SAN JUAN— A whistleblower filed a multimillion-dollar lawsuit on behalf of the Puerto Rican government against First Transit Puerto Rico (FTPR), which operated part of the archipelago’s bus system until last year, and other affiliated companies for allegedly submitting fraudulent claims relating to its now-cancelled contract, according to a lawsuit reviewed by The Latino Newsletter.

In the lawsuit, which remains sealed in state court, Messo LLC alleges that FTPR and the co-defendants submitted false or fraudulent claims for over a decade under a service contract for bus routes originally awarded in 2008. The contract was renewed multiple times through amendments granted without proper public auctions and sometimes applied retroactively without being registered with the Puerto Rico Comptroller’s Office, the lawsuit alleges.

“All of this is in contravention of the most basic principles applicable to government contracting in Puerto Rico and the requirements of the federal government for contracts of this magnitude that are fully or partially funded with federal funds,” the lawsuit reads.

The alleged violations of the Fraudulent Claims Act center on the complex, multi-layered deal struck between FTPR and the Puerto Rico Highway and Transportation Administration (PRHTA) in 2008, which was initially worth $57 million but quickly ballooned through amendments and revisions. The lawsuit alleges that these amendments were made without the proper public bidding process, while...

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