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Domenech rejects former DDEC Secretary’s allegations amid federal advertising contract probe
Goverment·Caribbean Business Staff··3 min read

Domenech rejects former DDEC Secretary’s allegations amid federal advertising contract probe

San Juan — Francisco Domenech Fernández, Governor’s Chief of Staff, sharply rejected public statements made by former Department of Economic Development and Commerce (DDEC) Secretary Sebastián Negrón Reichard, who filed a complaint with the Independent Special Prosecutor Panel seeking an investigation into Domenech’s alleged involvement in an internal agency inquiry.

“We categorically reject his allegations. They contain incorrect statements, lack relevant context, and present a distorted version of the facts,” Domenech Fernández said in a written statement.

The secretary maintained that the claims would be addressed through proper channels. “As has occurred on previous occasions, the matters raised will be addressed and clarified in the appropriate forums, where facts and evidence will prevail,” he said. He added he would make no further public comments while proceedings are ongoing.

The dispute centers on a competitive bidding process for advertising services funded through federal grants administered by the Office of Permit Management (OGPe). According to the complaint, two DDEC employees alleged that members of the evaluation committee were pressured to favor a particular bidder.

Negrón Reichard said he ordered the process halted and launched an internal review through DDEC’s legal office. That review resulted in referrals against Norberto Almodóvar, former assistant secretary of OGPe, and Charlene Neuman, the agency’s former chief of staff, to the Department of Justice, the Office of Government Ethics, and the Office of the Comptroller.

Justice Secretary Lourdes Gómez Torres subsequently referred the matter to the Panel on the Independent Special Prosecutor (FEI) on June 10, 2026.

In a separate complaint, Negrón Reichard is asking the Panel to expand its investigation to include events that allegedly occurred after those referrals. Among them are a Department of Justice legal opinion that he claims effectively restricted DDEC’s authority to continue its internal inquiry and actions he characterizes as retaliation against the employees who initially raised concerns.

The complaint specifically references an instruction that Negrón Reichard attributes to Domenech, allegedly conveyed through the DDEC deputy secretary, directing him to halt the summary suspensions he had imposed on Almodóvar and Neuman based on the internal review’s recommendations. The filing also asks the Panel to examine Domenech’s alleged involvement in matters related to tax incentive decrees, including one involving a company that Domenech reportedly represented while he was a partner at the lobbying firm Politank.

“The present complaint sets forth a series of actions that occurred following the formal referrals stemming from the internal investigation, which the complainant believes are part of the same pattern of unlawful conduct,” the document states.

In a statement, Negrón Reichard said he has acted at all times in accordance with the duties and legal authority of his office and will continue to cooperate with any official investigation.

Domenech, meanwhile, said his immediate priority remains the ongoing water crisis affecting parts of the San Juan metropolitan area and nearby municipalities.

“Our priority, at all times, is to serve the people of Puerto Rico and address their needs with urgency while safeguarding their well-being,” he said.

The Panel on the Independent Special Prosecutor has not indicated whether it will open a formal investigation.

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