Puerto Rico’s federally created fiscal oversight board yesterday imposed a fiscal 2020 budget on the bankrupt U.S. commonwealth that for the first time limits spending choices by its government, according to the board’s executive director, Reuters reported.
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A U.S. District Court judge on Thursday ruled that bondholders’ claim on the assets of Puerto Rico’s public employee pension system ended when the system filed for bankruptcy in May 2017, Reuters reported. The ruling is a setback for owners of nearly $3 billion of bonds sold by the system after a U.S.
The U.S. Federal Bureau of Investigation is probing potential corruption and favoritism in how Puerto Rico awarded some government contracts and arrests may be forthcoming, according to the bureau’s special agent in charge on the island, Douglas Leff, Bloomberg News reported.
Puerto Rico Governor Ricardo Rosselló asked for the immediate resignation of Treasury Secretary Raul Maldonado just hours after the cabinet member disclosed a federal corruption investigation into his own department, Bloomberg News reported. Rosselló said yesterday that he’d never been informed of the “serious irregularities” that Maldonado made public.