Arthur J. Gonzalez designated chair of the Oversight Board
On July 22, the Oversight Board announced that its members had designated Judge Arthur J. Gonzalez as chair on an interim basis. The Oversight Board will designate a permanent chair when the appointments of all members are complete and effective.
Gonzalez is an expert in bankruptcy law. He is a Senior Fellow at the New York University School of Law and served on the U.S. Bankruptcy Court for the Southern District of New York from 1995 to 2012, retiring as Chief Judge. During his tenure, he presided over many large and complex corporate reorganizations, including the Enron, WorldCom and Chrysler cases.
Gonzalez was first appointed to the Oversight Board at its inception in 2016.
“Our mission at the Oversight Board is to help Puerto Rico stand on its own again,” González said. “Continuing our effort to complete PREPA’s bankruptcy and reduce the debt burden on Puerto Rico and its economy is one of our primary tasks. But restructuring the debt is only one step to a better future for Puerto Rico.”
In 2021, Gonzalez described the Oversight Board’s extensive review of Puerto Rico’s debt in a column for El Nuevo Día. “It was clear from the inception of the Oversight Board that the process of resolving Puerto Rico’s fiscal crisis depended in large measure upon ascertaining accurate information about the size and nature of the debt. Based upon those concerns and others, the Oversight Board commissioned an investigation of the massive debt in 2017,” said Gonzalez.
Gonzalez’s designation as chair follows the departure of David Skeel, who decided not to stand for a third term as a board member.
Click here to read Gonzalez’s bio on our webpage.
Luis A. Ubiñas’ appointment as Oversight Board member becomes effective
The Oversight Board also announced on July 22 that the appointment of Luis A. Ubiñas by President Joseph Biden was now effective.
Ubiñas, who was raised in New York by Puerto Rican parents, is a Harvard graduate and has had a successful career across business, government, and the non-profit sector. He served as President of the Ford Foundation, a senior partner at McKinsey & Company and was an Obama-era appointee to both the Export-Import Bank and the International Trade Commission. Ubiñas is currently Chair of the Statue of Liberty-Ellis Island Foundation. In the private sector, he is Lead Director at Electronic Arts, and serves on the boards of AT&T and Tanger.
Click here to read Ubiñas’ bio on our website.
Oversight Board files a complaint against the Puerto Rico Government on Act 10
The Oversight Board filed a complaint on July 26 in the U.S. District Court for the District of Puerto Rico to nullify Act 10-2024, which was approved by the Legislative Assembly and the Governor of Puerto Rico despite the Oversight Board’s concerns.
The law undermines the Puerto Rico Energy Bureau’s ability to operate free from political influence. The Energy Bureau’s independence is a key element of Puerto Rico’s energy transformation. The purpose of the Oversight Board’s action is to restore the Energy Bureau’s ability to regulate Puerto Rico’s energy system as it deems appropriate.
“The energy system has only just begun to recover from decades of political mismanagement that left the people of Puerto Rico with a failing electric system. Yet, Act 10 was passed by the Legislative Assembly without any public hearings,” said Oversight Board Executive Director Robert F. Mujica, Jr. “The bill was drafted and submitted at the request of an advocacy group, and with the strong support of the rooftop-solar installer lobby.”
Contrary to what some special interests would like the public to believe, the Oversight Board never proposed to end net metering and would not support such a proposal. Puerto Rico needs it. Invalidating Act 10 would not change the terms for those customers who already installed rooftop solar panels on their properties. Rooftop solar will continue.
Click here to read more about Act 10 and the Oversight Board’s position on this issue.
Oversight Board certifies Puerto Rico’s $33.3 billion budget for fiscal year 2025
With a focus on Puerto Rico’s long-term stability and economic growth, the $33.3 billion fiscal year 2025 budget passed by the Oversight Board on July 1 allows for important investments in education, health, infrastructure and social programs.
The general fund budget increases total spending by 3% from the last fiscal year and adds additional funding for social programs, including a prevention plan against violence and programs that assist aging adults, support mental health, and offer early-childhood resources.
The budget also includes provisions to control Government spending outside the budget process. Spending bills or laws must identify how the Government intends to pay for the cost of bills or laws.
All budgets for the Government of Puerto Rico and its agencies and instrumentalities are available on the Oversight Board’s website.
Engagement with Stakeholders:
July 31, 2024
Oversight Board Executive Director Robert F. Mujica, Jr. discussed collaborative efforts with the Mayors Association to address the municipalities’ collective and individual needs, as well as the development of key municipal government initiatives.
July 12, 2024
Oversight Board Executive Director Robert F. Mujica, Jr. met with Puerto Rico Government officials, as well as those from LUMA Energy and Genera PR, to discuss the Island’s ongoing challenges in its electricity system. Listen to Mujica’s comments after the meeting here.
July 11, 2024
Oversight Board Executive Director Robert F. Mujica, Jr. visited the Museo de Arte de Ponce to learn about the progress of reconstruction efforts that aim to restore the iconic museum in Ponce after it was damaged during the 2020 earthquakes. Parts of the museum have remained closed to the public after the damages.
The Museum’s collection of around 4,500 works is renowned for its examples of Puerto Rican and Latin American art and the Anton J. Konrad Conservation Center at the museum is a leader in art conservation in the Caribbean. According to representatives, the mission of the Museo de Arte de Ponce is to promote discovery, stimulate curiosity, and foster dialogue to enhance the life of its community through access to art-based experiences.
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