Partner Paper No. 5: The Looting of Puerto Rico’s Infrastructure Fund: Carlos M. Garcia’s destructive fiscal policies hurt Puerto Rico once, could it happen again?

16 May 2017
DOWNLOAD SPANISH VERSION HERE Executive Summary Carlos M. Garcia is profoundly conflicted as a former Santander[i] banking executive in his current role on the PROMESA control board, or the “Junta.” In the years preceding Governor Luis Fortuño’s election in 2008, Garcia built Santander Securities—the bank’s municipal bond business—while Jose Ramon Gonzalez, another Junta member, was at the head of the bank.[ii] With Fortuño’s election, Garcia was given vast powers over fiscal policy as President of the Government Development Bank (“GDB”), Chair of the local control board (a special board comprised of five cabinet-level officials with ministerial responsibility for Puerto Rico’s fiscal matters and restructuring powers conferred by the Puerto Rico Legislature), and head of Puerto Rico’s new Public Private Partnerships Authority (PPPA).[iii] A previous report, Pirates of the Caribbean, documented the role Garcia and Santander played in Puerto Rico’s public finance disaster and the virtual revolving door former bank executives had with the GDB from 2009 to 2012.... Read More