WASHINGTON – Four senators urged President Obama and congressional leaders on Thursday to only nominate and appoint qualified individuals from Puerto Rico to serve on the oversight board to be created under recently passed legislation designed to help the commonwealth with its fiscal crisis.
Sens. Robert Menendez, D-N.J., Jeff Merkley, D-Ore., Cory Booker, D-N.J., and Bernie Sanders, I-Vt., made their requests in letters that laid out their concerns about a board that would not be representative of the Puerto Rican people. "It is imperative that Puerto Ricans be given at least some voice on the oversight board," the four senators wrote.
President Obama has indicated that he will make Puerto Rican representation on the board a priority.
The legislation, called PROMESA, grants the seven-member oversight board the power to require balanced budgets and fiscal plans, as well as to file debt restructuring petitions on behalf of the commonwealth and its entities in a federal district court as a last resort, if voluntary negotiations fail.
Congressional leadership is responsible for nominating six of the seven board members while Obama is responsible for nominating one. Obama must appoint each member from those nominated.
The speaker of the House and Senate majority leader are each responsible for recommending two members while the House minority leader and Senate minority leader must nominate one. PROMESA requires one of the board members nominated by the House speaker to either have a permanent residence or place of business in the commonwealth.
The lack of required Puerto Rican representation proved controversial during debate on the bill in both the House and Senate. Menendez and Sanders both said the board would represent neo-colonialism if it did not include local representation.
"We remain disappointed that the democratically elected representatives of Puerto Rico were not given any representation on the board, and we find it highly objectionable that neither they nor the people will be given an opportunity to weigh in on the establishment of the board," the four senators wrote. "However, at a minimum, the board should be composed of members who maintain a primary residence on the island and have a strong understanding of the structural causes of poverty in Puerto Rico and its socio-economic history."
Puerto Rico recently defaulted on nearly half of its $2 billion debt payment due July 1, including all $779 million of constitutionally backed general obligation bond payments. The commonwealth is struggling with nearly $70 billion of debt and $46 billion in unfunded pension liabilities.
