Fiscal board operating at the bare minimum following Biggs dismissal

The Financial Oversight and Management Board confirmed the termination of board member Andrew G. Biggs late on Wednesday, following the White House’s decision to fire five members eight days earlier.

By The Star Staff

Following the announcement on Wednesday that President Donald Trump has dismissed Andrew G. Biggs from his position on the Financial Oversight and Management Board, attorney Rolando Emmanuelli, an acknowledged expert on the Puerto Rico Oversight, Management and Economic Stability Act (PROMESA), asserted that the board is now lacking the necessary quorum to make critical decisions.

Emmanuelli emphasized that the oversight board is currently operating at a minimal capacity with only one member, John Nixon, remaining, along with the entity’s executive director, Robert Mujica Jr. Established under the PROMESA in 2016, the board was designed to assist the U.S. territory in managing its bankruptcy and addressing fiscal challenges.

“In reality, they are functioning at the most fundamental level, handling only day-to-day operations,” Emmanuelli said during a radio interview. “However, the PROMESA Act mandates a quorum for significant decisions. For instance, to approve a budget, a majority of board members is required — something that is impossible with only one member left. They need a majority to either approve or amend a fiscal plan or budget. Additionally, they lack the authority to nullify any government laws or contracts. This presents a precarious situation, especially given the ongoing contract negotiations with New Fortress [Energy, for liquefied natural gas supply)].”

While the oversight board has successfully settled a substantial portion of the island’s $70 billion debt, the dismissal of six out of seven members comes at a critical time, as the board continues to navigate the complex bankruptcy of the Puerto Rico Electric Power Authority, which seeks to restructure over $9 billion in debt.

Late on Wednesday, the oversight board confirmed Biggs’ termination, following the White House’s decision to fire five members eight days earlier. On Aug. 5, Trump removed the board’s chairman, Arthur González, along with Cameron McKenzie, Betty Rosa, Juan Sabater and Luis Ubiñas.

“The Oversight Board has been informed by the White House that the administration of President Donald J. Trump has terminated Andrew G. Biggs from his position as a member of the Oversight Board,” the board stated. “The Oversight Board will continue its daily operations and will collaborate with the administration of Governor Jenniffer González Colón and the Legislative Assembly of Puerto Rico on priorities related to fiscal responsibility as mandated by PROMESA.”

Meanwhile, La Fortaleza Chief of Staff Francisco Domenech Fernández, who also serves as executive director of the Puerto Rico Fiscal Agency and Financial Advisory Authority, insisted late Wednesday that despite the dismissal of yet another of its members, the oversight board can still operate for pending processes.

“Last week, I had a meeting with the executive director of the Fiscal Control Board [sic], Mr. Robert Mujica, and we discussed the procedures that could continue with the number of members, whether there were two or one, according to the regulations of the board and staff,” Domenech said in an interview on Notiséis. “Almost all processes, particularly the most important ones such as contract approval and the transfer of funds, will continue […]. There will be no problems with that.”

He noted that both Gov. Jenniffer González Colón and Gabriella Boffelli, the executive director of the Puerto Rico Federal Affairs Administration, “are in ongoing discussions with the White House regarding the names of this shortlist of candidates to fill the board seats.”

“The governor is advocating for a Puerto Rican to be selected and is exchanging information with the White House about that shortlist,” Domenech said.