WASHINGTON (CNN) - The FBI has opened a preliminary inquiry into the $300 million Whitefish Energy Holdings contract secured by PREPA in Puerto Rico, according to a source with knowledge of the inquiry.
The energy firm was contracted to rebuild the damaged electrical grid that was destroyed by hurricanes that struck the island. The Wall Street Journal was first to report the existence of the FBI probe.
However, the FBI field office in San Juan would neither confirm nor deny an investigation.
There have been multiple concerns raised about the contract, including by the Federal Emergency Management Agency. Whitefish Energy is based in the hometown of US Interior Secretary Ryan Zinke, but Zinke denies having anything to do with the contract.
Whitefish Energy spokesman Ken Luce also denied knowledge of an investigation.
"While Whitefish is not aware of any such investigation, Whitefish is committed to full cooperation with any inquiry or investigation," Luce told CNN. "The procurement of the PREPA contract was at all times fully appropriate. Our focus continues to be on our work in Puerto Rico completing the work PREPA has tasked Whitefish to complete including the repair of the second major transmission line."