The elected legislative delegation of the Citizen Victory Movement (MVC) denounced this Tuesday that the Board of Fiscal Control (JCF), in violation of the PROMISE Act itself, allegedly imposes a public policy on the Government of Puerto Rico.
The MVC indicated that while the PROMISE Law states that the role of the JCF must be strictly related to the tax and the budget, it has adopted a model of public policy, developed by a private contracting company, which involves budget cuts. drastic that it has demanded since its inception. The delegation of Victòria Ciutadana urged to reject these cuts through mobilization and legislative work.
The cuts the JCF intends to impose on the University of Puerto Rico (UPR) noted in recent weeks by the press “are part of a broader problem,” said Ana Irma Rivera Lassen, an MVC-elected senator.
“The implementation of a public policy drawn up by a private company, McKinsey & Company, contracted by the JCF. This public policy is adopted at the expense of the town of Puerto Rico, in violation of the provisions of the same law PROMISE, in accordance with unpublished criteria and without regard to the particular needs and situation of Puerto Rico. “
The cuts that the (JCF) seeks to impose on the University of Puerto Rico (UPR) reviewed in recent weeks by the press, are part of “a broader problem.” It is, explained Ana Irma Rivera Lassen, senator elected by the MVC, “the implementation of a public policy drawn up by a private company, McKinsey & Company, contracted by the JCF. This public policy is adopted at the back of the town of Puerto Rico, in violation of the provisions of the same PROMISE law, in accordance with unpublished criteria and without taking into account the particular needs and situation of Puerto Rico. “
According to Rafael Bernabe, also a member of the elected delegation of the MVC, “four years ago the Board hired the firm McKinsey to make proposals for cuts in the public sector, which are referred to by the euphemism of ‘rightsizing’. In the case of the UPR tax plan, this company has taken as a guide (benchmark) the funding of some public universities in the United States. “
But, Bernabe noted, “this is not the only possible funding model for public universities. Nothing forces Puerto Rico to adopt this model or ‘benchmark’. In addition, the situation in Puerto Rico (per capita income, levels of poverty, etc.) is very different “. Bernabe added that the same has happened with budget proposals for other agencies.
According to the elected representative José Bernardo Márquez, “to adopt these models is to formulate public policy, so the Board has no power, because its role, according to PROMISE, is strictly fiscal and budgetary. The formulation of public policy is the responsibility of Government of Puerto Rico its elected officials “.
Mariana Nogales, elected representative of the MVC, explained that, “although the Board loves to talk about transparency, the studies that are supposed to underpin these cuts are not published, beyond brief comments on the tax plans. on, ”he added,“ the Board is implementing cuts that undermine the government’s ability to provide essential services, which contradicts the provision of Title II of PROMISE which orders funding for the same ”.
Bernabe added that the McKinsey company has been criticized, “not only for repeating the same neoliberal and privatizing model around the world, with devastating effects on people and the environment, but for taking these practices to particularly outrageous extremes.”
According to Márquez, “its connection to the policies of pharmaceutical companies that favored opiate addiction has recently been revealed, with a terrible impact on the health of millions of people. In the same way, it was part of the elaboration of the Trump administration’s immigration policy, including the infamous policy of separating children from their parents.In the case of Puerto Rico, the New York Times and other media reported that one of McKinsey’s divisions owns on the part of Puerto Rico’s debt, debt collection depends in part on the policies the Board is implementing as advised by McKinsey. It’s a clear conflict of interest. “
“As of April 2019, McKinsey has charged $ 72 million for his services. They are funds from the people of Puerto Rico,” the Bernabe noted. “These are already sufficient reasons,” he said, “to demand that the imposition of the so-called ‘rightsizing’ designed by this company be stopped and that its studies and criteria be made public, with the aim of justifying these cuts.”
MVC elected lawmakers expressed that “thanks to the sacrifice and deprivation of our people for four years, according to the recent AAFAF report, a fund of about $ 10.3 million has been generated that can now be used. – for one of two things: for the economic reconstruction of Puerto Rico or to pay the bondholders through an unsustainable agreement that will surely lead to a new bankruptcy.We must ensure that we mobilize and that we adopt measures to ensure the first outcome “.