The latest allegation of misconduct raised against Puerto Rico’s Energy Czar Josué Colon Ortiz should be troubling, even in Washington. Several outlets on the island have reported that, as the August deadline neared to close the latest agreement to fix and manage its severely damaged, still-dysfunctional electric grid, he emailed subordinates telling them to “make sure the contract gets signed.”
The burning question is whether Colon’s email ordered his underlings to close the nearly $6 billion deal despite serious concerns about the business group involved or merely reminded them that an important deadline had arrived.
This isn’t the first time that allegations of corruption in Puerto Rico’s governance have raised concerns. To address them, Congress established a Federal Oversight Management Board almost a decade ago. Yet in all its time in existence, it has barely made a dent in the problem. That is part of why President Donald Trump fired its members.
Some are hanging on by claiming in the courts he lacked the authority to oust them. That case is still moving, slowly, toward the U.S. Supreme Court. Other cases involving similar predicates, however, have been decided in ways that strengthen Trump’s hand. With that in mind, he ought to force the issue by appointing an entirely new board that can select a new managing director and begin the hard work of restoring power for good.
An oversight board that actually did what Congress intended — restore fiscal discipline and financial credibility to the Commonwealth — would do a lot to spark renewed investment interest in the American territory. As things are, it’s hard to imagine investors flocking to a place where they can’t be sure their money will be safe. Who wants to put money in a place that can’t manage reliable power generation due to ongoing emergency contracting, legal disputes, and infrastructure in a state of seemingly permanent disrepair?
One can suppose the Chinese might, but who wants them building an island fortress so close to America’s Southern shores?
Swift action by the president would send an important signal that Puerto Rico matters just as much as Texas or Massachusetts. It is not a secondary consideration, at least as long as the new board acts in open, transparent ways. That means people such as Colon, who are heavily involved in procurement, should be required to preserve contract drafts, communications with bidders, proposed amendments, and any other documentation that, under scrutiny, will let Puerto Ricans know whether they are getting good deals.
You’d think Colon, who had a 30-year career at the island’s electric power authority, PREPA, should know that. The fact he hasn’t been able to find a partner who can keep the lights on might be seen as proof he doesn’t.
The way forward is for the oversight board to establish transparent procurement rules. Future requests for proposals should be open and competitive, comprising clear technical requirements, public scoring criteria, meaningful conflict-of-interest disclosures, independent engineering review, and enough time for bidders to participate.
More importantly, the newly reconstituted board must take steps to ensure no entity is awarded a contract solely because a single official decided signing it was imperative. That’s not a legitimate way to do business, which brings us full circle to what people are now concerned Colon did.
By now, it should be clear that the energy czar position should be eliminated and that Colon should be replaced as executive director of the Public-Private Partnerships Authority. Gov. Jenniffer Gonzales-Colon, who, oddly enough, is currently defending Colon, should appoint a competent interim director with no connection to any disputed contract.
WHO AUTHORIZED ENCHANTED ROCK? THE $6 BILLION QUESTION THAT BROUGHT DOWN PUERTO RICO’S POWER DEAL
The people need metrics to measure whether the promised reforms are being implemented. Colon’s rejoinder to “make sure the contract gets signed” should become shorthand for everything Puerto Ricans now suspect is happening — decisions made in a hurry, behind closed doors, by people with agendas of their own. The officials overseeing Puerto Rico’s power problems have shattered the public’s confidence. The board and Gonzales need to lead the effort to rebuild it.
Some scandals reveal incompetence. Some show how public officials game the system to serve special interests. Some expose rot in the entire system. Puerto Rico needs leaders who remember that every procurement decision is ultimately measured not in press releases, but in whether a parent can refrigerate medicine, a shopkeeper can open for business, and a neighborhood can sleep through the night without wondering when the power will fail again. Fire the energy czar. Fill the board with competent, experienced people. Clean up the process. It’s the only way to get the power back on and keep it on.
A veteran journalist formerly on staff at U.S. News & World Report, UPI, and other outlets, Peter Roff regularly produces commentary on current political and public policy matters for domestic and international outlets. You can reach him at RoffColumns AT GMAIL.com and follow him on social media @TheRoffDraft.