October 31, 2017 Read More →

FBI Investigating $300 Million Whitefish Deal

Wall Street Journal:

Agents from the FBI’s San Juan field office are looking into circumstances surrounding the deal that the public power monopoly known as Prepa signed with Whitefish Energy Holdings LLC, according to the people familiar with the matter.

Puerto Rico Gov. Ricardo Rosselló canceled the contract Sunday, saying it had become a distraction from the U.S. territory’s efforts to restore the devastated grid. Only 30% of the island’s power customers have had electricity restored.

The Federal Emergency Management Agency, multiple congressional committees and local auditors also have raised concerns and begun requesting documents about the deal.

Whitefish, a startup firm based in the remote hometown of Interior Secretary Ryan Zinke, had roughly 350 subcontracted workers and 2,500 tons of heavy equipment on the ground for restoring electrical lines destroyed in the Category-4 hurricane. But the firm’s small size and limited track record, as well as the terms of the contract, ignited concerns around Puerto Rico’s management of the flow of federal disaster-relief dollars to the island.

More ($): FBI Is Probing Puerto Rico Power Contract

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