Puerto Rico governor calls for cancellation of Whitefish contract

WASHINGTON, Oct 29 (Reuters) - Puerto Rico Governor Ricardo Rosselló called for an immediate cancellation of a tiny Montana firm's $300 million contract to restore power to the storm-hit U.S. territory, his office confirmed on Sunday.

“Following the information that has emerged, and with the goal of protecting public interest, as governor I am asking government and energy authorities to immediately activate the clause to cancel the contract to Whitefish Energy,” Rosselló said in a statement to reporters.

32 PHOTOS
Life in Puerto Rico amid devastation
See Gallery
Life in Puerto Rico amid devastation
A man stands inside of a destroyed supermarket by Hurricane Maria in Salinas, Puerto Rico, September 29, 2017 REUTERS/Alvin Baez TPX IMAGES OF THE DAY
Local residents collect water from a broken pipe at an area damaged by Hurricane Maria, in Cayey, Puerto Rico, September 29, 2017 REUTERS/Alvin Baez
Mayor of San Juan Carmen Yulin Cruz (R) embraces Esperanza Ruiz, a city administrator, outside the government center at the Roberto Clemente Coliseum after Hurricane Maria, in San Juan, Puerto Rico September 30, 2017. REUTERS/Carlos Barria
An aerial photo shows damage caused by Hurricane Maria in San Juan, Puerto Rico, September 27, 2017. Picture taken September 27, 2017. REUTERS/DroneBase
People queue at a gas station to fill up their fuel containers, after the island was hit by Hurricane Maria, in San Juan, Puerto Rico September 28, 2017. REUTERS/Alvin Baez
An aerial photo shows people lining up at a gas station follwing damages caused by Hurricane Maria in San Juan, Puerto Rico, September 27, 2017. Picture taken September 27, 2017. REUTERS/DroneBase
An elderly woman stands after receiving food during a supplies distributions at an area affected by Hurricane Maria in Salinas, Puerto Rico, September 29, 2017 REUTERS/Alvin Baez
People line up to board a Royal Caribbean cruise ship that will take them to the U.S. mainland, in San Juan, Puerto Rico September 28, 2017. REUTERS/Alvin Baez
A man carrying a water container walks next to damaged houses after the area was hit by Hurricane Maria in Canovanas, Puerto Rico, September 26, 2017. Picture taken on September 26, 2017. REUTERS/Carlos Garcia Rawlins
A woman drinks from a bottle after filling it with water from a tank truck at an area hit by Hurricane Maria in Canovanas, Puerto Rico, September 26, 2017. Picture taken on September 26, 2017. REUTERS/Carlos Garcia Rawlins
A boy climbs a tree at an area affected by Hurricane Maria in Salinas, Puerto Rico, September 29, 2017 REUTERS/Alvin Baez
An aerial photo shows damage caused by Hurricane Maria in San Juan, Puerto Rico, September 27, 2017. Picture taken September 27, 2017. REUTERS/DroneBase
People queue to fill containers with water from a tank truck at an area hit by Hurricane Maria in Canovanas, Puerto Rico, September 26, 2017. Picture taken on September 26, 2017. REUTERS/Carlos Garcia Rawlins
A man rides a bicycle by damaged electricity lines at an area affected by Hurricane Maria in Salinas, Puerto Rico, September 29, 2017 REUTERS/Alvin Baez
People queue at a gas station to fill up their fuel containers, after the island was hit by Hurricane Maria, in San Juan, Puerto Rico September 28, 2017. REUTERS/Alvin Baez
A shows the damages of his house after the area was hit by Hurricane Maria in Canovanas, Puerto Rico September 26, 2017. REUTERS/Carlos Garcia Rawlins
Children play on the roof of a damaged house after the area was hit by Hurricane Maria in Canovanas, Puerto Rico September 26, 2017. REUTERS/Carlos Garcia Rawlins
Damaged houses are seen after the area was hit by Hurricane Maria in Canovanas, Puerto Rico September 26, 2017. REUTERS/Carlos Garcia Rawlins
People wake up after sleeping in a shelter set up at the Pedrin Zorrilla coliseum after the area was hit by Hurricane Maria in San Juan, Puerto Rico, September 25, 2017. REUTERS/Carlos Garcia Rawlins
Monica Lopez (R) looks at her dog at a shelter set up at the Pedrin Zorrilla coliseum after the area was hit by Hurricane Maria in San Juan, Puerto Rico September 25, 2017. REUTERS/Carlos Garcia Rawlins
People queue at a gas station to fill up their fuel containers, after the island was hit by Hurricane Maria, in San Juan, Puerto Rico September 28, 2017. REUTERS/Alvin Baez
Damaged houses are seen after the area was hit by Hurricane Maria in Canovanas, Puerto Rico September 26, 2017. REUTERS/Carlos Garcia Rawlins
A woman cleans her house after the area was hit by Hurricane Maria in Canovanas, Puerto Rico September 26, 2017. REUTERS/Carlos Garcia Rawlins
People wait for their cellphones to be charged outside a store during a blackout after the area was hit by Hurricane Maria in San Juan, Puerto Rico September 25, 2017. REUTERS/Alvin Baez
A man tries to rebuild his house after the area was hit by Hurricane Maria in Canovanas, Puerto Rico September 26, 2017. REUTERS/Carlos Garcia Rawlins
People use their cellphones on the street during a blackout after the area was hit by Hurricane Maria in San Juan, Puerto Rico September 25, 2017. REUTERS/Alvin Baez
Carlos Cruz (L) wakes up after sleeping in a shelter set up at the Pedrin Zorrilla coliseum after the area was hit by Hurricane Maria in San Juan, Puerto Rico, September 25, 2017. REUTERS/Carlos Garcia Rawlins
A woman uses her cellphone on the street during a blackout after the area was hit by Hurricane Maria in San Juan, Puerto Rico September 25, 2017. REUTERS/Alvin Baez
People wait at a gas station to fill up their fuel containers, in the aftermath of Hurricane Maria, in San Juan, Puerto Rico September 27, 2017. Picture taken September 27, 2017. REUTERS/Alvin Baez
A man tries to repair a generator in the street after the area was hit by Hurricane Maria in San Juan, Puerto Rico September 25, 2017. REUTERS/Alvin Baez
Hilda Colon wakes up after sleeping in a shelter set up at the Pedrin Zorrilla coliseum after the area was hit by Hurricane Maria in San Juan, Puerto Rico, September 25, 2017. REUTERS/Carlos Garcia Rawlins
HIDE CAPTION
SHOW CAPTION
of
SEE ALL
BACK TO SLIDE

The contract with Puerto Rico’s power utility has come under increased criticism after it was revealed that the terms were obtained without a competitive public bidding process.

Criticism increased, including from U.S. House Democratic Leader Nancy Pelosi, after a copy of the contract surfaced online on Thursday night and raised more questions, particularly over language blocking oversight of costs and profits.

Whitefish Energy Holdings officials have insisted that they secured the deal legitimately and would not oppose an audit of the company's work. A Whitefish spokesman could not immediately be reached for comment.

Several weeks after Hurricane Maria hit Puerto Rico in September, about 75 percent of homes and businesses still lack electricity. Rosselló said he hoped that 30 percent of power would be restored to the island by the end of October.

He said he had reached out to Florida Governor Rick Scott and New York Governor Andrew Cuomo to seek help in replacing Whitefish and that they were prepared to assist in restoring power.

"I have given instructions to immediately proceed with the necessary coordination with the states of Florida and New York, in order for brigades and equipment to arrive on the island," Rosselló's statement said.

Rosselló said he had requested an investigation into how the contract between the Puerto Rico Electric Power Authority and 2-year-old Whitefish, which has just two full-time employees, was decided so quickly.

16 PHOTOS
The most devastating images of the humanitarian crisis in Puerto Rico
See Gallery
The most devastating images of the humanitarian crisis in Puerto Rico
COROZAL, PUERTO RICO - SEPTEMBER 27: Luis Lugo and Awilda Valdez bath in spring water since they have no running water in their home since Hurricane Maria passed through on September 27, 2017 in Corozal, Puerto Rico. Puerto Rico experienced widespread, severe damage including most of the electrical, gas and water grids as well as agricultural destruction after Hurricane Maria, a category 4 hurricane, passed through. (Photo by Joe Raedle/Getty Images)
MOROVIS, PUERTO RICO - SEPTEMBER 27: Hector Ojeda and Sonia Robles and Tony Ojeda cross a river on foot after the bridge was washed away when Hurricane Maria passed through on September 27, 2017 in Morovis, Puerto Rico. Puerto Rico experienced widespread damage including most of the electrical, gas and water grid as well as agriculture after Hurricane Maria, a category 4 hurricane, passed through. (Photo by Joe Raedle/Getty Images)
MOROVIS, PUERTO RICO SEPTEMBER 25: A man helps a kid cross the San Lorenzo River in Morovis. Residents of San Lorenzo neighborhood can't access their houses because the river destroyed the bridge that communicate them with the main road of access. The mountain town of Morovis, in the south west of San Juan, is one of the most affected after the pass of Hurricane Mar�. Hurricane Maria passed through Puerto Rico leaving behind a path of destruction across the national territory. (Photo by Dennis M. Rivera Pichardo for The Washington Post via Getty Images)
Maria Martinez stands next to her house which was damaged by Hurricane Maria in Yabucoa in eastern Puerto Rico on September 28, 2017. A week after the Category Four storm stuck, the White House said US President Donald Trump had made it easier for fuel and water supplies to arrive to the ravaged island of 3.4 million US citizens. / AFP PHOTO / HECTOR RETAMAL (Photo credit should read HECTOR RETAMAL/AFP/Getty Images)
SAN JUAN, PUERTO RICO - SEPTEMBER 28, 2017: After eight hours in line, Solymlar Duprey, age 47, holds her daughter Miabella Lawston, age 5, as they try to get on an evacuation cruise ship leaving San Juan. 'The situation is so critical. There is no electricity, fuel, water,' said Duprey. She was trying to locate her confirmation number to board the cruise ship. A Royal Caribbean cruise ship is evacuating over 2,000 people from Puerto Rico, St. John, and St. Thomas free of charge. People are attempting to get off of the island as lack of fuel, electricity and running water has crippled Puerto Rico in the aftermath of Hurricane Maria. (Photo by Carolyn Cole/Los Angeles Times via Getty Images)
Maria Olivieri removes a tree branch from her backyard a week after the passage of Hurricane Maria in Aibonito, Puerto Rico, on September 27, 2017. The US island territory, working without electricity, is struggling to dig out and clean up from its disastrous brush with the hurricane, blamed for at least 33 deaths across the Caribbean. / AFP PHOTO / Ricardo ARDUENGO (Photo credit should read RICARDO ARDUENGO/AFP/Getty Images)
COROZAL, PUERTO RICO - SEPTEMBER 27: Irma Maldanado stands with Sussury her parrot in what is left of her home that was destroyed when Hurricane Maria passed through on September 27, 2017 in Corozal, Puerto Rico. Puerto Rico experienced widespread damage including most of the electrical, gas and water grid as well as agriculture after Hurricane Maria, a category 4 hurricane, passed through. (Photo by Joe Raedle/Getty Images)
Residents with gas canisters wait for fuel after Hurricane Maria in the Miramar neighborhood of San Juan, Puerto Rico, on Tuesday, Sept. 26, 2017. President�Donald Trump�said he will travel to Puerto Rico to survey damage. He told reporters that the federal government is 'doing a really good job' in relief efforts and has shipped 'massive amounts' of food and water. Photographer: Alex Wroblewski/Bloomberg via Getty Images
A vehicle drives through streets filled with floodwater near destroyed homes from Hurricane Maria in this aerial photograph taken above Barrio Obrero in San Juan, Puerto Rico, on Monday, Sept. 25, 2017. Hurricane Maria hit the Caribbean island last week, knocking out electricity throughout the island. The territory is facing weeks, if not months, without service as utility workers repair�power�plants and lines that were already falling apart. Photographer: Alex Wroblewski/Bloomberg via Getty Images
AIBONITO, PUERTO RICO - SEPTEMBER 24: People wait in line for water as they wait for gas, electrical and water grids to be repaired September 24, 2017 in Aibonito, Puerto Rico. Puerto Rico experienced widespread damage after Hurricane Maria, a category 4 hurricane, passed through. (Photo by Joe Raedle/Getty Images)
Customers stand in line outside a grocery store in the town of Dorado, west of San Juan, Puerto Rico, on Thursday, Sept. 28, 2017. Trump�ordered the Jones Act to be waived for shipments to hurricane-ravaged Puerto Rico immediately�at the request of Governor�Ricardo Rossello, White House press secretary�Sarah Sanders�said Thursday. Photographer: Alex Wroblewski /Bloomberg via Getty Images
SAN JUAN, PUERTO RICO SEPTEMBER 22: Power lines and fallen trees block a sidewalk at the University of Puerto Rico, Rio Piedras campus, after Hurricane Maria at Ponce de Leon Avenue in San Juan, Puerto Rico on September 22, 2017. (Photo by Pablo Pantoja/Anadolu Agency/Getty Images)
SAN JUAN, PUERTO RICO - SEPTEMBER 25: Yancy Leon who has been waiting in line for two days to get an American Airlines flight out of the Luis Munoz Marin International Airport continues to wait as she tries to escape the conditions after Hurricane Maria passed through the island on September 25, 2017 in San Juan Puerto Rico. Some of the people have waited days at the airport in hope of getting onto a plane after Hurricane Maria, a category 4 hurricane, passed through. (Photo by Joe Raedle/Getty Images)
Workers fix a light fixture at the San Jorge Children's Hospital in San Juan, Puerto Rico, on Thursday, Sept. 28, 2017. Trump�ordered the Jones Act to be waived for shipments to hurricane-ravaged Puerto Rico immediately�at the request of Governor�Ricardo Rossello, White House press secretary�Sarah Sanders�said Thursday. Photographer: John Taggart /Bloomberg via Getty Images
Travelers stand in line outside of Luis Muoz Marn International Airport after Hurricane Maria disrupted flight service in San Juan, Puerto Rico on Wednesday, Sept. 27, 2017. President�Donald Trump�said he may temporarily suspend a law that restricts the use of foreign ships operating in U.S. waters and between U.S. ports in order to accelerate the delivery of aid to Puerto Rico, where his administration faces mounting criticism over its response to Hurricane Maria. Photographer: Alex Wroblewski/ Bloomberg
HIDE CAPTION
SHOW CAPTION
of
SEE ALL
BACK TO SLIDE

The contract and the slow restoration of power on the island have raised questions about the management of PREPA’s response to Maria.

It took more than a week after Maria hit the island for PREPA to complete a damage assessment.

Puerto Rico’s financial oversight board earlier this week said it would appoint an emergency manager to oversee PREPA, but Rosselló resisted that idea.

(Reporting by Ginger Gibson; Additional reporting by Tracy Rucinski, David Gaffen, Jessica Resnick-Ault and Nick Brown; Editing by Lisa Von Ahn)

Read Full Story

Sign up for Breaking News by AOL to get the latest breaking news alerts and updates delivered straight to your inbox.

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.