U.S. House panels probes 300-mln-dollar contract to repair Puerto Rico power grid

Source: Xinhua| 2017-10-27 23:52:29|Editor: yan
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WASHINGTON, Oct. 27 (Xinhua) -- Two panels of U.S. House of Representatives have started probing a deal worth 300 million U.S. dollars that Puerto Rico's main power company signed with a two-person energy firm.

The probes are expected to focus on how the Whitefish Energy Holdings got the no-bid contract, as well as its capability to restore power supply for millions of Puerto Ricans in the near future.

The Montana-based company had only two employees before Hurricane Maria hit the island and had little experience in repairing electricity infrastructure, according to local media reports.

Its CEO, Andrew Techmanski, is from the same town as Interior Secretary Ryan Zinke and the two know each other, according to a report by Washington-based American newspaper The Hill.

The two have denied that Zinke played any role in Whitefish getting the contract. The Puerto Rico Electric Power Authority (PREPA) also defends the contract, saying that Whitefish was the first company to offer help without requiring significant payment in advance.

The House Energy and Commerce Committee sent a letter Thursday to Techmanski asking for various documents regarding its activities in Puerto Rico and for a staff briefing by Nov. 9.

The House Natural Resources Committee, meanwhile, directed their probe at PREPA President Ricardo Ramos, asking for documents related to the contracts with companies like Whitefish.

"The size and terms of the contract, as well as the circumstances surrounding the contract's formation, raise questions regarding PREPA's standard contract awarding procedures," said Rob Bishop, the panel's Republican chairman.

Separately, the Department of Homeland Security's Office of Inspector General has started an audit of the contract, spokesman Arlen Morales said.

The Natural Resources Committee oversees U.S. territories as well as implementation of Puerto Rico's debt recovery process.

The Federal Emergency Management Agency, which is part of Homeland Security, is providing Puerto Rico with the money for its recovery operations and has rules about recovery contracting.

"Whitefish Energy appreciates the efforts of the committees to gather information so that they have confidence in the overall process to support the people of Puerto Rico as well Whitefish Energy's capabilities and commitment to deliver on the contract to help restore power and a sense of normalcy for the people of Puerto Rico," Whitefish said in a statement in response.

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