President and Mrs. Fernandez were guests at a luncheon hosted by United Nations Secretary General Kofi Annan. Annan gave a luncheon for the chiefs of state or heads of government who were attending the 61st General Assembly of the UN in New York. Yesterday evening, the President and Mrs. Fernandez attended a reception hosted by US President George W. Bush at the Waldorf-Astoria Hotel. After the luncheon, the President and his wife toured the area around the UN building and later in the afternoon, the chief executive made a speech to Hispanic students at Baruch College of the City University of New York. In his talk, the President presented his views on the modernization of the Dominican Republic. President Fernandez will address the General Assembly of the United Nations today.
The Dominican government is putting the finishing touches to a RD$36 billion bond issue that will be used to cover the Central Bank quasi-fiscal deficit. According to Diario Libre, the bonds will carry a 15% APR. The bond issue will be formalized by legislation that is due to be submitted to the PLD-led Congress, where it is not expected to encounter much opposition. The Central Bank is carrying what is termed a "quasi-fiscal deficit" of around RD$26 billion, which is attributable to the interest payments due on its long-term certificates of deposit. According to figures released by Central Bank officials, the interest payments on the new bond issue will be equal to 0.5% of the GDP for 2007, or about RD$4.7 billion. The plan has the approval of the International Monetary Fund.
Senator Francisco Dominguez Brito (PLD-Santiago) has sent a bill to the Senate proposing that the National Treasury should pay city governments directly, ridding the country of the Dominican Municipal League as an intermediary institution, as reported in Clave Digital. "The LMD needs to concentrate on its role as technical and planning advisor to the city governments," said Dominguez, a former Attorney General, when speaking to journalists from his office in Congress. He also stressed the importance of strengthening mechanisms to control public funds that the city governments receive. The law provides for 8% of the National Budget to be allocated to city governments, broken down as follows: 25% for payroll, 25% municipal service expenditures and 50% for infrastructural investments.
The PLD is majority in Congress.
Father Jose Luis Aleman, S.J., one of the nation's more famous economists, has suggested that the government reduce public spending to comply with the IMF Stand-by agreement and close out 2006 with zero deficit in the public sector. Aleman, the director of the Economics School at the PUCMM University in Santo Domingo, highlighted the burden the electricity subsidy places on government finances. The subsidy is a major concern for the IMF that has called for an increase in collections for electricity served. Power distribution companies have only been marginally successful in converting low income consumers into paying consumers and reducing theft, and the government has preferred to pick up the tab in the form of a subsidy.
Last month, the president of the Young Entrepreneurs Association, Eduardo Valcarcel, highlighted in an interview in El Caribe on 26 August, that cutting government spending is one of the possible solutions for the country to comply with the IMF agreement. Nevertheless, he lamented at the time: "In the plans of the government to reduce the quasi-fiscal deficit, they have not even contemplated implementing an austerity program in government."
Yesterday the Herrera Industries Association (AEIH) also asked the government to cut spending. AIEH suggested that the government eliminate all public institutions that are only used to "feed a bunch of bums," to the detriment of most Dominicans. The association cited the Dominican Municipal League (LMD), The Price Stabilization Institute (INESPRE), the Corporation for State Enterprises (CORDE) and the Commission to Reform Government Enterprises (CREP) as entities that could easily be disposed of with little or no loss to governmental efficiency. The AEIH said that any unit that does not add value to the state processes should be eliminated. The association says that the State must be reduced if it is to be modernized.
AEIH believes the government should adopt a new slogan: "let us cut government, save, so we can improve education and health."
The AEIH believes that governmental reforms of this kind would positively enhance the President's image, because more money would be available for improving the nature of social expenditures.
"All that does not add value to government processes should be eliminated. The excess personnel in government impede efficient employees and officials from doing their work." The AEIH called on the President look into the efficiency of ministries, deputy ministries, vice consuls, and advisors who do not have any real functions and only are adding bulk to government expenses. The organization says that it is absurd that while some sectors of government services are being privatized, their payrolls remain at the same level.
The Inter-American Development Bank and the World Bank are pushing Dominican authorities to impose "exemplary sanctions" on people convicted of bank fraud. This message was conveyed in a brief press release from the international financial agencies. The note, dated 16 September 2006 in Santo Domingo, says that the World Bank, the Inter-American Development Bank "and other multilateral and bilateral partners" are continuing their support for the Dominican effort to resolve the problems arising from the 2003 banking crisis. The note says that the Baninter fraud precipitated a banking crisis equivalent to 20% of the country's GDP and plunged one and a half million Dominican into poverty. "The multilateral system, which includes the IDB and the WB, is waiting for the decisions that will serve as an example to future generations." The press release also adds that these decisions should not only punish the responsible parties but also produce a climate of confidence that will allow for the rapid economic recovery of the nation.
In August, Paolo Herrera Maluf and Isidoro Santana for Participacion Ciudadana (PC), civic society group, urged that government officers of the past government also be tried for their responsibility in the 2003 bank fraud cases. Speaking at a Jornada Nacional contra la Impunidad de los Fraudes Bancarios held in late August, they mentioned that only a minority has been sent to trial "and many people trashed our judicial order." "All that violated the laws should be penalized," stated Santana, as reported in the Listin Diario on 28 August. PC estimates that Dominicans will be paying taxes for 15 years to cover the bank fraud and its mismanagement by government officers.
The recent spate of longer-than-usual blackouts is explained by articles in today's press that revealed an important decrease in generation capacity, with three major units going off-line. Itabo II (125 MW), Haina thermoelectric unit (40 MW) and AES-Andres (300 MW) all went off-line on Sunday and Monday. The problem was compounded by the failure of the 69,000-volt power line to Haina which forced 20 circuits off-line. As a result, the north and east of the Dominican Republic were affected by 10-12 hour blackouts. According to the CDEEE, the breakdown of the generation facilities and the power line caused some upscale neighborhoods in Santo Domingo and Santiago to lose electricity for long periods of time. As well as the problems in the south, there were also failures in the transmission lines between Canabacoa (Santiago) and Playa Dorada, Bonao-Maimon-Hatillo and between La Romana and Higuey. The Samana-Nagua network also went out, and this shorted out the substations in Sanchez and Samana. As yet, no official explanation has been given for the outages.
With headlines more appropriate to World War II, the nation's newspapers have announced the launch of a nationwide crusade against the Aedes Aegypti mosquito that is the vector for dengue fever. Vice President Rafael Alburquerque headed the ceremonies that launched the attack. The campaign is two-fold. On one front, hundreds of brigades will spray stagnant water, old tires and swampy areas as well as many buildings. Environment Minister Max Puig assures that the insecticides being used are not harmful to humans. The second front is an educational campaign carried out by middle, high school and university students. These young educators are making house-to-house visits to inform people about ways of preventing the propagation of mosquitoes and how to avoid being bitten by the nasties. Called "United Against Dengue" the young volunteers have already covered dozens of barrios in Santo Domingo. The Presidential Press Officer announced that government advertisements would be concentrating on the issues surrounding dengue fever. Rafael Nunez told El Caribe reporters that President Fernandez has instructed him to ensure that all governmental propaganda is aimed at promoting the prevention methods needed to curtail the outbreak.
The Technical Office for Land Transport (OTTT) has warned public transportation drivers that if they refuse to run their regular routes, and instead join the protests against the Plan Renove ruling, they will lose their routes, which will be given to other interested drivers. OTTT Director Pena Guadalupe made the warnings after many drivers joined protest in support of former Conatra President Antonio Marte, after he was found guilty of irregularities in his dealings with the governmental Plan Renove. Guadalupe asserted that drivers who don't comply with the law will be replaced immediately, and that the buses are government property, bought with public funds, to serve the public.
In addition to Guadalupe's comments, Cardinal Nicolas de Jesus Lopez Rodriguez has made a statement about the recent work stoppage and protests by drivers.
The Cardinal considers the attitudes of drivers who are protesting against the Plan Renove judgment inadmissible. He went on to say that the Dominican public should not accept the public transport union leaders' behavior, and that drivers should instead be applauding the success of the judicial process in the case.
The Customs Department (DGA) has denied any claims of price gauging and blamed importers for undervaluing goods. The department justified having to adjust prices. The adjustment coincided with the elimination of the 13% surcharge on imports that was supposedly aimed at bringing about price reductions for consumers. The DGA argues that importers were undervaluing some goods by up to 80%. The DGA says they are using the General Agreement on Tariffs and Trade (GATT) valorization system. The DGA explained that some of the prices on goods hadn't changed in 10 years.
The Director for the International Organization for Migration (IOM), Brunson McKinley, said at a press conference that increased border patrols, special forces, and an increase of migratory policies will not be enough to stop the mass migration of Haitians into Dominican territory. However, McKinley admitted that the IOM doesn't have a plan in place to tackle the situation, and that it limits itself to offer advice to governments on migration issues. McKinley did state that it is important for both governments to work together to regulate Haitian migration. McKinley had already met with Haitian President Rene Preval, and made these comments at a subsequent meeting at the Dominican Ministry of Foreign Relations. McKinley will meet with Vice President Rafael Alburquerque today for further discussions about the situation. The IOM was founded in 1956 and currently has 118 members.
The now-notorious Praia discotheque has been closed down by order of Attorney General Radhames Jimenez Pena as a result of the fatal shooting of young student Pura Nunez a few days ago. Meanwhile, magistrate Jose Alejandro Vargas sent the security guard, Ramon Antonio Sanchez Vasquez, to La Victoria Prison until a trial date can be set. The Attorney General ordered all local DAs to close any establishment that sells alcoholic beverages and where injuries have resulted from knife or gun use.
The Weather Department (ONM) is warning the public that the next few days will be really hot. According to the weather forecasters, temperatures over the next ten days will be higher than normal, reaching 35 degrees C. The ONM advised people to wear light clothing, drink lots of water and avoid the sun. According to the weather advisory, the northeast and southeast can expect temperatures to rise to 35 degrees Centigrade or higher. The heat wave is caused by east-southeast winds that are keeping the humidity high, but there are no tropical disturbances to cool things off. For daily updates on weather, and more explanations, see the last post in this thread of the DR1 Forums, http://www.dr1.com/forums/weather-beyond/...
A total of RD$623 million has been spent on Dominican baseball prospects so far this year. A total of 359 players have been signed to professional careers that could end in the Major Leagues. As reported in El Caribe, tourism is no longer the only smokeless industry in the DR. According to the office of the Commissioner of Baseball, the first eight months of the year saw 359 young men signed to professional contracts. According to the MLB statistics, the various teams from the big leagues spend US$84 million in the Dominican Republic each year. The 359 prospects were signed for a total of US$18,885,000 or more than RD$620 million pesos. Three young men became dollar millionaires overnight. The highest-paid prospect, a strapping third baseman named Angel Villalona, signed with the San Francisco Giants for US$2.1 million. (Seattle offered even more but got to the table too late.) Esmailin Daniel Gonzalez signed with the Washington Nationals for US$1.4 million. This young man will most likely be called "Smiley" which is what his first name sounds like. The Baltimore Orioles signed pitcher Pedro Beato for a cool million. Just below these three millionaires is catcher Francisco Antonio Pena, son of New York Yankee coach Tony Pena, who signed for three-quarters of a million dollars with the New York Mets. Pablo Peguero, who runs the San Francisco operation in the DR, told El Caribe that his organization only signs youngsters who have an excellent chance to reach the major league level.
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