The federal control board responsible for Puerto Rico’s finances has announced the appointment of a new executive director. This comes after its previous one, who resigned in April following an historic restructuring of Puerto Rico’s debt.
Robert Mujica is the budget director for New York State. He will assume his new position in January. He was previously the chief of staff for the U.S. He was the Senate majority leader, and secretary to the Senate finance panel.
He said, “It’s an exciting work, it is fun work,” in a telephone interview. “I wasn’t looking to leave this place.”
The board reached out to Mujica who wanted to return to the island where he had spent his summers as a kid. His grandparents and parents are from Arecibo, a north coast town.
He said that the new job was a huge challenge. It is thrilling to be part the solution.
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In 2016, the U.S. Congress established the board after Puerto Rico declared that it could not pay more than $70 Billion of its public debt, accumulated over decades of poor management and corruption.
Puerto Rico filed the largest municipal bankruptcy filing in American history in 2017. A federal judge approved in January a plan to reduce the debt of Puerto Rico and allow it to begin repaying creditors. Although most of the debt has been restructured by now, the $9 billion Puerto Rico’s power company – the largest government agency debt — still needs to be resolved. Since then, litigation has resumed.
Mujica will replace Natalie Jaresko and be in charge the board that oversees the bankruptcy-like process. It will stay in place until Puerto Rico approves four consecutive balanced budgets.
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The chairman of the board, David Skeel, suggested that last year’s budget may have been balanced. However, the board cannot confirm this until it has received the audited financials. Auditors are currently reviewing Puerto Rico’s 2019 budget.
Mujica declined comment to either say whether he agreed with the board’s recent moves or to comment on the actions taken by Puerto Rico’s governor. There have been some bitter disagreements that ended up in court. Mujica also refused to discuss his priorities and said he must first be up-to-speed on all matters.
Mujica stated that his goals are to promote fiscal responsibility, long-term stability, and ensure revenues meet spending needs. While he acknowledged the importance of economic growth, he said that it is not possible if there are instabilities in the economy or budget.
He said, “It’s much easier to govern year by year, but when that happens, you’re not prepared for the long-term.” “The common goal of all is to serve the island’s people. Sometimes there may be disagreements about how to do that. My role is to bridge those differences and reach an agreement as often and as often as possible.
Mujica will be joining the board because a growing number Puerto Ricans are decrying the austerity measures that it has taken amid calls for an economic development plan. This is an island still struggling to recover HTML3_ from the recent hurricanes.
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Critics have also noted that Puerto Rico’s ongoing bankruptcy process has resulted in an estimated $1 billion in legal and consulting fees. The board’s director makes $625,000 per year.
Skeel stated that the board unanimously selected Mujica after a number of candidates were interviewed by a search firm. About five to six of these candidates were then interviewed further by the board.
Robert’s arrival on board is something that he couldn’t be more excited about. “He has the right background for what we have left,” he said.