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Daily News - 16 April 2001
Clintons come to vacation here
The Clintons (Bill, Hillary and Chelsea) arrived last week to Punta Cana for a vacation. The Clintons were scheduled to arrive on Thursday but the time and day of their actual arrival is in doubt. The press was not given access to cover their visit. A security officer confirmed the visit was for rest and relaxation only. There will be no interviews, the press has been told.
Media reports say that the Clintons arrived on a private jet on Saturday. But no one actually saw them arrive. Insider sources told DR1 the Clintons actually arrived on Wednesday and would be staying at the villa at Los Corales de Punta Cana of Ted Kheel, the leading US investor in the company that initiated the development of the Punta Cana vacation area.
Earlier it was rumored the Clintons would stay at the Corales villa of Oscar de la Renta, where Hillary Clinton stayed on her first visit to the DR in 1998, following Hurricane Georges. Later, it was said they would be guests of Frank and Haydee Rainieri, the Dominican partners of the Corales development.
The Clintons are expected to be in the DR for a week.
The Army and Navy are securing the area where they are staying and keeping out the media.
News reports say that President Hipolito Mejia and First Lady Rosa Gomez flew to Punta Cana for dinner with the Clintons on Saturday evening at the villa of Oscar de la Renta. Reporters were not able to find out who else was at the dinner.
Reportedly, Clinton played golf at the brand new Pete Dye-designed Punta Cana Resort and Golf Club with his friend, the owner of a newspaper in Nevada who flew in on a private plane.
The Clintons are staying at the Los Corales 52 villas development, about two kilometers from the Punta Cana International Airport. So far, their visit has gone pretty much unnoticed, causing no traffic jams.
Los Corales is one the smallest developments within the 19,000-room Punta Cana-Bavaro-Macao-Uvero Alto development of the 50 kilometer beach strip along the East Coast.
President Mejia meets Alejandro Toledo on vacation here
President Hipolito Mejia spent most of his Easter holiday from Thursday through Sunday at the Juan Dolio presidential vacation home along the southeast coast. On Thursday, he took time to visit friends and businessmen in Casa de Campo, La Romana, about an hour away. There he met with Peruvian presidential candidate, Alejandro Toledo. Toledo is expected to win the second round of the election in Peru.
President Mejia returned to Santo Domingo at around 2 pm on Sunday. News reports in Hoy newspaper said that Alejandro Toledo met with former Venezuelan President Carlos Andres Perez in Casa de Campo. The meeting took place at the villa of Dominique Bluhdorn, wife of Hatuey de Camps, president of the ruling Partido Revolucionario Dominicano political party.
Tax collections fall sharply below expectations
Hoy newspaper reports that tax collections have fallen significantly below the government's expectations. The government budgeted RD$65,177 million for this year, but analysts say that if the present pace of collections continues, they will fall short by RD$10,000 million. Hoy newspaper reveals that the government economists plan to meet the fiscal deficit by borrowing abroad. Major international loans are already being approved by the National Congress where the government party holds the Senate majority and has the support of the president of the Chamber of Deputies. Sectors say that one of the reasons for the fiscal deficit is the government practice of creating thousands of unproductive jobs to pay back political favors.
No new controls announced, government prefers to pick on past corruption
Amidst denunciations made by the press of widespread corruption in Bienes Nacionales, the government department in charge of state property, the Mejia administration announced it would be stepping up investigations into corruption in the past administration. Cases of corruption in the Ministry of Public Works, Department of Civic Aeronautics and Dominican Social Security Institute and the privatization of the State Sugar Council and the Dominican Electricity Corporation will again be brought to the forefront. News sources say the initial efforts of the present government to punish corruption in the past administration were often so poorly prepared that the judges had to throw out the cases.
Meanwhile, there is no talk of instituting new controls in government to avoid the continuation of these problems. El Siglo newspaper points out that the government's attitude is to send to justice those suspected of corruption, but not to be proactive about preventing it in future.
The scandal of Bienes Nacionales went public and an investigation was ordered only after TV journalist Nuria Piera brought the proof to the nation during her Saturday evening TV show. El Siglo points out that already in October, the press had published allegations of irregularities in the work of Jose Manuel Peña, in charge of auctions at Bienes Nacionales, but the government did not heed the warning. Five months later, the government is asking Peña to justify how he can have more than RD$1 million in the bank after seven months on the job when his salary is RD$13,000.
El Siglo also points out that the government authorities have ignored the claims of corruption at the Oficina Metropolitana de Transporte made by transport union director Juan Hubieres. Nor has the government followed through with the allegations of irregularities in the Customs Department. The director of the Department Vicente Sanchez Baret denied the accusations and asked for names. The Dominican Customs Brokers Association said that an audit would substantiate their claim of widespread corruption in Customs.
El Siglo newspaper says that the newspapers criticized the lack of controls at the National Lottery, and businessmen claim they are subject to extortion from Dominican Social Security Institute inspectors.
El Siglo newspaper points out that the Mejia administration created the Anti-Corruption Department to prevent corruption with little being done in this direction.
Environment Department says it has nothing to do with MAPET Foundation
Minister of Environment Frank Moya Pons says he does not know anything regarding the Mapet Foundation, which signed a US$40 million agreement for the planting of trees with the Ministry of Agriculture in December 2000.
El Caribe newspaper says that when the Environment Ministry refused to sign the reforestation contract, the Minister of Agriculture, Eligio Jaquez, agreed to do so. The contract calls for a US$40 million investment in plant nurseries. According to the contract, MAPET would donate US$30 million, but the Dominican government would be responsible for US$10 million. MAPET would be able to draw on these moneys regardless of having done any work, says the newspaper.
Likewise the contract commits the government to fund US$187,500 for a study to determine where the nurseries will be located. MAPET has committed to invest US$518 million to build four hospitals in the DR. In exchange for the investment, the Dominican government must donate 300,000 square meters of land and allow the duty free import of goods needed for the corporation's operations in the DR.
El Caribe newspaper is warning of irregularities in the deal. It states their investigations show that the MAPET Foundation is listed as an "inactive" corporation in Department of Florida registries.
Technical Secretary of the Presidency Rafael Calderon defended the corporation as "serious."
Propane gas increases 25%
The Ministry of Industry and Commerce announced a 25% increase in the price of propane gas, from RD$180 for the 100-lb. tank of gas to RD$225. The measure is part of what the government calls the gradual elimination of the subsidy on propane gas sales in the DR.
Furthermore, the Ministry of Industry and Commerce confirmed increases in all fuel prices. New prices are:
Premium Gasoline: RD$43.82 (RD$42.25)
Regular Gasoline: RD$38.53 (RD$36.53)
Diesel RD$23.14 (RD$21.14).
The Minister of Industry and Commerce Angel Lockward attributed the weekend increases to the fire at an important fuel distribution center in Aruba. The DR does not buy fuel from the center, but Minister Lockward said that the destruction of the center caused a spiral of speculation that increased import prices.
Catholic Church lashes out at government
The Catholic Church had strong words against the government during the Easter Saturday sermons. Archbishop of Santo Domingo, Cardinal Nicolas de Jesus Lopez Rodriguez, was equally critical in his Sunday sermon at the Cathedral of Santo Domingo. The archbishop said that there are signs of great disatisfaction and great poverty and that those who have the economic power in their hands are selfish and do not understand the problems.
Catholic parishioners lashed out against the government when speaking their versions of the "Seven Last Words of Christ on the Cross" traditional sermon. The priests criticized the inefficiency of the government in resolving the social problems and scolded the demagoguery of politicians.
Father Jose Luis Hernandez, of the San Carlos parish, was among the most critical. He said, "The government has not taken off, there is no initiative that may improve or change things. There is a President with good intentions, but few realizations; it is as if he is working alone." He criticized the government for doing nothing, only looking to the past to justify themselves, even when they know that it makes no sense to be in power only to criticize others and impose taxes without improving the basic services to the population.
Father Jose Núñez of the Iglesia Santo Domingo Savio (Los Guandules) censured the fact that few are willing to stop seeing the state as a provider of personal riches.
Father Ramon Antonio Araujo, of the San Maximiliano Kolbe Parish, said his brothers feel abandoned by those who have governed and who now govern the country. He said the politicians only show great potential when they are in the opposition, but when they reach power they become "more froth than chocolate." "They preach extensively that they will not deceive the people and when they reach power they become arrogant, indifferent to the poor and the only thing they seek is to enrich themselves with the goods of the people," he said.
AES distributor does not agree with Union Fenosa distributor
Anibal Mejia, executive vice president of Edeste (AES), said that that company maintains excellent relations with the Dominican Electricity Corporation. CDE. He said the company has always found 150% support in Cesar Sanchez, the administrator, his economic advisor Edwin Cores and in George Reynoso, who is in charge of the electricity market. He did not corroborate last week's declarations by Union Fenosa Edesur and Edenorte distributors in the DR (see http://www.dr1.com/daily/news041101.shtml) that allege they have met with obstacles from the CDE.
AES- Empresa Distribuidora del Este, an American company which is in charge of distribution of power in the East, has been making a difference. The company is recognized for improving service and reducing complaints. On the other hand, Spanish-owned Union Fenosa's affiliates Edesur and Edenorte are riddled with inefficiencies, long lines of people with claims in their offices, and even poor distribution of bills. Practices such as charging a RD$250 fee regardless of the service being disconnected or not, daily interest charges for late pay and abusive rate hikes have created widespread animosity against the company. The company has also been criticized for scrimping on the required investments to improve service. Responding to the criticism made by Union Fenosa executives, Cesar Sanchez of the CDE criticized the company's practice of seeking clashes with the government to advance their position. He commented that the CDE less than a month ago signed changes in the contracts that improve the conditions granted to the distributors, allow them to increase rates in two years and extend the length of the contracts to 15 years. He asked, "What more do they want?"
Senate investigates irregularities in electricity privatization
Senate technicians investigating alleged irregularities in the privatization of the Dominican Electricity Corporation had been contracted by Union Fenosa for an appraisal and were also the "comisario de cuentas", the appointed company officer on the board of Union Fenosa operations in the DR. (unclear) The Senate claimed that the auditing firm of Ortega y Asociados did a crude appraisal that reduced the value of the assets. They attribute responsibility for this to Antonio Isa Conde, who was head of the Commission for the Reform of Public Enterprise.
"When analyzing the accounting procedures of Ortega y Asociados we observe serious irregularities," says the Senate report. The report says that the firm did not apply generally accepted auditing procedures.
Five die when a drunken man drives into Ozama River
A 27 year old pregnant mother, Josefina Diaz, her 6 and 4 year old daughter and son, and her brother Julio Diaz and a friend, Aquino Alcantara, drowned on Saturday when the car in which they were traveling sunk into the Ozama River. The accident occurred on Saturday, 14 April shortly after 8 pm. The vehicle's driver, Francisco Baez, reached the floating bridge over the Ozama River and reportedly lifted the bar that blocked the way and drove right into the river.
The bridge had been moved to allow the passage of boats. News reports say that the driver was drunk and did not notice that the barge had been removed.
In an interview with the Listin from his bed in the Universidad Central del Este hospital, he admitted he had had a few drinks but blamed his friend Julio Diaz for lifting the bar and not noticing the barge was missing.
El Caribe says the men had been drinking when they decided to go pick up Julio Diaz's sister.
Over the Easter holiday, official reports say there were 29 deaths and 83 persons injured. This is many less than in 2000, when 52 deaths and 139 injured.
Jorge Luis Santos, father of the children, and his mother Altagracia Ines Santos kept watch at the river hoping the authorities would find the bodies. He accused Baez of the death of his family and demanded justice from the authorities.
Rear Admiral Radhames Lora Salcedo, director of Civil Defense, told El Caribe that it was an act of "imprudence and violation of the laws by an unscrupulous driver."
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