Jon Borschow, chairman of the Board of Directors for Puerto Rico's Destination Marketing Organization (DMO), is no stranger to two elements he will have to deal with frequently in his role as head of the new organization: using public funds and political influence.

The problem is that his career is already tainted on both accounts. He has arrived at this position with no hands-on or managerial experience in the tourism industry, aside from being an 'enthusiastic international traveler' and as chairman of a foundation that has occasionally delved into the subject of tourism.

When he was appointed to his position in August 2017, the statements on Borschow's background focused on his role as chairman of the Foundation for Puerto Rico, the nonprofit organization he founded and financed with his own capital in 2011, and which has conducted studies on the island's socioeconomic development.

However, long forgotten was Borschow's performance as lead of the Borschow Medical and Hospital Supplies Corporation (BMHSC), a million-dollar healthcare enterprise established in 1951 and that held multiple contracts with the central and municipal governments.

In 2001, BMHSC was found guilty of a major violation of the Electoral Law when they exceeded the limits in donations for former Governor Pedro Rosselló. The company had donated $25,000, whereas the limit was $2,500. They were imposed a penalty fine of $5,000 during a process where they were represented by attorneys Luis Plaza and Jorge Díaz Reverón, the latter of whom is currently a superior judge and married to Secretary of Justice Wanda Vázquez. Borschow's political donation activities have focused on Democrats in the United States and politicians aligned with them in the New Progressive Party (NPP) in Puerto Rico, the exception being the donations made to former governos Luis Fortuño, a high profile Republican.

A contract between BMHSC and the city of San Juan, back in 2002--when it was led by NPP mayor Jorge Santini--was the subject of a House investigation inquiry filed by former representative (and current TV host) Ferdinand Perez, that ended nowhere.

But in 2004, this same contract was at the center of an audit from the Comptroller's Office, due to claims of irregularities.

Such irregularities began even before the contract was awarded, since the company was supposed to be excluded from the bidder list and from participating in the auction due to their conviction in the Electoral Law case. Besides, the bid's specifications were based on specs provided by a company executive. After it was awarded, the signed contract exceeded the bid's specifications in that it included $22.7 million for purchase of drugs, which was not included in the specifications, according to the audit. Another part of the contract the auditors highlighted was that the municipality was forced to purchase a minimum of $20 million a year in medical products from BMHSC. Otherwise, Borschow was entitled to charge 8% of the difference between $20 million and the actual amount purchased.

In 2008, Borschow sold his company, Cardinal Health, and then retired in 2011. In 2008, his son Jason Borschow took the helm of a new company, Abarca Health LLC, which currently holds public contracts. This company was where Manual Laboy worked for eight months as Project Manager before becoming secretary of Economic Development for the current administration, a role that has allowed him, in fact, to spearhead the launch of the DMO along with his former employer's father.

In 2012, after becoming chairman of the Foundation, Borschow appeared in the public hearings held to award the Luis Muñoz Marín International Airport public-private partnership and submitted testimony on behalf of that management contract. In his presentation, he introduced himself not only as an entrepreneur, but also as 'an enthusiastic international traveler'.

In an interview conducted last Friday, NotiCel asked Borschow if the accusations against his former company cast doubts over his ability to manage public funds, which in this case would be at least $25 million a year granted by the government to the DMO.

'Absolutely not. Our organization managed hundreds of millions in public funds throughout the decades with impeccable results,' he assured. 'I personally never paid a fine; the organization did what you mentioned at a specific point in time,' he responded when we mentioned the Electoral Law criminal conviction.

As for Abarca's contracts with the government and Laboy's ties with the company, Borschow first said he had only served in Abarca's board, but then he added, 'but thinking about it, I need to correct myself. I don't think I ever was member of Abarca Health, but rather one of my son's prior organizations.' Specifically, he claimed he hadn't met Laboy when the Secretary worked at Abarca.

Meanwhile, when we asked what part of his career could prove his expertise in the tourism industry, he mentioned the studies the Foundation conducted on the subject over the last seven years.

Another DMO director who participated in the interview, former head of the Tourism Company Jose 'Peco' Suárez, quickly pointed out that 'this board (the DMO's) is one of the most solid boards I've seen... It's great to have people with different perspectives.'