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Daily News - 23 January 2001
World Bank disburses US$622,000 for vaccines in DR
The World Bank announced the disbursement of over US$622,000 in December 2000 for the purchase of vaccines in the DR. This is part of a US$3 million five year plan announced in February 2000. The Ministry of Health and the Health Sector Reform Commission manage the project. The funds will be used to purchase 120,000 doses of vaccines for diptheria, Hepatitis B, and Haemophilus influenzae type b (Hib); 150,000 doses of measles/mumps/rubella vaccines; and 300,000 doses of measles vaccines.
The vaccination campaigns are being carried out in partnership with the Pan American Health Organization.
Three survive clandestine trip to Puerto Rico
Only one woman and two men were rescued of a group of 56 persons that left Saturday at dawn from an area near Miches to Puerto Rico. The Navy rescued the three near Sabana de la Mar on the East Coast. Thirty-year old Maria Teresa de los Santos told reporters from her hospital bed in Miches that the boat hit a reef when the trip started, but the captain decided to continue the trip. The boat later capsized. She said they were spotted by a fishermen's boat that would have given the first alert. She said the three that survived, herself included, did so because they knew how to swim. "I don't know if there is anyone else alive," she told the press. She said they paid RD$4,000 to RD$5,000 for the trip.
Dominican airlines urge rescission of ICAO project
The National Association of Pilots, Air Santo Domingo, the Air Century, Aeronaves Dominicanas, Caribair and Servicios Aereos Profesionales urge the government to rescind the Proyecto MSA/DOM/97/801 signed between the Civil Aviation Board and the ICAO, an aviation organization associated with the United Nations. The project was signed supposedly to resolve problems that caused the US Federal Aviation Agency to ban Dominican airlines from flying to the US.
The airlines say that initially the project stipulated a payment of US$500,000 of a maximum US$2.5 million that would be spent. Nevertheless, more than US$13.9 million have already been spent, and the project does not guarantee the desired result of restoring Dominican airlines permission to fly to US territory. The airlines say that in four years the most elemental problems that impede Dominican airlines from flying to the US (training of personnel and a new law) have not been resolved. It criticizes that the new authorities are expanding the scope of the project to other areas that are not related to the main problem that needs to be solved.
The new government has authorized the continuation of the project, and an additional US$3 million have been allotted.
In an open letter to President Mejia they say that it makes no sense at a time when the government seeks new taxes to invest in social and productive areas, that being there more economic, expedite and guaranteed ways to restore Dominican airlines' right to fly to the US the government continue with the project. They mention an offer of a US company for US$400,000 (Booz Allen & Hamilton) with guarantees made to the CAB in 1995.
The airlines publicly note that the new director is clearly incompetent and does not have the needed specialization for a project of this nature. "The dependence and direct benefits received by the project are the main reason that several of those that benefit continue to defend the project," denounce the airlines.
Grassroots organization criticize soaring cost of living
Several grassroots organizations criticized yesterday the increase in the cost of living that new tax measures implemented by the Mejia government have caused. The Comite para la Defensa de los Derechos Barriales, Coordinadora de Organizaciones de la Cienaga, Coordinadora de Organizaciones de Los Guandules, Bloque de Organizaciones de la Zona Oriental, Espacio de Organizaciones de Guachupita y Foros para la Participación Municipal told the press that the program to fight poverty of the Mejia government more than bringing relief has rather sent the cost of living up 50%. Genaro Guzman, spokesman for the groups said that the situation has deprived many of hope and brought frustration to residents in barrios and rural areas. "The economic policy that has been implemented has resulted in massive firings in companies and an increase in unemployment," said Guzman.
President Mejia doesn't believe in imports
Interviewed as to why the President didn't allow the mechanism of imports to confront local produce scarcities, such as refined sugar, President Mejia told reporters that food product imports was a matter of the past. He said his government would not authorize the import of refined sugar since there is no true scarcity of the product. In the Dominican Republic, the Central Romana has a monopoly on refined sugar.
Mejia said he expects prices of basic items to level off once speculation ends. He blamed merchants for the increase in prices. He said that the "relajo" or the party was over.
In regards to price increases, he recommended the population wait, that in the coming days prices would level again. "I assure you that the prices of food products and other items will readjust as soon as the little scare is over, as happens always in this country," he said.
He called Ivan García, president of the Asociación de Comerciantes Detallista, an association of merchants, "blackmailer" for his comments on the price increases.
Hoy newspaper reports the production stoppage at several industries that consume sugar. The industries have repeatedly requested from the government the right to directly import refined sugar for their production needs.
"The sugar-using industry has just gone through an extraordinary crisis and several well known companies have had to close down entire production lines for lack of sugar," said Atahualpa Dominguez, executive director of the Asociacion Dominicana de Industrias de Dulces y Afines.
Imports to be cheaper than medicine made in DR
The president of the Federation of Industrial Associations, Ignacio Mendez said that the new law that eliminates tax exemptions on inputs used by local medicine industries is a "barbarity." The tariff reform law 146-00 of 27 December 2000 had exempted raw material, packaging inputs, machinery and spare parts for use in the manufacture of medicines for human and animal use. But the later passed law, set all that back. The medicine manufacturers say imported medicine will now be cheaper than locally produced medicine.
In an editorial today, the Listin Diario says that the immediate effect will be an increase in the cost of generic medicine of about 20%. But in the long range, the new law will progressively make the local industry lose market share. There is no logic in producing at a higher cost what is cheaper to import, it explains.
The new law primarily affects the production of generic medicines in the DR.
"It is senseless to continue burdening the lower brackets of citizens with the weight of this mix of inflation and speculation that has affected the products the people need to eat and for their health," says the newspaper.
New head figure of the games or government liaison?
The Listín Diario reports that Raul Barrientos, a 58-year old lawyer by profession, and trusted friend of President Hipólito Mejia, will be the new head organizer of the Pan American Games. It is not yet clear what his title will be. "Everything that goes on with the Games will be transparent," he told the Listin Diario.
Millions for new sports venues and repairs of others
The Ministry of Public Works announced that construction of new sports venues and repairs of older ones will start no later than March or April of this year. The Ministry of Sports announced the works on the venues located at the Mirador del Este Park and the Juan Pablo Duarte Olympic Center will have an overall budget of RD$500 million.
Mirador del Este Park:
Badminton (RD$20 million)
Handball (RD$23 million)
Gymnastics (RD$44 million)
Tennis (RD$22 million)
Table tennis (RD$21 million)
Weightlifting (RD$15 million)
Hockey (RD$10 million)
Tae Kwon Do (RD$9 million)
Wrestling pavilion (RD$9 million)

Juan Pablo Duarte Olympic Center:
Olympic Stadium (RD$16 million)
Velodrome (RD$6 million)
Football field (RD$22 million)
Judo pavilion (RD$5 million)
New 50-meter/10-lane pool (RD$20 million)
Softball stadiums (RD$3 million)
Volleyball pavilion (RD$25 million)
Freddy to move to Channel 13
Freddy Beras Goico, producer of the Gordo de la Semana Sunday variety show, announced that he will move to Telecentro, Canal 13, as of February. Last year he moved from Color Vision, Channel 9 to Supercanal, Channel 33. He said that he is still finalizing the details of the agreement. "There are a series of details that have not yet been worked out, such as the time slots. All I know is that the switch will be in February, we don't have the time and the exact date," he told the Listin Diario.
Major irregularities found at Banco de Reservas
According to the general manager of the Banco de Reservas, Manuel Lara Hernandez, the past authorities of the Banco de Reservas granted loans for more than RD$1,000 million to private clients at interest rates that produced losses for the government commercial bank. Many of these loans were carried out with guarantees and conditions of payment no other financial institution would have allowed. He spoke during a meeting with El Siglo newspaper editors at the Bank. He also said that the past administration authorized pensions to employees that had less than a year in service. He mentioned that only two of those cases cost the bank RD$15 million in wages and severance payments. No names were mentioned.
US$350 million for 7,000 vehicles
Onésimo Gonzalez, director of the Metropolitan Transport Authority (AMET) said that the government has plans to purchase 7,000 vehicles using financing for over US$350 million. Included in this amount are the 600 buses that the Oficina Metropolitana de Servicios de Autobuses (OMSA) would purchase.
He said financing is being sought with Spain, Italy, Brazil, Mexico, Venezuela and the United States. He said that 15 companies will be participating in the tender for the sale of the new fleet of vehicles. These companies include Antillana Comercial, Hyundai, Ruedas Dominicanas, Viamar, Bus Caribe, Breica, Carrocerias Andinas, Euromotor, Toyota, Delta Comercial, Empresas Dominicanas.
The commission in charge of the project is head by retired rear admiral Ramon Emilio Jimenez. Other members are Diógenes Castillo, director of OMSA; Antonio Reynoso, director of the Office for Ground Transport (OTTT), and transport union leaders Ramon Hubieres, Antonio Marte, Ramon Perez Figuereo, as well as Amadeo Lorenzo and Milciades Amaro.
Legal advisor in charge of ONG money allotment
Decree 108-01 gives the exclusive responsibility for certifying and reordering state funds allotted to non-governmental organizations to the President's Legal Advisor Office, or Consultoría Jurídica. Previously, the Department of Planning (ONAPLAN) had worked with the civic society on the creation of instruments to make more efficient and transparent government funding of these organizations, as well as evaluate the better ONGs. The new decree, puts aside the work carried out by ONAPLAN and a group of representatives of the ONG organizations and the civic society. Father Jorge Cela and David Luther, two spokesmen for ONG organizations, urged the government to create new mechanisms that facilitate the participation of the civic society in the planning and evaluation of sustained social development actions.
Salaries up to RD$10,000 a month are tax-exempt
The local income tax department, the Direccion General de Impuestos Internos (DGII) reports new salary tax levels:
Up to RD$120,000 a year (exempt)
RD$120,000.01 to RD$200,000, 15%
RD$200,000.01 to RD$300,000, RD$12,000 + 20% of the surplus over RD$200,000.01
RD$300,000.01, RD$32,000 +25% of the surplus
For more information, see the DGII web site at http://www.dgii.gov.do
Escogido vs. Aguilas
All appears it will be the Escogido vs. the Aguilas for the Winter Baseball Championship. For the game schedules, see http://www.dr1.com/daily/calendar.shtml
 TEAM  WON  LOST  PCT.  DIF.
 Escogido  14  4  .778  
 Aguilas  9  9  .500 5
 Azucareros  7  11  .389  7
 Estrellas  6  12  .333  8
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