Wishing everyone happy holidays and the best in 2006, DR1 Daily News reminds its readers that we will be taking our customary break for the New Year holidays. There will be no news updates on Thursday, 29 December through Monday, 2 January. A Tuesday, 3 January 2006 edition will summarize news events over those days. DR1 Forums, nevertheless, will continue open to postings 24/7. Any breaking news can be posted there at http://www.dr1.com/forums/
Check into the DR1 calendar page for holiday events. See http://www.dr1.com/calendar/
For more information on upcoming holidays, see http://dr1.com/travel/prepare/holidays.shtml
The announcement made by President Leonel Fernandez last Monday that his administration would create 500,000 jobs has been re-worded by the President's Press Secretary. According to today's papers, the presidential spokesperson told reporters that what the President really meant was that during his administration the nation would see the creation of 500,000 new jobs. The correction was made after the nation's newspapers trumpeted the news that unemployment would be reduced during 2006 with the creation of these 500,000 new jobs. According to the spokesperson "the President reassured the country that during 2006 he would begin a program to encourage job creation that would develop over the rest of this Presidential period, amounting to nearly 500,000 new jobs." What Fernandez is apparently looking to accomplish is to achieve a level of unemployment similar to that of the year 2000, when it was just 13.9%. Fernandez argued that if in his previous administration his team was successful in creating 650,000 jobs, it is possible that, starting in the year that has been officially declared the "Year of Job Development", his team can create half a million new jobs.
While mentioning the spin being put on the Presidential statements, Diario Libre writes about just where the new jobs can be found, while expressing doubt about the 9% growth rate predicted by the President. New jobs are to be found in the construction industry, and in the push given by small and medium businesses, according to the paper. Consultant Henry Hebrard of the National Center for Tax Research told Diario Libre that new jobs will have to come from government sponsored construction projects, from exports spurred by the DR-CAFTA agreement and from tourism, where the DR enjoys a leadership position in the region.
President Leonel Fernandez decided to heed the call by Cardinal Nicolas de Jesus Lopez Rodriguez to halt political campaigning during the holiday festivities. As a result he left thousands waiting in Monte Cristi, where four helicopters and 33 vehicles were awaiting his arrival. Among the vehicles was the black SUV with the 0-1 license plate. Also left waiting for the President were many candidates for office in the up-coming elections, who were waiting for a word with the chief executive as he toured Monte Cristi, Dajabon, Santiago Rodriguez and Mao. While Henry Castellanos, a candidate from Valverde, told El Caribe reporters that "everything is all set and we will continue to give out the food parcels in an organized fashion", Diario Libre reported that the President's absence was what led to the chaos surrounding the food parcels distribution, together with the fact that there were only 8,000 food boxes for a population of nearly 117,000. According to the report, not many people left Monte Cristi very happy.
Nine hundred and sixty non-governmental organizations (NGOs) were excluded from the 2006 budget, and this has turned the legislative debates into heated arguments. The reason is quite simple: Many of the NGOs were being 'sponsored' by legislators who apparently received important benefits from the organizations. According to Listin Diario, when the budget cuts for NGOs were revealed during the debates in Congress, there was uproar amongst opposition PRD and PRSC members who felt that they had been subject to discrimination. However, the paper reports that even some PLD deputies felt deceived by the move to eliminate these juicy subsidies. It became apparent that some NGOs are headed by individuals who have court cases pending, but no names were released to the press. Late last night the lower house voted to create a special commission to go over the budget proposal for 2006.
Among the complaints voiced by deputies Juan Roque Jerez , Jorge Frias and Levin Guerrero was the fact that the NGO managed by Felix Bautista, who happens to be the head of the office that audits all public works contracts, and the Juan Bosch Foundation both received millions for their "good works." PLD legislator Isabel Bonilla was crystal clear in her declaration when she said that "it is not fair that the administration's legislators, that are here to defend government projects, receive fewer resources than the institutions that are sponsored by government officials, just because they work in the offices where the budget is allocated or that opposition legislators are afraid to openly express their feelings on the budget for fear that their own NGOs will be cut out of the budget."
Diario Libre Editor in Chief Adriano Miguel Tejada dedicates his A.M. column to the arguments surrounding the NGOs. He says that by definition the legislators should have nothing to do with the NGOs, since they are supposed to be "non-governmental", and added that the NGOs should not even be in the national budget precisely because they are supposed to be "non-governmental." However, given the difficult tax problems that surround private sector philanthropic activities, the Dominican government has no choice but to step in and assist many of the worthy causes.
Tejada cites Rehabilitation and Cancer foundations as two especially worthy causes that have done outstanding work. Tejada ends his column by asking the legislators, so jealous of cutting fat from the budget, to send these funds to the corresponding ministry. This, he points out, would be to work for the public good.
To sweeten Congressional approval of the 2006 budget, the Presidency is including a 50.7% increase in the budget assigned to the legislators themselves. The increases will go towards per diems, attire, fuel, insurance, and advertising, administrative expenditures and other approved expenses. Clave Digital points out that percentage-wise, the increase is much higher than the amount approved for the Education and Public Health ministries. The budget allocated to the senators and deputies reaches RD$3.68 billion, or RD$1.24 billion higher than in 2005. The legislators will receive more money than the ministries of Environment, Sports, Foreign Relations, Higher Education, Labor, Culture, and many others. Clave Digital points out that the funds will come from the general fund, which means that legislators' spending is funded directly by taxpayer money.
Presidential Minister Danilo Medina has told reporters that the government would continue operating on the 2005 budget until the Congress approves the law required for the 2006 budget to become effective. He said that the Congress does not have enough time to look at the legislation and get it passed between now and 31 December. He also said that the use of the 2005 budget would cause the government some minor problems, but he felt that these would go away when the new budget was finally passed in January. Medina pointed out that this is not the first time that the Congress had failed to pass the necessary legislation. Yesterday, the lower house sent the bill to a special commission for study. The 2006 budget was set at RD$228.550 billion by the Executive Branch.
According to the IMF the Dominican government has two options to compensate for the resources that it will lose when it abolishes the exchange commission tax on dollars used to import anything into the Dominican Republic: one is to continue collecting the tax all year long, and the second is to eliminate the subsidies on propane and electricity.
A 'source' close to the government has told El Caribe that the IMF thinks that the government has to take a more "drastic" approach to the question of subsidies and that it should seriously think about ending them altogether. The source said that with the postponement of DR-CAFTA, the government has six months to keep up the exchange commission tax and obtain the finances it needs to balance out its income, but the source also questions what will happen when the time comes to enter the treaty. The source added that the government will have to find some way to get the money, and it is looking at cutting out the subsidies as one way to do it. While the IMF has not formally asked the Dominican Republic to eliminate the subsidies, it is obvious to the source that this will be a major theme for discussion this coming year. One of the goals set out by the IMF Stand-by agreement is the reduction of the electricity sector deficit, which is expected to reach US$800 million or RD$27.2 billion in 2006. However, this past Monday, CDEEE administrator Radhames Segura told reporters that the government had no plans to remove the subsidy. He pointed out that the subsidy was, indeed, a very important issue for the government, especially in view of the fact that what was originally set as a US$350 million subsidy, turned into a UD$502.3 million subsidy.
The government watchdog group, Citizen Participation (Participacion Ciudadana) has released its report card for 2005. It called the increase in "burdensome" public officials, the lack of results in the fight against government corruption and the tightening in public expenditures the most serious weaknesses of the current administration. Their report, "The 2005 Balance Sheet and Perspectives for 2006" shows other deficiencies and jobs pending solutions, and among these are the large number of case dismissals in courts around the country, and the instability of the police as an institution. PC also criticizes the deaths of citizens at the hands of the police during supposed shootouts. Finally, PC points out that the citizenry also feels that the guilty are immune to judicial punishment. PC is also highly skeptical about the government's supposed austerity plans, especially in the light of the increased government payroll. The report card points to the numerous public works projects that need to be completed, and the lack of transparency regarding government bids. On the more positive side of the report card, PC praises the government for reining in the inflation rate and stabilizing the economy.
CONEP - the National Council of Private Business - has called on the government to grant autonomous status to both the Customs Office (DGA) and the Internal Revenue office (DGII). The idea is to equip these important parts of the financial system with the needed changes required by DR-CAFTA and the IMF Stand-by accords. The CONEP document requesting these changes has been sent to Congress for consideration. As part of their arguments for the new status, CONEP pointed out that the state will become less dependent on income from tariffs and custom duties, and therefore the most important necessity for these offices is to create the proper technical processes needed to identify the country of origin and facilitate commerce. Both Alfredo Pacheco, the president of the Chamber of Deputies and Andres Bautista, the head of the Senate received bound copies of the proposal. The CONEP document points out that the autonomy of the two offices (the DGA and the DGII) is contemplated under the law that created the Special Tax Return Fund which is responsible for returning excess tax payments as well as VAT taxes that have to be repaid.
The major challenge for pension fund administrators is to approve and apply new financial tools aimed at de-concentrating investments in short term commercial bank paper and thereby reducing risks. According to sources within the industry, at least one such tool has been identified and that is mortgage paper. These are long term, very liquid and standard throughout the market. The Superintendent of Pensions carried out a study that identified a projected housing demand of between 600,000 and 800,000 units. A study by the National Fund for Low Cost Housing (FONDOVIP) showed a demand for low cost housing at 172,455 units in 2002. Potential demand is defined by the number of families in need of housing who have the financial resources to obtain it.
Expatriate Dominicans and tourists in town for the New Year holidays will enjoy the increase in the local purchasing power of the US dollar or the euro. As of Wednesday, the peso's worth declined, and each dollar was reaping RD$35. This is the highest in a 12-month period. For continuous updates on actual exchange transactions, go to the last post on the Exchange Thread of DR1 at http://dr1.com/forums/showthread.php?t=26541
A major headache for holiday shoppers is that businesses are wary in receiving RD$2,000 bills. The problem is that counterfeit bills have been circulating. But this is compounded by the fact that the Central Bank has two distinct versions of RD$2,000 in circulation, adding to the confusion.
As reported in last Wednesday's DR1 News, there continue to be counterfeit RD$2,000 bills in circulation, leading to increasing problems at retail level over the holiday weekend. Today's Listin Diario points out that many small retail establishments are no longer accepting the bills as legal tender. In others, customers are obliged to sign documents that include the bill's serial number and the client's personal identification card ("cedula") number. The paper prints a photograph of a small eatery with printed signs calling attention to the fact that the establishment will not accept RD$2,000 bills.
Retailers are using all available tactics to detect fake bills, like using a black light, markers, holding the bill up to a light to see the watermark, rubbing the bill on the wall to see if it tatters, scratching the bill and special lamps. The usual excuse given by people trying to pass the fake currency is that they "got it from the bank," but most retailers will have nothing to do with any currency that is even vaguely suspicious.
Last 14 December the Central Bank warned the general public to be on the look out for the counterfeit bills and to take the usual precautions. Just yesterday, the head of the National Federation of Retailers (FENACODEP), Jose Matos and the head of the National Merchants Union (UNACO), Pablo Adon, told reporters that they were worried about the authorities' weak response to control the flow of counterfeit money. According to the newspaper, the counterfeit money is of a very high quality, making it difficult to tell apart from the real thing.
Business concerns over accepting the RD$2,000 bills is worsened by the fact that the Central Bank recently issued a separate version of RD$2,000. Some businesses noting the difference, are not accepting the newer bills, believing these to be fakes.
The Central Bank was forced to make a statement regarding the existence of two versions of the legal tender. Beginning in 1999 both versions of the RD$2,000 peso note are in circulation, and if there are any doubts as to the legitimacy of any given note, the Central Bank recommends going into a commercial bank and asking a teller to check the bill.
Former civil registrar Luis Felipe Rodriguez who became well known when he provided birth certificates free of charge, has filed a formal complaint against the Central Electoral Board (JCE) magistrates. He is accusing them of irregular practices, including embezzlement. He defined embezzlement as the "illicit demand of payment for services that are supposed to be free, and for receiving fees that are above the values stipulated in the law." He cited violations of the Civil Registry laws number 659, 8-92, 288-04 and 136-03 as well as the Penal Code, the Constitution, treaties, bi-lateral agreements and international conventions. The complaint includes magistrate Luis Eladio Arias, the chief magistrate, and Ramon Hernandez, Salvador Ramos, Rafaelina Peralta, Rafael Diaz, Luis Nelson Panteleon, Nelson Gomez, Roberto Rosario and Jose Luis Tavarez. The plaintiff Rodriguez has asked the Attorney General Francisco Dominguez Brito, to investigate the matter and to take the case to the Supreme Court in order to get to the bottom of this. Rodriguez was fired from his long time position when he blew the whistle to the press about what he perceived to be serious irregularities within the Civil Registry Office.
Both the Aguilas and Licey have won their two first games of the round-robin tournament.
On Monday night, Licey took 11 innings to beat the pesky Azucareros. Losing 8 - 7 in the eleventh inning, Licey was able to come from behind and score the tying and winning runs, after managing to tie the game in the bottom of the ninth. The Azucareros had taken a 4 - 0 lead to start the game but could not hold on and were left in the field.
Meanwhile the Aguilas were battering the Leones del Escogido 9 - 3 with Luis Polonia, the "Atomic Ant" hitting 4 - 5. The game was iced by the sixth inning with the Aguilas leading 8 - 2.
Last night, it was different baseball parks but the same results. The Aguilas again scored nine runs off of Escogido pitchers and won 9 - 5 in Santo Domingo, while Licey traveled to La Romana and won fairly handily 7 - 4.
STANDINGS
| Team | Games Played | Won - Lost | Games behind |
| Aguilas | 2 | 2 - 0 | -0- |
| Licey | 2 | 2 - 0 | -0- |
| Escogido | 2 | 0 - 2 | 2.0 |
| Azucareros | 2 | 0 - 2 | 2.0 |
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