FEMA denies involvement in deal
WASHINGTON — The Federal Emergency Management Agency said Friday it had no involvement in the decision to award a $300-million contract to help restore Puerto Rico’s power grid to a tiny Montana company in Interior Secretary Ryan Zinke’s hometown.
FEMA said in a statement that any language in the controversial contract saying the agency approved of the deal with Whitefish Energy Holdings is inaccurate. The contract, which was awarded by the Puerto Rico Electric Power Authority, said the utility would not pay costs unallowable under FEMA grants, but it also said, “the federal government is not a party to this contract.”
FEMA said it has not approved any reimbursement requests from the utility for money to cover ongoing repairs to the island’s power grid following hurricane Maria.
The agency said its initial review raised significant concerns about how Whitefish got the deal and whether the contracted prices were reasonable. The two-yearold company had just two fulltime employees when the storm hit Sept. 20. It has since hired more than 300 workers.
The Interior Department has denied that Zinke, a former Montana congressman, played any role in the contract award. Zinke knows Whitefish CEO Andy Techmanski “because they both live in a small town where everyone knows everyone,” a spokeswoman said. Zinke’s son had a summer job at a Whitefish construction site.
Multiple congressional committees have launched investigations into the deal, the terms of which have triggered questions from both Republicans and Democrats.
Puerto Rico Electric Power Authority director Ricardo Ramos has praised the work performed by Whitefish so far, saying the company’s was the only offer the utility received that did not require a down payment. The power company is $9 billion in debt and was already struggling to provide service amid ongoing power outages before hurricanes Irma and Maria hit last month.
About 75 per cent of the U.S. territory remains without power more than a month after the category 4 storm made landfall.