San Juan — Carlos J. Ríos Pierluisi, the nominee to lead Puerto Rico’s Department of Economic Development and Commerce, told lawmakers during his confirmation hearing that he would not yield to political pressure — including from La Fortaleza — as he seeks to restore credibility to an agency shaken by recent controversy.
The statement, made in response to direct questioning about the agency’s governance and integrity, set the tone for a hearing dominated by concerns over transparency, institutional trust and Puerto Rico’s economic future.
“I will not yield under any circumstance,” Ríos Pierluisi said firmly. “What I have always done throughout my career is evaluate and recruit competent people who are willing to serve the people of Puerto Rico.”
The exchange came after Popular Democratic Party spokesman Javier Hernández asked whether he would resist improper pressure to alter bids, contracts or appointments. The question alluded to a complaint filed by former DDEC Secretary Sebastián Negrón against La Fortaleza Chief of Staff Francisco Domenech.
Although Ríos Pierluisi did not address the controversy in his prepared remarks, he repeatedly said his tenure would be judged by “facts, not words.”
Senate President Thomas Rivera Schatz, in a turn marked by warnings about integrity and public accountability, expressed confidence in the nominee and said the Senate was expected to act with a sense of duty. He also anticipated that Ríos Pierluisi would be confirmed later in the day.
The hearing opened with a clarification from the committee chairman: three reports favored confirmation, while others included questions or observations.
In his testimony, Ríos Pierluisi emphasized his professional experience and pledged to lead a DDEC that is “agile, transparent, accessible and results-oriented.”
“My commitment is to continue strengthening the Department of Economic Development and Commerce as an agile, transparent, accessible and results-oriented institution,” he said. “I will seek to ensure that DDEC continues to serve as a facilitator of opportunities.”
Hernández, however, underscored the difficult context facing the agency.
“The credibility of the country’s economic development office has been called into question,” Hernández said, adding that the controversy has even reached discussions in the U.S. Congress.
The senator listed a series of challenges he said have slowed Puerto Rico’s economic development, including an unfinished tax reform, a permitting system he described as “disastrous,” the unresolved elimination of the inventory tax, insufficient attention to small and midsize local businesses, energy and water infrastructure failures, excessive dependence on federal funds, a labor force participation rate still below the mid-40 percent range, and economic growth of less than 0.5 percent.
Hernández also questioned whether DDEC has a plan to maximize tools such as tax credits or to attract industries amid the current geopolitical climate.
Ríos Pierluisi defended the strategy of attracting high-value industries, particularly pharmaceuticals and medical-device manufacturers, as a way to raise wages and strengthen Puerto Rico’s local supply chain.
“Small and midsize businesses feed off these industries,” he said. “They make up the supply chain these industries need.”
He proposed reducing the time it takes small and midsize businesses to receive incentive reimbursements — a process he said can currently take up to five years — and giving them treatment comparable to that offered to large manufacturers.
“We can treat PYMES the same way we treat industries,” he said. “Many times, they do not have the capital to invest immediately.”
Ríos Pierluisi also pointed to seed-capital initiatives and the need to develop “native capital” to sustain the economy once federal funds wind down.
On permitting reform, he said a substitute bill is well advanced and pledged to work so that the reform “particularly serves entrepreneurs.”
On agriculture, he acknowledged the urgency of food security and raised the possibility of repurposing abandoned industrial buildings for agricultural or value-added projects.
He also spoke about opportunities in reshoring and nearshoring, as well as DDEC’s role in supporting cogeneration systems for industries affected by the fragility of the electric grid.
One pointed exchange came when Sen. Carmelo Ríos questioned a $78,000 contract awarded by PRIDCO in October 2025 to Orme 70 Capital, which he alleged was not available or listed in the Office of the Comptroller as required by law. Ríos Pierluisi led PRIDCO from 2023 to 2025.
Ríos requested an official certification and raised possible conflict-of-interest concerns involving Kevin Romero Díaz, a consultant for the firm who also works as a “corporate diplomacy advisor” for Empresas Fonalledas. The potential issue, Ríos suggested, stems from PRIDCO’s role in the sale of publicly owned commercial and industrial properties, while the nature of Orme 70 Capital’s work remains unclear.
“I want the document,” Ríos said. “There has to be full identification here.”
Ríos Pierluisi said he was not familiar with the contract but committed to identifying it.
In response to senators’ questions, the nominee said DDEC is currently negotiating with more than 28 companies on expansion projects and stressed that all existing decrees, incentives and contracts “are valid and will remain in effect.”
Another senator asked whether DDEC has the operational capacity to manage tourism decrees and provide stability to investors. Ríos Pierluisi insisted that it does and said his priority is to give certainty to companies already in negotiations.
He also fielded questions about how DDEC plans to integrate agriculture into Puerto Rico’s economic development strategy, particularly given that the island imports roughly 85 percent of its food.
“Food security is one of Puerto Rico’s main issues,” Ríos Pierluisi said.
He proposed reusing abandoned industrial buildings for agricultural and value-added projects.
Several senators pressed him on energy infrastructure, which they said remains a major obstacle to attracting investment. Ríos Pierluisi said DDEC supports cogeneration systems for industries affected by the weakness of the power system.
The hearing closed with a blunt message from lawmakers: “If you fail, we all fail.”
Ríos Pierluisi, for his part, said he would work with the private sector, the Legislature and communities to rebuild trust in DDEC.
