Whitefish Energy contract bars government from auditing deal [View all]

[DonViejo]

Source: The Hill



BY JOHN BOWDEN - 10/27/17 08:48 AM EDT

A deal reached between the government and a small Montana energy company located in Interior Secretary Ryan Zinke's home town prohibits the government from reviewing labor costs or profits related to the company's relief efforts in Puerto Rico, according to a leaked copy of the contract.

A copy of the deal obtained by reporter Ken Klippenstein reveals that the government isn't allowed to "audit or review the cost and profit elements" under the agreement, allowing the company greater discretion and secrecy for how it spends the $300 million to restore power to the island. Puerto Rico is rebuilding after two major hurricanes wiped out most of the island's aging electrical grid.

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Whitefish signed the deal with the Puerto Rico Electric Power Authority (PREPA), which also prohibits the government from making "any claim against Contractor related to delayed completion of work."

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The company has been the target of heavy criticism over questions as to why the small company, which only had two full-time employees when the storm struck, was selected for such a lucrative government contract to help clean up the island.

Read more: http://thehill.com/homenews/administration/357473-whitefish-energy-contract-bars-government-from-auditing-deal