Puerto Rico Corruption Case Rocks Government, Stirs Political Maneuvering

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An FBI corruption case is creating political discord in Puerto Rico, as one of two leading gubernatorial candidates asked for the President of Puerto Rico House of Representatives to resign.

On Thursday Popular Democratic Party candidate David Bernier called on Puerto Rico House President Jaime Perell- Borrás to resign his presidency. Perell- Borrás is a member of the PDP party and Bernier is president of the party.

In another development connected to the corruption case, Bernier's campaign manager Liza Ortiz resigned Friday morning.

Bernier and Ricardo Rossell- Nevares are the most likely candidates to be elected in November as Puerto Rico's next governor. Puerto Rico is struggling with 10 years of general economic contraction and more than $100 billion in bond debt and unfunded pension liabilities. While a federally appointed board will attempt to oversee the island's government starting this fall, who will be governor will also have an important impact on policy.

Both developments can be traced back to the Federal Bureau of Investigations bust of 10 Puerto Rico officials and businessmen in December 2015. The FBI alleged that Anaudi Hernández Pérez, who was in charge of campaign finances for the PDP, was at the heart of several government corruption schemes.

Hernández Pérez and a few others who had been charged have since pled guilty to several charges.

Among those charged were three important staff members of the Puerto Rico House of Representatives.

When Hernández Pérez pled guilty in February, his plea agreement indicated that he had sought to gain unfair advantage for corporations he controlled directly or indirectly. He did this in part through trying to exploiting his friendship and the friendships of the co-defendants with, among others, Perell- Borrás, according to the El Vocero news web site's account of the plea agreement.

El Vocero cited "rumors" that Perell- Borrás had unfairly intervened to award a contract to a company associated with Hernández Pérez. In December Perell- Borrás promised a House investigation of the signing of the contract. This investigation hasn't happened.

As a trial against some of the defendants has started this week, more attention has been brought to the case.

On Thursday on his Facebook page, Bernier called for Perell- Borrás to resign his presidency, writing: "I will continue to watch this situation and take decisions that my conscience and the best interests of the country and the party require in defense of the honesty in public service and values of the new way of doing politics that I defend and practice."

Perell- Borrás has continually denied any wrongdoing and on Friday responded to Bernier's call by refusing to resign his leadership position. "Your request to step down has never been an option I have contemplated," Perell- Borrás said to Bernier in a written statement. "Doing so would send the wrong message that rumor, intrigue, and political attacks give results and are sufficient to remove a duly elected public official who was revalidated just weeks ago in an internal party election.

"I reiterate that my conscience is clear," Perell- Borrás said.

According to El Vocero, Bernier responded to the House leader on Friday by saying that he expected Perell- Borrás to resign and that if Perell- Borrás didn't, Bernier would urge the party leadership and the PDP delegation in the Puerto Rico House to remove him. Bernier said if need be he would take the matter to his party's leadership board on Saturday.

In a separate but related matter, Bernier's campaign manager Ortiz resigned on Friday. Her name appeared twice in court documents connected to the Hernández Pérez case. According to the El Nuevo Día news web site, she said to Bernier, "I thank you for expressing your confidence in me yesterday in understanding that what has happened recently is merely a political attack to try to link you to a foreign process, but at times like these we must be grown-up and make responsible and courageous decisions."

On Friday Bernier also suspended Eder Ortiz, who is unrelated to Liza Ortiz, from his position on the PDP leadership board. Since the December FBI busts some have suspected Eder Ortiz of being connected to the Hernández Pérez ring.

"Bernier had to ask for the resignation of Perell-," said Puerto Rico lawyer and political analyst Domingo Emanuelli. "It was affecting Bernier's opportunities in the election in November. With this decision, Bernier has made a step ahead and he's on the right track."

Ortiz's decision to resign also helps the campaign, Emanuelli said.

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