AFF Ad Campaign: Padilla's Slush Fund
Crisis Engulfing Puerto Rico is Padilla's, and Padilla's Alone
DES MOINES, Iowa, Sept. 18, 2014 /PRNewswire-USNewswire/ -- The American Future Fund (AFF), a national 501(c)4 organization, today announced a new advertising campaign in both POLITICO and The Wall Street Journal drawing attention to billions of dollars that Governor Alejandro Padilla controls through the Government Development Bank, a secretive institution that operates outside the reach of regulators and functions as a slush fund for the island's power elite.
Nick Ryan, Founder of the American Future Fund, said: "Governor Padilla presides over a system that punishes critics and rewards cronies through his control of billions of dollars in a shadowy and politically-controlled institution known as the Government Development Bank. Governor Padilla sells the GDB as a safe place to invest, even as it has amassed billions in debt. The GDB is unregulated. Investors considering the GDB's upcoming $900 million bond offering should be aware of that."
Ryan added, "Governor Padilla is solely responsible for the financial crisis that engulfs Puerto Rico. Rather than trying to fix the problem, he threatens reprisal against critics, including U.S. credit agencies that recently issued legitimate warnings about the island's risky level of debt. Like Venezuela's Nicolas Maduro, Governor Padilla shows complete disregard for the principles of a free and open society with his thuggish tactics."
To view AFF's new ad, click here.
Background
Governor Padilla and his government have undertaken a full-blown attack on the rule of law, the U.S. Constitution and investor rights. The first example, Doral Financial Corporation, a US-based bank and mortgage lender that Puerto Rico lawfully entered into a contractual agreement in 2012 acknowledging the Commonwealth owes Doral over $230 million. The agreement was ratified by both parties yet again in 2013. But Governor Padilla and his government are now refusing to honor this contract. Moreover, Doral's regulator - the Office of the Financial Institutions Commissioner - and key political leaders including the Department of Justice are threatening the bank and its employees. These actions, coming after Doral's decision to file litigation to enforce its agreement with the government, are disturbing, and an abuse of power by Governor Padilla and his government. The second example involves a new law, the Debt Enforcement and Recovery Act, which was rammed through the legislature by Governor Padilla. This law would allow the Puerto Rican government to repudiate the debts of the Puerto Rico Electric Power Authority (PREPA) and could leave the lights on the island literally being turned off because of Padilla's actions. This action stiffs investors and pensioners to the benefit of a few select bondholders that are covering for the GDB. This law violates the U.S. Constitution, and has led the island's bond ratings to be downgraded to junk status.
AFF Ad Campaign Highlights Culture of Corruption
Contact: Matthew Beynon - (703) 307-8633
SOURCE American Future Fund
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