Probe into Puerto Rico board seeks transparency from vendors

SAN JUAN, Puerto Rico (AP) — A federal control board overseeing Puerto Rico's finances says it will require more transparency from its vendors following an independent investigation into allegations of conflict of interest.

The probe focused on McKinsey & Company, a consulting firm that both owns Puerto Rico bonds and advises the U.S. territory on its finances. The 100-page report released Monday stated that the firm's affiliate, MIO Partners, held and controlled a direct investment in Puerto Rico debt.

However, investigators said they found no evidence that consultants knew about those investments or were affected by them. They also said MIO didn't have access to the firm's consulting work nor did it alter its investment strategy.

The report was released just days after a federal appeals court ruled that the control board was illegally appointed.