Investigation Soon to Disclose Causes of Puerto Rico’s Financial Collapse — and It Wasn’t the Economy
6th September 2016
Sources close to the investigations suggest that there was massive and repeated government theft of public funds, going on for over a decade. The theft of public money along with widespread Wall Street fraud associated with the islands bond issues, resulted in $39,000,000,000 in bondholder losses.
My, what a surprise. Aren’t you surprised? I’m sure surprised.
The Puerto Rico Power Authority (PREPA), one of the world’s largest government owned utilities has been burning No. 6, sludge oil for over a decade. The authority has been billing its citizens for the higher grade No. 2. Oil. The payments for this oil have been wired off shore and then kicked back to government officials family members. The difference in cost between No.2 and No. 6 oil is approximately 58%. In some years the overpayments exceeded $1.6 billion dollars.
Indeed — a banana republic without any bananas.