Governor’s chief of staff defends conduct.
- The San Juan Daily Star
- 1 hour ago
- 3 min read
Domenech denies conflicts in sweeping Senate inquiry
By THE STAR STAFF
La Fortaleza Chief of Staff Francisco Domenech Fernández on Tuesday delivered a forceful defense of his conduct in government, submitting a 64‑page response to the Puerto Rico Senate after an unprecedented interpellation and more than 200 follow‑up questions focused heavily on his former lobbying firm, Politank Corp.
In a letter addressed to Senate President Thomas Rivera Schatz, Domenech accused lawmakers of engaging in a politically motivated effort to “create confusion where none exists” and to damage both his reputation and the administration of Gov. Jenniffer González Colón.
“Any impartial observer will notice that most of the questions are based on an apparent desire to create confusion where there is none,” he wrote, adding that the process had “sullied my name.”
The Senate’s inquiry -- the first interpellation of a La Fortaleza chief of staff in the island’s history -- centered on whether Domenech has improperly influenced government contracting processes involving companies that were once clients of Politank, which he founded and later sold before entering public service.
Domenech acknowledged that there is no official institutional protocol to identify whether certain contracts are linked to Politank. The Government Ethics Office says any official must request in writing to be relieved of making decisions in which the official believes there may be a conflict of interest.
Domenech repeatedly emphasized that he has no current ties to Politank and that he established a formal internal inhibition protocol upon taking office in January 2025. According to his responses, any matter involving former clients is handled by career officials and the deputy secretary of the Office of the Governor without his involvement.
He stated that he has not participated in contract evaluations, procurement decisions, or communications related to companies such as Intervoice, Accenture, MMM/Elevance Health, or other entities that have secured government work since 2025.
“I inhibited myself from any and all matters of past and present clients of Politank Corp.,” he wrote.
Domenech also denied having discussed government matters with Politank executives, saying any interactions have been limited to social events.
A significant portion of the Senate’s questions focused on multimillion‑dollar contracts awarded by the Puerto Rico Health Insurance Administration and the Department of Health. Domenech said he played no role in the adjudication of a $97.6 million contract involving MMM/Elevance Health and noted that premium increases were determined by independent actuaries.
He also distanced himself from technology procurements, including a $14.1 million contract awarded to Intervoice and a series of amendments to Accenture’s long‑running SAP modernization work at the Puerto Rico Aqueduct and Sewer Authority. He argued that many of those amendments originated under the previous administration and were tied to ongoing modernization projects.
Senators also pressed Domenech on whether the government had hired the financial advisory firm Houlihan Lokey, which previously represented Puerto Rico Electric Power Authority (PREPA) bondholders in the island’s bankruptcy proceedings. Domenech flatly rejected the premise, stating repeatedly that the government did not hire the firm and therefore no conflict-of-interest analysis or contract registration exists.
He further stated that neither he nor officials of the Puerto Rico Fiscal Agency and Financial Advisory Authority, which Domenech heads, have negotiated with PREPA bondholders represented by Politank in the past.
Domenech dismissed allegations that he or outside consultants exerted undue influence over the Department of Education or the Central Office for Recovery, Reconstruction and Resiliency (COR3). He said he communicates only with the Education secretary and does not intervene in tenders, personnel decisions or internal processes.
On COR3, he referred senators to information submitted directly by the entity’s executive director, Eduardo Soria Rivera.
Domenech also addressed questions about Puerto Rico’s fiscal health, delays in audited financial statements, and the long‑troubled Deloitte ERP project. He attributed delays in financial reporting to incomplete information from LUMA Energy and said the administration has, for the first time, set firm implementation dates for the ERP system: July 2026 for the finance modules and January 2027 for the human resources modules.
He rejected the notion that federal funds have masked economic weaknesses, arguing instead that structural reforms and long‑term stability remain priorities.