Oklahoma company owed $370M for work done in Puerto Rico years ago still seeks resolution
While Washington, D.C., moved quickly to rescue Silicon Valley's largest bank, a dynamic Oklahoma company owed money by the federal government continues to get overlooked. It is not right. The technicalities of the recent financial rescue may differ from 2008 when taxpayers footed the bill, but both episodes left a sour note and fueled distrust in our institutions.
Five years ago, Hurricane Maria devastated Puerto Rico, killing nearly 3,000 people and upending life on the island. With the power grid destroyed, the island had no electricity, resulting in a heart-wrenching humanitarian crisis.
Mammoth Energy Services accepted the call to restore power through our subsidiary, Cobra Acquisitions. Within days, we mobilized 1,000 line crew members and dispatched heavy equipment. These men and women toiled in harsh conditions for 18 months, repairing the distribution and transmission infrastructure and restoring the island's light, power and everyday daily life.
We returned power to 75% of Puerto Rico in less than a year. By November 2018, it was closer to 100%. By March 2019, Mammoth left Puerto Rico, proud of our work and people.
With lives hanging in the balance, speed was paramount. While lives and livelihoods were at stake, concerns about financial costs were not top-of-mind. Having earned the contracts through the usual procurement process, we assumed the federal government would make us whole. It turns out that was a bad bet.
Mammoth fronted the costs for our recovery efforts. The U.S. federal government still owes our company more than $370 million. It is a figure that pales compared to the $186 billion on Silicon Valley Bank's balance sheet at the end of 2022, but it's a lot of money to us.
More:Viewpoint: Puerto Rico must clear hurricane debts so it can move toward economic recovery
Most egregious is that government entities have the resources to pay us back. The funds are stuck in the bowels of unresponsive and unaccountable government agencies. Entities like the Central Office for Recovery Reconstruction and Resiliency (COR3) and the Federal Emergency Management Agency (FEMA). The Puerto Rico Electric Power Authority (PREPA) is a corruption-rife agency with nearly $100 million aside from FEMA and over $1 billion cash. The Puerto Rico Electric Power Authority is sitting on its bills but continuing to pay its consultants.
Leaving private sector companies twisting in the wind sets a dangerous precedent. After subsequent natural disasters, the U.S. government will again turn to private sector companies to pick up the pieces. With inflation already pinching the financial bottom line, there will be less incentive to answer the call. Fronting valuable financial resources without confidence in repayment is an unwise proposition. Fewer companies competing for work will lead to reduced competition and higher prices.
For my company, we would have to think hard about another Puerto Rico engagement. But here we are, five years later, holding the bag with no end in sight.
I have frequently traveled to Washington, D.C., to right this wrong. I have met with elected officials at all levels. I am grateful for those in our congressional delegation who have stood up for a hometown company employing hundreds of Oklahomans, especially Sen. James Lankford and Rep. Stephanie Bice.
Frankly, it isn't easy to come to terms with how the federal government leapt to aid a high-flying California bank while turning its back on an Oklahoma energy service company that is owed money for life-saving work of its employees. How can this be? It's a fair question and one I am hoping gets answered soon.
Arty Straehla is the chief executive officer of Mammoth Energy Services.
This article originally appeared on Oklahoman: Company owed $370M for work in Puerto Rico still seeks resolution
