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| White House distances itself from Puerto Rico power contract | White House distances itself from Puerto Rico power contract |
| (about 1 hour later) | |
| The White House has distanced itself from a $300m (£227m) contract awarded to a tiny Montana firm to help reconstruct Puerto Rico's power grid. | |
| The statement came as President Donald Trump met his Interior Secretary Ryan Zinke, who knows the chief executive of the company, Whitefish Energy. | The statement came as President Donald Trump met his Interior Secretary Ryan Zinke, who knows the chief executive of the company, Whitefish Energy. |
| Federal authorities have expressed "significant concerns" about the deal, and are reviewing the contract. | Federal authorities have expressed "significant concerns" about the deal, and are reviewing the contract. |
| Some 75% of Puerto Ricans have no power five weeks after Hurricane Maria. | Some 75% of Puerto Ricans have no power five weeks after Hurricane Maria. |
| White House spokesman Raj Shah said on Friday: "Our understanding is the decision to give a contract to Whitefish Energy was made exclusively by Puerto Rico Electric Power Authority (Prepa). | White House spokesman Raj Shah said on Friday: "Our understanding is the decision to give a contract to Whitefish Energy was made exclusively by Puerto Rico Electric Power Authority (Prepa). |
| "The White House is not aware of any federal involvement in the selection." | "The White House is not aware of any federal involvement in the selection." |
| The US interior secretary - who has acknowledged knowing Whitefish's chief executive, but denies any involvement in the deal - met the president at the White House on Friday. | The US interior secretary - who has acknowledged knowing Whitefish's chief executive, but denies any involvement in the deal - met the president at the White House on Friday. |
| Prepa, the US territory's main utility, asserted that federal authorities had reviewed the deal. | Prepa, the US territory's main utility, asserted that federal authorities had reviewed the deal. |
| But the US Federal Emergency Management Agency (Fema) denied that on Thursday night. | But the US Federal Emergency Management Agency (Fema) denied that on Thursday night. |
| Among other clauses, the contract states that "Prepa hereby represents and warrants that Fema has reviewed and approved of this Contract". | Among other clauses, the contract states that "Prepa hereby represents and warrants that Fema has reviewed and approved of this Contract". |
| It also says Fema "confirmed this Contract is in an acceptable form to qualify for funding from Fema or other US Governmental agencies". | It also says Fema "confirmed this Contract is in an acceptable form to qualify for funding from Fema or other US Governmental agencies". |
| In an email to reporters on Thursday night, Fema said "any language in any contract between Prepa and Whitefish that states Fema approved that contract is inaccurate". | In an email to reporters on Thursday night, Fema said "any language in any contract between Prepa and Whitefish that states Fema approved that contract is inaccurate". |
| Fema also said it "has significant concerns with how Prepa procured this contract and has not confirmed whether the contract prices are reasonable". | Fema also said it "has significant concerns with how Prepa procured this contract and has not confirmed whether the contract prices are reasonable". |
| Its review is ongoing, but the disaster agency warned that contracts not in compliance with their regulations "risk not being reimbursed by Fema for their disaster costs". | Its review is ongoing, but the disaster agency warned that contracts not in compliance with their regulations "risk not being reimbursed by Fema for their disaster costs". |
| It is unclear what would happen if Fema refused to pay. | It is unclear what would happen if Fema refused to pay. |
| Walt Green, a former director of the US National Center for Disaster Fraud, told BBC News: "It is impossible to say who is ultimately responsible for costs that are denied by Fema until much more information is known. | Walt Green, a former director of the US National Center for Disaster Fraud, told BBC News: "It is impossible to say who is ultimately responsible for costs that are denied by Fema until much more information is known. |
| "Any dispute may result in appeals, administrative hearings and lawsuits." | "Any dispute may result in appeals, administrative hearings and lawsuits." |
| Puerto Rican authorities initially said Fema would pay for the deal. | Puerto Rican authorities initially said Fema would pay for the deal. |
| They are now seeking to assure the public there is "nothing illegal" about the contract. | They are now seeking to assure the public there is "nothing illegal" about the contract. |
| Prepa and the Puerto Rican government are saddled with massive debts. The power authority declared bankruptcy in July. | Prepa and the Puerto Rican government are saddled with massive debts. The power authority declared bankruptcy in July. |
| Neither Prepa nor the Puerto Rican governor's office nor Whitefish Energy returned multiple BBC emails requesting comment. | Neither Prepa nor the Puerto Rican governor's office nor Whitefish Energy returned multiple BBC emails requesting comment. |
| A major investor in the company was also found to have made donations to the Trump campaign and allied groups during the 2016 presidential race. | A major investor in the company was also found to have made donations to the Trump campaign and allied groups during the 2016 presidential race. |
| The investor did not return a BBC request for comment. | The investor did not return a BBC request for comment. |
| Questions have been raised about why a little-known, two-year old firm with no experience of work on this scale was awarded the contract so quickly. | Questions have been raised about why a little-known, two-year old firm with no experience of work on this scale was awarded the contract so quickly. |
| Critics have also queried why Puerto Rican authorities did not seek aid from other public utility companies - as is custom during disasters. | Critics have also queried why Puerto Rican authorities did not seek aid from other public utility companies - as is custom during disasters. |
| The US House of Representatives Natural Resources Committee, which has jurisdiction over the Caribbean island, is also scrutinising the contract. | The US House of Representatives Natural Resources Committee, which has jurisdiction over the Caribbean island, is also scrutinising the contract. |
| On Friday, top Democrats from that committee and the Transportation and Infrastructure Committee sent a letter requesting the Department of Homeland Security's inspector general launch an investigation. | On Friday, top Democrats from that committee and the Transportation and Infrastructure Committee sent a letter requesting the Department of Homeland Security's inspector general launch an investigation. |
| The correspondence follows similar requests from other members of Congress to the interior department's inspector general. | The correspondence follows similar requests from other members of Congress to the interior department's inspector general. |
| Puerto Rico Governor Ricardo Rossello said on Friday he is awaiting the results of an audit that he has ordered on the deal. | Puerto Rico Governor Ricardo Rossello said on Friday he is awaiting the results of an audit that he has ordered on the deal. |