The elected legislative delegation of the Citizen Victory Movement (MVC) this Tuesday denounced that the Fiscal Control Board (JCF), in violation of PROMESA law itself, allegedly imposes a public policy on the government of Puerto Rico.
The MVC indicated that while the PROMESA law stipulates that the JCF’s role should be strictly related to the treasury and budget, it has embraced a public policy model set up by a private company that hires, bringing about the drastic cuts who has demanded it from the beginning. The Victoria Ciudadana delegation pushed for these cuts through mobilization and legislative work.
The cuts the JCF plans to impose on the University of Puerto Rico (UPR) that the press has pointed out in recent weeks “are part of a wider problem,” said Ana Irma Rivera Lassén, an MVC elected. senator.
“From the implementation of a public policy developed by a private company, McKinsey & Company, hired by the JCF. This public policy is passed behind the back of the people of Puerto Rico, in violation of the provisions of the same PROMESA law, in accordance with unpublished criteria and without regard to the needs and special situation of Puerto Rico ”.
The cuts the (JCF) is trying to impose on the University of Puerto Rico (UPR) that have been discussed by the press in recent weeks are part of “a wider problem”. It is, explains Ana Irma Rivera Lassén, a senator elected by the MVC, “the implementation of a public policy set by a private company, McKinsey & Company, hired by the JCF. This public policy is passed behind the back of the people of Puerto Rico, in violation of the provisions of the PROMESA Act itself, in accordance with unpublished criteria and without taking into account the needs and special situation of Puerto Rico ” .
According to Rafael Bernabe, also a member of the MVC’s elected delegation, “Four years ago, the Council hired the McKinsey firm to formulate proposals for public sector cuts, which they refer to with the euphemism of ‘straightening out’. In the case of the UPR’s tax plan, that company has taken the funding of some public universities in the United States as a benchmark ”.
But, Bernabe noted, “that’s not the only possible funding model for public universities. Nothing is forcing Puerto Rico to adopt that model or ‘benchmark’. In addition, the situation in Puerto Rico (per capita income, poverty levels, etc.) is very different ”. Bernabe added that the same has happened with the budget proposals for other agencies.
According to the elected representative José Bernardo Márquez, “adopting these models is the formulation of public policy, for which the Council has no power, since its role, according to PROMESA, is strictly fiscal and budgetary. The formulation of public policy is the responsibility of the Government of Puerto Rico, its elected officials ”.
Mariana Nogales, an elected representative of the MVC, explained that, “Although the Board likes to talk about transparency, the studies on which these cuts are based are not published, apart from brief comments on the tax plans. To top it all off, “he added,” the Council is making cuts that undermine the government’s ability to provide essential services, in contradiction with the provision of Title II of PROMESA requiring their funding. “
Bernabe added that the McKinsey company has been criticized, “not only for repeating the same neoliberal and privatizing model around the world, with devastating consequences for people and the environment, but also for driving these practices to particularly scandalous extremes.”
According to Márquez, “it has recently been revealed to be related to the policies of pharmaceutical companies favoring opiate addiction, with a devastating impact on the health of millions of people. It was also part of the development of the Trump administration’s immigration policies, including the infamous policy of separating boys and girls from their parents. In the case of Puerto Rico, the New York Times and other media outlets reported that one of McKinsey’s divisions owns a portion of Puerto Rico’s debt, the recovery of which depends in part on the policies pursued by the Board of Directors, advised by McKinsey. . It is a clear conflict of interest ”.
As of April 2019, McKinsey has charged $ 72 million for its services. They are funds from the people of Puerto Rico, ”said Bernabe. “These are enough reasons,” he said, “to demand that the imposition of the so-called ‘rightsizing’ designed by this company be discontinued and that its studies and criteria be made public by which it is intended to justify these cuts. . “
The MVC’s elected lawmakers indicated that “thanks to the sacrifice and deprivation of our people over four years, according to the recent AAFAF report, a fund of approximately $ 10.3 billion has been generated that can now be used for either of the two. things: for the economic reconstruction of Puerto Rico or to pay the bondholders through an unsustainable deal that is sure to lead to another bankruptcy. We must ensure that we mobilize and adopt measures to ensure the first result ”.