Puerto Rico’s governor won a decisive court victory that could boost his role in shaping the island’s financial recovery as he seeks $94 billion in federal aid to pay for the devastating damage dealt by the September hurricane, Bloomberg News reported. A federal judge struck down a request by the U.S. board that oversees the island’s finances to appoint its own manager to turn around Puerto Rico’s bankrupt electric utility. Governor Ricardo Rosselló had opposed the move, saying that it encroached upon the authority of elected officials and was beyond the scope of the power given to the panel in an emergency rescue law enacted last year. U.S. District Court Judge Laura Taylor Swain said yesterday that the federally appointed overseers must share control with local officials. While the law allowed it to put Puerto Rico’s various public agencies into bankruptcy, it doesn’t allow it to manage those institutions, she ruled. Read more.
In related news, the House Natural Resources Committee will hold a hearing today at 2 p.m. ET titled “The Need for Transparent Financial Accountability in Territories' Disaster Recovery Efforts.” To view the witness list, please click here.
