologize for dreaming that Caleb Brett Labs would falsify 600 oil analysis reports; or that the PPD and PNP would poison their own people with toxic sludge oil; or that William Clark, or Luis Fortuño, or anyone would take bribes from a fuel oil cartel.
In the end, Lisa Donahue performed the role of Harvey Keitel in Quentin Tarantino’s Pulp Fiction.
Donahue was a cleaner.
For a history of the War Against All Puerto Ricans, read the book…