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A12 WORLD NEWS
Saturday 5 auguSt 2017

Furloughs approved for 1st time in Puerto Rico’s history

Gov. Ricardo Rossello forecast if it meets a cou-
echoed that message ple of conditions, including
hours later during a brief the required $218 million in
public address on Friday savings.
afternoon. He said he The board had originally
would be letting U.S. Presi- proposed furloughs of two
dent Donald Trump and days a month for teachers
U.S. House Speaker Paul and four days a month for
Ryan know that his admin- other government workers
istration will not adhere to as a way to cut govern-
the board’s decision. ment spending by up to
“Those cuts would have a $40 million a month. In ad-
devastating effect on our dition, the board is expect-
economy that would not ed to vote in upcoming
only affect the quality of weeks on whether to elimi-
life of more than 130,000 nate all Christmas bonuses.
families, but ... practically More than a dozen of Puer-
all commercial activity in to Rico’s 78 municipalities
Puerto Rico,” he said. already have implement-
Rossello has said the fur- ed their own furloughs in
loughs would have a $600 recent months as they
million negative eco- struggle with shrinking bud-
nomic impact in the next gets. The board on Friday
Angelo Lopez, 74, stands in front of his fresh fruit store in Lares, Puerto Rico. A federal control board two years. He also said he also briefly talked about re-
overseeing Puerto Rico’s crisis-wracked finances announced Friday that it will impose furloughs would go to court if need- forming Puerto Rico’s pub-
for the first time in the U.S. territory’s history.
(AP Photo/Ricardo Arduengo) ed and said the board did lic pension system, which
not have the power to act faces nearly $50 billion in
By DANICA COTO police, said Natalie Jares- very concerning,” she said. unilaterally. liabilities. Board members
Associated Press ko, the board’s executive The meeting turned con- Board chairman Jose Car- said all newly hired em-
SAN JUAN, Puerto Rico (AP) director. She said these will tentious after the an- rion warned that going to ployees will be enrolled in
— A federal control board continue until the end of fis- nouncement, with Puerto court could lead to deep- Social Security. Currently,
overseeing Puerto Rico’s cal year 2018. Rico officials rejecting the er furloughs if implementa- teachers and police offi-
crisis-wracked finances an- The furloughs are needed board’s decision. tion is delayed. cers in Puerto Rico do not
nounced Friday that it will because the administration “There will be no furloughs. “We do not consider this receive Social Security and
impose furloughs for the first of Gov. Ricardo Rossello You can take that to the a recommendation as the depend solely on the pub-
time in the U.S. territory’s has not achieved $218 mil- bank,” said Christian Sobri- government alleges,” he lic pension system.
history. lion in savings as part of an no, the Puerto Rico gover- said. Jaresko said the fur- The board also said the sys-
Furloughs of up to two days overall $880 million in sav- nor’s representative to the loughs are not permanent tem will face a 10 percent
a month will start Sept. 1 ings required by the board, board, as he sat on stage and that Puerto Rico’s cut. “Unfortunately, we
and apply to all govern- Jaresko said. next to board members government has the pow- find ourselves in a situation
ment employees except “Where we are today is still during the public meeting. er to end them earlier than where honoring 100 per-
cent of the obligations is
Argentina court upholds closure of Macri probe not workable,” said board
member Ana Matosantos.
Sobrino disputed that, say-
ing that a bill currently be-
BUENOS AIRES, Argentina leak of law firm documents possible tax evasion. sponse to criticism over
(AP) — A court in Argentina known as the Panama Pa- Macri says the companies the revelations. The case ing debated by Puerto
is upholding a decision to pers. Thursday’s decision were family businesses but was initially launched by a Rico legislators will protect
close a money-laundering ratifies a previous ruling he was not a shareholder prosecutor seeking to in- the system from any cuts.
investigation into Presi- that found no proof of sus- and did not receive com- vestigate whether Macri He also warned that if no
dent Mauricio Macri’s role picious transactions or ac- pensation. He has set up “maliciously” omitted his action is taken, the system
in two offshore compa- counts. But the court said a blind trust to handle his role in the companies in tax will become insolvent in
nies named in the massive Macri will still be probed for financial holdings in re- declarations.q the next couple of weeks.
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