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Daily News - 27 March 2001
Update on President Mejia in Taiwan
President Hipólito Mejia committed the Dominican Republic to support Taiwan in international organizations. The DR has traditionally voted in favor of Taiwan. In the same joint statement Taiwan President Chen Shui-bian signed with President Mejia, the latter committed to finance five development projects totaling US$200 million, as reported in El Siglo newspaper.
The newspaper also reports that following President Mejia meeting in Taiwan, Eva Air said it would send a commission to Santo Domingo to explore the possibility of helping Dominicana Airlines (CDA), the bankrupt state airline, to fly again. Likewise, El Siglo reports that Evergreen executives told President Mejia they are interested in exploiting cruise ship tourism in the DR.
As part of his five-day stay in Taiwan, President Mejia met with around 200 Taiwan businessmen at an event coordinated by the Taiwan Foreign Ministry and the Dominican Office for the Promotion of Investments. At the meeting, President Mejia highlighted the Dominican climate of investments, preferential trade schemes, and opportunities for the installation of informatics, ecommerce, telemedicine, operation centers and specialized manufacturing in the DR. He highlighted the availability of skilled and non-skilled labor, excellent telecommunications systems, and the nation's advantageous geographic position as center of the Caribbean. President Mejia promoted building industries along the frontier with Haiti, as these enjoy special tax conditions. He also promoted the new Santo Domingo Cyberpark.
Listin Diario reports that the Taiwan businessmen conditioned their investments in the DR to the country improving its power system and the opening of the banking system so as to make available lower interest rates. President Mejia said his government is authorizing new investments in hydroelectric power generation and wind energy that are expected to make power less costly in the DR.
For an updated report from the Taiwan press on the visit of President Mejia, see http://www.chinatimes.com.tw//english/ebusines/90032604.htm
President impressed with vocational center
El Caribe newspaper reports that President Hipolito Mejia was very impressed with what he saw during his visit to the Taishan Vocational Center on Monday. The training center founded in 1978 serves as a network providing employees with skilled employees and job aspirants with jobs. 100% of those that graduate from the center find immediate jobs. Mejia requested the collaboration of the Taiwan government to copy the model.
Central Bank sells Hotel Hispaniola
Hoy newspaper announced today that the Central Bank sold the Hotel Hispaniola for US$16.5 million (RD$275 million) to Palmeras Dominicanas, a Dominican company presided by engineer Jose Miguel Neder, and with ties to Minister of Public Works, Miguel Vargas Maldonado, as per the newspaper. The transaction took place a month ago.
The newspaper reports that the operator of the hotel, Corporacion de Hoteles, an affiliate of the Central Romana Corporation, did not object the sale. Corporación de Hoteles had a 50 years lease on the property, of which it still had 25 years to go. As reported in Hoy, the hotel chain renounces its right to the pending 25 years of the contract signed with the government. The buyers purchased a 34,804 square meter lot, and a five-floor edifice at the prime location of Av. Abraham Lincoln and Av. Independencia.
The hotel was built in 1955 by Dictator Trujillo to lodge tourists expected for the international fair that would commemorate his 25 years in power. It opened as Hotel La Paz, becoming the Hotel Hispaniola when it was taken over by the Corporacion Hotelera. Corporación Hotelera is the owner and operator of the Hotel Santo Domingo, across the street. The Corporacion Hotelera never showed an interest in purchasing the hotel.
The offer of US$16.5 million was the highest received by the Monetary Board for the property, as per the news report.
Commission to revise Constitution
President Mejia announced (Decree 401-01) members of a commission placed in charge of revising the Dominican Constitution. Members of the new commission range from former Presidents to rectors of leading universities, civic society members, business organization leaders, the Supreme Court of Justice, the president of the Central Electoral Board, economic thank tank groups and grass roots organizations, as well as individuals. The decree instructs those appointed to present recommendations based on a proposal for modification prepared by the Comision Nacional de Desarrollo y Reforma del Estado. Several groups have opposed the project to reform the constitution as untimely now that so many more important bills are pending in Congress. Sectors indicate that behind the proposal that has been promoted by legislators is the intent to extend their terms in office.
Ministry of Sports almost triples its payroll
El Siglo newspaper reports that the Ministry of Sports ordered an over the board wage reduction. The newspaper reports that the budget of the institution is not enough to go around, thus the need for the reduction. The newspaper says that the payroll of the institution has gone from RD$4 million in August 2000, when the new government started, to RD$11 million, less than a year later. The revelation by the newspaper comes at a time when economists and business groups are alerting that the new gigantism in the state payroll affects the government's own investment capacity, and affects business that is penalized by the government overspending with high interest rates and new taxes. Who owned the lot?
Victor Tio Fernandez says that his department could not have sold the 3,382 lot on Avenida Charles de Gaulle because that property belongs to the Banco de Reservas, not to Bienes Nacionales. In a television interview on Color Vision, Hoy Mismo program produced by Cesar Medina, the government officer denied having signed the sale. He could not give an explanation for the power of attorney granted by former President Joaquin Balaguer that authorized Bienes Nacionales to carry out the transaction. The case brings to the forefront the lack of controls regarding government property transactions. For more on the case, see http://www.dr1.com/daily/news032601.shtml
Shippers stop work to protest Port Authority decision
Shipping companies in the DR chose to suspend port service to protest the Dominican Port Authority's decision that grants 50% of the truck lift cargo at the Port of Haina to the Asociacion de Operadores de Montacargas, an affiliate of the powerful Fenatrado truckers union. Manuel Arias Mella, president of the Shippers' Association, says that the shippers need to keep control of this cargo because they are responsible for it at that point and its transport requires specialized equipment. The shippers association does not object the association handling free cargo.
Meanwhile, Fenatrado announced the paralyzing of the port to protest the shipper's not adhering to the Port Authority decision. The impasse affects the government's customs income. The director of Customs, Victor Sanchez Baret said that 65% of the port revenues are produced at the Haina port. He said that he would try to lobby for a solution given the effect on government revenues.
Free newspaper coming soon
Omnimedia, the holding company of Editorial AA (Rumbo, Mujer Unica, and other magazines) and TV Media (Antena Latina, Channel 7) announced a free daily newspaper is forthcoming. The main shareholders of the venture are Arturo Pellerano (Tricom-Bancredito-La Nacional de Seguros), Jose Miguel Bonetti (Mercasid) and Jack Corrie. In the Dominican Republic the leading media is owned by large financial or business groups, such as the Banco Popular, Baninter and Corripio.
Businessmen urge Senate to not allow power monopoly
Both the National Council of Private Business (CONEP) and the Association of Industries of the Dominican Republic urged the Senate to legislate to impede that the generation and distribution of power be in the same hands. The Senate is studying the Electricity Bill. The business groups urge that the Senate legislate so that competition may thrive and be able to pressure companies to offer better quality of service and better prices to consumers. Distributor companies have been announcing major investments in power generation plants, and many of these are already in operation. Business groups want to put a 25% cap on the distributor or affiliate company allowance of power generated. The business groups say that anything beyond this level would mean unfair competition that would discourage new groups from entering into the market and in turn would create a dominant position in favor of distributors and not consumers.
Meanwhile, the distributors dispute the provision in the bill that would reduce from two megas to one mega the level at which large companies would be free to purchase power from less costly suppliers. The distributors explain at present the large companies subsidize the smaller consumer consumption. The distributors say that if they lose their bigger customers, they would have to increase billing to the small consumers would have to go up 20%. The bill seeks to bring relief to businesses that at present have seen their power costs zoom upwards.
New bureaucracies for social programs protested
Community leaders priest Jorge Cela and David Luther, president of the Alliance of Non Governmental Agencies say that if the announced government program to award RD$300 a month to impoverished families is handled by the government party, the program would lose the essence of its creation. They told Hoy newspaper that this would turn the effort from social to political. Father Cela warned that it would become a corrupt and parasitical program. Father Cela criticized the many bureaucracies the government is creating to resolve the poverty problem. He said that to create another bureaucracy to handle the announced welfare program would reduce by half its effects, as 50% would go to the managing of the program.
Both Cela and Luther favor with the original government proposal of channeling the resources to already established and well-known community welfare organizations.
Host Central American Games here, give up Pan Ams?
Former President of the Dominican Olympic Committee, engineer Wiche Garcia Saleta suggests to the Dominican Olympic Committee that the country give up the seat of the Pan American Games and instead host the Central American and Caribbean Games. This he says would resolve two problems. El Salvador, affected by earthquakes, will not be able to host the Games next year. The DR, affected by economic problems, is hard pressed to come up with the high cost of the Pan Am Games. Furthermore, García Saleta forecasts that to host the Pan Am Games in Santo Domingo will be a humiliating experience for the Dominican people. He points to the fact that the government has never been able to provide the funds to prepare athletes that will have to perform in all the sports. He said that given the beating Dominican athletes will receive in their first events, it is unlikely Dominicans will support the Games. This could mean the stands would go empty after the first two or three days. He highlighted that since the Santo Domingo Pan Am Games are qualifying rounds for the Olympic Games in Athens 2004, the best in the Americas will travel here, making levels of competition even tougher.
Furthermore, Garcia Saleta called the attention of the sports authorities to the unplanned construction of six sports installations in the Juan Pablo Duarte Olympic Center.
Garcia Saleta, who very successfully promoted the construction of the Olympic Center on occasion of the 1974 Central American and Caribbean Games, has spoken out against the DR hosting the Pan Am Games on several other occasions, stating that the Games will cost the Dominican people more than RD$5,000 million.
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