Puerto Rico Misses Transparency Deadline for Information on Hidden Rum Subsidies

Gov. Fortuno Fails to Release Details on Secret Rum Payments

WASHINGTON, March 18 /PRNewswire-USNewswire/ -- Puerto Rico Governor Luis Fortuno failed to meet a deadline to disclose important details on subsidies to local and foreign rum companies by releasing his government's contracts with rum companies to the public. Governor Fortuno ignored the call for transparency from the National Black Chamber of Commerce (NBCC), which asked him to address long-rumored hidden rum payments.

It is unclear exactly much how direct and indirect revenue, including money from the rum cover-over program and Puerto Rico's general fund, is funneled to Puerto Rico's rum companies, including Bacardi and Destileria Serralles. In a letter dated February 24, NBCC President and CEO Harry C. Alford requested Governor Fortuno match the U.S. Virgin Islands' practice of making all government contracts with rum makers open to the public. Alford encouraged Puerto Rico to make information available to the public by March 5, but received no response from Puerto Rican officials.

"It's unfortunate that Governor Fortuno refuses to be transparent with his residents. Until the public has access to Puerto Rico's financial records and rum contracts, it is impossible to tell whether they are playing by the rules," said Alford. "We have tried to follow Puerto Rico's money trail, but it's a maze at best."

Despite Puerto Rico's claims of a self-imposed cap, there is speculation that the territory gives far more than 10 percent of the value of its cover-over money to private rum companies. Because Puerto Rico did not meet the "transparency deadline" by releasing the contracts with its rum makers or information on indirect support or hidden benefits, there is growing concern that the territory has violated its local cap for years.

The U.S. Virgin Islands, in contrast, has openly disclosed its rum contracts, provided details on all payment and investment in the rum industry, and held public hearings on its investment agreements with Diageo and Fortune Brands, its two rum makers.

"Transparency is an important aspect of 21st century business," said Alford. "It's imperative that Puerto Rico follow the lead of Governor John deJongh and the U.S. Virgin Islands by adhering to the rules of the modern business game and releasing their rum contracts to the public."

SOURCE National Black Chamber of Commerce