President Leonel Fernandez attributed the increase in electricity rates, fuel prices and basic foodstuffs to "international circumstances that are not under our control", as reported in Diario Libre. This came in reaction to demands and criticism by the Bishop of La Vega, Msgr. Antonio Camilo during the Las Mercedes celebrations last Saturday, as reported in yesterday's DR1 news. Fernandez said that the fact that the barrel of crude oil is costing between US$60 and US$70 has caused an increase in inflation. What the country must understand - according to the President - is that this is a world energy crisis that affects the United States and Latin America and all countries that do not produce oil. The President defended the government's fuel saving and rationalization policy. He also stated that the DR has once again become a reliable economic agent at international level. He reiterated that the country has been solving its basic problems and mentioned the reduction in the foreign exchange rate and interest rates, the restructuring of the foreign debt and the possibilities for accessing international markets. Listin Diario reports that the President stated that he does not have "a magic wand" to solve the country's problems overnight and asked the "Almighty" to enlighten the nation so that Dominicans can find a way out of the crisis. He added that everyone must work to mitigate the challenges caused by the energy crisis and recalled that when this administration began it received a country that was devastated in economic and social terms.
President Leonel Fernandez will not be traveling to Colombia to sign an energy agreement with President Alvaro Uribe and to participate in the Sixth Forum of Biarritz as had been announced. Diario Libre reports that the reasons for the change of plan were not disclosed. The Presidential Press Director, Rafael Nunez stated only that the trip was not yet official, as the Ministry of Foreign Relations had not transmitted the agenda to the Presidential Palace. Protocol establishes that the Ministry is responsible for all details concerning the President's agenda on this sort of trip.
President Leonel Fernandez is expected in Punta Cana for the inauguration of Punta Cana's new radar weather system on Saturday 1 October. The radar will make available enhanced weather information and will also improve aviation safety at the Punta Cana International Airport, that is the leading passenger port of entry to the Dominican Republic.
The US$2.1 million radar is being funded in its entirety by the Grupo Punta Cana, via its Corporacion Aeroportuaria del Este, S.A. The installation is being carried out by Radtec Engineering Inc of Broomfield, Colorado and calls for a high performance weather radar interconnected with Punta Cana's International Airport.
The decision to install the radar came as a result of the DR's need for its own weather forecasting facility, because timely predicting hurricanes and other weather conditions is so crucial to the country's tourism development.
Radtec Engineering is installing a new TDR C-band Klystron Doppler Radar System. The radar will be operational in late September and will provide long-range weather coverage for the DR and of weather events approaching from the east. The system has a circular range of 400 kilometers so it can predict weather from Puerto Rico to Haiti in addition to that of the entire Dominican Republic.
The radar is also sensitive enough to detect rain and wind shear, in addition to severe weather conditions. Radtec Engineering explains that these capabilities will improve the safety and efficiency of aviation operations at Punta Cana International Airport, placing the airport in an elite class of modern technology users amongst airports in the Florida and Caribbean region.
Grupo Punta Cana is also training Dominican meteorologists in the use of the data provided by the radar, working closely with Gloria Ceballos, director of the Dominican Weather Department.
PLD Secretary General Reinaldo Pared Perez rejected criticism by the Bishop of La Vega, Msgr. Antonio Camilo, saying the prelate's comments portrayed "ignorance, lack of knowledge, and inconsistency", according to Listin Diario. Pared Perez said that he regretted not having heard similar statements from the Bishop during the previous administration, when consumer prices reached unsustainable levels. "I would have liked to hear Msgr. Camilo during the last administration when the price of eggs was 4 and 5 pesos, when chicken cost 42 pesos, when rice cost over 25 pesos, when the exchange rate was 60 to one" stated Pared Perez. He emphasized that "(Camilo) did not protest in that state of things". He reiterated that the Bishop's statements were an act of ignorance or inconsistency.
Industry and Commerce Minister Francisco Javier Garcia has explained that fuel prices are calculated every week based on information offered by the Dominican Petroleum Refinery (Refidomsa), and denied information given by Listin Diario which stated that fuel was overvalued. The information disclosed by Listin Diario and reported in yesterday's DR1 news summary was based on a scenario prepared by Refidomsa and projected the prices of derivates with crude oil prices of US$66 to US$100 per barrel of crude oil. Garcia said the document was "anonymous" whereas Refidomsa said it was not an "official document". The price index was provided to Listin Diario by a source at Refidomsa upon the newspaper's request, and projected that the barrel of crude oil would reach US$100.
The Dominican government mission to Washington last week has reported that the letter of intent with the International Monetary Fund (IMF) was revised satisfactorily and that it would be studied by the IMF Directorate on 17 October 2005. Diario Libre reports that the Technical Secretary of the Presidency Temistocles Montas provided details of the process after a meeting with Agustin Carsten, General Deputy Manager of the IMF in Washington. Montas also said that Paris Club officials were receptive to the petition for the restructuring of the due dates of the Dominican external public debt corresponding to 2005 and 2006, which would represent a relief in payments of around US$300 million. This request was made during a meeting of the economic team with commercial and bilateral bond holders and investors.
Grupo Leon Jimenes, manufacturers of Presidente beer and Marlboro cigarettes in the Dominican Republic, have presented the Partido Reformista Social Cristiano (PRSC) with its proposal for an integrated reform that recommends strengthening the rule of law, raising tax evasion to criminal status, expanding the VAT (ITBIS) base from 50 to 60% and a 20% decrease in government spending. Grupo Leon Jimenes made the presentation to PRSC congressmen in a recent workshop. Their proposal also calls for migration controls and the restructuring of the power sector. The Grupo Leon Jimenes says that the present system is "non-viable."
The proposal advocates long-term reach of fiscal reform, so that it may also bring about a reduction in public debt, and greater discipline in public spending. Grupo Leon Jimenes is open to applying ITBIS taxes on sugar and cooking oil, while arguing that the basic bread basket should not be taxed any further.
Representing the PRSC were party president Federico Antun Batlle, secretary general Victor Gomez Casanovas, senator Jose Hazim Frappier and several deputies. The National Hotel & Restaurant Association, Foro Social Alternativo, Centro de Estudios Juan Montalvo, free zone associations and labor union Central Nacional de Transportistas Unificados (CNTU) also attended the workshop.
Grupo Leon Jimenes declared that their proposal has a long-term vision and that it focuses on the need for tax reform as part of a national development plan, and not a patch to solve a circumstantial problem.
As from Monday, 3 October 2005, commercial banks will reduce their opening hours as part of a fuel and energy saving plan. According to El Caribe, the new opening hours for all commercial banks offices, as well as drive-in tellers, will be Monday through Friday from 8:00 am to 3:00 pm and Saturday from 9:00 am to 1:00 pm, announced the President of the Association of Commercial Banks (ABA) Jose Manuel Lopez Valdez. Bank branches in malls will operate from 9:00 am to 7:00 pm Monday through Saturday and 9:00 am to 1:00 pm on Sundays. Lopez said that the schedule reduction will save between RD$350 and RD$400 million annually. ATMs, telephone, and online banking services will continue to operate without changes.
According to Listin Diario, the banks are taking on this commitment as a contribution to the National Energy Saving Plan because they understand that at this time the country requires measures of sacrifice of all sectors, until the international prices of oil and its derivates come back down.
Prominent businessman Luis Alvarez Renta goes to court on 17 October 2005 in the Southern District of Florida where he is accused by the Banco Intercontinental (Baninter) liquidation commission of using US financial institutions to transfer illegal funds presumably taken from the bank which collapsed in 2003, as reported in Clave Digital. The case involves Bankinvest, S.A., Interduty Free, Ltd., and Wadeville Investments, which the commission claims are owned by Alvarez Renta and were implicated in the alleged Baninter fraud calculated at US$2 billion according to documented accusations in the Dominican Republic. The case states that the plaintiff has presented proof that Alvarez Renta opened several bank accounts in financial institutions in Miami in the name of Bankinvest, including one in the International Bank of Miami. Another account was opened in BankAtlantic in the name of Interduty, which also had another account in the Hamilton Bank. The evidence in the court indicates that Alvarez Renta borrowed money from Baninter "with the intention of never paying it back". According to the liquidation commission of the collapsed bank, "these accounts were the source from where Alvarez Renta paid several personal expenses and transferred funds to Wadeville, a company that was "organized with the purpose of paying his expenses in the US". The Southern District Court Judge believes that there is sufficient circumstantial evidence and that the plaintiff has presented enough proof that indicates that "illegal activities" were committed in a deliberate or intentional manner.
The Metropolitan Transit Authority (AMET) has decreed that as of next Monday, 'publico' cars will alternate their service inter-daily according to the color of their roof - yellow or green. Diario Libre reports that this measure is being implemented in Santo Domingo and Santiago and is meant to save fuel, help organize the public transit system and reduce the number of cars circulating on the streets. On Monday, only 'publicos' with green tops will be able to circulate. AMET's public relations manager Colonel Damian Enrique Arias assured that there would not be unequal availability of cars as the painting of car tops has been done at 50% for each color. The deadline for 'publico' cars to get their tops painted ends tomorrow, yet an estimated 9,000 have still not been painted. The official said that starting Monday, vehicles that circulate without having been identified will be removed from the streets.
Sunday, 9 October 2005, the Madison Square Garden in New York City will host "Area 809", a concert by Aventura, Monchy and Alexandra, El Jeffrey, Hector Acosta, Krisspy, Tulile, Yoskar Sarante, El Chaval, Querubanda and Aguakate. Listin Diario reports that impresario Vidal Cedeno is in charge of production of this event which will include bachata, merengue and typical music that currently enjoy massive popularity amongst Dominicans and other communities in New York. The event celebrates the anniversary of the "Area 809" radio program produced by Boy From Bonao on La Mega station every Sunday from 10:00 am to 12:00 noon.
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