Transition Committee members not persuaded by Justice Dept. view on LUMA contract

Transition Committee members not persuaded by Justice Dept. view on LUMA contract

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On Tuesday, Ramón Luis Rivera Cruz, who leads the Incoming Transition Committee for governor-elect Jenniffer González Colón, commented that the statement made by Justice Secretary Domingo Emanuelli Hernández on November 15, 2022, regarding the LUMA Energy agreement was “too vague.”

“It’s common knowledge that the contract can be legal between two parties, and certain aspects were negotiated, but I anticipated that the Department of Justice would investigate further and ascertain whether there were any grounds for canceling the contract or, on the other side, that there are none since it lacks the necessary tools for such action,” Rivera Cruz noted during a press briefing. “Thus, that was simply declaring that the contract was legal.”

One definition of “wishy-washy” according to the dictionary is “something lacking in strength, flavor or character.”

In the hearing before the Transition Committee on Tuesday, Emanuelli Hernández stated that the opinion he provided, at the request of the Public-Private Partnerships Authority (P3A), did not assess LUMA’s compliance, the consortium responsible for managing the electric power transmission and distribution system.

“What I convey to them is, look, the contract is legitimate and does contain some mechanisms for its termination or for judicial action. Beyond that, no, because I was not tasked with that,” the Justice Secretary replied when questioned by attorney Verónica Ferraiouli Hornedo.

“If the current situation reflects a breach or not, isn’t that something you assess?” Ferraiouli Hornedo inquired.

“I did not evaluate that because it was not brought to my attention,” Emanuelli Hernández responded.

“And aside from the opinion you provided, have you considered if any situation could lead to a breach?” Ferraiouli Hornedo continued. “Has any examination been done by you or the Department of Justice regarding LUMA’s adherence to its contractual obligations?”

“No,” said the Justice Secretary.

During a press conference, Emanuelli Hernández emphasized that the authority to assess a breach of contract solely belongs to the P3A.

“To start, the P3A is the body that can oversee that contract and request an examination or initiate a lawsuit,” he explained. “If they feel their lawyers are inadequate for filing that lawsuit for nullification or termination of the contract, they can seek assistance from the Department of Justice, which will decide on the matter. Yet, in such scenarios, the P3A typically has its own legal teams who manage those cases.”

“And if, hypothetically, the governor solicited the appointed Secretary of Justice for an assessment on LUMA’s non-compliance, do you think the Department of Justice would be unable to provide it?” he was asked.

“The reality is that not even the governor can request it; it lies with the P3A,” Emanuelli Hernández responded. “The P3A is tasked with requesting that opinion, gathering all necessary documentation, and evaluating how evidence is collected throughout the various phases of non-compliance. That process is not as straightforward as many believe. I mention it is complex because it encompasses a responsibility one must take on when recommending that the contract be voided.”

“I had thought the Secretary of Justice served as counsel to the governor and to the public, and I see no justification for them not stating, ‘I reviewed the assignment and believe there has been non-compliance,’” Ferraiouli Hornedo remarked during a press conference reacting to Emanuelli Hernández’s viewpoint. “However, I do not grasp why the Secretary of Justice is precluded from making a legal determination. It’s their duty to inform the governor about the legal status regarding such matters.”

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