The media has told us that PREPA has made a deal with Free Point Commodities, LLC, to buy fuel for its plants. It is clear from PREPA’s press release, that this contract was obtained through negotiations, not through a bidding process. So far, so good.
The problem is that Stone Point Capitol has investments in Free Point Commodities, LLC, AND in Millstein & Co., The problem is that Jim Millstein is also is the Chief Executive Officer of Millco Advisors, LP, and upon information and belief, also of Millstein & Co. The former has had many contracts with the PR Government Development Bank as a restructuring advisor. Mr. Millstein was also the MC of the PR Government’s presentation of Dr. Anne Krueger’s report earlier this year, see.
This information begs the question, is there some impropriety on this? I don’t know, but Millco Advisors’ contract clearly states in the 23rd paragraph:
The Consultant certifies that it has received copies of (a) Act No. 84, enacted on June 18, 2002, as amended, which establishes the Code of Ethics for Contractors, Suppliers and Applicants for Economic Incentives of the Executive Agencies of the Government of the Commonwealth of Puerto Rico and (b) the Government Ethics Law, Act No. 1, enacted on January 3,2015 as amended from time to time, and its implementing regulations. The Consultant agrees that it, as well as all personnel providing services under this Agreement, will comply with such acts.
This means the Ethics Office of Puerto Rico would have jurisdiction over this issue and its head, attorney Zulma Rosario, has a well-deserved reputation for fairness and zealousness in fulfilling her duties. A violation of the PR Ethics law would entail possible civil and criminal liabilities for Millco Advisors or Mr. Millstein or both.