Oligarchy and Kakocracy Boricua: money talks…
Oligarchy is the system of government or way of exercising power in which control and authority are concentrated in a small group of people.
Two events currently dominate public attention in Puerto Rico: the legislative views to attend the lobbying firm founded by the current secretary of the governorship and the Esencia megaproject, a residential development in the southwest of the island. They grab attention for the large sums of money they handle, for being events that raise doubts about their legality and for contributing to inequality by distributing immense wealth among friends.
Two concepts of the social sciences help to put these issues in perspective: oligarchy and kleptocracy. We are deprived of being a democracy, with elected government officials who answer to the people and take care of the interests of the majority. Well, that is the theory, which does not always coincide with practice, as a half contradiction between things as they are and as they should be.
Oligarchy
The oligarchy is the system of government or way of exercising power in which control and authority are concentrated in a small group of people or families, usually belonging to an economic, political or military elite. The word comes from the Greek and means “the government of a few,” who make the decisions that affect the whole society. The majority of the population has little or no influence on political or economic decision-making.
The elite that governs usually acts for the benefit of its own interests, often at the expense of the general well-being, since they usually control the main economic resources and key institutions of the State. There is no true democracy, since citizen participation is limited or non-existent.
Kleptocracy
Suharto, the former President of Indonesia, was reported to have stolen over $15 billion during his presidency.
Kleptocracy refers to a system of government in which leaders or rulers enrich themselves illicitly and systematically, at the expense of the resources of the State and the population. Literally, it means “government of thieves.” With the spark of our culture, we call it kakocracy, because of kakos (rascals) and because of the kaka, which needs no explanation.
In a kleptocracy, corruption is endemic, and the authorities use their power to steal public funds, divert resources and benefit themselves, their families or their political allies. This type of government is usually characterized by a lack of transparency, impunity and a weak or non-existent accountability.
Kleptocracy often has serious consequences, since the embezzlement of public funds reduces the state’s ability to invest in infrastructure, education, health and other essential services for the population. Wealth is the obsessive object and the game of influences is the way.
Lobbying
In Puerto Rico, lobbying is a lawful practice to influence legislative and government decisions. It is regulated by Law 141 of 2018, known as the Law for the Regulation of Lobbying and Transparency in Lobbying Activities. This law establishes the mandatory registration and the submission of periodic reports on lobbyist activities and expenses. The Registry of Cabilderos is public and available for consultation. Some issues where lobbying is particularly active include energy, pharmaceutical, financial, construction, telecommunications and health.
Common lobbying activities include the preparation of proposals and recommendations to legislative committees, the management of meetings with legislators and public officials, the monitoring and analysis of bills and regulations, and the organization of information and public relations campaigns to influence public opinion and decision-making.
Some of the lobbying companies and firms operating in Puerto Rico are Archer Public Affairs, GFR Media, Government Affairs & Consulting Group, Puerto Rico Government Relations, Ballester Hermanos & Co., as well as independent lawyers and consultants who offer their services.
Francisco Domenech.
The amount of money they move is astronomical, because it depends on how much and who gets the favor of the law and the government contract. With a certain elasticity, we can say that it is a sanctioned modality of buying influences, and it is clear that the sums are impossible for an ordinary citizen. This undermines the principle of constitutional equality; before the law, perhaps, but not before the treasury.
Francisco Domenech and Polirank
The public prominence of Francisco Domenech is recent, but his political ancestry comes back some time, cemented by a remarkable trajectory of achievements. It is a product of the University of Puerto Rico, where he obtained a bachelor’s degree in political science and a doctorate in law. He was president of the Student Council of Social Sciences and the General Council of Students in 1999-2000, the only statesman to hold these positions.
In the political sphere, Domenech has always been a defender of the state. In 2003 he graduated with a doctorate in law and began his political career with the Democratic Party; that year he helped to found and preside over the Puerto Rican Young Democrats, collaborating in campaigns in Florida.
At the age of 27, he represented the Senate of Puerto Rico before a hearing at the First Circuit Court of Appeals of the United States. He collaborated as a volunteer in Pedro Rosselló’s campaign in the organization, platform and research of the opposition.
In 2004, Domenech organized and hosted the national meeting of the Young Democrats Association in Puerto Rico and was elected national officer in 2005 as Vice President of Development. In that year he was appointed jointly by the President of the Senate of Puerto Rico, Kenneth McClintock, and the Speaker of the House of Representatives, José Aponte, as Director of the Office of Legislative Services of Puerto Rico, which has a staff of about 120 people and a budget of 10 million dollars.
In 2007, Domenech was appointed by Senator Hillary Clinton as co-president of her presidential campaign.
In 2007, he became a member of the Democratic National Committee. In that year, Domenech was appointed by Senator Hillary Clinton as co-president of her presidential campaign. He also served as Deputy State Coordinator of Clinton’s successful primary campaign in Puerto Rico, where she obtained a margin of 68–32 over Senator Obama.
In 2010 he was re-elected for his third and final term as National Democratic delegate of Young Democrats and co-founder of Caucus Hispano. He is the only person in the history of the Young Democrats of America to have served as a national officer for seven consecutive years.
In 2010 he founded and directed Politank, Corp., a bipartisan government firm in Puerto Rico that has represented Fortune 100 and 500 clients, and hired the former Secretary of State and President of the Senate of Puerto Rico.
In 2015-2016, Domenech served as campaign manager for Jenniffer González Colón for Resident Commissioner of Puerto Rico, the first woman to hold that position since its creation in 1902.
He was a member of the National Finance Committee for Hillary Clinton’s presidential campaign in 2016, being her main fundraiser in Puerto Rico, and helped organize her first campaign trip to the Island.
In 2024, Jenniffer González entrusted Domenech for the third time with the management of her primary campaign; the first candidate for governor of the PNP in the history of the party and the first person to defeat an elected titular governor of her own political party.
González Colón won the governorship, becoming the second woman in the history of Puerto Rico to be elected governor and the first in that position by the PNP. He also helped his party achieve majorities in both chambers of the local legislature.
He led three successful presidential campaigns within the Puerto Rico Medical Association. In the 25 years of existence of the Medical Association, no candidate had been elected president three times.
Mr. Domenech has actively supported various philanthropic initiatives, including the Hispanic Congressional Caucus Institute,
Mr. Domenech has actively supported various philanthropic initiatives, including: the Clinton Foundation, the Hispanic Congressional Caucus Institute, the Puerto Rico Art Museum, the Ponce Art Museum, The Washington Center for Internships and Academic Seminars, the Hispanic Heritage Foundation, the TASIS Dorado Scholarship Fund, the Puerto Rico Food Bank, the Justice Access Fund Inc. Foundation, Rabito Kontento and the San Francisco de Asís Animal Sanctuary.
Since January 2025, Domenech has played a dual role as Chief of Staff of the Government of Puerto Rico and Executive Director of the Financial Advisory Authority and Fiscal Agency of Puerto Rico (AAFAF), as well as the Economic Development Bank and the Authority of Public-Private Partnerships, overseeing the daily operations of the Executive Branch, coordinating the Constitutional Cabinet and all public agencies.
He is credited with managing the government’s portfolio of complex negotiations in critical areas such as energy and state budget supervision, achieving savings in professional service contracts. He organized the Puerto Rico Investment Summit to discuss the island’s current financial position and highlight its progress and growing financial stability. He is an investor in public markets, closed funds and startups, in which he is part of the board of directors.
Domenech is married to attorney Verónica Ferraioulli, who was a candidate for Secretary of State (rejected by the legislature) and is in charge of evaluating the functioning of the executive branch to implement reforms, propose the consolidation of offices or services, as well as eliminating or regulating procedures in executive agencies.
It is clear that these are people of ability and talent, with a history of achievements, perhaps feats. It is also clear that they are much more connected than electric light, which is not to go much in this country. To what extent they contribute to oligarchy and kleptocracy is something else. Not all are lights for the governor’s favorites. It is reported that the marriage has assets of 12 million dollars, an accumulation comparable to that of former governor Luis Fortuño who, along with his wife’s contracts, were greatly enriched.
Domenech had a domestic violence complaint (which was withdrawn) and she omitted contributions for three years; of course the Politank scandal is something else. They are in the sights of legislators of their own party for conflict of interest in influence peddling. If you benefit excessively, there is no one to put a stop to it, because for that there is no one to throw stones.
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Copyright 2026 by José M. Umpierre. Photo of Domenech and Congressional Caucus logo used under the “fair use” proviso of the copyright law. All other photo s are in the public domain.