President Leonel Fernandez gave a luncheon for members of the press and told them that 2005 would be the year of the Dominican Republic's "recovery." This was the term he used when El Nacional's editor-in-chief asked him to sum up 2005 in just one word. Fernandez was optimistic with regards to the future of the Dominican Republic and pointed to the renewed confidence that was created in his first 100 days in office. Among the broad range of topics covered in the informal conversation during the luncheon, Fernandez mentioned his belief that the Free Trade Agreement with the United States would be approved by the Dominican Congress and that the contentious 25% tax on soft drinks using high-fructose corn syrup (HFCS) would be dismantled. He also mentioned the guarantees for foreign investors, saying there were two entities interested in investing in 750 MW generation units for local consumption and that members of his governmental team had already been to Dallas, Texas to talk with potential investors.
In order for the government to bring its finances into line for the IMF approval of a new two-year Stand By Accord, the authorities would reportedly have to raise taxes, reduce the subsidies to the propane and electricity sectors and increase the exchange commission that is collected on imports by 3%. Ironically, as these measures were being published in El Caribe and other newspapers, a differing report from the Herrera Industrial Association was published in Hoy, requesting the elimination of the exchange commission altogether. El Caribe says that the IMF is calling for a freeze on the government's payrolls at the October 2004 levels, and rationalizes a 3% increase in the exchange commission to counterbalance the 2% import tax that was imposed last year but has since been discontinued. Presidential Minister for Technical Affairs Temistocles Montas told reporters that the IMF agreement presupposes that the government will manage to keep the public sector's non-financial deficit to less than –0.7% for 2005 and a projected surplus of 0.7% by 2006. Also included in the deal is a freeze on the payrolls at the current RD$38.5-billion level for 2005, which includes the 30% pay increase over the year. The reduction of gas and electric subsidies will bring in projected savings of US$400 million for electricity and US$206 million for propane. In 2004, the economic team calculated that the government spent US$650 million in electric subsidies for low-income neighborhoods and RD$9.0 billion on propane subsidies for household use. Montas reviewed the problem of the foreign debt for the reporters and said the government is facing US$464 million in late payments, of which US$250 million must be paid in order to finalize the agreement to reschedule debts owed to the Paris Club. In order to do this, the government's negotiators are working with Morgan Stanley to secure a US$200-million loan and are looking for an additional US$70 million from the Dominican banking sector.
CONEP president Elena Viyella de Paliza told reporters yesterday that the business association congratulated the government on the new IMF Stand By Accord as long as it does not imply any new taxes. Viyella said that local businesses and industries must become more competitive in their quest to open new markets, and any additional taxation would hurt their position. She said that CONEP viewed any new taxes as a contradiction of the policy to restore confidence and competitiveness as expressed by President Fernandez. The newly-re-elected business leader told reporters that the first 100 days of the Fernandez administration had managed to reduce public spending, which was a very good sign.
The chief justice at the Central Electoral Board (JCE), Luis Arias, spoke last night of the need to establish spending limits on campaign expenses and to shorten the duration of the political campaigns to more reasonable time frames. As reported in Hoy, Arias said that the complete JCE board of justices had not reached a consensus yet on how to handle the new law on primaries, but that they were studying it seriously. Arias said that the board had requested a disbursement of RD$700 million in order to organize the primaries for the various political parties. The man entrusted with handling all political elections in the Dominican Republic told reporters he felt it would be a good idea if all the political parties and other interest groups got together to consider the feasibility of this new law on primaries. Arias made his comments during a speech at the Ateneo Dominicano sponsored by the Forum for Women in Political Parties.
The Ministry of Tourism concluded its current hearings and proposed that the proposed US$5 tax on airline tickets be postponed until April 2005. One such request came from the National Association of Hotels and Restaurants (ASONAHORES), which asked that the Ministry not distort the tour packages that were already on the market for this year's high season, particularly the Christmas season's boom in travel. According to the Diario Libre, this was the decisive opinion that allowed Minister Felix Jimenez to agree to the postponement of the tax. The government would purportedly have used the money generated by the tax to improve the drainage systems and roads in the major tourist areas on the East and North Coasts. The roadways to be improved are the highway to Cabarete and the boulevard from Punta Cana to Bavaro.
Research conducted by the Barna School of Management shows that the Dominican Republic bears important distinctions from the Central American countries, differences that could be exploited using techniques to create a Dominican Republic trademark. The study shows that most of the people interviewed associated the Central American countries with poverty, violence and crisis, although recognized their ecological value. Only a small minority perceived the Central American nations as tourist destinations. The research showed that the DR differs from the other countries, especially regarding its culture and development. In general, the Caribbean is known for sun, beaches and tourism, but is seldom looked at as a place where to have fun. According to Barna, the study indicates the potential benefits in creating a unique identity in the Caribbean. The Dominican Republic is identified in the study as the country with the most advanced infrastructure, and, in relation to Central America, the Dominican Republic could also emphasize its growing democracy, beaches, customs, economy, hospitality, diversity of leisure activities and climate. Ninety-two percent of the people surveyed felt the DR should create a trademark identified with the country in order to take advantage of its unique qualities.
Representing the South African government, Louis Pienaar visited the DR this week to contribute to the talks between the two nations that seek to identify potential areas of business and investment. South Africa's Ministry of Foreign Relations officer participated in a press conference organized by the Commonwealth Roundtable and met with Dominican government officials and private businesspeople. "South Africa offers many opportunities and we South Africans are the axis for future business with the continent of Africa," he said. The local government plans to open an embassy in South Africa in the future.
Fernando Gonzalez Nicolas of the Commonwealth Roundtable is encouraging that these relations be pursued. He said that stronger relations with South Africa could not only assist trade and investment in the short term, but could also possibly motivate other Commonwealth countries, such as Australia, New Zealand, Malaysia, India and Pakistan, to take a closer look at the DR.
The Roundtable is an initiative that seeks to promote bilateral relations with the 53 Commonwealth countries around the world.
The Chamber of Accounts, the Dominican version of the GAO, wants to include Juan Hubieres, Blas Peralta and Alfredo Pulinario Linares in the warrants given to the Justice Department regarding the Plan Renove scandal. The audit conducted by the Dominican government's accounting office and titled "Authorization Resolution" recommends that subpoenas be issued for nine people, most of whom are members of the various transportation syndicates. The report was given to the National District prosecutor last 7 October. According to El Caribe, Resolution 08-04 states that "the spirit of the decrees that created Plan Renove was wholly broken by the irregular, irrational and unethical distribution (of vehicles) by the executives of said Plan, that instead of benefiting those for whom the Plan was intended... the new vehicles ended up in the hands of private individuals and powerful businesspeople tied to the transportation sector able to insert themselves into the directorate of the Plan," says the resolution. The document recommended subpoenas for Fabio Ruiz, Milciades Amaro (Terrabus), Amadeo Lorenzo Ramierz,, Antonio Marte (stockholder of Tarea Bus and Aetra Bus), Juan Hubieres, Blas Peralta, Freddy William Mendez (Cambita), and Gervacio de la Cruz. The Justice Department, however, excluded four of these names.
Police and law enforcement authorities interrogated various people yesterday regarding the murder of Ramon Dario Cabrera, a former National Police sergeant also known as "Cabrerita." Cabrera was gunned down on Wednesday night on Estrella Sadhala Avenue in Santiago while parking his vehicle at a gas station at Las Colinas. One of the victim's sisters, who asked not to be identified, attributed her brother's slaying to a "betrayal within the police force."
Another family member said that Cabrera received a call on his cell phone at 7:45pm on Tuesday, inviting him to play softball at a park near Las Colinas where the shooting occurred. Witnesses say that as many as 29 bullets were fired at the victim's car and that the gunmen were shooting from a blue Honda Civic, which was later found abandoned in the Tamboril area. Beside the dead man's body was a Smith & Wesson pistol whose numbers had been filed off, three Fall shells, another from a .45 gun and another from a 9mm.
Cabrera had been suspended from the National Police on 8 October and was subsequently dismissed on 29 October. Journalist Esteban Rosario, who produces the TV program "Behind the News," told the Diario Libre that the ex-police agent called him recently to say he had been detained as the authorities tried to connect him to an attempt made on the life of popular journalist and radio show host Euri Cabral on 29 September.
According to Rosario, Cabrerita said that fellow police agents Fernando "La Soga" de los Santos, Antonio "La Cobra" Garcia and Jose Miguel "Lopecito" Lopez were also being investigated in connection with the attempted murder of Cabral. The four agents together formed part of a group within the National Police known as the Death Squad. The NP's Santiago spokesman Damian Arias confirmed that the three other men had also been suspended.
Since his arrival on the police force in the early 90s, Cabrera had converted himself into the agent most feared by local delinquents and was notorious for his participation in alleged armed encounters with criminal elements. Although considered by many to be a true "hatchetman" of the police force, a family member described Cabrera as a humble person and a great sportsman, who was more loved than hated in his neighborhood.
Two hooded gunmen boarded a bus carrying US tourists along the highway that leads to Villa Elisa in Puerto Plata last Tuesday, reports the Listin Diario. The masked men unhanded the travelers of their money, jewelry, cameras and other valuables, making off with thousands of pesos worth of cash and goods.
After forcing the driver to stop the vehicle, the two climbed aboard the bus brandishing Uzi weapons which they pointed at the tourists. According to the owner of El Paraiso Tours, Gunter Manni, once the thieves had robbed all the passengers, they got off the bus and fled into the nearby mountains. The German entrepreneur informed that the tourists were making their way back from Cayo Arena to their hotels aboard a Prieto Tours vehicle when they fell victim to the bandits, whose whereabouts and identities remain unknown. Manni also blamed this type of crime on a lack of safety measures in the Punta Rucia area, especially given the large number of vacationers who wish to visit the remote North Coast scenic attraction. Manni revealed the details of the incident at a reception held by the German embassy Tuesday night at the Iberostar Costa Dora Hotel, a function that was attended by German Ambassador Karl Kohler.
Manni stated that this was the first time in the six years of his company's operation that tourists had been assailed in the region. He demanded that the Ministry of Tourism and the National Police assign Politur agents to the area to avoid any similar incidents.
An abundance of accidents and general chaos was the result of the closure of John F Kennedy Avenue for repairs yesterday on the pedestrian bridge at the intersection with Maximo Gomez. Although the closure was well reported by newspapers and on television, the entire area within a 5-kilometer radius was converted into a parking lot as vehicles crept along, being funneled into one tiny lane. Students and employees were hurling insults at every conceivable government sector in protest of the main thoroughfare's shutdown during a workday. Businesses along the roadway suffered doubly, with clients unable to access their locales and storeowners late to open. Even President Fernandez was inconvenienced by the event, which forced an unusual amount of traffic onto his usual route and made AMET officers covering the route very nervous. One AMET official called the situation a "collapse of the transport system." Eighteen accidents occurred, several of which involved multiple vehicles and five of which were classified as "major." Readers may find a map of the detours at: www.cdn.com.do
Hundreds of women from various sectors of Santo Domingo, as well as from outlying provinces, manifested outside the National Congress building yesterday to demand a more modern penal code. Their demonstration coincided with yesterday's observance of the International Day of Non-Violence Against Women. Many of the demonstrators were residents of the rougher capital city neighborhoods and they voiced slogans to support a penal system that would help combat interfamily violence. Simultaneously at Duarte Park in Santiago, hundreds more women and students marched to protest domestic violence and child abuse on occasion of the date on which, 44 years ago, the three Mirabal sisters and their chauffeur were tragically murdered at the hands of the Trujillo regime.
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