Duff & Phelps appointed to conduct a forensic analysis of Puerto Rico’s finances
In early February, the Financial Oversight and Management Board for Puerto Rico released a statement saying that it had appointed Duff & Phelps, a world famous global finance advisory firm, to complete a forensics analysis of the government’s bank accounts.
The investigation is necessary, given the lack of transparency surrounding Puerto Rico’s exact financial situation. This comes after a judge recently criticized the Puerto Rico Electric Power Authority’s (PREPA) lack of financial transparency in regards to a loan request. The federal government has also withheld funds from the territory in December, believing that the government had enough cash for disaster relief. The investigation will hopefully clear up any remaining doubts and discrepancies over the exact financial situation the islands are facing.
The Oversight Board’s decision follows a December announcement to examine the Government’s liquidity and establish an accurate picture of the sources and uses of public funds, and the legal restrictions on these funds. “The forensic analysis is a critical step in gaining the information we need to improve the management of Puerto Rico’s public finances,” said Natalie Jaresko, Executive Director of the Board. “The Board considers this investigation an integral part of its mission to restore fiscal balance, promote transparency and support Puerto Rico’s reentry into the capital markets.” The Board issued a request for proposal (RFP) on December 19. The Board will make the findings of the investigation public.