WAR AGAINST ALL PUERTO RICANS

How Governor Ricky Roselló is STEALING Puerto Rico for Wall Street

Book - 12-10

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…

and…

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

plus…

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…

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

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

The Dan Rather interview on Puerto Rico

In late 2017, Dan Rather interviewed Nelson Denis on the subject of Puerto Rico: its history, politics and economic future.

Mr. Rather showed a sincere and thoughtful interest in the island and its residents.

The discussion was far-ranging and no topic was off the table. Here are two segments of the Dan Rather interview:


 

Many thanks to Dan Rather and his producer Scott Marlowe, for sharing this information about Puerto Rico.

–Nelson Denis

 
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

Swedish Public Radio is aware of Puerto Rico

War Against All Puerto Ricans: Revolution and Terror in America’s Colony

The public radio system of Sweden is better informed than the US congress, with respect to Puerto Rico.

They recently conducted an investigation of the Jones Act, the Financial Control Board, the US government response to Hurricane Maria, and the economic history of Puerto Rico. You can hear the Swedish radio broadcast here:

http://sverigesradio.se/sida/avsnitt/987848?programid=2946

Apparently, the Swedish radio public has a higher attention span than our own US congress.

The journalist who conducted the investigation is named Fernando Arias.

We thank him for his consideration of Puerto Rico.

–Nelson Denis

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

US Congress prepares to add a 20% tax to ALL products from Puerto Rico

War Against All Puerto Ricans: Revolution and Terror in America’s Colony

Six weeks after a devastating hurricane, the US Congress is preparing another hurricane for Puerto Rico. Just four days ago, on November 9, the House Ways & Means Committee approved a bill that will add a 20% tax to EVERY product that enters the US from Puerto Rico.

This bill is part of the 2017 congressional “tax reform” package.

You can read the entire bill here.  The relevant section is Sec. 4303, which starts on page 397. 

You can also read a summary of the bill here.  Sec. 4303 is discussed on pages 6 and 7.

A delegation of Puerto Rico legislators immediately flew up to Washington, DC, to show congress how this “Puerto Rico tax reform” will further devastate the island.

The Spanish-language press covered this “Puerto Rico tax reform” repeatedly, immediately, with front page headlines and in great detail.

Until today, the only English-language press is a small article in Caribbean Business

The US Senate is considering an alternative “Puerto Rico tax reform” with a lower import tax of 12.5%, which is expected to pass shortly after the Thanksgiving break. But even this “tax reform” will doom the island’s economy.

“It would be devastating for Puerto Rico,” said ex-governor  Anibal Acevedo-Vila.

“It would be a third hurricane for this island,” said Rodrigo Masses, president of the Industrial Association of Puerto Rico.

It would cause “the total collapse of the island’s economy,” said Fernando Montalvo, coordinator of the Puerto Rico Private Sector Coalition.

State-by-State Comparison

To place this in context, consider the chief exports of various US states: lobsters from Maine, coal from West Virginia and Pennsylvania, diamonds from New York. Airplane parts are the chief export of twelve states: Arizona, Arkansas, California, Connecticut, Georgia, Hawaii, Kansas, Kentucky, North Carolina, Ohio, Oklahoma and Washington.

Now imagine what would happen if the US Congress slapped an additional 20 percent tax on all lobsters, coal, diamonds and airplane parts.

An open rebellion would break out in most, if not all, of those states. The National Guard would have to mobilized; martial law would be declared. Crime, suicide and homelessness would skyrocket. Wall Street values would plummet.

Now multiply all this exponentially in Puerto Rico, where ALL products will be indentured with a 20% export tax – just six weeks after a hurricane, on an island with no electricity and a per capita income of $16,000  –  half that of Mississippi, the poorest state in the US.

Oh, I almost forgot. The island also has a Financial Control Board screaming PAY ME.

Hurricane Hustlers

Mercenary capitalism is nothing new in Puerto Rico. The Naomi Klein “shock doctrine” has been applied there for well over 100 years.

After Hurricane San Ciriaco, the worst hurricane of the entire 19th century, flattened Puerto Rico in 1899, the US de-valued the island’s monetary currency by 40% in 1900. The very next year (1901) they inflicted the Hollander Act: a steep property tax on all Puerto Rican farmers.

This was not intended as hurricane relief. It was a calculated and efficient land grab – and sure enough, by 1930, eighty percent of Puerto Rico’s farmland was owned by US banking syndicates.

Now in the 21st century, nothing much has changed. Puerto Rico continues to stare into the rifle barrel of the US capitalist system.

The combination of the Jones Act, which inflates all Puerto Rico import prices by 20%, and now this “Puerto Rico tax reform,” which taxes all Puerto Rican exports by 20%, will surely doom any effort at economic recovery in Puerto Rico.

A Century of Second-Class Citizenship

In view of the human devastation of Hurricane Maria, this looming economic implosion is both frightening and saddening. After  a century of citizenship, Puerto Ricans have little to show for it.

After one hundred years of citizenship, Puerto Ricans enjoy the media images of the American dream and the underside of the US Constitution. They are free to be poor, under-educated and unemployed; free to be invisible and unheard; free to lose their homes to Wall Street; free to flee the island in utter desperation, as hundreds of thousands have done in recent years.

Puerto Ricans are being blown by one hurricane after another. The latest one is a 20 percent tax on all their products, six weeks after a hurricane, thanks to the US Congress.

 
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

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