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Daily News - 10 May 2001
Presidential legal advisor tells it like it is
An amateur video camera taped a recent pep talk that the President’s legal advisor Guido Gomez Mazara made to PRD party members in Samana. Hoy newspaper gives the story front page coverage today. The video was given to a news show on Channel 23 and one on Channel 13. It’s controversial because it shows the top ranking Mejia government officer strongly emphasizing the use of government funds for partisan politics. 
"First ourselves, then ourselves, afterwards ourselves, and if there is something left, ourselves also," Gomez Mazara says repeatedly in his 17-minute long talk. 

Other controversial points raised are: 

  • If the PRD does not have a guarantee of keeping its 24 senators and all its deputies in the congressional and municipal elections of 2002, they would find a way to do this. "Regardless of what is being said outside on many matters, we are going to run the bases (bateo y corrido)," he said explaining the party needs to maintain its supremacy in the Senate, Chamber of Deputies and the municipalities. Analysts interpret this as the PRD majority in Congress would reform the Constitution to extend their period two more years as they have already threatened to do. 
  • Gomez Mazara also revealed a plan to modify the Constitution to lower the percentage to win the presidency in 2004 from 50 to 40% and to do so "above the head of whoever it may be, rain or shine." He vowed that if between now and August the special commission named by President Hipolito Mejia on constitutional reform does not issue a report, they will push the bill through because they have the obligation, in honor of the memory of Peña Gomez, to work so that the party adjusts the electoral law to the needs of their political organization. 
  • He urged party members to make sure the medicines distributed by the government’s low-cost pharmaceuticals program, Promese, go to PRD members. 
  • He advised PRD members to use the Promipyme program, explaining that a RD$1 million loan obtained through that program is much better than a RD$5,000 a month government job. He said the program has RD$30 million to lend every month.
Easier to build new than repair the old, says minister
Public Works Minister Miguel Vargas justified the construction of ten 50-bed "smart hospitals" by a Florida based company on grounds that it is easier to build new hospitals than to repair the old. The health care centers have a minimal cost of almost US$50 million. Vargas said the Ministry does not have the budget to repair the old centers so they have to find fresh sources of funds to supply the nation's health needs. The government has contracted a loan with a Florida company to build the hospitals, which would be the company’s first project of this kind. 
Ministry of the Overseas
The Executive Branch has sent to Congress plans for the creation of another ministry. The Overseas Ministry would be dedicated to the affairs of Dominican communities abroad. 
Red alert to keep subsidy on power
The president of the Presidential Electricity Advisory Committee, Hugo Guiliani Cury, warns that the Ministry of Industry and Commerce’s proposal to reduce the government subsidy on power would have an immediate inflationary effect in the economy. The measure would take effect in the July electricity bills. Guiliani says the reduction of the subsidy would spur increases in prices of products across the board. He said his advisory committee has prepared a report they will present to President Mejia. 
Hector Sanchez, of a merchants association said the measure would have a catastrophic effect on the economy. Already industry and commerce have been hurt by a 30% decline in sales and hefty new taxes in place since January. 
Renegotiate power rates
Former administrator of the CDE, Radhames Segura, has accused the government of taking the side of the generators and distributors of power against the interests of Dominican consumers. He urged that the government renegotiate the exorbitant prices being paid the power generators. 
He urged that the cost structure and the fuel formulas be revised to determine fairer prices. He commented on the successful negotiation during his tenure at the CDE of the Smith Enron power plant contract reducing what the company was billing the state from US$62 million to US$26 million. 
What's keeping the government from negotiating with the generators?
Economist Andres Dauhajre in an interview with Ahora magazine demanded the administrator of the CDE Cesar Sanchez tell the nation why he has not been able to sit down to talks with the generators to ensure they bill the nation fair market rates. Dauhajre said Sanchez should explain what is stopping him from achieving the reduction in the rates and if he is not capable of negotiating with the power generators then he would be of better service to the government in another post. Dauhajre was referring to the announcement of the Superintendent of Electricity that the government will eliminate the electricity subsidy for all who pay more than RD$1,500 a month. This means an increase ranging from 20-40% in the kilowatt hour bill to the residential, industrial and commercial sectors. He said that Dominican consumers are already paying US$0.17 on the kilowatt and now the government wants to raise this to 20-21 cents when the Latin American average kilowatt/hour rate is 10 cents. 
Where are the official numbers on the economy?
Hoy newspaper points out that the Central Bank is late issuing the figures for the first trimester of the year. The economic editor of the newspaper Mario Mendez says that for years the bank has issued the report 20 days after the close of the trimester. Now 40 days after the close of the period, the official numbers are still not available leading to all sorts of speculation. According to the newspaper, a first estimate of the Central Bank showed a 5.5% decline of the economy. Others say it was 1.5%. The newspaper speculates that the Central Bank is revising the estimate to show a 3% decline in the economy. 
40% wage increase for construction workers
The National Committee of Salaries approved 40% wage increases for construction laborers. The highest wage increase so far approved for other sectors was 18%. The increase is effective 24 May. Days will now be paid at the following rates: 
Non skilled laborers RD$147, skilled laborers RD$161, assistants RD$189, third category operators RD$215, second category operators RD$280, first category operators RD$350. 
The announcement comes at a time when new construction has declined considerably in the DR, primarily due to the general slowdown in the economy and the high interest rates on peso loans. According to data from the Central Bank construction declined from 17.7% in 1999 to 5.2% in 2000. 
Go ahead for city bypass 
The government announced the start of construction of the Circunvalación Oeste avenue that will go from west to east around Santo Domingo. The highway will be paid for by granting State Sugar Council land valued at RD$1,200 million to the builders, Edificaciones y Carreteras, represented by engineer Marcos Jorge. The builders are expected to use the land to develop housing projects along the new areas that will be opened. 
The 12 lane highway will be 20.5 kilometers long, going from the Cruce de Manoguayabo to the Prolongación Maximo Gomez in Villa Mella in its first phase. 
Jarabacoa strikes for half day to protest dam
The town of Jarabacoa closed down for 12 hours yesterday to protest the government's decision to go ahead with construction of the Manabao Dam. President Hipolito Mejia, a strong supporter of the project, announced he would visit Jarabacoa on Sunday to discuss the dam with the community. 
Chamber of Deputies changes name of Las Americas Highway
The Chamber of Deputies approved changing the name of the Las Americas Highway to that of Dr. Jose Francisco Peña Gomez Highway in honor of the former leader of the government party. The Dr. Jose Francisco Peña Gomez Highway would run from Duarte Bridge to San Pedro de Macoris's Higuamo Bridge. The deputies passed the bill in time for the celebration of the second anniversary of the death of the politician, 10 May. 
Court of Appeals annuls judgement against former President
The Santo Domingo Court of Appeals annulled the case of corruption in office against former President Salvador Jorge Blanco (PRD-1982-1986). He had been sentenced in 1988 to 20 years in prison and fined RD$100 million. The court ordered a retrial in the case against him and his collaborators Leonel Almonte, retired General Manuel Antonio Cuervo Gomez and Juan Tomas Peña Valentin. 
Sustainable tourism seminar in Juan Dolio
The Dominican Chapter of the Caribbean Tourism Organization will hold a workshop on sustainable tourism at the Coral Costa Caribe hotel in Juan Dolio. The workshop will take place Saturday, 19 May. It will deal with the concept of harmony between tourism development and preservation of the environment. The main speaker will be Bolivar Troncoso Morales, who has a masters degree in ecological tourism and is director of the department of ecology and biodiversity at the Ministry of Tourism.
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