Senator Fonseca Demands Answers Over More Than $342,000 in Possible Unpaid Excise Taxes

Lawmakers seek documents from WAPA and Internal Revenue Bureau as questions emerge over equipment invoices involving Caribbean Utility Services

Oct.14, 2026

ST. THOMAS, U.S. VIRGIN ISLANDS — October 14, 2026 — Senator Ray “Pupa” Fonseca is demanding immediate answers from the Virgin Islands Water and Power Authority (WAPA) and the Bureau of Internal Revenue (IRB) regarding more than $342,000 in potential unpaid excise taxes tied to equipment intended for WAPA.

In a press release issued Wednesday, Fonseca said he personally reviewed two invoices from Caribbean Utility Services that appear to identify different recipients for the same equipment transaction, raising questions about whether the applicable excise taxes were properly paid, legally exempted or left uncollected.

According to Fonseca, the original invoice identified a private engineering company as the recipient of the equipment intended for WAPA. A second invoice reportedly changed the recipient to WAPA directly.

The senator is seeking clarification on who authorized the change, why it was made and whether it affected the collection of more than $342,000 in potential excise taxes.

WAPA Contract Addresses Tax Responsibility

Fonseca pointed to WAPA Contract No. SC-23-21 with Haugland Virgin Islands, Inc., which he said specifically addresses responsibility for excise taxes.

Section 3 of the contract states that payment of taxes, duties, customs, excise taxes and other applicable fees is the sole responsibility of the contractor. The agreement also states that WAPA is not responsible for those taxes unless otherwise authorized by law.

The senator said the contract raises questions about how similar tax requirements were handled in the transaction involving Caribbean Utility Services and whether the appropriate legal and financial procedures were followed.

Fonseca is asking WAPA and the IRB to determine who authorized the invoice to be changed from the private engineering company to WAPA, whether the change was intended to claim an excise tax exemption, and who was legally responsible for paying the taxes.

He is also seeking confirmation of whether the taxes were paid, lawfully exempted or left uncollected.

Senator Calls for Documents and Accountability

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As part of his request, Fonseca is seeking copies of the applicable contracts, both invoices, purchase orders and any documentation supporting a tax exemption.

He emphasized that the discrepancy between the invoices does not, by itself, establish that a tax violation occurred. However, he said the circumstances warrant an investigation and a clear explanation from the agencies involved.

“More than $342,000 is a substantial amount of money,” Fonseca said, noting that government hospitals, schools and other essential public services need funding.

“If these taxes were legally owed, they must be collected. If they were properly exempted, show us the law that authorized the exemption,” he added.

Fonseca said he personally reviewed the invoices and wants WAPA and the IRB to explain what happened, stressing that Virgin Islands residents deserve answers.

Questions Remain Unanswered

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As of the issuance of Fonseca’s press release, the document did not provide responses from WAPA, the IRB or Caribbean Utility Services addressing the invoice discrepancy or confirming whether the taxes in question were paid or exempted.

The central issue remains whether the transaction complied with applicable tax laws and contractual requirements. Any determination of wrongdoing would depend on the underlying records, the legal basis for the transaction and the findings of the appropriate authorities.

The senator’s request places renewed focus on government financial oversight, tax collection and the need for transparency when public utilities and private contractors conduct business.