Home » Fiscal Oversight Board Requests Documentation from Puerto Rico Highways and Transportation Authority on Fund Use

Fiscal Oversight Board Requests Documentation from Puerto Rico Highways and Transportation Authority on Fund Use

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Fiscal Oversight Board Requests Documentation from Puerto Rico Highways and Transportation Authority on Fund Use

The Fiscal Oversight Board (JSF) has formally requested documentation from the Puerto Rico Highways and Transportation Authority (ACT) regarding the use of funds from the Puerto Rico Authority after it failed to comply with the agreements of the Second Revised Budget (FY2024).

The budget, certified on December 8, 2023, includes a section referring to the funds transferred to the ACT in accordance with the agency’s Plan of Adjustment (PoA) and released by the Bank of New York Mellon (BONY).

According to the section, the funds were transferred to the ACT “after the redemption of its outstanding debt on December 14, 2023, in accordance with the Concession Agreement between the ACT and Puerto Rico TollRoads LLC (transaction P3).

The section also specifies that the ACT “shall notify the Oversight Board in writing within ten (10) days after specific funds are made available to ACT, along with a proposed plan for their possible uses. In addition, Section VII requires written authorization from the Oversight Board before any expenditure or use of such funds.

The Board has now requested specific information from the director of the ACT, Dr. Edwin González Montalvo, including the amount of funds released and how they were segregated to comply with the provisions of the Second Revised Budget. They also requested a breakdown of expenses already incurred and covered with the funds, as well as details of current or future expenses, an updated balance and a monthly report specifying income and interest generated in each of the PoA accounts.

The Board recognized that the ACT complied with some obligations of the budget but emphasized that it failed to provide notice and a proposed plan for potential uses, as required in Section VII.

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In response, the ACT informed the Board that the funds made available to the ACT were transferred to the same account used to deposit the proceeds of the P3 transaction. However, the Board stated that this response did not meet the requirements established in Section VII of the Second Revised ACT Budget for Fiscal Year 2024.

The Oversight Board also noted that ACT confirmed the use of the funds for various purposes, including maintaining liquidity and covering toll optimization expenses, without prior written authorization as required in Section VII.

The Board’s request for documentation from the ACT signals growing scrutiny and concern over the management and use of public funds, particularly in light of prior financial challenges faced by Puerto Rico.

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