Melba Acosta’s Resignation

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Today, Governor accepted the resignation of Melba Acosta as President of the Government Development Bank. The resignation will be effective at the end of July. Her letter of resignation mentions the approval of PROMESA as a reason, but it will not start functioning until October at the earliest. And to say that she has accomplished what she came to accomplish is to ignore the realities of our financial crisis. Why then, did she resign with only 5 months left before the end of this administration? Let’s see.

 

Melba Acosta has shown a personality that needs to exercise control over her environment and refuses to share information with the public or the Legislature. The coming of the Supervisory Board will definitely take away many of her functions but it will not start functioning until October at the earliest. So that cannot be the reason.

 

Today, ENDI published a note about an investigation by the Securities and Exchange Commission of bond issues by PREPA. The note states that the investigation deals with this administration and that it started in 014. We all know that investigations of this type take time and the U.S. Attorneys Office likes to indict persons in positions of power close to elections. An SEC investigation may bring indictments pursuant to section 17(a) of the Securities Act de 1933 and Rules 10b-5 y 15c-12 of the SEC. In addition to criminal charges, which have to be done through the DOJ, the SEC may file civil suits against PR or the persons involved in violations of said laws and regulations.

 

And it is not only the SEC that will be involved in an investigation. Senator Orrin Hatch asked the SEC to investigate the PR bond issues and also said the Senate Finance Committee would conduct its own investigation. Does Melba know something we don’t know? ¿Are these investigations the reason for her resignation? Time will tell.

 

 

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