PR Conract With Energy Secy Pal Starts to Stink

Whitefish Energy, the two-person, office-free company that landed a $300 million contract to repair the 2,400 miles of Puerto Rico’s electric lines, got more than just a big check, they got a very nice clause in their contract. A leaked copy of the contract includes a section on just who has access to the records kept by Whitefish in carrying out the work. That list includes the Puerto Rico Power Authority, the Commonwealth of Puerto Rico, the FEMA Administrator, the comptroller general of the United States, or any of their authorized agents.

Which seems like a reasonable enough list. Except that tucked in a couple of sentences below is something that unwinds most of that authority:

 "In no event shall PREPA, the Commonwealth of Puerto Rico, the FEMA Administrator, the comprtoller general of the United States, or any of their authorized representatives have the right to audit or review the cost and profit elements of the labor rates specified herein."

Since Whitefish doesn’t exist as a physical company, everything it’s doing is in the form of billing for subcontractors at rates that often exceeds $400 an hour along with daily charges for food and lodging. The contract makes those rates beyond review.

That clause makes it impossible for anyone to tell how much Whitefish is actually paying its workers and how much it is pocketing. It makes almost every line item under the contract proof against review.

What we do know is that Whitefish bills Puerto Rico $332.41 per person per day for lodging, and  $79.82 per person per day for meals.  Keep in mind that the average American spends $17 per day on food.

Whitefish is a small Montana energy company located in Interior Secretary Ryan Zinke's hometown.  Sounds fishy?  Well the White House is now disavowing any involvement in the deal.  Furthermore, Sarah Huckabee Sander said Donald Trump had asked Zinke about the contract and that the cabinet secretary said he had nothing to do with it, either.  This is beginning to look like a stinky mess that everybody is backing away from . . . stay tuned.