The Puerto Rico Oversight Board announced it was planning an investigation of the island’s public sector debt.
Late on Wednesday the board said it would do a “comprehensive investigation” of the debt that will include a review of the fiscal crisis and what led to it and an examination of Puerto Rico’s debt and its issuance. The latter will include a review of disclosure and selling practices.
The findings will be made public, the board said.
The board will form a special committee to appoint an independent investigator to carry out the investigation, it reported in a written statement.
The Puerto Rico Oversight, Management, and Economic Stability Act indicated in Title I, section 104(o) that the board “may investigate the disclosure and selling practices in connection with the purchase of bonds” issued by Puerto Rico for or on behalf of retail investors.
The board’s investigation may be similar to a debt investigation commission initiated by Popular Democratic Party legislators in July 2015. In April 2017 Gov. Ricardo Rosselló and his allies in the legislature ended funding for this commission. Rosselló said it would be up to the legal system to pass judgment on the validity of various bonds.