The leaders of the Partido Revolucionario Dominicano, PRD, went to the public hearings yesterday, accompanied by economist Andy Dauhajre. Their purpose: To establish very clearly the party's position regarding the new tax proposals. The PRD will not support any point of the proposal that implies new tax burdens affecting the already beleaguered poor. The delegation was headed by party president Ramon Alburquerque and party secretary general Orlando Jorge Mera. The administration had already warned that fiscal reform is vital in order for the Dominican Republic to re-launch itself along a path of sustainable economic growth. As reported in El Caribe, Alburquerque said that the proposed fiscal reforms would hurt those who paid taxes while helping those who never pay a penny to the government. He said: "In a country with so many taxes that are not collected, to create more taxes will just put more pressure on those that do pay... taking those that pay to the edge of bankruptcy and not doing anything to those that do not pay."
The first day of public hearings showed that nobody, according to the Diario Libre, wanted to bear the weight of the tax reform. The tourist sector want 0% VAT or something no greater than 8%; the bankers do not want to see taxes on savings accounts; and housewives don't want more VAT taxes on things like detergent, disposable diapers, sanitary napkins, toilet paper, toothpaste or soap. Workers in the tourist sector say that the new taxes will lead to more hotel closings and firings, while the political parties, like Unidad del Pueblo and Nueva Alternativa, are asking for reduced government spending and the elimination of corruption within the administration. None of the people that addressed the Finance Commission of the Chamber of Deputies yesterday wanted the legislature to pass the proposal as it was sent to the Congress by the President. A total of 24 entities addressed the Congress and they were unanimous in their rejection of any new taxes or the broadening of the VAT tax base. A representative from the farming sector asked the deputies not to approve a tax reform package that was being promoted by "foreign interests, from countries where agriculture gets US$1.0 billion in subsidies each year."
In an interview with journalist Alfonso Quinonez, Russian Vice Chancellor, Sergei Ivanovich Kisliak described relations between his country and the Dominican Republic as "good and noble" although he did insist on more positive and concrete deals, especially in economic areas. Kisliak said that Russian technology, especially in the field of energy production, could be of special interest to the Dominican Republic. According to Diario Libre, the Russian official was enthusiastic about the possibilities of more cultural exchanges and he cited the performance of the Ministry of Tourism's National Folkloric Dance Troupe as one starting point.
The minister also said that while Russia could provide technology for the electricity sector in the Dominican Republic, the DR could provide agricultural products for the Russian market.
Maximo Vidal Espaillat, the general manager of Citibank in the Dominican Republic, was positive in his outlook for the country. He pointed out that over the last year there has been a sustained recovery and that the exchange rate has been steady. Citibank has assets of over RD$7.1 billion in the Dominican Republic. Speaking with economic reporters from Listin Diario, Vidal Martinez said that the decisions taken by the authorities over the past year have gone in the right direction and Citibank, at least, feels that the government is committed to maintain economic stability. He emphasized the solidity of the exchange rate over the past few months, and the increased reserves in the Central Bank, as well as the positive indicators that have raised confidence levels among investors. Vidal Martinez was especially emphatic in his praise of the new supervisory measures put into place by the Superintendent of Banks, since they tended to produce more transparency in the banking sector.
The president of the ADOZONA, the Association of Dominican Industrial Free Zones, Arturo Peguero, has reported that two companies are investing US$200 million in two separate textile factories, and that this will create as many as 7,000 new jobs. One of the companies is Canadian and the other is from the United States. The factories will produce textiles for the local free zone factories that produce clothing, but have to import the cloth. The new textile factories represent, according to Listin Diario, another step in the vertical integration of local clothing production.
The Vancouver-based Placer Dome mining company has announced its approval of the Pueblo Viejo gold project in the Dominican Republic for development. In a company press release, Placer Dome president Peter Tomsett says that the Pueblo Viejo project demonstrates their company's technical strengths. "We identified the potential of this deposit and have developed it into a long-life, low-cost opportunity for our shareholders. Projects of this size and grade remain rare in the gold business."
The Pueblo Viejo project is expected to produce approximately 12 million ounces of gold at average cash costs of between $200 and $210 per ounce over 20 years. Capital costs for the mine are estimated at approximately $1.0 billion. In the initial six years of the mine's operation, Pueblo Viejo is expected to produce on average 800,000 ounces of gold per year at cash costs between $175 and $185 per ounce. In addition, The company also announced the construction of a 140-megawatt power plant to support the mine. The power plant will be located on the Dominican Republic's south coast and will be integrated into the national power grid. The plant will be designed to produce power from a variety of fuels, including coal and petroleum coke.
Commencement of construction is subject to Placer Dome issuing a project notice to the Dominican government. Project notice is conditional upon the receipt of the three required permits for the mine and power plant and the Dominican authorities fulfilling or addressing all its contractual obligations related to the project.
The first class of Lynx, a special Police squad designed to fight crime in the barrios of Santo Domingo and other major cities, showed off their equipment as they drove down Independence Avenue in Santo Domingo yesterday. The 73-member unit, trained at the School for Citizen Security in Hatillo, San Cristobal, by Panamanian security agents included one woman and 72 men. They are commanded by captain Ulises Salamanca, and their mission is to "combat gangs in urban areas and provide security for VIPs," according to El Caribe. The new experts in motorized patrols will become part of the police force's "Barrio Segura" (Safe Barrio) program that was launched in Capotillo and will extend to another ten Santo Domingo neighborhoods.
The Attorney General has arrested three council members from the PRD party under a judge's warrant that accuses the councilmen of falsifying documents, bigamy, and declaring adults as minors. The suspects from the municipal council of Yaguate, San Cristobal are Tomasina Isabel Araujo and Benito Rodriguez Nolasco, who are accused of bigamy and of sending their respective spouses to live in Europe. The last to be arrested was councilman Santiago Adames, from the municipal council of Guayabal, Azua, who is accused of marrying two women and of declaring before the registrar of his community that several adults were in fact minors, and thereby obtaining official passports for them. Adames was taken before the District Attorney a 6:45 last night. He was handed over to the authorities by PLD party official Andres Veloz Ramirez.
Attorney General Francisco Dominguez Brito told reporters from El Caribe that if necessary he "would fill up a baseball stadium" in order to get to the bottom of this case. This was in obvious response to a report in yesterday's papers that one of the accused had asked the magistrate to halt the process, "because he would need a baseball stadium to accommodate all of those implicated."
Just like syringes and diapers, now, in parts of the Dominican Republic, so are birth certificates. According to Hoy, in the Fourth District of Santo Domingo province, birth certificates are only valid for three months, and new ones cost RD$80 pesos that certainly does not go to the government. At the Registrar's Office in the Fourth District, most business is conducted outdoors on an old wooden table, using a cardboard box as the filing cabinet. Nevertheless, according to the newspaper, the document itself does not say that it is valid for only three months even if it is certified, and there is an RD$80 peso fee for each renewal. In reality, this has turned into a way to raise funds, but the money does not go to the government, but rather, it is administered by the official in charge of the Registry Office, in this case Pedro Pablo Rodriguez. This is the same system in all of the Official Registry Offices in the country. According to Fernando Morillo, a community activist, this "is simply a way to collect money. These are indirect taxes that the people don't know about."
According to the activist, the three-month limit on the certificates' validity guarantees that there will be lines at the Registry Offices. The paper comments that there are at least two good things about the situation. One of them is that the well known "buscones" (those that will get the paperwork done for a fee) are able to provide for their families with the money the get from people who are unable to spend three or four hours waiting in line. Another is the fact that working under the leafy Javilla tree or the blue plastic canvas when it is raining has two good points: one is the fact that the lights don't go out and the other is that it is cooler outside in the shade than inside the crowded building.
The National Copyright Office (ONDA) is having a hard time getting cable service providers to end their "piracy" of satellite signals. The office considers this to be a challenge to its authority. Much of the problem stems from programming of sports events, mainly baseball games, which have been sold in exclusivity to Channel 37 (CDN). According to published announcements, the cable service providers had until midnight last Monday to remove the unauthorized programs from their services. The most affected television stations are Telemicro, Digital 15 and CDN. As most viewers know, ESPN and superstations such as TBS and WGN also broadcast baseball and the signals are received in the Dominican Republic. The copyright office has threatened to close those cable service providers and confiscate their equipment if they fail to cease their illegal practices
The Santo Domingo Municipal Council and the Council for the Administration of Taxis (CART) have agreed to paint all licensed taxis in Santo Domingo yellow. Several companies have already started to paint their fleets. The taxis will also have to display a code number and the company name. A paint job costs RD$15,000 and will be covered by the car owner. According to CART officials, the cost of painting the vehicle can be recouped in one year through the sale of advertising on the back window. Companies such as Mega Taxi, High Class, Ruta Taxi, Excelente Taxi, Aero Taxi and Rueda Taxi have already begun painting their fleets. The paint job also includes a checkered strip along the bottom of the vehicle. The idea behind this move, according to Santiago Caba, is to provide more security for passengers and drivers. There are 70 taxi companies in Santo Domingo and 140 throughout the country. City mayor Roberto Salcedo told Diario Libre that there are 14,000 taxicabs in his city.
With over 250 stallholders and 50,000 square meters of showroom space, ExpoCibao opens its doors for the 18th time today. Between now and Sunday, hundreds of thousands of people will visit the Olympic Sports Complex in La Barranquita and conduct over RD$250 million in business. There are plenty of reasons to visit the exposition, the more than 250 businesses that are represented offer a huge variety of goods and services, charging special prices for the occasion. In the evenings, musical groups such as Negros, Sergio Vargas, La India Canela, Rubby Perez, Yovanny Polanco, Luis Vargas, Kinito Mendez and Hermanos Rosario will be playing for the public. Folklore and crafts exhibits will also be on display. From overseas, products from Cuba, the United States and Puerto Rico will be available. The formal opening ceremony is at 6:00this evening, and it will be transmitted by channels 25, Teleuniverso, Teleunion and Super TV 55. The exhibition is open to the public from 10:00 in the morning to 10:00 at night.
If you plan to visit, here are some handy hints: Wear comfortable shoes and clothing because there is 50,000 square meters of exhibitions to see; Find your parking spot, well marked for visitors, and the earlier you get there the better chance you will have of finding a good one. All bags and backpacks will be checked upon entry into the exhibition area and no weapons of any sort will be allowed. Be sure to take a map of the ExpoCibao with you for orientation, and if you take the kids, make sure that they stick by your side. Security personnel will assist fairgoers with any problems.
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