<\/i>WASHINGTON (AP) \u2014 The Trump administration said Friday it had no involvement in the decision to award a $300 million contract to help restore Puerto Rico\u2019s power grid to a tiny Montana company in Interior Secretary Ryan Zinke\u2019s hometown.<\/p>\n\n\n\n
The White House said Friday that federal officials played no role in the selection of Whitefish Energy Holdings by the Puerto Rico Electric Power Authority.<\/p>\n\n\n\n
Trump spokeswoman Sarah Huckabee Sanders said the president had asked Zinke about the contract and that the cabinet secretary said he had nothing to do with it.<\/p>\n\n\n\n
\u201cHe had no role in that contract,\u201d Sanders said of Zinke. \u201cThis was a state and local decision made by the Puerto Rican authorities and not the federal government.\u201d<\/p>\n\n\n\n
The administration is seeking to distance itself from the issue amid a growing number of investigations and a bipartisan chorus of criticism from Capitol Hill.<\/p>\n\n\n\n
The Department of Homeland Security\u2019s inspector general, an agency watchdog, confirmed Friday that federal auditors will review the Whitefish contract.<\/p>\n\n\n\n
\u201cAs part of their standard procedure, they will conduct vetting to look for the presence of any inappropriate relationships,\u201d said Arlen Morales, a spokeswoman for the inspector general\u2019s office.<\/p>\n\n\n\n
The Federal Emergency Management Agency, which is part of Homeland Security, said it has not approved any reimbursement requests from the utility for money to cover ongoing repairs to the island\u2019s power grid following Hurricane Maria.<\/p>\n\n\n\n
FEMA said in a statement that any language in the controversial contract saying the agency approved of the deal with Whitefish is inaccurate. The contract said the utility would not pay costs unallowable under FEMA grants, but it also said, \u201cThe federal government is not a party to this contract.\u201d<\/p>\n\n\n\n
The agency said its initial review raised significant concerns about how Whitefish got the deal and whether the contracted prices were reasonable. The 2-year-old company had just two full-time employees when the storm hit Sept. 20. It has since hired more than 300 workers.<\/p>\n\n\n\n
The Interior Department has denied that Zinke, a former Montana congressman, played any role in the contract award. Zinke knows Whitefish CEO Andy Techmanski \u201cbecause they both live in a small town where everyone knows everyone,\u201d a spokeswoman said. Zinke\u2019s son had a summer job at a Whitefish construction site.<\/p>\n\n\n\n
Multiple congressional committees have launched investigations into the deal, the terms of which have triggered questions from both Republicans and Democrats.<\/p>\n\n\n\n
Sen. Claire McCaskill of Missouri, senior Democrat on the Senate Homeland Security and Governmental Affairs Committee, said the Whitefish contract \u201craises every red flag in the book.\u201d The homeland security panel will hold a hearing on the issue next week, and officials should be ready to answer tough questions, the senator said.<\/p>\n\n\n\n
Democrats also raised questions about the role of HBC Investments, a key financial backer of Whitefish Energy. The Dallas-based company\u2019s founder and general partner, Joe Colonnetta, has contributed thousands of dollars to Trump and other Republicans, including Energy Secretary Rick Perry, a former Texas governor, and Texas Sens. John Cornyn and Ted Cruz. Colonnetta also gave to Trump\u2019s inauguration.<\/p>\n\n\n\n
A Whitefish spokesman called Colonnetta\u2019s political donations \u201cirrelevant.\u201d \u2033If one of the investors supported President Trump, that has nothing to do with anything,\u201d spokesman Chris Chiames said.<\/p>\n\n\n\n
Puerto Rico Electric Power Authority director Ricardo Ramos has praised the work performed by Whitefish so far, saying the company\u2019s was the only offer the utility received that did not require a down payment. The power company is $9 billion in debt and was already struggling to provide service amid ongoing power outages before hurricanes Irma and Maria hit last month.<\/p>\n\n\n\n
\u201cThere is nothing illegal going on here,\u201d Ramos said Thursday. Power company spokesman Carlos Monroig said Ramos was not immediately available for an interview on Friday.<\/p>\n\n\n\n
A federal control board that oversees Puerto Rico\u2019s finances said this week it had appointed a former military officer to oversee the work. Retired Air Force Col. Noel Zamot will be responsible for speeding up reconstruction efforts and overseeing coordination with the board, Puerto Rico\u2019s government and the federal government.<\/p>\n\n\n\n
It was not immediately clear whether Zamot would have the authority to void Whitefish\u2019s contract, although under the contract the utility can suspend or terminate the contract \u201cfor any or no reason\u201d after providing written notice to Whitefish and compensating the company for actual expenses.<\/p>\n\n\n\n
Board spokesman Jose Luis Cedeno said Zamot was not immediately available for an interview.<\/p>\n\n\n\n
About 75 percent of the U.S. territory remains without power more than a month after the Category 4 storm made landfall.<\/p>\n\n\n\n
Zamot told Puerto Rico radio station WKAQ 580 on Friday that once a judge confirms him as chief transformation officer of Puerto Rico\u2019s Electric Power Authority, he will review all of the agency\u2019s contracts.<\/p>\n\n\n\n
\u201cWe\u2019re going to be incredibly transparent,\u201d he said, declining further comment on any issues related to Whitefish.<\/p>\n\n\n\n
Puerto Rico Public Affairs Secretary Ramon Rosario told reporters on Friday that he wasn\u2019t familiar with the contract\u2019s details when asked why it includes a clause that prohibits an audit or review of \u201cthe cost and profit elements of the labor rates.\u201d<\/p>\n\n\n\n
Rosario said only that Puerto Rico\u2019s governor already has requested an audit and that the government will turn over all pertinent documents.<\/p>\n\n\n\n
\u201cThere are some legitimate claims,\u201d Rosario said. \u201cIf anyone did anything illegal, let them fry in jail.\u201d<\/p>\n\n\n\n
Associated Press writers Danica Coto in San Juan, Puerto Rico, Ben Fox in Miami and Ken Thomas in Washington contributed to this report.<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"
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