WASHINGTON – The Latest on questions surrounding a $300 million contract for Puerto Rico’s power grid (all times local):
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12:25 p.m.
Congressional Democrats are asking the inspector general at the Department of Homeland Security to investigate a $300 million no-bid contract awarded to a tiny Montana company to help restore Puerto Rico’s power grid.
Sen. Claire McCaskill of Missouri, top Democrat on the Senate Homeland Security and Governmental Affairs Committee, said the contract awarded to Whitefish Energy Holdings “raises every red flag in the book.” The 2-year-old company, based in Interior Secretary Ryan Zinke’s hometown, had just two full-time employees when the storm hit Sept. 20. It has since hired more than 300 workers.
Reps. Peter DeFazio of Oregon and Raul Grijalva of Arizona also asked for the inspector general to investigate. DeFazio is top Democrat on the House Transportation and Infrastructure Committee, while Grijalva is the top Democrat on Natural Resources.
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10:52 a.m.
The Federal Emergency Management Agency says it had no involvement in the decision to award a $300 million contract to help restore Puerto Rico’s damaged power grid. The contract went to a tiny Montana company from the hometown of Interior Secretary Ryan Zinke.
FEMA said in a statement Friday that any language in the contract saying the agency approved the deal with Whitefish Energy Holdings is inaccurate. FEMA says it hasn’t approved any reimbursement requests from the Puerto Rico Electric Power Authority for money to cover the ongoing repairs to the island’s power grid following Hurricane Maria.
FEMA says its initial review raises significant concerns about how Whitefish got the deal and whether the contracted prices are reasonable.
Multiple congressional committees have now launched investigations into the contract.
