Acosta Febo adds role of Principal Public Finance Officer

On March 11, 2013, Nancy Piñero Vega reported for CPI that Melba Acosta Febo — confirmed as Treasury secretary on February 25 — also assumed the post of Principal Public Finance Officer under Executive Order 2013-007 (effective February 15), to coordinate Hacienda, OMB and the Government Development Bank (GDB).

The order justifies the post amid “highly complex and disjointed” fiscal management that reduced capacity to administer resources and hurt the image with rating houses. Acosta told CPI that coordination was already needed to “rescue the finances” and fill budget holes, especially at public corporations; growth and debt management are urgent.

As an example of creditor surprises, she cited a $600 million debt dating to the 1970s for the Lago Cerrillos dam (Ponce): flood control was to come with federal funds and water management with local ones; the allocation is referred to federal Justice and noncompliance could freeze funds. The proposed payment plan ($12 million/year) “is not viable”; they will negotiate penalties/interest and a bill for annual payment. She is developing a five-year plan with the GDB; prioritizes the next FY whose revenues “were overestimated” and seeks pairs with recurring funds. The order authorizes advisers; she works with Hacienda and does not rule out economists; continues Álvarez Marsal and Boston Consulting studies from the prior administration.

Appointment and work plan are not a disbursement or debt write-off.

Source: Centro de Periodismo Investigativo. https://periodismoinvestigativo.com/2013/03/nuevas-tareas-para-la-secretaria-de-hacienda/