School bus contractors to Education Dept.: Pay $12.5 million owed by Friday or face protest

School Bus Contractors Federation President José Rosado stressed that companies need the full $12.5 million owed them in order to operate safely and reliably at the beginning of the semester.

By THE STAR STAFF

School Bus Contractors Federation President José Rosado warned this week that the sector will take to the streets next Monday, Aug. 3 if the island Education Department does not pay the full $12.5 million owed to school transportation companies by this Friday.

Rosado issued the ultimatum during a radio interview, in which he criticized the agency’s handling of outstanding payments and cautioned that the lack of disbursements could jeopardize the start of student transportation services scheduled for Aug. 6. He stressed that companies need the full amount to operate safely and reliably at the beginning of the semester.

Rosado also claimed he received information from a “reliable source” alleging that a $9 million allocation intended for payments before July 30 was partially diverted to benefit a single company. According to his account, a “million‑dollar sum” was separated for that firm, leaving others without the funds they are owed.

“From that $9 million allocation, a million‑dollar sum was taken out to pay one company, going against the interests of all the others, and they intended to write off the $12.5 million,” Rosado said.

He argued that such an action would have prevented several companies from operating, effectively sidelining them while favoring one provider.

When asked about the deadline for deciding whether buses would be available for the semester, Rosado said the determination has already been made: if the full payment is not received by Friday, the sector will not deploy its fleet.

Although Education Secretary Eliezer Ramos Parés indicated that $7 million is already being processed, Rosado insisted that an additional $5 million remains outstanding. He also highlighted a separate $2.5 million debt from last year that has yet to show any signs of payment.

“If not, this Monday we will be out on the streets making our case,” he said, adding that the sector is demanding identification of the remaining $5 million from this year and the $2.5 million from last year.

Rosado noted that if all pending payments are addressed -- including $2.4 million approved for services rendered between 2021 and 2024 -- the industry could “close this chapter” and begin transporting students on Aug. 6 as scheduled.

“Counting on the Department of Education’s payment, our hundreds of students will continue receiving services as usual,” he said.

Rosado also discussed a recent incident involving recordkeeping related to units from his company, Transporte Rosado, stating that he is increasingly convinced it was orchestrated by competitors using intermediaries. He said the company has already secured duplicates of the affected documents and updated all required records.