Page 12 - ARUBA TODAY

A12 WORLD NEWS
Monday 30 october 2017

Puerto Rico says it’s scrapping $300M Whitefish contract

By DANICA COTO, Associ- this contract.” FEMA has
ated Press raised concerns about how
SAN JUAN, Puerto Rico (AP) Whitefish got the deal and
— The head of Puerto Ri- whether the contracted
co’s power company said prices were reasonable.
Sunday the agency will The 2-year-old company
cancel its $300 million con- had just two full-time em-
tract with Whitefish Energy ployees when the storm hit,
Holdings amid increased but it has since hired more
scrutiny of the tiny Montana than 300 workers.
company’s role in restoring The White House had no
the island’s power system comment Sunday. Last
following Hurricane Maria. week, White House press
The announcement by Ri- secretary Sarah Huckabee
cardo Ramos came hours Sanders said the federal
after Gov. Ricardo Rossello government had no role
urged the utility to scrap in the process that led to
the deal for Whitefish’s help awarding the contract.
in rebuilding the electrical “This was something solely
system. determined by the Puerto
“It’s an enormous distrac- Rican government,” she
tion,” Ramos said of the said Friday. Rossello said he
controversy over the con- In this Oct. 15, 2017, file photo, Whitefish Energy Holdings workers restore power lines damaged by has requested that crews
tract. “This was negatively Hurricane Maria in Barceloneta, Puerto Rico. from New York and Florida
impacting the work we’re Associated Press come help restore power
already doing.” San Juan getting power. of the contract will not consulted with anyone else in Puerto Rico as he criti-
The current work by White- “We will certainly finish any lead to a penalty, but it’s about signing the deal and cized the U.S. Army Corps
fish teams will not be af- work that (the power com- likely the government will didn’t notify the governor’s of Engineers for not meet-
fected by the cancellation pany) wants us to com- pay at least $11 million for office for a week. He again ing its goals. The agency
and that work will be com- plete and stand by our the company to go home praised Whitefish’s work. could not be immediately
pleted in November, Ra- commitments,” he said. early, including all costs in- “They’re doing an excel- reached for comment.
mos said. He said the can- Roughly 70 percent of the curred in the month after lent job,” he said. The governor also an-
cellation will delay pending U.S. territory remains with- the cancellation. “There’s nothing illegal nounced the appointment
work by 10 to 12 weeks if no out power more than a Federal investigators have here ... Of that, we’re sure,” of an outside coordinator
alternatives are found. month after Maria struck been looking into the con- he said, adding that he to oversee the power com-
Ramos said he had not on Sept. 20 as a Category tract awarded to the small welcomes a federal inves- pany’s purchase and con-
talked with Whitefish exec- 4 storm with winds of up to company from Interior Sec- tigation. “The process was tracting division.
utives about his announce- 154 mph (245 kph). Ramos retary Ryan Zinke’s home- done according to the “If something illegal was
ment. “A lawsuit could be said Sunday that the total town and the deal is being law.” done, once again, the of-
forthcoming,” he warned. of cost of restoring the sys- audited at the local and Ramos said his agency at ficials involved in that pro-
Whitefish spokesman Chris tem would come to $1.2 federal level. first believed the Federal cess will feel the full weight
Chiames told The Associat- billion. Ramos said the company Emergency Management of the law, and I will take
ed Press that the company The cancellation is not of- contacted Puerto Rico’s Agency pre-approved administrative actions,”
was “very disappointed” ficial until approved by the Electric Power Authority two contracts, something the Rossello said.
in the governor’s decision, utility’s board. Ramos said it days before the storm hit, agency has denied. A Whitefish contract ob-
and said it would only de- would take effect 30 days at a time when it was be- FEMA said it has not ap- tained by The Associated
lay efforts to restore power. after that. coming clear the hurricane proved any reimbursement Press found that the deal
He said Whitefish brought Ramos said the company could cause massive dam- requests from the power included $20,277 an hour
350 workers to Puerto Rico already has paid White- age. Ramos earlier said he company for money to for a heavy lift Chinook he-
in less than a month and it fish $10.9 million to bring its had spoken with at least cover repairs to the island’s licopter, $650 an hour for
expected to have 500 more workers and heavy equip- five other companies that electrical system. The con- a large crane truck, $322
by this week. Chiames said ment to Puerto Rico and demanded rates similar to tract said the utility would an hour for a foreman of a
the company completed has a $9.8 million payment those of Whitefish, but also not pay costs unallowable power line crew, $319 an
critical work, including a pending for work done so wanted a down payment under FEMA grants, but it hour for a journeyman line-
project that will soon lead far. the agency did not have. also said, “The federal gov- man and $286 an hour for a
to a half million people in Ramos said cancellation He said Sunday he hadn’t ernment is not a party to mechanic. q