Puerto Rico 2019 – One Crazy Year. And Then Earthquakes

Mid January 2020

Introduction

The San Juan Star, the English language newspaper here in Puerto Rico, published a month by month review of events that occurred in 2019. I selected a few from each month to illustrate the range of things that happened.

January 2019

As you can imagine, much of the year’s activities involved the Puerto Rico debt crisis. The Puerto Rico Oversight, Management and Economic Stability Act (PROMESA), signed into law by President Obama in 2016, caused the creation of the Financial Oversight and Management Board (FOMB). The board is itself controversial here – seven members are appointed by the President of the United States, and one ex-officio member by the Governor of Puerto Rico. The FOMB reviews and approves annual financial plans and statements for bond issuers, including the University of Puerto Rico, the Puerto Rican Electric Power Authority, etc.

A sub committee of the FOMB raises an objection to more than $6 billion in Puerto Rico bond debt. In addition, FOMB recommends that the government – owned public broadcasting corporation be converted to a private non-profit entity.

February 2019

The US Appeals Court in Boston reviews the language regarding appointments in PROMESA. Judge Laura Taylor Swain grants the FOMB 90 days to remove language deemed unconstitutional. FOMB Chairman Jose Carrion informs the Governor that the Board could use its sole discretion to manage Puerto Rico’s funds during the 90 day period.

Judge Laura Taylor Swain was selected to oversee the Puerto Rico debt restructuring.

Federal authorities review the Department of Education to seek information concerning the activities of Secretary of Education Julia Keleher.

Julia Keleher oversaw the closing of over 400 public schools during her tenure as Secretary of Education.

March 2019

Governor Ricardo Rossello Navares announces he will run for a second term. He then vetoes Senate Bill 950 which would have limited access to abortion. The House rejected Senate Bill 1000 which would have banned so called “conversion therapies” to change sexual orientation of minors. The governor then signs an executive order banning such therapies.

Governor Ricarado Rosello Navares.

The governor signs an executive order mobilizing the Puerto Rico National Guard to help ship goods to the islands of Culebra and Vieques. The freight ferry of the Maritime Transportation Authority was ineffective.

April 2019

Julia Keleher resigns from her post as the Secretary of Education. The next day, she accepts a professional advisory contract, at the same salary, to the Financial Advisory and Tax Agency Authority. After public outcry, she resigns from that as well.

The FOMB files over 200 lawsuits to recover payments made by the government in conflict with Puerto Rican laws and the U. S. Bankruptcy Code.

Two of the four shipping companies that provide transportation between Puerto Rico and the mainland begin talks as to a possible merger, TOTE Maritime would merge with the Luis Ayala Colon company. The combined entity would control 70% of the mainland-Puerto Rico shipping business.

A Tote Maritime container ship leaving San Juan. She is headed to Jacksonville, Florida.

May 2019

The FOMB decides to include several municipalities under its jurisdiction. In addition, it files lawsuits to recover $1 trillion from bondholders who bought bonds issued above Puerto Rico constitutional limits. In addition, the FOMB files other lawsuits against the advisory firms that helped issue the bonds.

Rosa Emilio Rodriguez, federal attorney for the District of Puerto Rico for the last 13 years, retires. She indicates there are ongoing cases involving corruption and ‘ghost’ employees in the government work force.

June 2019

President Trump nominates W. Stephen Muldrow as head of the Puerto Rico Federal Prosecutor’s Office. The United States Senate subsequently confirmed the appointment.

W. Stephen Muldrow. President Trump nominated him to run the Federal Prosecutors Office of San Juan.

Governor Rossello Nevares fires Raul Maldonado Gautier. He had been the Chief Financial Officer and Secretary of the Department of the Treasury. Maldonado had described an alleged ‘institutional mafia’, which included the governor, within the department. Maldonado’s son, Raul Jr, starts a social media campaign against the governor.

July 2019

On July 10, the Federal Prosecutor’s Office issues a 32 count indictment against former government officials. The FBI arrests Julia Keleher and five others.

The RickyLeaks scandal erupts. On July 8, 800 pages of messages between members of the administration are leaked to the press. Some of the messages were considered vulger, racist, and homophobic. One message called San Juan Mayor Carmen Yulin Cruz  ”a total daughter of a bitch”. Others showed that the governor had shared confidential government data with people outside the government. Still others shared jokes about the deaths from Hurricane Maria.

Mass protests ensued. Puerto Ricans were especially incensed by how lightly Rosello Navares and others seemed to take the loss of life because of Maria. On July 12, over a million protested across the island. Old San Juan was shut down. Cruise ships had to be diverted to other ports. On July 21, the governor resigns as the head of his political part and states he would not run for reelection. On July 22, after 11 days of protests in front of the governor’s mansion, the governor announces he would resign effective August 2.

Signs like this urging the governor to resign were all over Puerto Rico.

The governor called an extraordinary session of the legislature to attend to the appointment of Pedro Pierluisi Urrutia as Secretary of State.

Protestors want no more corruption.

August 2019

Justice Department Secretary Wanda Vazquez, who had previously announced she had no interest in becoming governor, decides she would not relinquish her position after all. This makes her, according the the Puerto Rican Constitution., in line to become governor.

The House confirms Pierluisi as Secretary of State, but the Senate does not. In spite of that, Pierluisi is sworn in as governor. The Senate President challenges the process. The Supreme Court of Puerto Rico declares the process unconstitutional. Wanda Vazquez Garced becomes governor, the third in three days.

September 2019

Governor Vazquez Garced states she will not intervene in the merger of Tote Maritime and Luis Colon Ayala. Two days later, she changes her mind and says she will intervene.

November 2019

Renowned astrologer Walter Mercado dies.

The FBI arrests Senator Abel Nazario, along with seven others, on charges of theft or bribery in connection with programs that receive federal funds. He announces he will run for senator as an independent candidate and completes the requisite paperwork to do so.

December 2019

Residents in communities along the southwest coast, especially Yauco and Guayanilla, begin to feel small earthquakes.

To the surprise of no one, Governor Vazquez Garced announces she will run for reelection.

Summary

So here are some of the events in Puerto Rico in 2019. It was quite a year. 2020 is an election year here. All offices will be contested. There will be political rallies all summer, ending with election day in early November. The governor is sworn in on January 1 and then the governor and her/his family walk from the capitol to La Fortalezza, the governor’s mansion in Old San Juan. I’ve been in Old San Juan for the two previous inaugurations – they are truly festive events.

More on that later.

Notes and Sources

The images of Judge Swain and other individuals were taken from the web. The other pictures are mine.

Most of the information is from the December 23, 2019 issue of the San Juan Star. I found other information in Wikipedia; articles on RickyLeaks, Judge Swain, etc.

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