Puerto Rico congressional Rep. Jenniffer Gonzalez-Colon is opposing President Trump’s nomination of Justin Peterson to Puerto Rico’s financial oversight board, saying she is concerned the appointment creates the appearance of a conflict of interest.
In a tweet, Gonzalez-Colon wrote, “I have always been on record in my belief of the sanctity of contracts & the respect 4 the rule of law. I’m a firm believer in transparency of governmental processes. For these reasons, I can’t support a candidate to the FOMB that has even the appearance of a conflict of interest.”
I have always been on record in my belief of the sanctity of contracts & the respect 4 the rule of law. I’m a firm believer in transparency of governmental processes. For these reasons, I can’t support a candidate to the FOMB that has even the appearance of a conflict of interest
— Jenniffer González (@Jenniffer2012) October 8, 2020
Peterson, who works for the DCI Group, a public relations and lobbying firm, has worked on behalf of creditors in the island’s bankruptcy case. His firm stopped working for the creditors in mid-2018.
Peterson gave a $2,700 political contribution to Gonzalez-Colon, a Republican who services Puerto Rico as a nonvoting member of Congress. The contribution, made on June 30, 2016, was the maximum permitted to a candidate per election at the time.
People appointed to Puerto Rico’s federally created Fiscal Oversight Board are charged with restoring financial stability to the commonwealth, including by restructuring the island’s billions of dollars in debt.
A reporter for the New York Times, said in a tweet that Peterson said he has “no interests involving Puerto Rico. … There is no conflict of interest.”
A White House official told the Washington Examiner that “Peterson is President Trump’s choice to join the board, and he will be replacing Arthur Gonzalez,” a judge appointed in 2016 by former President Barack Obama.
“His experience working directly on these issues will be valuable to the work of the board,” this official said.
The White House did not answer whether Peterson’s nomination had been reviewed by ethics officials.
A spokesperson for the Financial Oversight and Management Board for Puerto Rico, Edward Zayas, said the board “will not comment on this issue at this time.”
Peterson did not respond to requests for comment. And a representative for Gonzalez-Colon said Thursday that the congresswoman had no further comment on Peterson’s possible appointment.
In an interview last month, Gonzalez-Colon touted a $13 billion aid package announced by the White House to rebuild the island after Hurricane Maria. “Everything that we asked, [Trump] delivered,” she told the Washington Examiner.
Gonzalez-Colon has also advised White House Director of Trade and Manufacturing Peter Navarro and other administration officials on legislation to bring back businesses to Puerto Rico from China.
In 2016, Congress passed the Puerto Rico Oversight, Management, and Economic Stability Act, which created the board. Puerto Rico declared bankruptcy in 2017 to restructure about $120 billion in debt and liabilities, including pension obligations.
Board members are exempt from Senate confirmation, according to a Supreme Court ruling, with six of the seven voting members decided from a list compiled by Congress. The president can select the seventh.
In a statement, Biden for President senior adviser Cristobal Alex called Peterson’s potential nomination to the board “a clear conflict of interest,” adding, “it’s likely he will continue to profit off of the unsustainable debt problem that Puerto Ricans are facing.”
“Puerto Ricans know corruption when they see it, and this appointment is just another example of Donald Trump’s dangerously anti-Puerto Rican agenda.”
