San Juan, Puerto Rico (AP) – Three members of the Federal Management Committee overseeing Puerto Rico’s finances; Recently fired Under the control of US President Donald Trump, he filed a lawsuit in federal court on Thursday, claiming that their dismissal was illegal.
I disagreed with the lawsuit Trump;Sergio Go, director of the White House Human Resources Office. John E. Nixon, the only officer of the remaining officers. and Robert F. MusicaExecutive Director of the Board of Directors.
The lawyers said Arthur J. Gonzalez, Andrew G. Biggs and Betty A. Rosa were illegally removed from the board and the judge asked them to revive them.
“This is an example of the power over the board and Puerto Rico,” said Eduardo Santacana, an attorney at Cooley LLP, the law firm that supports the case. “The president is trying to get a lot of power out there that he doesn’t have.”
Rejected by email
The lawsuit unveiled details of the sudden firing last month, including the deputy director of the US Presidential Personnel Affairs Office notifying Gonzalez and Rosa on August 1 that they had notified them that they had been removed. Gonzalez was the chairman of the board at the time.
Almost two weeks later, Biggs received the same message.
“Neither emails clearly stated the ’cause’ or provided any other justification for removal,” the lawsuit said. “These people who were supposed to be removed were illegal.”
Lawyers argue that Trump has no inherent authority to terminate Gonzalez, Biggs, or Rosa.
The lawsuit was focused on during the Congress. Approved the law in 2016 Known as Promesa, a Financial Surveillance and Control Committee was created within Puerto Rico’s territorial government.
“The interests in this case cannot be high. If the President can violate the laws passed by Congress establishing local governments on the territory, he can dismiss the territorial officer tomorrow. Under that theory, he could also remove an officer from the District of Columbia,” the lawsuit states.
He also said that if board members are removed “for a cause,” they will have a hearing and hearing that neither Gonzalez, Biggs or Rosa has received.
The struggle for rising debt
Overall, six board members have been fired by the Trump administration, including Cameron Mackenzie, Juan Sabatter and Louis Ubinas. They were not named in the lawsuit Thursday.
Four of the six members fired are Democrats, and Nixon, who remains on the board, is a Republican.
Gonzalez is a retired bankruptcy judge. Rosa is a member of the New York State Education Department and is the president of the State University of New York. And he is an expert on social security reform.
The board oversaw a bankruptcy-like process after Puerto Rico announced in 2015 that it could not make any more payments. $70 billion public debt burden And in 2017, he filed for bankruptcy of the largest local government in US history.
Until recently, the board struggled to reach a debt rise agreement with bondholders for more than $9 billion in debt held by the Puerto Rico Electricity Agency.
The board was arguing With a $2.6 billion payment Before the six members were fired.
Experts have raised concerns given that Trump will appoint new members who may prefer to pay the full $8.5 billion bondholders are demanding.
The board is expected to have seven members, six of which may be appointed by the President of the United States with advice and consent from the Senate. They serve for three years and can only be removed for the cause.
