Senate approves audit of Puerto Rico's debt amid accountability efforts

The government meeting held on June 18, 2021, focused on the appointment of Manuel Torres as the Contralor of Puerto Rico and the critical issue of auditing the island's debt. The discussions were led by various senators, including María Lourdes Santiago, Anahí Malacén, Rafael Bernabé, and José Vargas Vidot, who emphasized the importance of transparency and accountability in managing public finances.

The meeting began with a commitment to undertake a comprehensive audit of Puerto Rico's debt, a responsibility that the Contralor's office is constitutionally mandated to fulfill. The senators expressed their willingness to collaborate with the authors of Senate Bill 159, which proposes the creation of a special commission for this purpose. They highlighted the need for a consensus that includes diverse sectors to effectively achieve the audit's objectives.

A significant point of discussion was the joint resolution filed by the governor, which, if approved, would designate the Contralor's office to conduct the debt audit. The senators outlined the initial steps, which include forming a specialized working group and reviewing previous reports from the Contralor's office regarding public agencies and corporations authorized to issue debt.

The meeting also addressed the findings from a 2017 audit conducted by COBRE King, which examined various aspects of Puerto Rico's debt, including the operations of the Government Development Bank and COFINA. The audit involved extensive documentation and interviews with numerous stakeholders, revealing potential irregularities in debt issuance practices.

Senators underscored the importance of thoroughly reviewing the COBRE King report, which contains over 600 pages of findings. They indicated that any identified irregularities or illegal practices in bond issuance would be reported to the appropriate state and federal agencies.

In conclusion, the meeting underscored a strong commitment to ensuring fiscal responsibility and transparency in Puerto Rico's financial dealings, with the Contralor's office poised to play a pivotal role in the upcoming debt audit. The senators agreed to continue discussions to refine the approach and ensure effective collaboration among all involved parties.