FBI investigating Whitefish Energy's $300M contract amid controversy

The FBI has opened a preliminary inquiry into Whitefish Energy’s $300 million contract to rebuild Puerto Rico’s power grid after Hurricane Maria, sources said.

FBI agents from the San Juan field office are looking into the controversial deal, according to a Wall Street Journal report that emerged one day after Puerto Rico Gov. Ricardo Rossello canceled the contract.

“There cannot be any kind of distraction that alters the commitment to restore electrical power as soon as possible in Puerto Rico,” Rossello said Sunday.

Whitefish, which had only two full-time employees when Hurricane Maria made landfall, raised eyebrows after a Washington Post report noted the company was based in the same hometown as Interior Secretary Ryan Zinke.

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The most devastating images of the humanitarian crisis in Puerto Rico
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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
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Zinke, whose son worked for the company one summer, issued a statement denying he had any involvement in the company’s deal with the Puerto Rico Electric Power Authority (PREPA)

The Whitefish contract, which was obtained and published by reporter Yanira Hernandez Cabiya, also sparked an outcry for including a provision that barred government agencies from auditing or reviewing the “cost and profit elements of the labor rates specified herein.”

The Federal Emergency Management Agency later issued a statement expressing “significant concerns” with how PREPA procured the contract, adding that it had not confirmed whether the pricing was reasonable.

To make matters worse, Whitefish Energy engaged in a Twitter feud with San Juan Mayor Carmen Yulín Cruz and threatened to withdraw its services from the island in response to her criticisms.

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Puerto Rico in darkness
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Puerto Rico in darkness
SAN JUAN, PUERTO RICO - SEPTEMBER 20: San Juan is seen during a blackout after Hurricane Maria made landfall on September 20, 2017 in Puerto Rico. Thousands of people have sought refuge in shelters, and electricity and phone lines have been severely effected. (Photo by Alex Wroblewski/Getty Images)
SAN JUAN, PUERTO RICO - SEPTEMBER 23: Jaime Degraff sits outside as he tries to stay cool as people wait for the damaged electrical grid to be fixed after Hurricane Maria passed through the area on September 23, 2017 in San Juan, Puerto Rico. Puerto Rico experienced widespread damage after Hurricane Maria, a category 4 hurricane, passed through. (Photo by Joe Raedle/Getty Images)
A police car patrols a dark street in the aftermath of Hurricane Maria in San Juan, Puerto Rico, on September 21, 2017. Puerto Rico battled dangerous floods Friday after Hurricane Maria ravaged the island, as rescuers raced against time to reach residents trapped in their homes and the death toll climbed to 33. Puerto Rico Governor Ricardo Rossello called Maria the most devastating storm in a century after it destroyed the US territory's electricity and telecommunications infrastructure. / AFP PHOTO / Ricardo ARDUENGO (Photo credit should read RICARDO ARDUENGO/AFP/Getty Images)
A man walks on a flooded street in the aftermath of Hurricane Maria in San Juan Puerto Rico, late on September 21, 2017. Puerto Rico has been battling dangerous floods after Hurricane Maria ravaged the island, as rescuers raced against time to reach residents trapped in their homes and the death toll climbed to 33. / AFP PHOTO / Ricardo ARDUENGO (Photo credit should read RICARDO ARDUENGO/AFP/Getty Images)
SAN JUAN, PUERTO RICO - SEPTEMBER 21: In Old San Juan, there is no electricity including the area of La Perla. (Photo by Carolyn Cole/Los Angeles Times via Getty Images)
A police car patrols a road as Hurricane Maria hits Puerto Rico in Fajardo, on September 20, 2017. Maria made landfall on Puerto Rico, pummeling the US territory after already killing at least two people on its passage through the Caribbean. The US National Hurricane Center warned of 'large and destructive waves' as Maria came ashore near Yabucoa on the southeast coast. / AFP PHOTO / Ricardo ARDUENGO (Photo credit should read RICARDO ARDUENGO/AFP/Getty Images)
SAN JUAN, PUERTO RICO - SEPTEMBER 20: Buildings are completely dark during a total blackout after Hurricane Maria made landfall September 20, 2017 in San Juan, Puerto Rico. Thousands of people have sought refuge in shelters, and electricity and phone lines have been severely effected. (Photo by Alex Wroblewski/Getty Images)
SAN JUAN, PUERTO RICO - SEPTEMBER 20: San Juan is seen during a total blackout after Hurricane Maria made landfall as a Category 4 storm on September 20, 2017 San Juan, Puerto Rico. Thousands of people have sought refuge in shelters, and electricity and phone lines have been severely impacted. Puerto Rico Governor Ricardo Rossello has announced a curfew, 6 p.m. to 6 a.m., effective Wednesday through Saturday. (Photo by Alex Wroblewski/Getty Images)
Satellite night images of #PuertoRico. #HurricaneMaria knocked out power grid, millions without electricity. More @… https://t.co/YACDm1nDtE
SAN JUAN, PUERTO RICO - SEPTEMBER 21: In Old San Juan, there is no electricity including the area of La Perla. (Photo by Carolyn Cole/Los Angeles Times via Getty Images)
SAN JUAN, PUERTO RICO - SEPTEMBER 21: In Old San Juan, there is no electricity including the area of La Perla. (Photo by Carolyn Cole/Los Angeles Times via Getty Images)
SAN JUAN, PUERTO RICO - SEPTEMBER 21: In Old San Juan, there is no electricity including the area of La Perla. (Photo by Carolyn Cole/Los Angeles Times via Getty Images)
SAN JUAN, PUERTO RICO - SEPTEMBER 20: A building is dark during a total blackout after Hurricane Maria made landfall September 20, 2017 in San Juan, Puerto Rico. Thousands of people have sought refuge in shelters, and electricity and phone lines have been severely effected. (Photo by Alex Wroblewski/Getty Images)
SAN JUAN, PUERTO RICO - SEPTEMBER 20: The Miramar neighborhood is completely dark during a total blackout after Hurricane Maria made landfall on September 20, 2017 in San Juan, Puerto Rico. Thousands of people have sought refuge in shelters, and electricity and phone lines have been severely effected. (Photo by Alex Wroblewski/Getty Images)
SAN JUAN, PUERTO RICO - SEPTEMBER 20: Buildings in San Juan are completely dark during a total blackout after Hurricane Maria made landfall September 20, 2017 in Puerto Rico. Thousands of people have sought refuge in shelters, and electricity and phone lines have been severely effected. (Photo by Alex Wroblewski/Getty Images)
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There are currently about 400 subcontracting crews on the island as 70 percent of the island remains without power six weeks after the storm.

A person familiar with PREPA’s operations said on Monday that Whitefish would complete work on critical lines despite the cancellation of the contract.

With News Wire Services. 

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