The president of Puerto Rico’s independent procurement office testified under oath that three finalist bidders for a now-cancelled $5.9 billion power contract had people lobbying on their behalf, despite sworn statements denying it — testimony that drew an immediate legal threat from one of the companies named.
Osvaldo Carlo Linares, who heads Regulatory Compliance Services, the firm that administers the Independent Procurement Office (3PPO) under contract with the Public-Private Partnerships Authority, testified Tuesday before the House Government Committee, chaired by Rep. Víctor Parés Otero. He told lawmakers 3PPO had identified three people or firms connected to lobbying efforts by the bidders competing for Puerto Rico’s temporary power generation contract: the law firm McConnell Valdés, which has a lobbying division, for Javelin Global Commodities; attorney and former Secretary of Public Affairs Anthony Maceira, for Gothams Energy; and Alfredo Escalera, founder of the firm Globalize, for Power Expectations.
Carlo said all three bidders had submitted sworn statements denying they had lobbyists. When 3PPO asked about the individuals it had identified, each company gave a different explanation: Power Expectations described Escalera as a “business advisor,” and Maceira said he was acting as Gotham’s attorney, not as a lobbyist.
Gothams pushes back
Gothams Energy responded within a day. Through its lawyers, the company sent Carlo Linares a cease-and-desist letter denying that Maceira had engaged in lobbying on its behalf in Puerto Rico. The letter also denied that Gothams or its parent company had ever been the subject of a veto, exclusion, suspension or disqualification by the U.S. Department of State or any federal agency — a separate claim raised during the hearing.
Carlo’s testimony also detailed interventions by Energy Czar Josué Colón in the bidding process — an account that put Colón’s own earlier testimony under scrutiny for possible perjury. Colón told the same committee on Sept. 3 that his involvement in the bidding and contract award was limited to “seguimiento,” or follow-up. No perjury finding has been made.
Carlo said the bidding process was also discussed at La Fortaleza, with Gov. Jenniffer González Colón and then-Secretary of the Governor’s Office Francisco Domenech Fernández present, but that neither pushed for a particular bidder, according to his account. He said he separately spoke with Senate Vice President Carmelo Ríos Santiago after Ríos said publicly that Javelin representatives had paid him a visit.
The hearing is part of a House investigation, under House Resolution 42, into how 3PPO managed the contracting process that led to the now-cancelled $5.9 billion agreement with Power Expectations, Reyes Contractor Group and other firms for a 400-megawatt temporary generation project.
Related coverage: PREPA Terminates $5.9 Billion Power Expectations Contract as Fraud Referrals Widen · OPFEI Adds Third Prosecutor to Widening Domenech Corruption Investigation
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Sources: El Nuevo Día, NotiCel, San Juan Daily Star, Metro Puerto Rico
