Rivera Schatz Warns Politank Review Could Become a Cover-Up

Senate President Thomas Rivera Schatz on Monday raised the possibility that a new government-ordered review of Politank Corp.’s tax exemption decree could become an attempt to bury allegations of noncompliance rather than resolve them.

Rivera Schatz said he would wait for the de novo evaluation ordered by Department of Economic Development and Commerce Secretary Carlos Ríos Pierluisi before deciding whether it is a legitimate professional review or a cover-up from the Governor’s Office.

“We will wait for the de novo audit to see whether it is truly a professional verification or an attempt from the Governor’s Office to cover up and suppress the allegations against Politank,” Rivera Schatz wrote on social media.

His comments came after Ríos Pierluisi responded to Senate Information Request 2026-0099, which sought details on the handling of Politank Corp.’s tax exemption decree and an audit report that identified alleged deficiencies and noncompliance involving the company.

“Today, the Secretary of the Department of Economic Development and Commerce sent a document regarding the Senate’s request related to the decrees issued to Politank and their management,” Rivera Schatz said.

In its July 3 response to the Senate, the DDEC said it “has not canceled, revoked, or annulled the aforementioned tax exemption decree” granted to Politank Corp.

The questions about Politank’s tax decree came after the lobbying firm failed to file annual reports for exempt businesses, known as IANE reports, for tax years 2020, 2022, 2023, and 2024. The record also shows no filing or extension request for tax year 2025.

Politank Corp. is a lobbying and legal consulting firm created by La Fortaleza Chief of Staff Francisco Domenech more than a decade ago. While Domenech has said he sold the company, there have been allegations that he continues to approve contracts to company clients from his position.   

The DDEC said that on June 2, 2026, the then-director of the Office of Business Incentives sent DDEC’s deputy secretary two concessionaire audit reports and a deficiency notice. One of those reports concerned Politank Corp.

According to DDEC’s response, the report “documented findings identified during the file review and formulated administrative recommendations.” However, the agency said the document “is not a final administrative determination regarding the revocation, cancellation, or annulment of the decree.”

Rivera Schatz questioned Ríos Pierluisi’s decision to order a “de novo” review of the file after receiving the audit report.

“DDEC Secretary Carlos Ríos Pierluisi informs us that he himself instructed the Office of Business Incentives to conduct a de novo audit of the Politank audit. They want to do it again,” Rivera Schatz said.

The Senate president said the term “de novo” means the evaluation would be repeated without being bound by the original report.

In his response to the Senate, Ríos Pierluisi said he was confirmed by the Senate on June 22, 2026, and learned of the report on the afternoon of June 29, after it was published in the press. He said that, under those circumstances, he instructed the Office of Business Incentives to conduct a “de novo” evaluation of the file, findings, and recommendations.

DDEC said the evaluation must be completed by Wednesday, July 8, 2026. The Office of Business Incentives will then issue a final audit report, which the Compliance Audit Committee may review if deemed appropriate. The committee will have five calendar days, with a possible five-day extension, to issue its recommendation.

“Secretary Ríos Pierluisi set the July 8 deadline himself, followed by two possible five-day windows for the de novo audit of Politank. I have said they can run, but they cannot escape. We have time,” Rivera Schatz said.

DDEC also said it has not referred the matter to the Department of the Treasury or any other agency for tax recovery or other action because the internal evaluation remains ongoing.