Puerto Rico to cancel energy repair contract

Governor says controversy surrounding £228m agreement too ‘distracting’

Workers struggle to restore power to Puerto Rico following Hurricane Maria
(Image credit: This content is subject to copyright.)

The Governor of Puerto Rico has said he will cancel a controversial £228m contract with Whitefish Energy to rebuild the island’s power grid, citing controversy over the manner in which the contract was awarded.

Questions have been raised about how Whitefish Energy, a company that had just two employees when Hurricane Maria devastated Puerto Rico, was able to secure the contract.

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE
https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up

The decision comes two days after the US Federal Emergency Management Agency (Fema) criticised the deal, denying it had endorsed the contract despite claims by the Puerto Rico Electric Power Authority to the contrary.

“Fema said it had ‘significant concerns’ and warned that it might refuse to cover the costs of the contract if it was found to be improper,” the The New York Times says.

Governor Ricardo Rossello said: “As a result of the information that has been revealed and the need to protect the public interest, as governor I am asking the power authority to cancel the Whitefish contract immediately.”

The deal, “which was signed shortly before the hurricane hit, is also being audited at the local and federal level,” The Guardian says.

Cancellation of the contract requires a 30-day notification period, during which Whitefish Energy is expected to complete any work currently underway. Up to 70 per cent of the island is still without power.

Explore More