Hurricane Maria: Corruption and Aid Mismanagement in Puerto Rico

Hurricane Fiona's aftermath echoes Hurricane Maria's devastation, exposing broken promises and deep-rooted corruption in Puerto Rico's recovery efforts.

Hurricane Maria: Corruption and Aid Mismanagement in Puerto Rico

In September 2017, Hurricane Maria, a devastating Category 4 storm, tore through Puerto Rico, leaving behind a trail of destruction. Five years later, when Hurricane Fiona, a much milder Category 1 storm, hit the island, the devastation was alarmingly similar. Once again, the power was out, many were without water, and infrastructure crumbled due to extensive flooding. The heartbreaking reality is that much of this suffering could have been avoided.

A Legacy of Broken Promises

Since Hurricane Maria, the Government of Puerto Rico has vowed to rebuild stronger and more resilient infrastructure, from streets and bridges to the energy grid. Billions in federal funding have been allocated to these efforts, but the results have been anything but efficient or transparent. Organisations like Sembrando Sentido have been at the forefront, demanding a systemic and inclusive approach to prioritising and implementing this spending.

The Cost of Corruption

Puerto Rico loses up to $3 billion annually due to corruption and inefficiencies in public contracting processes. This rampant corruption leads to low-quality, unreliable, and expensive essential services. From rebuilding the power grid to repairing roads, these weaknesses become glaringly obvious in Puerto Rico’s inability to build back better. Local disaster recovery agencies are aware of these issues but have largely ignored solutions proposed by governance and accountability experts.

One of the significant issues is the procurement process. Disaster recovery contracts see competition from only three bidders, with the evaluation and awarding process taking nearly five months on average. Requests for proposals take about nine months, resulting in significant delays. Despite billions dedicated to housing, only 2% of housing needs have been met, according to the UPR Resiliency Law Center.

Disparities and Missed Opportunities

There is also a stark disparity in the allocation of contracts. Only about 36% of funds go to Puerto Rican-based contractors, while around 63% are awarded to contractors based in the mainland United States. This is a massive missed opportunity to support the local economy.

Calls for more transparency and public participation in how these critical funds are spent have largely gone unheard. Agencies like the Puerto Rico Department of Housing offer only one citizens' meeting a year, with little accountability for the decisions made. Agency websites lack real information on projects, funding allocations, progress, or how citizens can get involved, further disenfranchising the community from the reconstruction process.

The Role of Public-Private Partnerships

Public-Private Partnerships (PPPs) have also been problematic. Multimillion-dollar transactions, particularly in the energy sector, lack transparency and accountability. For example, Luma Energy, a private contractor, has been taken to court to disclose basic information about their use of taxpayer money. Despite raising energy prices, Luma has not improved the power grid's reliability, leading to longer outages and little progress.

A Growing Crisis

Corruption in Puerto Rico is not shrinking; it's growing. States of emergency, like those following hurricanes, exacerbate the misuse of funds. During these times, procurement controls are often ignored, with the government using the urgency of the situation as an excuse to bypass rigorous planning, competition, and transparency. While quick action is necessary in emergencies, it must be transparent to ensure accountability.

The Human Cost

This issue isn't just about efficiency or misuse of taxpayer dollars; it’s about saving lives. Puerto Rico's 3.2 million U.S. citizens deserve better than the illusion of reform. There is an opportunity to do things differently.

Moving Forward: A Call to Action

To ensure a just and transparent recovery, several steps need to be taken:

  1. Increase Transparency: Protect public resources and ensure fair and efficient spending. Citizens must know who the government is doing business with, for how much, and who will benefit.
  2. Community-Centric Processes: Design processes that listen to and prioritize the needs of local communities.
  3. Innovate for Resilience: Develop strategies to mitigate climate risks, preparing Puerto Rico to withstand future storms like Fiona and Maria.

By demanding transparency and accountability, Puerto Rico can build a more resilient future, protecting its citizens and ensuring that recovery efforts genuinely benefit those in need. The path forward is challenging, but with concerted effort and a commitment to change, a brighter, more secure future is possible.

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