President Hipolito Mejia ordered tax exemptions yesterday to key officials in city governments, allowing them to import vehicles costing less than US$30,000 duty-free. President Mejia also ordered that the government make RD$150 million in loans available to municipal governments that have not set aside sufficient reserves for the payment of the 13th Christmas wage. These announcements were made yesterday by the President, from his campaign trail at the Club Nautico in Andres, Boca Chica. Hoy newspaper reports that the press has been given restricted access to Mejia's campaigning activities in Santo Domingo and the interior of the country.
Diario Libre informs that Cesar Mella, the well-known psychiatrist who is also the medical advisor to the President (but who is politically partial to Vice-President Milagros Ortiz Bosch), had scheduled a conference in El Seibo as part of Ortiz Bosch's campaign. When the popular Mella arrived to speak in the eastern city of El Seibo, he noticed the hall was empty. According to the Diario Libre, the campaign staff of the PPH (the promotional arm of President Hipolito Mejia) had apparently arrived there earlier, passing by the hall with container trucks loaded with wood planks and zinc. The PRD supporters of the Ortiz Bosch camp took off to where the construction materials would be distributed. Diario Libre comments that the wood planks and zinc technique worked well in the 2002 congressional election as well, when the PPH groups imposed their candidacies. Alfredo Freites commented on his radio talk show this morning that the materials were imported through a commercial bank loan from Brazil taken out by the government in the name of social programs. El Caribe newspaper recently reported on a great amount of containers parked at the Port of Haina.
With three quarters of the votes counted, the president of the PRD, Hatuey de Camps, has accumulated 186,838 votes, or 64% of the total of the first of two primaries called by PRD party members. The voting took place nationwide on Sunday, 7 December and 3,000 polling centers were opened. De Camps has a wide-margined lead over fellow contenders, including Monte Plata Senator Ramon Alburquerque, who obtained 54,274 votes, for 18.5% of the total, and former Santiago senator Jose Rafael Abinader, who received 51,237 votes, or 17.5% of the total. Jesus de la Rosa, reporting the results contained in the second PRD party bulletin, said that 302,304 votes had been tabulated.
Former Santiago senator Jose Rafael Abinader said he would impugn the first primary on grounds that massive fraud took place. He said he detected urns that, when opened prior to the vote, contained ballots favoring Hatuey de Camps, as reported in El Nacional newspaper. El Caribe newspaper says that Abinader estimates the turn-out to have been much less than the 450,000 PRD members the PRD's organizational secretary, Rafael Gamundi Cordero said participated. "Some 120,000 or 125,000 people voted," conjectured Abinader, adding that "the rest of the ballots were 'dirty' ones placed in the urns." Abinader said he would request the annulment of the results and reviled the supposition that PRD money was used to favor the candidacy of party president, Hatuey de Camps. He also said that Ortiz Bosch and Subervi ordered their followers to vote in favor of Hatuey de Camps in that first primary. A second PRD primary is scheduled for Sunday, 14 December to include on the ballots this time the names of President Hipolito Mejia, Vice-President Milagros Ortiz Bosch and former Minister of Tourism Rafael (Fello) Subervi.
The US will send Assistant Secretary, Bureau of Western Hemisphere Affairs, Ambassador Roger Noriega to meet with President Hipolito Mejia, business advocates, leaders of the three main political parties, Central Electoral Board judges, members of Congress and the press during his two-day visit. As reported in El Caribe, Noriega arrives today, 10 December, with the aim of discussing the state of the economy, trade, justice and democracy in the Dominican Republic. Noriega is responsible for managing US foreign policy and promoting US interests in the region. Prior to becoming assistant secretary, he served as a US permanent representative to the Organization of American States from 2001 to 2003. While at the OAS, he worked with hemispheric leaders to strengthen democracy, advance human rights, foster economic integration and promote peace and security throughout the Western Hemisphere. Before his appointment to the OAS, Ambassador Noriega was a senior staff member of the Committee on Foreign Relations of the US Senate. Noriega is the second high-ranking US official to visit the DR in less than a month. Some two weeks ago, Under Secretary for International Affairs at the US Department of Treasury John Taylor was here for a one-day visit.
Bear Sterns writes today that the government and visiting IMF mission are reportedly putting the final touches on a revised agreement. Nevertheless, Franco Uccelli states that the question of how to raise revenues by 0.5% of the GDP is still a pending issue. "The government expects to have a final agreement ready by as early as next week," says Bear Sterns, according to its sources. Bear Sterns also states: "The news is good on both the IMF and the US fronts, as both appear to be very much engaged with (the DR) and a prompt restoration of the agreement with the Fund seems likely."
The government announced that it will pay the 13th wage as of 13 December. National Treasurer Pastora Mendez says this means an additional RD$2.3 billion of currency in circulation. Meanwhile, Hoy newspaper's economic editor, Mario Mendez, points out today that the most intriguing item of the Central Bank report is that which is titled "Others" and refers to the internal financing carried out by the official financial organization. The Central Bank itself described the supposedly miscellaneous category as contributions made to the liquidity of commercial banks, plus accounts receivable. Customarily, the "Others" account had maintained a level of RD$30 million, but, as a consequence of the government coming to the rescue of the Baninter, Bancredito and Mercantil banks, the total has skyrocketed to RD$75.76 billion for 2003. And Mendez says it continues to increase. He mentions that as of August 2003, the "Others" total stood at RD$73 billion, but only one month later, when the problems of the three banks were supposedly under control, the figure moved up to RD$75.76 billion. Mendez says it would be interesting if the government did not lump the amounts into the "Others" column, and instead, for transparency's sake, detailed what the amounts covered - especially since the amount almost equals the entire national budget for last year, which was about RD$85 billion. Furthermore, Mendez writes that the monetary emission registered a significant increase in November, going from RD$64.36 billion as of 30 October to RD$70.4 billion as of 25 November. Money in circulation increased during the same period from RD$28 billion to RD$31.59 billion. Checking accounts were up from RD$36.34 billion to RD$38.80 billion. This behaviour, he writes, is in sharp contrast to what happened in September, when the monetary emission declined from RD$55.45 billion to RD$55.68 billion. The Central Bank's January-September reports shows that total liquidity of the banking system was up 43.8% for the period, going from RD$148.1 billion as of December 2002 to RD$212.9 as of September 2003. The extraordinary increase in money in circulation comes at a time when the government is attempting to force a gradual reduction on the banks' and exchange houses' peso price.
Canadian t-shirt producer Gildan Activewear has announced plans to build a large knitting plant in the Dominican Republic to expand its existing low-cost manufacturing base in the country. The Montreal-based company announced it had purchased an 18-million square foot tract of land in the DR where it plans to construct a state-of-the-art knitting, bleaching and cutting facility. Fabric manufactured in the DR would be sewn both in the Dominican Republic and in Haiti, where Gildan also operates an integrated sewing plant and has established relationships with external contractors. Gildan plans to complete construction of the first DR facility in the next 12 months and step up to full capacity in 24-30 months. The total capital cost of the DR facility is estimated to be approximately $60 million, to be spent primarily in the fiscal years of 2004 and 2005. The venture is part of the company's scheme to gradually add a retail brand over the next five years to assure its long-term growth. Gildan currently sells its t-shirts and sweatshirts to other companies who print, color and embroider them for sale to retail outlets. Greg Chamandy, company chairman and chief executive, said retail sales in the US account for US$34 billion a year, of which 70% is sold through mass merchandisers like Wal-Mart. http://ir.gildan.com/news/20031204-123908.cfm?releasetype=Corporate
Imported wine consumption is down 28% so far this year, the spokesman for the Association of Foreign Alcoholic Beverages (Aprobex), Henry Hebrard, told Diario Libre. Wine sales for 2003 are expected to reach 336,000 cases, down from the 463,000 cases consumed in 2002. Hebrard said that many Dominicans are instead purchasing local brands, whose sales are up 6% from 749,000 cases in 2002 to 790,000 cases in 2003. Consumers are also drinking much more domestically-produced rum. Rum sales are up by 753,000 more cases this year. Beer sales, nevertheless, have declined from 31,560,000 cases to 27,874,000, signifying more than a 10% drop in consumption. Those imbibing beer pay a 25% luxury tax, while consumers of rum pay 35% and those of whisky, 45%. Local breweries want the government to authorize a tax reduction in order to lower their retail prices. They argue that beer has much less alcohol than rum, wine or whisky.
Hoy newspaper reports that the builders of two high-rise towers in the vicinity of the Hotel Embajador have the Junta de Vecinos de los Jardines del Embajador, a neighborhood board, out to stop them. In Santo Domingo, neighborhood groups have successfully won many cases in the past. Hoy newspaper denounced yesterday that government officers have violated Environmental Law 64-00 by authorizing the lease of 6,700 square meters of the Mirador del Sur parkland for the construction of two high-rise towers. For the project to become legal, Congress would have to approve the controversial lease, which is also meeting with opposition from the city government of Santo Domingo, upon whom the Ministry of Environment has delegated the management of the city park. Previously, the Mejia government had authorized the use of a portion of the Mirador del Sur Park for the construction of a parking area for tenants of a nearby apartment complex. The environmental director of the city government of Santo Domingo, Jose Miguel Martinez, told Hoy newspaper that a worker clearing the area was questioned by reporters, who were then referred to the head of maintenance of the Hotel Embajador. The newspaper reporters also observed that construction materials on the hotel grounds were similar to those found in the area that the community and city government claim as public park areas.
Hoy newspaper's page-two "Que se dice" columnist says that when Bienvenido Brito, the director of the Bienes Nacionales department, allowed the construction of the Adrian Tropical Dominican food restaurant on the former grounds of the state university's bio-marine center, a dangerous precedent was set. The commentary says that already word is going around that another restaurant will be erected on the Parque Litoral Sur (Malecon) grounds, on the same southern side of the Malecon that borders the Caribbean Sea. This time the new restaurant is taking over the park grounds that lie adjacent to the Fray Anton de Montesinos monument. Construction in national parks is banned under Environmental Law 64-00 and can only be authorized by Congress. Hoy newspaper says that Bienvenido Brito has not been available for comment.
The final report from the National Emergency Commission (CNE) reveals that Tropical Storm Odette - the atypical storm that occurred after the Atlantic basin's official hurricane season had ended - caused the death of 10 people and serious injury to 14. Substantial damage was sustained by many farms and crops, electric lines and the dwellings of 859 families, of which 34 were completely destroyed. CNE indicates that the worst of the devastation took place in the southwestern provinces of Barahona, Baoruco, San Juan de la Maguana, Duverge, Bonao, Monte Cristi, San Cristobal, Peravia and Azua, as well as in the northern provinces of San Francisco de Macoris and Puerto Plata. Damages were also reported in the capital city of Santo Domingo.
Prevention of dengue and nationwide awareness on how to recognize the sickness and its symptoms has been sorely lacking this year. Dengue is an endemic illness that recurs every year, especially in tropical climates such as that of the Dominican Republic. In the past, the public health department customarily carried out prevention campaigns on an annual basis, teaching people of the dangers of storaging uncovered water and about how to spot the signs that a person has been infected. This year, however, there has been no national campaign and to the horror of everyone, some 107 attributable deaths have been reported, along with 5,170 possible dengue cases. This number is up from 1,864 cases registered in the first 10 months of 2002 (4,394 cases in the first 10 months of 2003). Diario Libre states that the World Health Organization shows that Cuba has seen 15,000 cases of dengue this year and that there have been 12,000 in Puerto Rico, each place without a single death. The WHO says that the disease's mortality rate should be less than 1%. Medical sources show that 75% of the deaths this year can be attributed to the absence of an early or timely diagnosis, and only 20% to inappropriate medical treatment, according to Clemente Guerrero, member of the National Institute of Epidemiology. The victims have mainly been children and the majority of cases are known to be in Santiago, La Vega, Moca, San Francisco de Macoris, Bonao, Bani, San Jose de Ocoa, San Cristobal and Santo Domingo. Guerrero told Diario Libre: "The fight against dengue has failed this year and now what we must do is fight to lessen the fatalities." He urges anyone suffering from flu-like symptoms with severe headache or swelling of the eyes, muscles and joints to seek prompt medical attention. Alejandro Pichardo, the dean of the medical school at the state university (UASD), corroborated the non-existence this year of any dengue prevention program to promote awareness among citizens on the need to eliminate mosquito breeding grounds. "Without mosquitoes, there is no dengue," he stated in an interview in Hoy newspaper today, and urged efforts to begin teaching the population to identify the symptoms of dengue. Public Health Minister Dr. Jose Rafael Soldevila has said his department does not have the funding necessary for the prevention programs. Dr. Soldevila said he had his own solution when in a similar position during the government of Antonio Guzman (1978-1982). Back then, Soldevilla became famous for his recommendation that every Dominican kill three mosquitoes to eradicate the illness. To read further about dengue, see http://dr1.com/travel/prepare/health.shtml#18
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