Two of Puerto Rico's top government officials to step down as corruption allegations persist

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SAN JUAN, Puerto Rico (AP) — Puerto Rico’s governor announced Tuesday that her embattled chief of staff, Francisco Domenech, and deputy chief of staff, Itza García, are stepping down next month as they deny corruption allegations.

The two are being investigated by an independent state agency following allegations of irregularities at Puerto Rico’s Office of Permit Management.

Domenech also served as executive director of Puerto Rico’s Fiscal Agency and Financial Advisory Authority.

The allegations began when Puerto Rico’s former economic development chief Sebastián Negrón resigned in May and accused Gov. Jenniffer González’s administration of interfering with the agency’s work. More than 10 other officials — including the agency’s chief of staff, general counsel and finance chief — also resigned.

González had described Negrón as “a star” and said at the time that she lamented his resignation.

Negrón accused Domenech of irregularities related to contract processing and undue government interference, which he has denied.

Meanwhile, García was accused of pressuring Negrón to appoint the wife of the president of Politank — a powerful lobbying and government relations firm that Domenech founded — to Puerto Rico’s Office of Permit Management.

Negrón also referred to Puerto Rico’s Justice Department and its Office of Government Ethics the findings of an internal investigation led by the economic development agency against two government officials, who are accused of interfering in the process for an auction of a contract involving federal funds.

Domenech and García had faced growing calls for their resignation, including from members of the governor’s own party, most notably Thomas Rivera Schatz, president of Puerto Rico’s Senate.

Schatz himself recently referred García to Puerto Rico’s Office of the Special Independent Prosecutor’s Panel and the Office of Government Ethics.

The governor thanked Domenech and García for their work and loyalty, adding that “a period of public service comes to a close” and that she would not allow the work of her administration to be “silenced” by “agendas and continuous attacks” of certain people she did not identify.

Domenech and García spoke briefly and did not directly address the allegations.

“I return to my private life with the peace of mind of having served with integrity,” Domenech said.

Meanwhile, García said she grew professionally in her role and added that it was a privilege to work with certain officials before she teared up and had to pause.

“I am concluding this chapter, but not my commitment to Puerto Rico,” she said.

Domenech previously submitted sworn statements against Negrón alleging corruption and conflicts of interest, which Negrón has denied.

On Friday, Domenech said he was informed that Puerto Rico’s Office of the Special Independent Prosecutor’s Panel was investigating him following Negrón’s allegations, which he said were “riddled with lies, half-truths, documents tailored to suit a narrative, subjective characterizations and distortions.”

The corruption allegations and deepening political crisis in Puerto Rico have caught the attention of some federal legislators, who questioned whether federal funds are being appropriately used.

Local legislators of opposition parties criticized the governor's speech on Tuesday and her praise for Domenech and García, saying their upcoming departure is not enough.

“This does not resolve the crisis nor does it cleanse the current administration. It is a blatant whitewash,” Juan Dalmau, secretary general of Puerto Rico's Independence Party, wrote on X.

“Allowing officials accused of serious allegations to leave their posts with almost state honors is a mockery ... and an attempt to politically protect those who appointed, supported and defended them.”

Domenech is expected to step down on Aug. 7 and García on Aug. 15. Their replacements have not been announced.