Puerto Rico governor may resign after days of protests: reports

SAN JUAN (Reuters) – Puerto Rico Governor Ricardo Rosselló could step down on Wednesday after almost two weeks of protests against his administration, sparked by the publication of offensive chat messages and a corruption scandal, local media reported.

Rosselló had made no announcement by early Wednesday, but media, including El Nuevo Día newspaper, cited unnamed sources as saying his resignation was imminent.

Protesters had cheered those reports late on Tuesday but warned his departure would not end the demonstrations that were now entering their 12th day.

The island of 3.2 million people has been rocked by multiple crises in recent years, including a bankruptcy filing and a major hurricane in 2017 that killed about 3,000 people.

If Rosselló does step down, his replacement as the U.S. territory’s leader would likely be Justice Secretary Wanda Vazquez, whom protesters reject because of her ties to Rosselló.

The governor’s chief-of-staff resigned on Tuesday as prosecutors investigated the scandal, which came at about the same time as federal investigators charged two former high-ranking Puerto Rico government officials with conspiracy.

The series of resignations has also unsettled the bankruptcy process the island is going through.

The protests were spurred by the publication on July 13 of chat messages here on the messaging app Telegram, in which Rosselló and aides used profane language to describe female politicians and gay Puerto Rican celebrities, including Ricky Martin.

A string of Rosselló’s closest aides have stepped down over the scandal. His chief of staff Ricardo Llerandi was the latest to hand in his resignation on Tuesday, citing concerns for the safety of his family.

FINANCES UNCERTAIN

The uncertainty over Rosselló’s future has also complicated Puerto Rico’s bankruptcy proceedings.

The federal judge hearing that cases, Laura Taylor Swain, at a hearing in San Juan on Wednesday is expected to receive updates from Puerto Rico’s federally created financial oversight board and the island’s government.

A board spokesman said on Tuesday that a plan for restructuring the bulk of Puerto Rico’s government debt was moving forward and would be submitted in court “as soon as reasonably possible,” despite the unsettled political situation.

But the recent resignation of Puerto Rico’s government liaison to the board and the head of the government’s fiscal authority has complicated the process, according to two people familiar with the matter, who asked not to be named due to the sensitivity of talks.

“The board’s communication with the government has stalled,” one of the sources said.

In a statement on Tuesday, the board said it hoped “the political process swiftly resolves the current governance crisis so Puerto Rico can move forward to rebuild trust and to focus government on those it is here to serve.”

Matt Fabian, who heads market and credit research at Municipal Market Analytics, said it would be “inappropriate” for the board to push ahead with the debt restructuring now.

“The commonwealth needs to consolidate its leadership, figure out who’s in charge and have the government re-legitimatize itself,” he said.

Puerto Rican officials on Tuesday executed search warrants for the mobile phones of Rosselló and 11 top officials involved in the leaked message group chats.

Puerto Rico’s Justice Department first requested the phones last Wednesday as part of its investigation into the chat scandal, nicknamed “Rickyleaks.”

Only Llerandi has so far said publicly he has handed in his phone.

Mariana Cobian, a Justice Department spokeswoman, declined to say whether the governor had surrendered his mobile phone.

A first-term governor in his first elected office, 40-year-old Rosselló for almost two weeks has resisted calls to step down, though he has vowed not to seek re-election in 2020.

“The people are talking and I have to listen,” Rosselló said in a statement on Tuesday. He has apologized several times for the chats and asked Puerto Ricans to give him another chance.

But the island’s leading newspaper, as well as prominent U.S. Democratic officials and Republican President Donald Trump, have called on Rosselló to step down.