President Leonel Fernandez and President Chen Shui-bian of Taiwan have issued a joint communique that said that both countries were going to strengthen and support the economic and social development as well as the aspirations of both nations. The communique says that the Dominican Republic will support recognition of Taiwan in different international organizations. Sources also told reporters from Hoy that the two leaders talked about increased Taiwanese involvement in the Santo Domingo Cyber Park. Fernandez said that President Chen led a mature democratic government that had developed continuing economic growth and stability. He promised all of the facilities and cooperation of the Dominican government for any of the Taiwanese investors. Fernandez called the Taiwanese request for recognition "a just desire by Taiwan to participate in the United Nations and the World Health Organization.
In an interview with Hoy newspaper, the President of Taiwan said that both countries would be implementing a free trade agreement no later than 1 January 2007.
The governments of Puerto Rico and the Dominican Republic have agreed to launch a new advertising campaign, designed to garner investors for both countries, each with its distinctive niche, but complementing one another.
According to Eddy Martinez, the director of the Center for Exports and Investment (CEI-RD), the initiative is part of a strategic alliance designed to take advantage of "possible investments from China, Taiwan, Japan, Korea, Europe and the United States." Martinez describes the plan as "adapting to this century", the program of twin factories or complementary facilities that was popular in the 1980s.
According to the CEI director, neither of the two countries has all the infrastructure needed to bring in this type of investment, but that together they can offer important incentives to investors. While Puerto Rico has "a highly skilled labor force capable of running, say, research centers," the Dominican Republic has reduced cost structures and a high tech communications system. Martinez revealed that bi-national delegations would be visiting some international investor meetings to promote the two-for-one offer.
A document prepared by the Dominican Refinery shows that the different types of gasoline are overpriced. As the report shows, if the price of a barrel of oil is US$66.13, the price of gasoline should be RD$106.30. And, if you take as a point of reference the refinery's calculations, the price of a large cylinder of propane cooking gas would be the same price if oil were selling at US$90 a barrel. As reported in Listin Diario, the price of a gallon of premium gasoline is overpriced by RD$23.40 and a gallon of regular gasoline is overpriced by RD$18.60. The difference between the price calculated by the refinery and the prices fixed by the Ministry of Industry and Commerce shows a variation of 20.2% on premium and 17.4% on regular. Normal diesel fuel was calculated to be 13.9% overpriced. The REFIDOMSA document shows that a barrel of oil at US$66.13 would produce regular gasoline at RD$106.30 and not the RD$124.90 fixed by the ministry. The different scenarios contemplated in the report obtained by the newspaper include the prices of gasoline if the barrel of oil were to reach US$100 (RD$160.74 for regular). Each gallon of premium gasoline pays RD$38.44 in state taxes, 27.6% of the total cost.
The Attorney General is going to authorize a group of private companies to recover and return stolen vehicles to their owners or to their insurance companies. This is all part of a plan to reduce robberies and increase recovery efforts. The companies that obtain such government approval are those that sell vehicle anti-theft devices, as well as the computer chips that allow a vehicle to be tracked by satellite. Such devices have been used successfully in the recent past and give the police not only the vehicle but also the chop shop owners, and the thieves themselves. In recent years, police efficiency in the recovery of stolen vehicles has been widely criticized in the media, and the scandal involving dozens of high-ranking police officers is still in the courts. One of the companies sell a product known as Lo Jack, a system developed by MIT. Recovery is said to be 95% to 100% if the robbery is reported within the first few hours. Orange telecom also offers a service developed by a Dominican engineer that uses technology to rapidly track stolen vehicles.
When President Leonel Fernandez attended a meeting of the board of directors of the Dominican Refinery (REFIDOMSA) last week, in Haina Oriental, the agenda called for handing the President a check for RD$200 million as an advance payment on expected earnings in 2005, as reported in Clave Digital online news service.
Things didn't turn out that way, however, with the entire meeting concentrating on just how the Dominican Republic would handle its role in the Petrocaribe accords as well as a reduction in the tension between REFIDOMSA chief Aristides Fernandez Zucco and Venezuelan ambassador Francisco Belisario Landis. Fernandez had disputed the country taking on increased costs with Venezuela handling the transportation of the fuel under the new Petrocaribe agreement, among other matters.
As a result, sources at the refinery told Clave Digital that the money would be handled through normal channels, meaning the Ministry of Finance, and thereby avoiding the ceremonial gesture of handing the money to the President. According to the source, the gesture was supposed to serve as a mediation tactic and show that under the Fernandez Zucco management the refinery, an entity that is under the financial and operational control of the Shell Company, pays its taxes on time and in accordance with its 50% of the shares n REFIDOMSA.
But, symbolism aside, there are some issues that are not visible at first glance. According to highly placed sources inside REFIDOMSA, from the beginning of the Fernandez Zucco administration a comparison of financial statements of the company has been ongoing, using both those in Shell's London offices and those in the REFIDOMSA offices, and, apparently, there are "significant discrepancies." As a result, the source said that "we have made Shell, that is the refinery, pay more than RD$3.2 billion that it owed the government since 1994, between interest and taxes, plus the dividends." One of the arguments used by Shell in order not to pay part of these earnings, RD$227 million, was that "the law on the repatriation of capital does not permit this," according to the source.
Clave Digital says that this money was paid three months ago, but what is not clear is how much interest is owed on the 15-year delay in dividend retention, and whether this was paid or if the payment of this debt only included the nominal amount of RD$227 million.
The "First Financial Report" from Refidomsa, from 2004, provides some indications as to the answers to these questions. The report shows that there were payments of RD$1.012.5 billion for "retained earnings" that corresponded to the period before 1995, and that reached RD$227 million 1990 pesos (a 4.46 differential with regard to the value of a peso in 1990 and a peso in 2004). For the 1996-2003 period, a payment of RD$785.5 million was made.
The adjustments of the numbers regarding the earnings of the refinery also included additional sums for the payment of corporate taxes that for the same time frame reached RD$1.346 billion, and logically, were not included in any fiscal reports.
Regarding the payment of interest, the report does not reveal whether there has been any payment made, and it only cites the payment of the original amounts of income earnings taxes. Sources inside the refinery told Clave Digital that there was a "lace of transparency in the Shell Company", and that "Shell was an autonomous enclave" or a "Postage Stamp- sized State".
The National Human Rights Commission (CNDH) is lobbying for an audit of all of the nation's Civil Registry offices following allegations that these offices are managed as "private businesses." The Commission also offered its unrestricted support of the work being done in the 12th District of the National District by Luis Felipe Rodriguez, a local official. The Human Rights Commission was interviewed on the program "En la misma acera" (On the same side of the street") and was effusive in its praise of Rodriguez who had been providing birth certificates free of charge. The CNDH stated that official statements from the government have said that 30% of the population does not have birth certificates "is shameful and should be met with responsibility by the State, much like what Rodriguez is doing." The human rights group also said that there are two million people living in the Dominican Republic who do not have their documents and are in legal limbo, but politicians have provided these people with invalid voter registration cards, which brings into question the validity of all of the recent elections.
Torrential rains caused renewed flooding in the towns of Licey al Medio and Tamboril over the weekend. However, residents had taken precautions and there were no reported injuries. The rains also forced the closure of the Luperon Tourist Highway, as new landslides ate away at the roadbed. In Tamboril, the Licey River flooded dozens of houses, but there were no injuries reported. The barrios of La Cacata, Calientisimo, Canca la Piedra and Boca de Licey were worst affected. Civil Defense teams were at hand to assist those areas and to help the people who had to leave their homes. Tamboril mayor Francisco Alvarez told El Caribe reporters that the floodwaters covered almost all of the previously flooded areas, but thanks to the new precautions and the fact that the 500 houses that had been destroyed were no longer in the flood plain, no injuries or loss of life were reported and physical damage was much reduced.
Along the Luperon Highway, new landslides near the entrance to the tiny village of Pedro Garcia cut traffic between Santiago and the north shore on this panoramic alternate route. At the time of the incident, Public Works was trying to fix the highway that had been damaged by previous rains. All their work was for naught as the roadway crumbled under the onslaught of the rains.
The bishop of La Vega tore into the government's economic policy during his homily last Saturday during the celebrations surrounding the feast of Our Lady of Mercy (Nuestra Senora de las Mercedes). The Catholic prelate attacked the government's lack of investment in education and health services as well as the corruption within its bureaucracy. Taking the PLD party's election slogan, the bishop turned it around and told the faithful that "we're going backwards!" Decrying the ailing health system, the bishop said that the only thing for the poor to do was to stay at home and wait for death to come. Bishop Antonio Camilo was speaking to a congregation that included former President Hipolito Mejia, and he also called for the reconstruction of the highway that leads from Moca to La Vega.
Apostolic Nuncio Timothy Broglio, taking part in celebrations for Our Lady of Mercedes, called on the international community not to leave the Dominican Republic alone to suffer the consequences of Haiti's internal conflicts. The Vatican representative said that "the world needs to examine their conscience check and place the Haitian crisis in its right dimensions". He asked why the necessary assistance has not been forthcoming for the country's most pressing needs and instead, "they have left the DR to bear almost all Haiti's problems on its shoulders."
He urged the international community "to come forth with the necessary resources to concretely and effectively help our Haitian brothers," as reported in El Caribe. He said that this international community participation does not exclude the DR from continuing participation in programs to improve the situation in Haiti, "but as it is fit to do so."
The II Regional Book Fair ended last night with President Fernandez and the First Lady in attendance. The closing ceremony took place in the "Restauracion" salon of the Gran Teatro del Cibao.
Minister of Culture Jose Rafael Laantigua welcomed the audience, and said that the months of work that went into the preparation of the fair was well worth the effort. He said that "it couldn't have been any better." During the ceremony, five provinces were awarded handsome sums of money for their outstanding participation in the fair. These were Monsignor Nouel (Bonao), in first place, followed by Dajabon, Monte Cristi, Duarte (San Francisco de Macoris) and La Vega. The Armed Forces Ministry won a special commendation for the restoration work done on the San Luis Fort. Architect Ricardo Rodriguez won a special award for his work on the Professor Juan Bosch pavilion. Chef Raudy Torres won the prize for the best food at the fair. At the end of the ceremony, Patricia Peryra sang Juan Lockward's song, "Santiago", and the choral group, accompanied by the Folkloric Dance troupe recited the poem "I'm from the Cibao". Over one hundred thousand people visited the fair over the last week.
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