Gittens Calls for 'Further Investigation of all Parties Involved' Following Inspector General's WAPA Audit Findings

Following the release of a report detailing more than $113 million in cost overruns on a V.I. Water and Power Authority project promised to reduce energy bills, Senator Kenneth Gittens is calling for further investigation of all parties involved in the now infamous VITOL contract, according to a release the senator's office issued Tuesday.

The Office of the V.I. Inspector General released details of its probe of the contract between WAPA and VITOL on Monday. The contract was entered into primarily to facilitate conversion of the territory’s power plants from diesel fuel to propane. At that time, WAPA officials projected that the fuel conversion would save ratepayers more than 30 percent on their monthly electricity bills. The original cost of the project was estimated at $87 million, but through a series of change orders and overruns, the final cost eventually swelled to more than $200 million.

“This audit provides us with almost all we need to know about why our utility rates remain ridiculously high here in the Virgin Islands,” Mr. Gittens said. “What it doesn’t tell us is how we can hold those involved accountable. I am reiterating my call for further investigation of WAPA by the Justice Department, as well as calling on my colleagues to reconsider my legislation to appoint a Special Investigator. Those responsible for this and WAPA’s other transgressions can’t simply be allowed to walk away.”

According to the release, given the many serious problems at WAPA, Mr. Gittens determined last year that the best course forward was to authorize, via legislation, a thorough examination of all the Authority’s contracts, leases, billing practices and other problematic issues such as credit card use and the loss of more than $2 million to an offshore account.

Bill# 34-0080 calls for the appointment of a Special Investigator with the authority to thoroughly review concerns related to WAPA and to make prosecutorial recommendations to the Virgin Islands Attorney General and the U.S. Attorney. The investigator will have the power to issue subpoenas for evidence and witnesses and to engage government auditors and personnel as necessary to assist in the inquiry.