|
|
|
|
|
|
|
|
|
High-level conflict on 5% export tax Attorney General Victor Céspedes Martínez has declared war on Supreme Court Chief Justice Jorge Subero Isa over the question of the legality of the controversial new 5% tax introduced by Presidential Decree 646-03. Private business association CONEP has brought the issue to court with the aim of having the tax declared unconstitutional. The Attorney General warned Subero Isa that he would challenge such a ruling, and went as far as to accuse the judge of harboring personal interests in the case. This is the most recent salvo in the escalating conflict between the two institutions, which have traditionally enjoyed amicable relations. Other recent clashes between Céspedes and Subero arose in connection to the Radhamés García and Orlando Martínez cases. The papers this morning report that the intensification of the disagreements is tantamount to “a declaration of war” by Céspedes Martínez. The Attorney General held a press conference yesterday and dwelt on the reasons for the alleged delay in processing the writ against the tax. The Attorney General remarked that it would be “illegal” to declare the tax unconstitutional. Cándido Simón Polanco, a lawyer for CONEP, told El Caribe that there was no legal channel to appeal a Supreme Court ruling. “When a decision is made by the Supreme Court there is no recourse for appeal,” said Polanco. |
|
Economy solid but not healthy In an interview with El Caribe newspaper, Presidential Technical Secretary Carlos Despradel described the Dominican economy as “solid, but not healthy.” He cited the “unprecedented” surplus in the balance of payments as a symptom of solidity, while acknowledging the many problems counterbalancing this positive economic indicator. “Those who say there are no economic problems in the country would be lying, and I am not going to lie to you,” said Despradel. A solution is being sought through restrictive new measures and an imminent agreement with the International Monetary Fund (IMF), he added. The amount of US dollars entering the economy is sufficient, despite the continued high dollar-peso exchange rate. Lack of confidence in the economy combined with the need to spend dollars on the private sector’s external debts are factors in the deterioration of the economy, according to Despradel, who believes that all the conditions are in place for the dollar-peso exchange rate to stabilize. Yesterday’s figures show that the rate had indeed fallen to approximately RD$34.35 to the US dollar. Despradel called on the Dominican people to “take on the sacrifice” needed to see the nation through to economic recovery. He claimed that the perception of the government as a big spender is unfair, and said that public spending had been reduced by 27% in the first six months of 2003. The main editorial in El Caribe responds to the statements in a positive spirit, saying that the economy could be on the way to recovery as long as electoral interests are not put above the general good. |
|
Despradel insists on 5% tax on exports El Caribe reports that Presidential Technical Secretary Carlos Despradel has warned that if the 5% tax on exports is not imposed the authorities will be forced to raise electricity charges, which could in turn lead to social unrest. “The public will not stand for any more increases,” he said, and predicted that such circumstances could affect the Dominican Republic’s appeal as a tourist destination in a chain reaction that would only harm the economy. This statement was aimed at the hoteliers association ASONAHORES, who are threatening non-payment of the controversial new tax. The vice-president of ADOEXPO, the exporters’ association, reacted with anger to Finance Minister Rafael Calderón’s statement that the 5% tax would be imposed “no matter what.” Horacio Alvarez described the new tax as “absurd and illogical” and one that would result in the collapse of countless smaller export businesses. He said the finance minister should adopt a more conciliatory approach to exporters, giving several examples of agricultural exporters who are being crushed by the burden of elevated costs. In conclusion to his attack on the authorities, Alvarez said: “If what they want is to close down the country, let them do so and the last one out can switch off the lights.” Economist Pedro Silverio, of the PUCMM think-tank Cenantillas, has written extensively to urge the government to reduce its spending instead of placing the onus once again on the productive sectors with the 5% tax on exports. He emphasizes that if the government reduced its own excessive spending, neither the penalty on exports nor the power hikes would be needed. High-ranking government officials have admitted that the state payroll is brimming with thousands of sinecures. These individuals do not carry out any useful function outside of their service to the political interests of the party in power. The government had pacted with the private sector in December 2002 to reduce the public payroll to the levels of 2000. Despradel has admitted the bulging public payroll instead has increased 4% this year. |
|
Selling only to those with US$ El Caribe newspaper reports that real estate construction has been paralyzed in the Dominican Republic due to the high banking interest rates and the depreciation of the peso. José Rodríguez Cáceres, president of the Asociacion de Constructores y Promotes de Viviendas (Acroprovi), said that the sector is in a state of emergency. He pointed out that sales have fallen 75% because the purchasing power of Dominicans has been undermined by the 100% depreciation, at a time when real estate prices reflect double and triple the cost of construction. Rodríguez Cáceres gave an example of an apartment that was built with a projected price tag of RD$1 million. The same apartment, under today’s conditions, must be sold for RD$2 million. For the same deterring reason, approximately 95% of all such construction has been put on hold. Rodriguez also said that sales are now limited to residents abroad who have earnings in US dollars. |
|
Understanding the power situation mess Hoy newspaper publishes today a compact overview of the power situation in the Dominican Republic, which helps explain why Dominicans today have one of the worst power services and pay some of the highest rates in the region. Written by Federico Martínez, the contribution lends an understanding of what has gone wrong with power privatization in the DR and what could be done to resolve the problem. See http://www.dr1.com/news/2003/082803_electricity.shtml |
|
El Guapo de Gurabo ready for battle At a political rally in the southern city of San Cristóbal yesterday, Hipólito Mejía vowed to fight on for his re-election, stating that he would persevere in a second round in the internal PRD party selection process should he fail to secure 50% of the vote in the first ballot. He claimed to have the support of his PRD’s membership and declared that those without that support would not succeed in dividing the party. In an impromptu speech Mejía said the PRD would remain in power “because PRD members and the people want ‘El Guapo de Gurabo’ to stay on.” Gurabo (in the province of Santiago) is the President’s hometown; “El Guapo” could mean “the handsome one” or “the tough guy”, depending on one’s preferred interpretation. Mejía acknowledged the country’s current economic ordeal and said that the government had tackled the problems “with courage and responsibility.” He said they would continue on as such and that there was no need to worry about the future. Mejía then stated his firm belief that he would win the election by a landslide and silence his critics in the media and opposition parties, whom he described as “parakeets.” |
|
President’s proposal to fellow PRD aspirants President Hipólito Mejía announced that he had sent a second letter to his rival PRD Presidential pre-candidates “because they don’t seem to have understood the previous one.” In the letter, as published in today’s press, Mejía outlined his proposals for the Presidential candidate selection process. One of the President’s demands is that none of the candidates make use of the image of late PRD leader José Francisco Peña Gómez to detract from another candidate in their campaigning. Peña was a fierce opponent of Presidential re-election. Mejía spoke on the campaign trail in San Cristóbal yesterday, before a backdrop of a gigantic poster that read “Take Care of the Country!” and showed the photo of Mejía, the party logo and the photo of Peña Gómez on the other side of the logo. As of yesterday, the other pre-candidates had not replied to the letter. They were under the impression that the President would not contest a second round, but this was contradicted by Mejía’s statements at yesterday’s rally. Some are of the conviction that they should not accept any sort of proposal involving Mejía’s candidacy “because that would mean accepting that we are a re-electionist party, and that ought to be decided by a plebiscite,” said Presidential pre-candidate Rafael Flores Estrella. Others favor the convention model because they are convinced that Mejía would face certain defeat. Enmanuel Esquea Guerrero, another of the pre-Presidential candidates, said that time was against them and that a candidate must be selected by the end of October at the very latest. The papers are also reporting that Santo Domingo District Attorney Máximo Aristy Caraballo is asking for a leave of absence from his post so that he can join the re-election campaign in support of Mejía. |
|
Re-electionism overall In her opinion column in Listín Diario, journalist Ana Mitila Lora expresses support for those who are contesting the right to re-election and unlimited continuity. “Re-electionism… in some cases is the cause of institutional putrefaction, and an obstacle to renewal and emergence of new leadership.” She mentions several key figures in Dominican society that have been at their post for more than 20 years including: Lora specifically mentions Mario Bonetti and his 30 odd years in the Academia de Ciencias; Monsignor Agripino Núñez, and 30-year tenure at the helm of PUCMMM; Azor Hazoury, who has been at the Asociación Popular de Ahorros y Prestamos, a loans and savings company, for over 40 years; José Joaquín Puello, with more than 20 years on the Dominican Olympic Committee; and Gabriel del Río, who has been with the Central General de Trabajadores, a workers union, for more than 30 years. |
|
Austerity in Chamber of Deputies? The new president of the Chamber of Deputies, Alfredo Pacheco, has closed down several departments described as “unnecessary,” resulting in the dismissal of dozens of employees, with the aim of cutting costs in the face of high debts. The affected departments include the communications directorate and on-site medical facilities for deputies. Some reports indicate that as many as 300 people will lose their jobs, and that most of these are apparently “botellas”, the term for political appointees, usually beneficiaries of political patronage and relatives of government officials who draw a salary but do not fulfill any real productive function. Pacheco has not reported on the hiring in the Chamber. According to earlier stories in the press, the day after his appointment long lines of PRD supporters queued up at the Chamber of Deputies. |
|
Baby girl for Leonel Former President Leonel Fernández and his wife Margarita Cedeño are the proud parents of a baby girl, born on Tuesday by cesarean section. The baby weighed just 5.1 lbs, and is being cared for in an incubator, although said to be in good health. She is to be called Yolanda América. Leonel Fernández was not present at the birth, as he was on a visit to the United States, but traveled home on Tuesday night to be with his new family. The former President and current PLD presidential candidate and his wife, who each have two children from previous marriages, were married earlier this year. |
|
More criticism of PPH-run social program The two main opposition parties, the PLD and the PRSC, have attacked plans for the PPH (Proyecto Presidencial Hipólito – the internal PRD campaign promoting the President’s re-election) to manage the US$100 million destined for social programs and funded by multilateral organizations. There has been much criticism in recent days that PPH control of state funds would invariably be aimed at furthering their re-electionist agenda at the expense of the very people meant to benefit by the funds. Representatives of both parties described the situation as “shameful” and “scandalous.” Temístocles Montás of the PLD said that “in the government there is a group of people who do not know the difference between public funds and their own.” The same accusation was levelled by Johnny Jones and Ramón Rogelio Genao of the PRSC. The announcement by PRD member (and leading PPH activist) Eligio Jáquez that US$100 million of the Inter-American Development Bank loan would be administered by the PPH was later followed by denials from several sources, including President Hipólito Mejía. |
|
The politics of street names The Dominican Academy of History has called on the authorities to avoid politics in choosing new names for streets and other public places, says the Listín Diario. The academy has offered its services to help municipalities and Congress in their evaluation and selection process of appropriate names. They recommend allowing a “sensible” period of time following the death of a political figure, despite the law which gives the authorities discretion in naming places after people who have died in the last ten years. The academy referred in particular to streets and public installations named after the three leading figures of the main political parties who have died in the last few years, namely José Francisco Peña Gómez (PRD), Juan Bosch (PLD) and Joaquín Balaguer (PRSC). These decisions should be based on a public consultation process, said the academy in a letter obtained by the Listín Diario newspaper. |
|
Diario Libre on violence Diario Libre editorializes today on the appeals for a hardline approach against rising violence in the DR. The newspaper points out that criminal violence is not a major problem in the DR. “On the contrary, ours is a peaceful society where crime is more of the petty crime variety than serious attempts on the safety of citizens,” said the writer. Proof of this is cited as the low crimerate and safety of our cities, despite the notable weaknesses of our law enforcement. The editorial points out that most of the newsworthy crimes have been solved by police, but stresses: “Let us fight crime by strengthening and professionalizing our police, not with vain alarm and calls for hardline approaches, which, in the end, is nothing but a crime.” |
|
Super Sánchez goes for Paris gold Dominican world champion hurdler Félix Sánchez stands a good chance of retaining his world title in Friday’s 400-meter hurdles finals at the international athletics championships in Paris. Sánchez came first in the semi-finals yesterday, with a time of 48.16 seconds. “Everyone wants to beat me, but I want to beat everyone,” said the world champion, fresh from his triumph at the Pan American Games in Santo Domingo. He has not lost a single race since winning the Monaco Grand Prix in July 2001. Sánchez promised to dedicate his victory to the Dominican people as a tribute to their support. Pan Am officials demand payment Hoy reports that dozens of referees, judges and other officials who worked at the Pan American Games have yet to be paid. The affected parties held a demonstration outside the organizing committee’s offices yesterday, prompting a declaration from the director general Bienvenido Solano that the payments would be made next week. The protestors claimed that they had been given similar assurances in the past and had traveled to the capital to be paid but were just met with excuses. Depending on the role they played, the officials are due about US$200 each. One of the people affected was a cleaner named Milagros Mercedes, who mopped the surface of the volleyball training court for nine days, working from 7am to late at night. “I had to pay someone to look after my two young children so I could go out to work, now they are sick and no one is here to pay me,” she said. The protestors fear that the organizing committee’s offices will be closed down this Friday, according to rumors in circulation. |
|
|
|
The contents of this webpage are copyright © 1996-2008. DR1. All Rights Reserved. |
