Puerto Rico residents file suit challenging Promesa’s constitutionally

By Caroline Salls

Pittsburgh, April 24 – Numerous residents of the Commonwealth of Puerto Rico filed a lawsuit Tuesday against the United States of America, the Financial Oversight and Management Board for Puerto Rico and Gov. Ricardo Rossello Nevares, alleging that the Puerto Rico Oversight, Management, and Economic Stability Act of 2016 (Promesa) violates their rights under the 1st, 5th and 14th amendments of the U.S. Constitution.

According to the complaint filed with the U.S. Bankruptcy Court for the District of Puerto Rico, the plaintiffs allege that the constitutionality of the establishment of the board with executive and legislative powers over the Puerto Rican government, its elected officials and the residents of Puerto Rico is contested.

In addition, the plaintiffs said “it is contended that the conflict of interests of various of the members of the FOMB renders them unqualified to remain in the board, and it prevents any and all attempts to pursue the objectives of Promesa and further constitutes a violation of the constitutional right to due process of law.”

“Even the appearance of conflict of interest in the acts or omissions of those members of the FOMB can render any and or all acts of the board null and void,” the complaint said.

“Furthermore, we argue that the unique and novel nature of Promesa does not render it exempt from constitutional and fiscal scrutiny and as such cannot be construed to preclude this court from considering and resolving the constitutional matters presented by plaintiffs.”

The plaintiffs said these allegations are particularly true after the economic and social devastation caused by hurricanes Irma and María in Puerto Rico “and the way the government of Puerto Rico has mishandled the socioeconomic and health crisis that arose afterwards.”

Through the lawsuit, the plaintiffs said they are also requesting a legal and forensic audit of the public debt, “which is fundamental to transparency and constitutes an essential fiduciary and statutory duty of the FOMB and the government of Puerto Rico.”

As previously reported, the board announced details last week of proposed new fiscal plans for Puerto Rico.

The Commonwealth of Puerto Rico announced its Title III petition filing on May 3, 2017. The case number is 17-03283.

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