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Measures to contain the devaluation Central Bank Governor Frank Guerrero Prats announced on Friday that the authorities would intervene into the market to put a stop to the run on the peso. While he did not disclose an amount, news reports say that US$60 million could be injected into the market today. The Central Bank said that it would use all the necessary international reserves to contain the run. Minister of Finance Jose Lois Malkum also reaffirmed that the government would remove from circulation RD$1.6 billion within the next four months, and would cut spending. Furthermore, he announced the postponing of the investment of the remaining US$115 million in sovereign bond money. The Mejia administration also said it would be applying the higher GATT valuation on vehicles and appliances. This, in addition to the higher cost of the US dollar, is expected to make these goods cost much more and thus reduce the demand. In an editorial today, the Listin Diario newspaper attributed to the overvalued peso the importing of 40,000 new vehicles in the first half of the year. Government spending, the overvalued peso, and major repatriation of profits by foreign companies are mentioned as key factors leading to the present run on the peso. On Friday, the peso climbed to RD$19.30 to the dollar. Banks were buying dollars at about RD$18.30 to the US dollar. Former president of the National Council of Business, Celso Marranzini said that the measures are correct and are a consequence of past errors in government economic policy. He said the business sector had been warning the government for months about the negative effects of its policies. |
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City waste dump agreement The mayors of the National District and the Province of Santo Domingo put an end to the Duquesa garbage dump conflict in a meeting on Friday, 30 August. The city mayors agreed that the city hall of the National District would cover all operational and administrative costs up to August 2002. As of September and through January 2003, the National District city hall would be responsible for 50% of the expenses set at RD$3.3 million per month. The city governments of Santo Domingo East and Santo Domingo West would be responsible for the remaining 50%. The municipality of Santo Domingo North, that was demanding the 100% right to manage the dump, would be exempt from having to contribute to the cost of operating the site. The mayors agreed to sit down again in February 2003 to continue the talks regarding the operation of the only waste disposal site in Santo Domingo. |
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Back to school Public schools and most private schools started school today. Several bilingual schools had already commenced school in mid August. The Ministry of Education announced that some 2.4 million children would be attending public schools this year. Saturday and Sunday were peak sales days as thousands of last minute shoppers crowded the stores to buy books and school supplies. |
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The Social Security Law debate On 1 November, the Social Security Law 187-01 is slated to go into effect expanding coverage to all Dominicans and legal residents. Is it a utopia or can it become a reality, many wonder. But the biggest debate going on right now is about how Article 165 of the code should be interpreted. Sectors dispute the timetable in which employers are authorized to remove their employees from the Dominican Institute of Social Security (IDSS). In the past, the government required employers to keep both the IDSS government plan (which many felt gave little services and was perceived as just another government tax), while also providing private health plans for their employees. The passing of the new law would allow companies to only pay one health plan for their employees, while some transitory exceptions would apply. Article 165 reads: “During a period of five years as of the passing of the bill, the Dominican Institute of Social Security will maintain the affiliation to all private employees that 60 days prior the law going into effect, were affiliated to the Social Security system. This coverage is extended to their family members. For a period of two years all public employees and those of autonomous and decentralized government institutions will remain on the private insurance plans they were affiliated to at least 60 days before the law goes into effect and if they express their wish to continue on these plans.” El Caribe newspaper editorial says that the spirit of the law was to generate savings for the companies that would no longer have to maintain two health plans for their employees. Noteworthy, the new social security law increases the cost of the health plans for both employers and workers. But others, including the IDSS authorities and the Dominican Association of Medics (AMD) consider the cancellation of the IDSS memberships a violation of the law, indicating this cannot happen for another five years. And they argue that if the workers leave, the IDSS will collapse. |
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Corruption in government President Hipolito Mejia recognized on his Channel 4 regular Sunday TV appearance that there have been 20 or 25 important cases of corruption detected in his government and that will be sent to justice, and hundreds of minor cases. The President addressed the issue of corruption of government officers after last week the Department of Drug Control arrested a Dominican vice consul in Haiti for trafficking in cocaine. Mejia said that government officers should learn from the experience of the vice consul, the authorities had been trailing him for months. President Mejia said that he is aware that several people have requested money in his name and that of First Lady Rosa Gomez promising jobs and apartments. He said that people have been very gullible and spoke about the case of a woman who stayed at a hotel for five days for free posing as his sister. |
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Leonel: give the money back Former President Leonel Fernandez urged that the government return US$125 million in sovereign bond money if it decides not use the money. Fernandez made the recommendation because the government has to pay interest on those funds. Fernandez said that the sovereign bonds had to be negotiated because the present administration is using tax revenues to pay for public employee wages. He explained that governments in the past did not resort to borrowing and instead used taxpayer money to carry out the public works. Fernandez also said that the government’s lack of payment of its own bills is one of the main reasons for the present power crisis and the power outages. |
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What’s happening in Monte Cristi? Monte Cristi, the peaceful northwestern province, is under siege by unknown arsonists. Over the weekend, two more abandoned old homes in the center of Monte Cristi were burned. This brings to 10 the number of woodened houses that have been burned in the historic center of the city. Several of the burned homes are said to have historic value. The authorities are now patrolling the old part of the city. Over the weekend, a historic home in Manzanillo was also set on fire. The District Attorney of Monte Cristi ordered a 12 midnight closing of businesses. The fires occurred in early hours of the morning. One news report speculated that the fires were to force the renovation of the old houses. |
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Ransom money was microfilmed The National Police says that the ransom money paid for the release of businessman Fernando Capellan is traceable. According to an El Caribe source, the ransom money (US$1 million+) can be identified because the series numbers and other characteristics were microfilmed. The police are on the trail of Rafael Villa Cartagena, who they suspect is the mastermind of the kidnapping. Capellan was released on 10 August after being kidnapped for a week. The police is offering RD$100,000 to any person who provides information leading to the capture of Villa Cartagena. The Police have distributed 10,000 leaflets with the photo of Villa Cartagena and that of Antonio Santos Beltre, also sought as a key suspect in the case. |
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Dolly wakes the Caribbean up Tropical storm Dolly served to remind the Caribbean that this is the season of the big storms. Dolly weakened and turned to the North before entering the Caribbean Basin. But she also woke the Caribbean up, after weeks of complacency in the present slow start of the 2002 Atlantic Hurricane Season. The season starts 1 June and ends 30 November, but historically most hurricanes have hit from 15 August to 15 October, with September being the worst month for the Dominican Republic. Weather forecasters say the Caribbean so far is protected by a lingering WSW wind shear. This does not mean the country is not getting rain. There have been lots of strong showers in Santo Domingo. A tropical wave that had nothing to do with Dolly brought downpours that caused flooding of streets and highways on Sunday. News reports say there was major flooding on the Duarte Highway and the Malecon of Santo Domingo because of drainage problems, likely caused by an accumulation of debris and garbage. Listin Diario reports that several higher income neighborhoods recently built North of Duarte Highway were also affected. Director of the National Emergency Commission, General Radhames Lora Salcedo said that apparently the builders have closed off the natural drainages making the new residential areas vulnerable to flooding. The forecast for this season is one of storm activity considerably below the long-term average and much below what has been experienced in six of the last seven years. In his August 2002 forecast update, William Gray of the Colorado State University reduced the 31 May prediction of 11 named storms, six hurricanes and two major hurricanes to nine named storms, four hurricanes and one major hurricane. The long-term average is 9.6 named storms, 5.9 hurricanes and 2.3 major hurricanes per year. Weather forecasters say this does not mean one should let the guard down as some of the very worst storms, including Andrew, have occurred in otherwise relatively quiet seasons. |
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ADAVIT protests cutting of commissions María Viera, vice president of the Association of Dominican Travel Agents said that 125 of a total of 175 IATA ticketing agencies in the Dominican Republic will be returning their validation plates to Continental Airlines to protest the attempt of imposing zero commission on sales originating in US territory. “We believe this is the first step towards a total zero commission that the airlines are planning for the near future,” said the spokesperson for the leading Dominican travel agency organization. She emphasized that the Civil Aviation Board has ruled the commission be a minimum 6%. The travel agencies protested the unilateral decision of taking away the commissions. “We don’t want to work for free,” says the spokesperson for the group. She said they agreed to a general strike on 9 and 10 September. Meanwhile, as reported in the Listin Diario, Santiago Mota, spokesman for American Airlines said that the stoppage of ticket sales would not affect American Airlines ticket sales. He commented the boycott comes at the end of the peak sales season and passengers can be ticketed at the airport, by telephone or through other channels. Nevertheless, he admitted that at the present time Dominican travel agents still write out 50% of American Airlines ticketing. Meanwhile, Aeromar said that the strike would not affect their sales because they continue to pay travel agents 10% commission. |
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45% rent movies in DR A Mercadata poll taken in February shows there is room for growth in video rentals in the Dominican Republic. Only 55% of the population rents videos. The market leader in the Dominican Republic is Mr. Movies (with 100,000 members) and 17% of the market. |
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Santo Domingo Zoo membership Those interested in contributing to the upkeep of the National Zoo Park (ZOODOM) can now do so by becoming a member of the Dominican Zoo Society. The new Sociedad Zoologica Dominicana has opened the membership categories to garner funds for the improvement and maintenance of the Santo Domingo zoo. Annual memberships are open to university students (RD$200), teenagers (RD$150), children (RD$100), adults RD$500 and dual categories (RD$900) and include courtesy passes, free admission and a monthly Zoodom bulletin. To become a member, call 562-3149 |
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DR succumbs in volleyball cup The Dominican volleyball team lost its first three games in the Women’s World Championship taking place in Germany. After losing to Russia (two sets lost, one won), the country lost its star player Cosiri Rodriguez, who suffered a torn ligament of the left ankle. Rodriguez will need to rest for six weeks. Without Rodriguez, the team went on to lose to the United States and Puerto Rico. The DR thus will not pass to the second round. http://www.fivb.ch/ |
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Felix Sanchez wins Brussels meet Dominican Felix Sanchez celebrated his 25th birthday by winning the 400 meter hurdles at Memorial Van Damme stadium in Brussels on Friday, 30 August. He clocked in at 47.99. Behind him was Frenchman Diagana Stephane with 48.05 and American Woody Joe with 48.39. Sanchez next travels to Berlin for the Grand Prix Final and World Cup on 6 September. Sanchez is a contender for the Golden League Jackpot. |
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Olympic Center promised for June Minister of Sports Cesar Cedeño said that the Consorcio Jantesa-Casalca-Disconsa will have 10 months to renovate the Olympic Stadium, cycling velodrome and the gymnastics and volleyball pavilions and build a baseball field at the Juan Pablo Duarte Olympic Center. He announced the works would start this month and finish by June 2003. Jantesa, a Venezuelan firm, will be executing the renovations and new constructions; Disconsa is responsible for the project management and Casalca for the purchases. Works are being carried out for the Pan Am Games set for 1-17 August. Project manager, Architect Rafael Villalona said crews would work in three shifts per day in order to meet the timetable. The Dominican government is borrowing money from Venezuela under the San Jose Petroleum Agreement. Meanwhile, Jose Joaquin Puello, president of the Organizing Committee of the Pan Am Games, said that they expect to have advanced 65-70% on all the necessary works by the end of this year. |
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