Breaking: @DHSOIG slammed Puerto Rico's power utility for failing to control costs of rebuilding the electrical grid after Hurricane Maria, leaving itself open to gouging by contractors Cobra and Whitefish. https://www.oig.dhs.gov/sites/default/files/assets/2020-07/OIG-20-57-Jul20.pdf

Among the highlights: Power utility (Prepa) ignored "multiple substantial rate increases" put in place by Whitefish after the signing of its initial contract in September 2017

Whitefish raised its labor rates twice, taking cost of an apprentice lineman from $83/hour to $188/hour

Whitefish equipment rates also went up by.... a lot

The contract also added rates for labor/equipment with "exorbitantly [high]" mark-ups for subcontractors

These cost increased went largely unnoticed at Prepa which was paying the bills

On to the 2nd contractor, Cobra Acquisitions, which to remind readers was the subject of a major corruption investigation that landed its president and a high-ranking FEMA official under federal indictment for bribery https://www.wsj.com/articles/fema-official-contractor-executive-charged-over-puerto-rico-grid-repairs-11568130851

. @DHSOIG found Cobra billed $117 million for work without completing purchase orders that are supposed to establish a timeline and cost ceiling for a particular project

Prepa paid millions of dollars in cost overruns without the required documentation

The report also criticizes FEMA for failing to verify that Cobra was being properly supervised before releasing federal funds

Taxpayer money may have been paid out improperly, and because of Prepa's bankruptcy, may be difficult to get back.