Correction: An earlier version indicated that Puerto Rico’s governor had appointed Melba Acosta Febo and Juan Zaragoza G-mez to positions in the government when he had in fact nominated them for the positions.
Puerto Rico Gov. Alejandro García Padilla announced major changes to the leadership of the three departments running Puerto Rico's finances Wednesday.
Melba Acosta Febo was nominated to move from Secretary of the Treasury to become President of the Government Development Bank for Puerto Rico.
García Padilla said he was nominating Juan Zaragoza G-mez as the new Secretary of the Treasury.
Additionally, García Padilla announced that he was naming Luis Cruz to be the new Director of the Office of Management and Budget, replacing Carlos Rivas.
David Chafey remains as chairman of the GDB.
The current interim president of the GDB, José Pagán Beauchamp, will serve as an advisor to Acosta Febo. Pagán Beauchamp became the interim president in July 2013 after Javier Ferrer resigned.
Among other thing the GDB oversees the commonwealth's and the commonwealth's public corporations' issues of debt and lends money to both the commonwealth and its public corporations.
The Treasury oversees the collection of taxes for the commonwealth.
"These changes in my fiscal team are made to strengthen our public policy of fiscal discipline without laying off government workers, meeting the basic needs of our citizens, and promoting the economic growth of the country," García Padilla said.
Zaragoza G-mez has extensive experience in private practice and government dealing with tax legislation and tax systems analysis in Puerto Rico.
Since the governor took office in January 2013, Zaragoza G-mez has been assistant secretary at the Treasury, advising Acosta Febo on tax issues, particularly on the evaluation and development of legislation. Zaragoza G-mez serves on the Advisory Group on Tax Reform, which is working to create a substantially new tax system in Puerto Rico.
Zaragoza G-mez is a certified public accountant. He earned his B.A. in accounting from University of Puerto Rico at Río Piedras, where he graduated with the highest academic average in his class. He also holds a master's degree in management from the University of Indiana.
The governor said Cruz, the new office of management and budget director, has extensive experience in government budgeting.
In 1994 he established a firm of certified public accountants and consultants. From 2001 to 2008, he provided consulting services to Puerto Rico's Office of Management and Budget in its preparation of the annual budget. He also monitored General Fund spending.
Additionally, he has collaborated on special projects for the departments of Treasury, Education, Police, Health and Corrections, among others. From January 2013 to August 2014 he was Director of the Budget and Finance Committee of the Puerto Rico House of Representatives.
Cruz has a degree in accounting from the University of Puerto Rico at Rio Piedras and a master of business administration from the Inter-American University of Puerto Rico.
On Wednesday García Padilla said Rivas had done an excellent job as Director of the Office of Management and Budget. The governor said spending in the first quarter of the fiscal year was as budgeted.
The governor is appointing Rivas to work on improving the fiscal sustainability of the commonwealth's public health system.
For Zaragoza G-mez's nomination to go into effect, the Puerto Rico Senate must approve it. For Acosta Febo's nomination to go into effect, the GDB board of directors must approve it.
Subsecretary of the Treasury Karolee García will serve as the Interim Secretary until the Senate confirms a permanent Secretary.
