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Puerto Rico governor: Scrap Whitefish energy grid deal | Puerto Rico governor: Scrap Whitefish energy grid deal |
(about 1 hour later) | |
Puerto Rico's governor has called for the cancellation of a controversial contract given to a tiny Montana firm to help reconstruct the island's power grid. | |
Ricardo Rossello also said he wanted to see repair teams brought from New York and Florida to aid with reconstruction efforts in the wake of Storm Maria. | |
The contract was given to Whitefish Energy, which has little experience of work on such a scale, without a public bid process. | The contract was given to Whitefish Energy, which has little experience of work on such a scale, without a public bid process. |
Several inquiries are under way. | |
More than 70% of people on the US-controlled island were without power as of Sunday morning - more than five weeks after the powerful hurricane devastated the power grid. | |
Mr Rossello said on Sunday he had asked the board of governors of the Puerto Rican Electric Power Authority (Prepa) to cancel the Whitefish contract. | |
"There can be no distraction to alter the commitment to restore the power system as quickly as possible," he said. | |
The governor said he had instructed Prepa to "immediately coordinate with the states of Florida and New York to reinforce brigades" that are currently rebuilding the grid on the island. | |
Concerns were raised about why Puerto Rican authorities had not requested "mutual aid" from other public power authorities, as is typical during disasters in the US. | |
The White House and the Federal Emergency Management Agency (Fema) distanced themselves from the deal last week. | The White House and the Federal Emergency Management Agency (Fema) distanced themselves from the deal last week. |
The company has its headquarters in the town of Whitefish, the hometown of US Interior Secretary Ryan Zinke. Mr Zinke has denied any involvement or wrongdoing. | |
Whitefish has said that it secured the $300m (£228m) deal in a legitimate manner. | Whitefish has said that it secured the $300m (£228m) deal in a legitimate manner. |
The company did not immediately respond to a BBC request for comment on the governor's statement. | |
Prepa also did not immediately return a request for comment on the latest developments. | |
Fema has denied allegations by Prepa, the US territory's main utility, that it reviewed the deal. | |
The contract states that "Prepa hereby represents and warrants that Fema has reviewed and approved of this Contract". | The contract states that "Prepa hereby represents and warrants that Fema has reviewed and approved of this Contract". |
In a statement on Thursday, Fema said: "Any language in any contract between Prepa and Whitefish that states Fema approved that contract is inaccurate." | In a statement on Thursday, Fema said: "Any language in any contract between Prepa and Whitefish that states Fema approved that contract is inaccurate." |
Fema also said it had "significant concerns" with how Prepa had procured the contract and had "not confirmed whether the contract prices [were] reasonable". | |
Critics have queried why Puerto Rican authorities did not seek aid from other public utility companies - as is customary during disasters. | Critics have queried why Puerto Rican authorities did not seek aid from other public utility companies - as is customary during disasters. |
It is unclear what will happen if Fema refuses to pay. | |
Walt Green, a former director of the US National Center for Disaster Fraud, told BBC News it was "impossible" to say at this stage who was responsible for costs. | |
"Any dispute may result in appeals, administrative hearings and lawsuits," he added. | "Any dispute may result in appeals, administrative hearings and lawsuits," he added. |
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. |
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 panel and the Transportation and Infrastructure Committee sent a letter asking the Department of Homeland Security's inspector general to 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. |