Cooking oil, coffee, sugar, detergents, pasta, sanitary towels and disposable diapers are among a group of products to which VAT (ITBIS) will not be applied, as agreed between the government's economic team in charge of negotiating the tax reform and the Chamber of Deputies Finance Commission. Also excluded are supplies used by agribusiness in the breeding of poultry and pigs, as reported by Diario Libre. The agreement was reached on Tuesday afternoon during a meeting at the Tax Department, according to the Finance Commission president Marino Collante. Still to be determined is how much less the government will collect after these exclusions.
Presidency Minister Danilo Medina has announced that the state will end up paying out approximately RD$20 billion in electric and LPG subsidies by the end of the year. For electricity the total will be around US$550 million whereas the International Monetary Fund (IMF) had placed a ceiling of US$300 million as a condition. Listin Diario reports that the RD$20 billion in subsidies plus the cost of public debt represented half of the national budget. Medina was speaking during a public function at the Dominican Corporation of State-owned Electric Companies (CDEEE) for the opening of the tender process for two coal generators, which are to be installed in the municipalities of Pepillo Salcedo and Hatillo.
The president of the Dominican Petroleum Refinery, Aristides Fernandez Zucco denied the veracity of statements of the general manager of the Refinery, Alfredo Nara that he had retained a RD$126 million check, as reported in El Caribe and Listin Diario. He denied that the Refinery has cash flow problems. Nara had told reporters earlier this week that the refinery is in a state of non-liquidity due to an accumulated debt of RD$500 million owed by the Dominican government for propane gas. Fernandez said the check was received on 3 October. When journalists asked Fernandez the reason for Nara's complaint, he said it was due to his request that the relations between Shell and the Dominican government be reviewed, as reported in El Caribe.
Participacion Ciudadana Civic Movement (PC) has published a "National Inventory of Frozen Public Constructions 1960-2004" which indicates that some 1,132 public works have not been completed in the DR. The inventory determined that the value of these unfinished works totals approximately RD$24.836 billion, and that another RD$12.666 billion would be required to complete them. Most of the unfinished work corresponds to the education sector (296), health (33), housing projects (35), roads (416) and tap water or aqueduct systems (77). PC Executive Director Javier Cabreja stated that unfinished works are one of the main causes of dilapidation of state resources.
In today's 'Orlando dice' column, Listin Diario's Orlando Gil comments on all the crimes that are committed in the name of governance, killing hopes and drowning expectations. He comments that it is not true that the fact that the opposition has the majority in Congress is what has impeded the government from proceeding with the corruption cases. He says that there has been collaboration, more so by the presidents of both congressional houses, than through a directive from the PRD party. He mentions that despite the Plan Renove sentences, the batting average against corruption is very low. He points out that what is of greatest concern is that the philosophy of governance above all sinks in as part of a political pragmatism that knows no frontiers. He says that the impression prevails that it is not a tactical decision, while awaiting better conditions, but a generous way of exercising power.
Neither, he writes, is there much illusion that the correlation between forces in Congress may change, because the population is indifferent to the official policies and there is a fatigue that could affect the electoral results. He also points out that the press is highlighting the abandoning of construction of works in the interior, while the government is championing the artificial island and the Villa Mella train. He mentions President Fernandez' recent meeting with Barcelona businessmen and Ricardo Bofill, promoter of the island, and the coordinator Eduardo Selman, another architect. He goes on to remind readers that Diandino Pena has also announced the start of works on the train. "People will conclude that there is no money for small things, but there is lots for the big projects, and in those conditions voters will not be motivated to vote to give more power to those who are not using what power they have with a better sense of opportunity. Time will tell, but that is what is apparent at the moment," he speculates.
A man who had been deported from the US after serving two and a half years and another listed by the police with three counts of robbery with violence, assault and forgery of documents, were among the false council members who obtained official passports. Diario Libre reports how Isidro Diaz Vasquez and his wife Santa Fidelia Martinez were able to get official passports after Dominican Municipal League Technical Undersecretary, Amaury Guzman, certified he was a PRSC council member in the town of Cevicos, "where he obtained 950 votes in the 2002 election". This information appears on a memorandum signed on 19 March 2005. Vasquez was able to travel to Varadero, Cuba, on 11 July 2005, according to the Migration Department. The other false council member listed by the police is Wilson Antonio Disla, from the PRD, who was reported as having obtained 1,230 votes in Altamira.
Defense lawyers for councilman Amaury Pereyra, his brother Milton and city government officers Saturnino Sanchez and Andres Diaz, arrested in the case of forgery of government officer passports in order to gain visas for travel abroad, have called on state prosecutors to question the secretary general of the Dominican Municipal League, Amable Aristy Castro, as reported in Diario Libre. Councillor Juan Roberto Gonzalez urged more in depth investigations into the places where the mafia came from, with the objective that the ringleaders, whom he said are not the poor city councilmen who are currently in jail at La Victoria, fall. He said that these were the ones who earned hundreds of millions in the business generated by the sale of city government passports. "Amable Aristy Castro cannot feign ignorance, a person who is at the head of an institution where such a colossal fraud occurred for three years, the fraud was orchestrated, and he says he knows nothing," said the lawyer. He said that the Ministry of Foreign Relations also needs to be investigated. "The people who have the greater responsibility in this colossal fraud are not here," he said. Amable Aristy Castro is considered to be one of the most powerful and politically influential persons in the east of the country.
The issuing of city government passports started in the Dominican Municipal League that requested that the Ministry of Foreign Relations issue the passports for the alleged city council officers. The third link occurred at the Department of Migration, when inspectors were apparently being told to not question doubtful passenger documents.
Sociologist Ramon Tejada Holguin writes in today's El Caribe, questioning recent statements by Secretary of the Presidency Danilo Medina in which he claims that the government has had to set priorities and choose between prosecuting corruption or governing, and that the President has chosen the road of governance. Tejada says that governance should not be not a synonym for impunity. "Impunity is what the government is allowing with its misguided policy of not prosecuting corruption that occurred in the past," he writes He is critical of the government corruption-fighting department, Depreco, for preparing cases that are deficient and destined to be tossed out in court.
He also speculates that the message this sends is for the opposition to not prosecute corruption in the present government, either. He says that this has become a terrible spiral, where all who have a little bit of power will demand the right to remain untouchable in the name of misunderstood governance.
He protests about the fact that he continues to sit on a government committee whose aim is to promote ethics and design programs to fight corruption. "If corruption is not to be prosecuted, what is the point in this committee?" he asks.
He points out that the PRD has weakened, and that the prosecution of corruption bears political fruit, so it would make political sense to prosecute past corruption. "Maybe the problem is that to effectively fight past corruption will mean that they will have to fight the present corruption, and that would be a problem for the PLD," he concludes.
Vigny Bellerive, a priest of Haitian origin, will be indicted by the Central Electoral Board (JCE) for having registered 87 Haitians as Dominican citizens in the Civil Registry of Mao, Valverde Province. A JCE press release indicated that a commission composed of Judges Roberto Rosario Marquez, Ramon Hernandez Dominguez and Jose Luis Tavarez Tavarez, recommended that Bellerive be indicted after studying a report on the case by the JCE Security Department. Bellerive would use the ID (cedula) of a woman called Dominga Diaz Hernandez to register his "children". The fraud was detected when an unusual number of people of Haitian origin - all of them from Mao, Valverde - started applying for cedulas in Santiago. It was later discovered that all had been registered by Father Bellerive. The birth certificates were issued by the Civil Registry in Mao between 1987 and 1989.
El Caribe reports that the number of Haitians declared by Bellerive was 90. Also, a source at the JCE explained to El Caribe that twenty years ago, according to the law, civil registries did not require the physical presence of the parents to declare children, something that could have made it easier for the priest to do what he did.
Msgr. Agripino Nunez Collado has received the 2005 Democracy Award, together with Senator Richard Lugar, for his contribution to the DR's sociopolitical stability. El Caribe reports that the award was issued by the US International Foundation of Electoral Systems (IFES), which explained Nunez Collado's selection for "his merits throughout three decades of contributions for the preservation of peace, upkeep of democracy, and his contribution towards Dominican education through the Pontificia Universidad Catolica Madre y Maestra". Dominican ambassador to the US, Flavio Dario Espinal, spoke in representation of the government and acknowledged Nunez Collado's contribution to the advancement of local and regional democracy. Former US ambassador to the DR, Charles Manatt, described Nunez Collado's capacity for arbitration during difficult moments in the country's history. IFES President Richard Soudriette said that the public function was "an historic Dominican-American evening" as there were important personalities from both countries present.
The World Travel and Tourism Council's (WTTC) report made public by National Hotel and Restaurant Association (Asonahores) Vice President Simon Suarez two weeks ago contradicts Central Bank estimates that suggest good results for the tourism sector for the first eight months of 2005, with an 8.37% increase of foreign visitors. The WTTC presents a somber panorama for the sector in 2005, which could be jeopardized by foreign competitors if the causes are not eliminated. The WTTC reports on a 12.1% drop in employment in Dominican tourism and a 17.0% drop of the GDP directly generated by the sector, which, according to Suarez, contrasts with the performance of the rest of the Caribbean with good forecasts for 2005 and the next ten years. The government has argued that Asonahores is exaggerating the sector's crisis situation in order to pressure for tax incentives - including a different 8% VAT for tourists, the elimination of the selective consumer tax for hotels and the keeping of the incentive law, among other points. In a recent press release, the Ministry of Tourism says that the WTTC's forecast for 2005 is based on economic data corresponding to the first semester of 2004, when the situation was not positive.
Suarez, who is also vice president of Coral by Hilton hotels, was interviewed by Clave Digital. He spoke of funds invested in promoting the DR abroad which have only amounted to 13 or 16 million US dollars whereas the income is around 60 million. He said that the promotion campaign is perking up, having been completed in Europe, and he understands that there will be a meeting at the end of October to discuss the campaign in the US. He believes that inconsistencies make the promotion of the DR inefficient.
Asonahores has not made formal technical observations about the Central Bank's statistics but they are surprised with the results, said Suarez. He downplayed the government spokesman's comments about Asonahores' exaggeration of the crisis by saying that the state's requirements in the proposed tax reform to compensate for the DR-CAFTA could also be considered exaggerated. He believes those arguments should not be used in this issue. Referring to the foreign exchange rate he believes that the market is moving towards a level of balance, which he understands should be around RD$35 to RD$37 per US$1.
Last June, the Army air cavalry moved to the Joaquin Balaguer International Airport at La Isabela (El Higuero) and a deadline was given to airline operators for them to move to their new spaces, but the hangars have not been prepared. According to Listin Diario, another major issue affecting the new airport is that the managers of the Duquesa waste dump have not complied with agreements signed with the Ministry of Public Works, the National District and Santo Domingo Province City Halls, as well as other authorities. This is prompting the Airport Department to take drastic and urgent measures for the situation to be fixed, according to Director Andres Vanderhorst. Herons attracted by the dump are no longer a problem for air operations, stated Vanderhorst. However, a radio station that owns an antenna in the area is demanding more land than the state is offering for it to relocate near Merca Santo Domingo on Duarte Highway. Vanderhorst explains that issues are complex as there are many interests involved. The airport may not be as feasible to operate but it has cost the country more than RD$2 billion to build. The new terminal was supposed to be in operation five years ago, in April 2000. The airport was started during the first Fernandez administration, at a time when the government was privatizing most of the nation's airports.
"Publico" drivers are shortening their routes, forcing passengers to pay twice to cover one route assigned by the transport unions in Santo Domingo, according to Listin Diario. Metropolitan Transport Authority (AMET) colonel Damian Arias Matos said that he was aware of the situation but that there was nothing AMET could do except appeal to the drivers' consciences for them to stop the practice, which is affecting public transport users. The practice has become more frequent after the inter-daily circulation of "publicos" came into effect and is most crucial during peak hours.
The Navy, the Air Force and rescue organizations have called off the search for a group of 56 Dominicans who were lost at sea after trying to reach Puerto Rico by boat last week (see DR1 Daily News Tuesday 18 October 2005). However, according to Jesus Jimenez, one of the survivors of the ordeal who was able to communicate with relatives, 17 of the missing persons are in Turkilan, an island off the North shore of Haiti, near Key West. According to El Caribe, the group is reported to have been rescued by a fisherman, and taken to the island. Last night, Jose Luis Cosme and Jesus Vasquez, Governor and Senator of Maria Trinidad Sanchez Province were trying to confirm the story. According to the report the survivors are all men. The group was composed of 41 men and 15 women. Minerva Santos, Civil Defense Director in Nagua said that although the search was being called off, they would be on the alert for any new information.
Different parts of the National District and Santo Domingo Province are receiving tap water as seldom as once a week, forcing residents to purchase supplies for their household needs, according to reports in Listin Diario. Santo Domingo Aqueduct and Sewage Corporation (CAASD) Director Richard Martinez attributed the shortages to the failure in service of 26 well fields out of 37 the institution has in the eastern part of the city. This is due to the collapse of electrical substations after the heavy rain that affected the country in the past days. Martinez promised that the water distribution calendar would become normal again within 48 hours. Worst affected have been Las Americas, Villa Duarte, Maquiteria, Ensanche Ozama, and Los Mina in eastern Santo Domingo, as well as Jardines del Norte, Los Rios, Las Caobas and Las Palmas de Herrera in other parts of the city. Martinez said that CAASD has most well fields in eastern Santo Domingo which depend on power supplies. Meanwhile, parts of Bani have not had tap water for 14 days, after the rains during the past two weeks raised the levels of Bani River, affecting the local aqueduct intake and supply lines. National Tap Water Institute (INAPA) administrator Milagros de Duran and operations manager Nelson Genao explained that the aqueduct intake at La Gina was dragged by the waters which also affected the exit valve of the treatment plant and storage center. The intake has been repaired but service will not be re-established until the valve is fixed, and this process has been hindered by the institution's lack of equipment and high flow of water that still exists in the river. In San Jose de Ocoa, INAPA attributes the tap water shortage to the failure of the pumping system, problems with electric energy supply, and damages to the aqueduct's main line caused by the recent rains. Over 40% of Santo Domingo's tap water supply is provided by the Jiguey Dam in the Ocoa area.
Twenty-four countries from the Americas and Europe are represented at the "Interexpo-05" international philately exhibition that is being held at the V Centenario Hotel as part of the commemorative celebration of the 50th anniversary of the Dominican Philately Society. Listin Diario reports that the institution's president, Manuel Papaterra highlighted the exhibition of 750 frames and 150,000 postcards, and the participation of the Brazilian delegation with the "Bulls Eye" collection that includes the first postage stamp in the Americas, printed in 1843 and valued at several million US dollars. According to the President of the Mexican Philately Federation, Alejandro Grossmann Epper, this is the most important international sample in the past 15 years. Organizing Committee President Alejandro Vigneiro stated that the best entries will be selected by a jury panel composed by renowned international philatelists Fernando Aranaz del Rio, Osvaldo Mario Giordano, Eugenio Von Beack Parada, Jose Ignacio Abrey Perez, Nasry Bendeck, Luis Lopez Lopez, Guillermo Gilbert Granero, and James P. Masry Mazepa. Dominican Philately Official Commission member Werner Henning thanked the Dominican Postal Institute and the American Philatelic Society for their contributions to this event.
Aguilas, Estrellas and Escogido were the winning teams on the opening night of the local baseball season yesterday. Escogido beat Licey 6-5 in Santo Domingo. Winning pitcher was Jairo Garcia and Willis Robert was the loser. In Santiago, Aguilas beat Gigantes 3-2, Arnaldo Munoz won against Ramon Antonio Pena. In La Romana, Estrellas beat Azucareros 7-0. In this game the winning pitcher was Anastacio Martinez and the loser, Amaury Telemaco. For more information on upcoming baseball games and other events, see http://www.dr1.com/calendar
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