Puerto Rico to cancel $300 million electricity contract after uproar
The terms of the contract between Whitefish Energy Holdings and PREPA were obtained without a competitive public bidding process.
Puerto Rico's government power company said on Sunday it will cancel a $300 million contract with Whitefish Energy to restore power to the storm-hit US territory after an uproar over the deal.
The contract between Whitefish Energy Holdings and PREPA came under fire after it was revealed last week that the terms were obtained without a competitive public bidding process.
Residents, local officials and US federal authorities all criticised the arrangement.
“Following the information that has emerged, and with the goal of protecting public interest, as governor I am asking government and energy authorities to immediately activate the clause to cancel the contract to Whitefish Energy,” Ricardo Rosselló said in a statement.
Whitefish Energy stated that this decision will "only delay what the people of Puerto Rico want and deserve – to have the power restored quickly in the same manner their fellow citizens on the mainland experience after a natural disaster."
Federal investigators looking at Whitefish deal
Federal investigators have been looking into the contract awarded to the small company from Interior Secretary Ryan Zinke's hometown and the deal is being audited at the local and federal level.
Ricardo Ramos, head of Puerto Rico's power company, said Whitefish contacted Puerto Rico's Electric Power Authority two days before the storm hit, at a time when it was becoming clear the hurricane could cause massive damage.
Ramos earlier said he had spoken with at least five other companies that demanded rates similar to those of Whitefish, but also wanted a down payment the agency did not have.
He said Sunday he hadn't consulted with anyone else about signing the deal and didn't notify the governor's office for a week. He again praised Whitefish's work.
"They're doing an excellent job," he said. "There's nothing illegal here ... Of that, we're sure," he said, adding that he welcomes a federal investigation. "The process was done according to the law."