AFF Ad Campaign Highlights Puerto Rico's Slouch Towards Venezuela, Governor Padilla's Contempt for U.S. Taxpayers and Laws

News provided by

American Future Fund

Jun 19, 2014, 10:00 ET

DES MOINES, Iowa, June 19, 2014 /PRNewswire-USNewswire/ -- The American Future Fund, a national 501(c)4 organization, has launched an advertising campaign warning that Governor Alejandro Padilla of Puerto Rico is leading the island commonwealth down a dangerous path with policies and tactics similar to those of rogue leaders like President Nicolas Maduro of Venezuela and President Cristina Kirchner of Argentina.

In recent weeks, Governor Padilla and his administration have taken a series of disturbing steps that have culminated in contracts with private investors being shredded, the use of government forces to intimidate and retaliate against private individuals and interests, and a weakening of confidence in the bond markets for the Commonwealth. This is a long-term threat to U.S. taxpayers, who may be asked to shoulder a bailout of the island as it teeters on economic collapse. Washington should be deeply concerned.  

Nick Ryan, Founder of the American Future Fund, said: "We are launching this advertising campaign to warn U.S. policymakers that Governor Padilla's reign in Puerto Rico is a direct threat to U.S. taxpayers. Under Governor Padilla, the Commonwealth has moved aggressively away from the U.S. principles and modeled his government after rogue regimes like Argentina and Venezuela and intimidating private companies. On top of this, Puerto Rico has over $70 billion in public debt, and it is the U.S. taxpayer that will have to bail out the Commonwealth when they default."  

In San Juan this week, Governor Padilla clearly sought to ease the growing fears of investors, claiming that Puerto Rico was a "completely open economy that encourages investment.'' He added that the island's ``protection of intellectual property and the banking and financial systems is the same as the United States."

Ryan sharply questioned the assertion. "Governor Padilla's claim that Puerto Rico adheres to US banking and financial regulations flies in the face of reality. Instead, he has overseen the use of government agencies and regulators to threaten and intimidate private interests operating on the Island. We urge Governor Padilla to put Puerto Rico on the right track to good governance and an open democracy that is free of threats and intimidation against private interests and that provides financial transparency for its people, investors, creditors, and U.S. taxpayers," concluded Ryan.

To view the initial advertisement click here.

Background
In recent weeks, Governor Padilla and his government have undertaken a full-blown attack on Doral Financial Corporation, a US-based bank and mortgage lender, mainly because Puerto Rico owes the bank $230 million and the bank made the mistake of believing the government would live up to its obligation. Puerto Rico lawfully entered into a contractual agreement in 2012 acknowledging the Commonwealth owes Doral over $230 million in overpaid taxes.  The agreement - with full proof of payment of all taxes - was ratified by both parties yet again in 2013. But Governor Padilla and his government are now refusing to honor this contract and the Commonwealth's financial obligations. Moreover, press reports in Puerto Rico have indicated that Doral's regulator - the Office of the Financial Institutions Commissioner - and key political leaders including the Department of Justice are threatening the bank and urging local depositors to take their money out. These actions, coming after Doral's decision to file litigation to enforce its 2012 agreement with the government, are disturbing, and an abuse of power by Governor Padilla and his government.

Paid for by American Future Fund

SOURCE American Future Fund