| Daily News - Friday, 06 May 2005 |
Visiting representatives of the International Monetary Fund, here to review the implementation of the 28-month stand-by arrangement, told the press that the quantitative goals have been met satisfactorily, but the approval of laws is still pending.
Meanwhile, the IMF's permanent representative in the country, Ousmene Jacques Mandeng stated that the tax reform is mandatory to maintain government tax levels given the expected decline in customs revenues once the free trade agreement with the United States goes into effect. Yesterday, the IMF mission met with the National Council of Business. Mandeng said that the business leaders expressed their wish that tax reform should bring fiscal equity, in order to protect the productive sector's competitiveness.
President Leonel Fernandez will travel to the United States on Monday, 9 May and will meet with President George Bush and his Central American counterparts in an effort to lobby the US Congress on the passing of the DR-CAFTA trade agreement with the United States. Fernandez will begin his tour in New York, where he is scheduled to meet with congressmen, private sector representatives and members of the Dominican community, as reported in Diario Libre. Diario Libre adds that the Presidents of DR-CAFTA signatory countries are going to be lobbying cities where their respective countries have large emigrant populations. Fernandez was allocated New York. His responsibility is to rally support from the authorities and important sectors for the passing of DR-CAFTA. Fernandez then will travel to Washington for a meeting with President Bush and the Central American Presidents. The President is scheduled to return on Friday, 13 May.
Customs revenues were up by 36% in April compared to April 2004. According to the Customs Department, in April 2005 collections totaled RD$4.67 billion, while in April 2004, the figure was RD$3.43 billion, a RD$1.2 billion increase, as reported in Diario Libre.
The Customs Department says that the increase is extraordinary when taking into account the considerable appreciation of the peso. Taxes were calculated at a rate of RD$44 to US$1 in 2004, compared to the lower rate of RD$28 to US$1 at present.
City government officials want building regulations changed so that Santo Domingo neighborhoods can sprout more, taller skyscrapers. Many neighborhood groups have opposed changes in zoning that would enable 15 families to live where previously one family resided.
El Caribe newspaper today carries an interview with seismology expert, Juan Payero de Jesus, director of the Seismology Institute of the UASD. Payero stresses that building companies must incorporate more stringent construction standards compared to those outlined in the 1979 legal code; that there must be permanent supervision of the constructions to prevent the use of inadequate materials, and that emergency escape systems have to be incorporated into all buildings. Payero explained that Santo Domingo is not in one of the most vulnerable earthquake zones, nevertheless, but is at risk of earthquakes of around 6 on the Richter scale - as have occurred in the past. He said that the most vulnerable area of the city is to the north of John F. Kennedy Avenue.
The municipality has commissioned a study of possible zoning changes that would enable tall buildings of nine to 15 floors to be built in neighborhoods like Bella Vista, Urbanizacion Real, Gazcue, Naco, Paraiso and Piantini.
Engineer Pedro Delgado Malagon, contractor for the reconstruction of Avenida Jacobo Majluta said that the works that began in January will be completed in August. The avenue is an important west-east connector that runs north of Santo Domingo.
US District Judge Kimba Wood will hear the drug smuggling case against former army captain Quirino Paulino Castillo today. Quirino Paulino Castillo's lawyer Lawrence Ruggieri has said he will be looking at the technicalities in the prosecution's case. Commenting on key evidence in taped conversations, he said, as reported in El Caribe, "I want to be sure that if those tapes exist, they were made legitimately," he said in reference to supposed evidence that prosecutor David Berardinelli will present. Berardinelli has stated that they have a taped conversation made on 23 September 2003 between Eduardito (Luis Eduardo Rodriguez Cordero) and Paulino Castillo, during which the cocaine shipment for distribution in New York was agreed upon.
In today's hearing, Berardinelli is expected to present photographs, taped conversations and other evidence to support accusations of drug smuggling against Paulino Castillo. In jail in the US pending the Manhattan hearing, in addition to Paulino Castillo are Vladimir Garcia Jimenez and Eduardo Rodriguez Cordero.
Paulino Castillo was arrested on 18 December and linked to a confiscated cargo of 1,387 kilos of cocaine in a bust made on Duarte highway. Paulino was extradited to the US on 19 February. Eduardito Rodriguez and Vladimir Garcia were arrested in Manhattan on 3 March.
According to a report presented to the Senate by the Chamber of Accounts, the governmental accounting office in charge of reviewing governmental use of funds, the state used resources in a discriminatory, disorganized way, incurring policy and budgetary violations and demonstrating scantly trustworthy planning. The report does not differentiate between the first seven and a half months of the year under the Mejia administration and the term after August 16, under the Fernandez administration.
As reported in El Caribe, the office says that 71.2% of the budget was executed by only six institutions, with 20 others receiving 28.8% of the allotments. The Presidency of the Republic spent the most with 15.5% of the total budget, or RD$21.97 billion. The National Treasury spent RD$17.9 billion (mostly on the government payroll) or 12.6%; Ministry of Public Health spending was RD$14.9 billion or 10.5%; Education spent RD$11.7 billion and Interior and Police spent RD$9.67 billion.
The report criticizes what it calls the irregular handling of the budget, and stresses that changes of RD$46.7 billion were made to what was planned in the RD$121 billion budget approved by Congress.
The Chamber of Accounts concludes there has not been control in the handling of the budget. It questions the government for spending 17% more than what was budgeted. "The handling of the budget (2004) shows a behavior that can be considered irregular," said the Chamber in its Analysis of the Government's Budget Execution, sent to the Senate.
The report indicates that the state had RD$121 billion but approved additional resources for a total of RD$167.8 billion, yet only executed RD$141.9 billion.
The Chamber of accounts says that the allotments are being made in a discriminatory manner, are disorganized and uncontrolled.
The report also criticizes the creation of special funds. It says that in 2004 there were 102 funds that created distortions of the state accounting system. The office says that these funds should be the exception, not the rule. The General Fund (Fondo 100) only received 55.9% of the budget, while 41.1% of the budget was being handled through special funds. "These funds are mainly administered with discretion, without being tied to the general policies of the administration," establishes the office.
The report indicates that the government allotted 24.3% of the budget to pay public debt, a total of RD$34.5 billion.
The chamber says that the execution of the budget shows that last year's fiscal revenues were RD$142.1 billion, or 17.4% above what was estimated for the period. Of the total, government indebtedness accounted for 16.5%, 6.3% in excess of what had been estimated. Current revenues represented 83.3% of collections.
As part of efforts to promote the use of less costly, alternative fuel sources, the Fundacion Global Democracia y Desarrollo, the Ministry of Industry and Commerce, the Ministry of Environment and the Consorcio Tecno-Deah are again hosting pilot Max Shauck, who is the director of Baylor University for Air Science, Waco, Texas. He flew to the DR piloting an ethanol-based aviation fuel Azteca bi-motor airplane. Max Shauck is famous for being the first person to cross the Atlantic Ocean in an airplane fueled by ethanol. This is his second visit to promote the use of ethanol as a viable alternative energy source.
Shauck is coming with Volker Mohnen, head of the Quality Assurance Science Activity Center of the Americas, who will be flying over Santo Domingo to monitor the air quality. Findings are expected to help make the case for the need of changing transport to cleaner energy sources, such as ethanol-based fuel. Furthermore, ethanol is derived from sugar cane and sorghum production, which would create jobs in rural areas. Ethanol is used for transport in the US, Sweden, Germany, Canada, Brazil and Japan. Its promoters in the DR hope to introduce it on a nationwide scale in the near future.
The Ministry of Industry and Commerce is backing the introduction of ethanol at a time when imported petroleum costs are at a record high. The government is already studying the idea of introducing ethanol cooking-stoves in order to reduce the country's dependence on propane gas.
Promoters indicate that ethanol use could represent savings of US$550 million in fossil fuel imports in the medium term, creating 200,000 rural jobs, with an increase in crops for ethanol production.
They explain that ethanol production would boost farming, as it is a vertically integrated agribusiness that generates notable collateral benefits such as clean air, employment in rural areas, and savings in hard currency.
From 9-11 May, the Second Workshop on Energy Policies and Environment will take place at Funglode. During the event new proposals will be presented addressing the country's energy needs while also creating jobs. The international scientists are recommending the use of ethanol, primarily for transport and to replace propane gas usage.
As part of the workshop, which is open to the general public, Funglode, Baylor University & the Instituto Dominicano de Desarrollo Integral will sign an inter-institutional agreement to promote the use of ethanol in the DR.
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