Billions in federal dollars are pouring into Puerto Rico to address damage wrought by Hurricane Maria last year, rekindling concerns about the U.S. territory’s credibility as a fiscal steward, WSJ Pro Bankruptcy reported. Soon after the hurricane hit the island last September, Puerto Rico’s bankrupt power monopoly, PREPA, signed a $300 million contract with little-known Montana firm Whitefish Energy Holdings LLC to repair the damaged electrical grid. Irregularities quickly emerged in how the deal was awarded and priced, sparking inquiries from local and federal authorities and eroding the Puerto Rico government’s image. Sen. Maria Cantwell (D.-Wash.), called the deal “a great injustice to the U.S. taxpayer,” citing the “potentially inflated costs of time and material” and the “opaque and limited nature of PREPA’s bidding process.” Similar concerns are now resurfacing as federal funding flows in to repair damaged houses, roads and other infrastructure, including the power grid.
