(MENAFN- Caribbean News Now) By Caribbean News Now contributor
SAN JUAN, Puerto Rico — President of Puerto Rico's Federation of Mayors, Carlos Molina says the federation has withdrawn its confidence in Governor Ricardo Rossello and that the institution is demanding the governor's resignation amid high-profile arrest of several individuals linked to numerous corruption cases and a report that revealed how Rossello manipulated political opposition and frequently used racist and macho language with advisors to carry out the scheme.
President of the association of Mayors, Jose Abreu, added, "Rossello's resignation is not for the PNP, but the country."
"We are facing a serious crisis that has filled all the people with shame and humiliation,' said Abreu. 'Men, women, groups, institutions, nobody is saved from the insults … of Rossello. He has to resign, for the good of all of Puerto Rico," added the local politician.
The latest scandal involvesthe July 10, 2019arrest of six people closely linked to his administration, two of the most notable being former Health Insurance Administration Director Ángela Ávila Marrero and former Department of Education Director Julia Keleher.
The arrests were carried out by the Federal Bureau of Investigation (FBI), as part of a probe that uncovered a widespread scheme, involving several agencies, to bypass regular bidding processes for government contracts. The charges in the Federal Bureau of Investigation (FBI)indictmentincluded money laundering, theft, wire fraud, money laundering and conspiracy.
Theindictmentstates on page 16: 'By paying unauthorized commissions, the cost of government contracts was unnecessarily inflated and increased.'
We cannot allow our Puerto Rico to be in the hands of such "leaders",' Ricky Martin tweeted.
On July 13, the Centro de Periodismo Investigativo (Center for Investigative Journalism) madethe entire 889-page documentavailable, that revealed, how Rossello administration through mass media creating a 'troll network' to discredit negative press coverage and criticism from opposition leaders.
Secretary of State Luis Rivera Marin resigned Saturday evening, saying it was a 'moral obligation.'
Following hurricane Maria, in September 2017, many Puerto Ricans had no access to basic medical services, food or potable water and most of the country was without electricity, and related deaths were estimated at 4,650 corpses.
October 19, 2018, Caribbean News Now reported 'Some 25 FBI agents [this week] raided municipal offices in San Juan, Puerto Rico, searching through documents and seizing digital records following an anonymous tip called into the comptroller's office over how the mayor's office awards government contracts – specifically, a $4.7 million deal with a construction company.'
Also, a former registered financial advisor previously employed by UBS Financial Services Inc. of Puerto Rico (UBS-PR) pleaded guilty for his role in a scheme to fraudulently obtain and misuse non-purpose credit lines for purchasing securities, resulting in over $1 million in improperly generated commissions.
Recently Dominic Frederico, chief executive officer Assured Guaranty, wrote about 'The far-reaching effects if Puerto Rico snubs precedent and the rule of law', 'The current Financial Oversight and Management Board for Puerto Rico (Oversight Board) is attempting to invalidate more than $6 billion of general obligation bonds and to initiate clawbacks of principal and interest payments to bondholders.'
'The actions also violate the basic tenets of the Puerto Rico Oversight, Management and Economic Stability Act (PROMESA), which the US Congress enacted in June 2016 to provide a formal process for Puerto Rico's debt restructuring, restoration of its capital market access and to provide supervision of its financial management by the oversight board.'
In July, a Key Biscayne, Florida, resident and the former Chief Executive Officer (CEO) and Chairman of a now-bankrupt multinational pharmaceutical company was sentenced to 30 years in prison followed by five years of supervised release for his role in a $100 million scheme to defraud Westernbank, Puerto Rico.
The governor of Puerto Rico is not only being accused of a smear campaign against opposition, but fraud, corruption and abuse, according to reports is apparently a common accordance.
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