Puerto Rico coronavirus statistics for August 3

According to the Puerto Rico Health Department, 18,791 people are believed to have been infected with COVID-19, an increase of 3,360 since last week. This points to an ongoing spike in new cases, as the increase between July 20 and July 27 was 2,970. The death toll is currently 230, with twenty-nine people having died during the past week.

Beginning on June 11, the Health Department changed the way it recorded cases, splitting them between confirmed cases (as determined by molecular diagnostic testing) and probable cases (as determined by serological, non-diagnostic testing). Viewed through that prism, Puerto Rico currently has 7,113 confirmed cases of COVID-19 (an increase of 1,697 over the past week) and 11,678 probable cases (an increase of 1,663 over the past week). The number of probable cases was boosted by the addition of 11 previously unreported cases. There are currently 533 people hospitalized due to COVID. 

Faced with a dramatic increase in cases, the Puerto Rico government took steps in mid-July to once again prohibit a number of activities that had resumed over the past two months. These restrictions were further tightened last Friday, with a new executive order restricting additional social activities—although not, notably, certain campaign events.

Federal District Court rules denial of benefits to Puerto Ricans is discriminatory

In a decision with major implications, federal judge William G. Young (Chief Judge of the United States District Court for the District of Massachusetts) ruled on Monday that it is an unconstitutional violation of the equal protection clause to deny people living in Puerto Rico access to three key federal programs. In his ruling, Judge Young found that it was discriminatory to deny Puerto Ricans access to Supplemental Security Income, Supplemental Nutrition Assistance Program (formerly known as food stamps), and the Medicare Part D Low-Income Subsidy. 

“To be blunt, the federal government discriminates against Americans who live in Puerto Rico,” he wrote, adding that the territory has a poverty rate of 43 percent.  For now, the ruling will only apply to the nine plaintiffs in the case, due to a two-month administrative stay of injunction applied by the judge. However, in the long run, the ruling could lead to millions of dollars in benefits to eligible recipients. Legal experts anticipate that the U.S. government will appeal the ruling and, if necessary, take the case to the U.S. Supreme Court. If the case goes to the Supreme Court, it is possible that the decision will determine the constitutionality of federal benefits for people living in other U.S. territories, in addition to Puerto Rico. The case is Pena Martinez v. U.S. Department of Health and Human Services.

Heavy rains cause floods, disrupt services

In a dramatic pendulum swing away from the drought conditions that characterized the months of June and July, heavy rainfall fell throughout last week—including rain associated with Tropical Storm Isaias. The storms led to major damage to more than 200 homes, largely in the Island’s southwest region. The municipality of Mayagüez suffered over $14 million in damage. This, however, is a fraction of the total estimated damage caused by Isaias: the agricultural industry alone estimates losses of up to $250 million. At least one person has been reported dead due to the flooding. 

In addition to the flooding, the heavy rains caused much of Puerto Rico to lose power and as of Sunday, 28,000 of the Puerto Rico Electric Power Authority (PREPA)’s clients—roughly 5.28% of the 530,000 who lost power—were still without service. Furthermore, the loss of power led to the interruption of water service for many across the Island.

OIG report on Whitefish and Cobra contracts failures to curb Cost, provide oversight

The Office of the Inspector General (OIG) of the U.S. Department of Homeland Security warned last week that, failures by the Puerto Rican government and FEMA to properly review terms and conditions in its contracts with Whitefish and Cobra Acquisitions—as well as its failure to provide oversight of the contractors’ work—may place the Puerto Rico Electric Power Authority (PREPA) “at risk of not receiving a full refund” on costs incurred under FEMA’s public assistance program. The companies were contracted to perform repairs of Puerto Rico’s power grid in the aftermath of Hurricane Maria.

PREPA’s failures, as outlined by the OIG, include going through with the Whitefish contract despite unexplained and sudden increases in costs, which drove the contract price to a staggering $300 million. The Whitefish contract received criticism from multiple quarters not only for its high costs, but also for the company’s ties to then-U.S. Interior Secretary Ryan Zinke. The Cobra contract was eventually the subject of a federal investigation that resulted in charges being filed against FEMA personnel and Cobra’s former president. The contract was eventually canceled, but only after Cobra had been paid $1.1 billion. 

The OIG’s report can be read here.

Terms of agreement between PREPA, creditors, might be renegotiated

The May 3, 2019 Restructuring Support Agreement (RSA) between the Puerto Rico Electric Power Authority (PREPA) and its bondholders, which slashed the public corporation’s debt and put a halt to lawsuits against it, may be opened to renegotiation, states the Financial Oversight and Management Board (FOMB). According to the FOMB, it continues to evaluate the feasibility of the agreement in light of current circumstances, including the coronavirus crisis, the recent drought, and the aftermath of storm damage from Isaias. 

According to the motion submitted by the FOMB to Judge Laura Taylor Swain, PREPA’s exit from Title III of PROMESA—which allowed the public corporation to invoke bankruptcy—requires determining whether the assumptions made by the PREPA fiscal plan will come to pass. The FOMB and the Puerto Rican government are expected to update the Court on these efforts on or about Whether or not the RSA gets reevaluated hinges on a report by the Puerto Rican government, which is expected to be completed on or close to September 25, 2020.

FOMB To hold 20^th public meeting this week

Originally scheduled for last week, the Financial Oversight and Management Board will hold its twentieth public meeting today, Tuesday, August 4, 2020 at 2:00 p.m. when it plans “to discuss the Commonwealth of Puerto Rico’s Comprehensive Annual Financial Reports […]” and to report on the possibility of bringing pharmaceutical medical manufacturing to Puerto Rico.

The meeting, which will be held via teleconferencing, will be streamed live. People wishing to comment can learn how to do so on the FOMB’s web site. For those wishing to join in, please follow instructions here.