The Senate on Monday confirmed Carlos J. Ríos Pierluisi as secretary of the Department of Economic Development and Commerce (DDEC), concluding a confirmation hearing dominated by concerns about the agency’s credibility, recent controversies, and the island’s broader economic stagnation. Senate President Thomas Rivera Schatz signaled early in the session that the nominee had the support […]
The Senate on Monday confirmed Carlos J. Ríos Pierluisi as secretary of the Department of Economic Development and Commerce (DDEC), concluding a confirmation hearing dominated by concerns about the agency’s credibility, recent controversies, and the island’s broader economic stagnation.
Senate President Thomas Rivera Schatz signaled early in the session that the nominee had the support needed for approval, noting that the Senate would act “with a sense of duty” and indicating that Ríos Pierluisi would be confirmed before the day ended.
Throughout the hearing, Ríos Pierluisi emphasized his independence and commitment to restoring trust in the DDEC. When pressed on whether he would resist political pressure in matters involving contracts, bids, or appointments, he responded firmly that he would not yield “under any circumstances.” He added that his professional record reflects a consistent practice of evaluating and recruiting competent individuals “willing to serve the people of Puerto Rico.” The line of questioning referenced the complaint filed by former DDEC secretary Sebastián Negrón against the governor’s chief of staff, Francisco Domenech. Although Ríos Pierluisi did not address the controversy directly, he insisted that his administration would be guided by “facts, not words.”
In his prepared remarks, he described his vision for a DDEC that is agile, transparent, accessible, and focused on measurable results. He pledged to strengthen the agency’s role as a facilitator of economic opportunities and highlighted the importance of attracting high-value industries, particularly pharmaceutical and medical device manufacturers, as a strategy to raise wages and reinforce local supply chains. He argued that small and medium-sized businesses benefit directly from these sectors, which rely on local suppliers to operate effectively. He also proposed reducing the lengthy reimbursement period for incentives granted to PYMES, which can take up to five years, and stressed the need to develop “native capital” to sustain the economy once federal funds diminish.
Sen. Javier Hernández underscored the reputational challenges facing the agency, stating that the credibility of Puerto Rico’s economic development apparatus had been called into question and that the situation had even reached discussions in the U.S. Congress. He outlined a series of structural obstacles that he believes have hindered economic progress, including an unfinished tax reform, a permitting system he described as “disastrous,” insufficient support for local small and mid-sized businesses, persistent problems with energy and water infrastructure, excessive reliance on federal funds, labor participation rates “below forty-something percent,” and economic growth stuck “at less than 0.5%.” He also questioned whether the DDEC has a coherent plan to maximize tools such as tax credits or to capitalize on global geopolitical shifts that could benefit Puerto Rico.
Ríos Pierluisi responded that the agency is currently negotiating expansions with more than 28 companies and assured legislators that all existing decrees, incentives, and contracts remain valid and will continue in effect. He also defended the DDEC’s capacity to manage tourism-related decrees and provide stability to investors, despite concerns raised by some senators.
One of the tensest moments of the hearing occurred when Sen. Carmelo Ríos questioned a $78,000 PRIDCO contract awarded in October 2025 to Orme 70 Capital, which he said did not appear in the Office of the Comptroller’s registry as required by law. He also raised potential conflicts of interest involving Kevin Romero Díaz, a consultant for the firm who also works as a “corporate diplomacy advisor” for Empresas Fonalledas. The senator demanded full documentation of the contract, stating that “there has to be full identification.”
Ríos Pierluisi said he was unaware of the contract but committed to locating it.
The hearing also touched on agriculture and energy, two areas that legislators described as critical to Puerto Rico’s economic future. Ríos Pierluisi acknowledged the urgency of addressing food security, noting that the island imports 85 percent of its food supply. He proposed repurposing abandoned industrial buildings for agricultural or value-added projects. On energy, he recognized that the fragility of the electrical grid remains a major obstacle to investment but said the DDEC supports cogeneration systems for industries affected by ongoing instability.
The session closed with a pointed warning from legislators that the responsibility for the agency’s performance now rests squarely on the new secretary’s shoulders. “If you fail, we all fail,” one senator told him. Ríos Pierluisi responded by pledging to work collaboratively with the private sector, the Legislature, and local communities to rebuild confidence in the DDEC and advance Puerto Rico’s economic development.
