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Daily News - Tuesday, 13 December 2005

Riots make Leonel cut Haiti visit
Rioters burned tires and threw stones near the Presidential Palace in Port-au-Prince, in protest against President Leonel Fernandez's visit, while he was attending a ceremony with Haitian President Boniface Alexandre aimed at strengthening the friendship ties between the two nations, as reported in Diario Libro. A press release by the Dominican ambassador to Haiti, Jose Serulle Ramia, which was distributed last night by the Presidential Press Office, stated that Fernandez's visit was cut short to "avoid an unpleasant situation". The riots led to the suspension of part of the President's official program, including the delivery of a check by Education Minister Alejandrina German, which was to be used to start building a school. Also suspended was a meeting that Fernandez had planned with leaders of different political parties. The rioters climbed the fence surrounding the palace but were controlled and dispersed by police using water cannons. The official press release states that the security of President Fernandez and his entourage was never compromised. Later, the President traveled to Cancun, Mexico, to attend the Central American Integration System (SICA) summit where an energy agreement with Mexico that will benefit the DR with US$200 million in financing is expected to be reached.
Listin Diario reports that a crowd of rioters, mostly students, burned photographs of President Fernandez in protest at his migratory policies. They were shouting "Fernandez, racist, stop killing Haitians". The riots resulted in at least three injuries. Serrulle's press release attributes the riots to extremist groups that do not want friendship between the Dominican and Haitian peoples.
According to El Caribe, the Haitian government has made assurances that it will identify those responsible for acts of violence against Dominican President Leonel Fernandez during his visit to Port-au-Prince yesterday. The President had to leave Haiti because of the protests. According to a special press release, the Haitian Foreign Ministry condemned the violence that forced the Dominican leader to leave the country without completing his official agenda there. The rioters threw stones at the Dominican President's vehicle, something that is "inexcusable and intolerable", according to the Foreign Ministry. The Haitian government considers that these incidents hinder the normalization of relations between the two countries and expressed its respect towards the protocols that should exist between civilized nations.
Clave Digital reports that according to Presidential Spokesman Rafael Nunez, some of the shots heard during the violence in Haiti's capital yesterday were made by the rioters while others were made by the United Nations Stabilization Mission in Haiti (MINUSTAH) who used their weapons to shoot into the air to make way for the Presidential four-vehicle convoy. Nunez played down the significance of the incident, describing the protesters as a small minority.

EU rep praises fight against corruption
Yesterday, the European Union ambassador to the DR Dino Sinigallia said that the best way for the DR to attract foreign investment is for the government to tackle corruption firmly. As reported in Diario Libre, the diplomat recognized that the Dominican government is working hard in the fight against governmental corruption. Sinigallia said that Europe is interested in defending the competitiveness of small and medium businesses in the DR.

Budget to be analyzed
According to Secretary of the Presidency Danilo Media, the 2006 Budget and Public Expense Law could be analyzed by the National Development Council (CND) no later than 20 December before being sent to Congress by the Executive Branch. As reported in Diario Libre, Medina stated that alternatives are being sought to compensate for the RD$7,000 deficit created by the newly approved tax reform law. President Fernandez is scheduled to preside over the CND on Monday, 19 December at 5:00 pm. Medina pointed out that the new tax legislation puts the government in an "unsustainable" fiscal situation which hinders the structuring of a balanced budget.

JCE to invest US$60 million in publicity
The Central Electoral Board (JCE) is to invest RD$60 million in the promotion of the 2006 congressional and municipal elections. Diario Libre reports that this is RD$6 million more than the amount invested in the 2004 Presidential elections. The publicity campaign will last for 87 days, beginning mid-February and ending on 14 May 2006. A public tender was called for the pre-selection of advertising agencies that will handle the account. The campaign is aimed at providing broad based promotion of the new electronic voting system which will be implemented here for the first time during the coming electoral process.

Forging ahead with the metro
Clave Digital focuses several articles on the construction of the metro. The mega-project, which is under the direction of former minister of public works, engineer Diandino Pena, has been an important part of President Leonel Fernandez's government program from day one. President Fernandez created the post of Office of the Metro, with Pena in charge, at the start of his government. Pena has gone ahead with the metro, despite major opposition that concludes that the actual cost of the metro will go well beyond the announced US$32 million per kilometer, which has now gone up to US$50 million per kilometer quoted by Pena, and that there are other solutions to Santo Domingo's transport problems. But Pena, who is famous for having built overpasses and underpasses in the previous Fernandez administration, is forging ahead, with the support of the government. The proposal is to build the first 14km line linking Villa Mella to Centro de los Heroes.
Pena is also responsible for the construction of the La Isabela-Joaquin Balaguer airport, a fiasco costing over RD$2 billion that was intended to replace Herrera airport. Pena went ahead with the construction, despite technical opinions warning against the chosen site, and despite the fact that the required technical feasibility studies were never carried out. While that airport has not been able to start its operations, Santiago and La Romana private companies have inaugurated airports costing a third of what taxpayers have had to pay for the La Isabela-Joaquin Balaguer airport.
Meanwhile, the construction of the metro continues at full speed ahead. It has to be noted that the main investors in Clave Digital, the Hazoury group, are owners of a major local construction company, which has not benefited from metro subcontracting. Regardless, the points of view featured in the online publication present important red flags forecasting that the metro will cost many times what its promoters would like Dominicans to believe.
http://www.clavedigital.com/Portada/Articulo.asp?Id_Articulo=6523
http://www.clavedigital.com/Portada/Articulo.asp?Id_Articulo=2766
http://www.clavedigital.com/Portada/Articulo.asp?Id_Articulo=6517
http://www.clavedigital.com/Portada/Articulo.asp?Id_Articulo=2766

Silence from island promoters
Last Saturday, television journalist Nuria Piera reported on legal cases pending against Augusto Menendez, one of the promoters of the controversial artificial island that is to be built off the shore of Santo Domingo. According to Piera, Menendez has seven accusations of allegedly having committed fraud against citizens and companies. Meanwhile, the promoters' representatives have not wanted to face the press to discuss this issue. Yesterday, Diario Libre visited Eulogio Santaella's office trying to get feedback about the report, but a secretary said he was not in his office and could not say when he would be back. Santaella could not be reached by telephone either. Rumors to the effect that former INESPRE Director during the Salvador Jorge Blanco (1982-86) administration, Jose Michelen, is one of the investors in the project, could not be confirmed. Michelen was indicted for corruption after serving at INESPRE.

For-ex rate stable
The foreign exchange rate has been stable for the past two weeks due to low demand, according to a report in Listin Diario. Exchange agents expect the rate to drop by several points during the remainder of the year and to pick up again in January 2006. Yesterday, exchange agents were buying the US dollar at RD$32.50 and RD$32.70 and selling it at RD$33.00 and RD$33.10, whereas commercial banks were buying the US currency at RD$32.50 and selling it at RD$33.10. Exchange agents reported that the Euro has also been stable at the same rates as last week. No figures were offered for the Euro exchange rate.

Case against former AG scheduled
The Fifth Court of Instruction has scheduled the first hearing of the case against former Attorney General during Hipolito Mejia's administration, Victor Cespedes Martinez, for 2 January 2006. Cespedes is being accused by District Attorney Jose Manuel Hernandez, of bribery, prevarication, criminal association and fraud against a group of inmates to whom he had promised presidential pardons in exchange for money. Listin Diario reports that the Judge who will hear the case is Natividad Ramona de los Santos. The former AG was indicted after one year of investigations by the DA, which collected documentary and testimonial evidence against him.

Wireless technology popular
During this year, wireless telephone lines grew by 23.1% with the addition of 861,656 new numbers, according to a report in Diario Libre. The Dominican Telecommunications Institute (INDOTEL) indicates that as of 30 September 2005, there were 3,425,719 cellular lines installed in the country. INDOTEL President Jose Rafael Vargas said there were a total of 116,769 internet accounts and 10,632 lines of other data products in the Dominican market on the same date

Condoms, condoms, everywhere...
Half a million condoms aimed at controlling the spread of AIDS will be distributed to the public over the next few days. Diario Libre reports that the distribution will be carried out by the Presidential AIDS Council (COPRESIDA) and is being supported by the United Nations Population Fund (UNFPA), according to Alberto Fiallo, who represents the state institution. Fiallo reported that the target is to distribute 10 million condoms with a total investment of approximately RD$2 million yearly. UNFPA representative Gilka Melendez said that their support covers the acquisition, promotion of use, financing and storage of the condoms.

Dominicans nominated for "Lo Nuestro"
Dominican bachata duo Monchy and Alexandra have been selected for five nominations in the Lo Nuestro Awards, to be presented in Miami next February. According to Listin Diario, another seven Dominicans have also been nominated: Juan Luis Guerra, Los Toros Band, Luny Tunes, Andy Andy, Milly Quezada, Aventura, and Top 4. The nominations were announced yesterday during a public function led by television presenters Ana Maria Canseco and Raul "El Gordo" de Molina. These Latin music awards are divided into six categories: pop, rock, tropical music, Mexican regional, urban, and video.
 
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