In what must look like a comedy of errors to outside observers, Saturday's newspapers printed reports saying that the government was going to re-sell the electricity distribution entities (Edes) it had purchased during the Mejia administration. The next day, Sunday, the newspapers said that the sale of the Edes was not on the government's agenda. Another paper, Diario Libre, reported that the government was proposing the sale of 40% of its holdings in the hydroelectric sector to private sector investors. According to Diario Libre, the legislative package called the "Organic Law for the Dominican Corporation of State-owned Electric Enterprises" (CDEEE) includes a clause that says that the state will sell 40% of the transmission and hydro-generated electricity business to private sector interests. Nonetheless, the dams, the waters and the machinery will remain state-owned and will be "inalienable and not subject to embargos of any kind." The bill would also take the shares owned by the Edes and currently held by the Reformed Enterprises (FONPER) Assets Fund and transfer them to the CDEEE. The legislation is part of a package that contemplates two other initiatives: the modification of the General Law on electricity and the General Law on Fuels. Despite this information, Hoy newspaper says that none of the sales mentioned are on the government's agenda at the present time. In fact, Radhames Segura, the vice-president of the CDEEE told Hoy that these items were not even discussed during Saturday's meeting between the President, Leonel Fernandez and representatives of the electric sector last Saturday at the Global Foundation for Development and Democracy (Fundglode).
Technical Secretary to the President Temistocles Montas has denied reports that the Dominican government is preventing the International Monetary Fund (IMF) from publishing reports about the Dominican economy. In a press release, the Central Bank defended the government's unwillingness to publish full IMF reports stating that many years ago many IMF member nations decided that it was not beneficial to print out full reports because they would reveal, in detail, economic reforms without first being evaluated by the proper authorities. Montas, who is also the President's chief economic coordinator, said that the government has always been open to the IMF expressing their opinions on the Dominican economy. Several economic figures including Luis Toral and Guillermo Caram, former governors of the Central Bank and Miguel Ceara Hatton, a well-known economist, demanded more transparency from the government in the handling of the IMF data. Montas said that on 27 October the chief of the IMF mission that oversees the Stand-by agreement, Andy Wolfe, would be delivering a speech to an audience of industrial, financial, political and labor leaders at the National Palace. Wolfe will focus on the state of the Dominican economy. Over the weekend, the newspapers had carried a report from Washington by Spanish news agency EFE, listing the Dominican Republic as one of the countries that limits the publications of the IMF report. It said that both Brazil and the Dominican Republic had prohibited the International Monetary Fund (IMF) from revealing their experts' opinions about their economic policies. Some other countries have done this in the past and in the case of Honduras, the reports were held up for a year. Venezuela is an extreme case due to the fact that they have not allowed the IMF to release any of their evaluations for the past five years. According to IMF spokesperson Masood Ahmed, "sometimes, countries are not comfortable with the publication of the information." The fourth clause of the IMF agreement calls for each IMF member nation to participate in an assessment of their economies, but it is up the countries to publish the report.
Osmar Benitez, the executive director of the Dominican Agro-business Council (JAD) has said that the United States has been pressuring Dominican officials to modify some of the points of the DR-CAFTA agreement. He said that these were some of the points that they were not able to introduce during the discussions and negotiations surrounding the agreement itself. Benitez said that this is the reason that DR-CAFTA has not started up. As reported in Hoy, Benitez said that this week's meeting between President Fernandez and George W. Bush might open to way to a solution of the impasse. According to Benitez, the central issue revolves around the pharmaceutical industry. According to the JAD officer, the US wants to introduce language that would be prejudicial to the local pharmaceutical industry as well as limiting the ability of the Dominican government to set the schedule of entry dates for the agree-to quotas of imports. One particular case is rice, where the US wants an open import clause that will allow imports of rice when the market demands it, but, according to Benitez, "we are not obliged to yield to this." As he explained the issue to the reporters, Benitez said that the Dominican obligation is to concede the importation of between 8,000 and 10,000 tons of rice, "but we (the DR) are not obliged to accept this rice when they (the US) want to ship it."
In continuation of his diplomatic tour, Dominican Foreign Minister Carlos Morales Troncoso has met with the Organization of Petroleum Exporting Countries (OPEC)'s Director General, opening discussions for an agreement of promotion and investment that would allow Dominican businesses to access directly developments funds from OPEC. Troncoso met with Said Aissi at the Vienna headquarters of OPEC, and said that the OPEC International Fund for Development has an interest in directly investing in the private sector of the Dominican Republic. Troncoso said that OPEC has invested in the country in the past, but only in the public sectors, but is now looking to invest in the private sector. Future monetary infusion will include investments in 300 kilometers of roadways, sewage systems in tourist areas, and "batey" (cane cutter settlements) developments in the border zones. Troncoso affirmed that this investment would help future direct investments flow into the country and help develop small and medium-sized businesses. There was no word on when the possible agreement will be submitted for approval.
The Office for Internal Taxes (DGII) is beginning the process of assigning new numbers to businesses, in order to initiate the countries new accounting system. The process begins today and will end on 31 December. The Control of Emission, Impression, and Presentation of Fiscal Receipts (NCF) registration can be done online. All business people have to do is go to the website and fill out a small questionnaire. Through this process DGII hopes to reduce tax evasion.
Due to a low score in an assessment study conducted by the Millennium Challenger Corporation, The Dominican Republic will not be receiving assistance funds as part of the Millennium Challenge Program. According to the report, the DR scored extremely low in the area of corruption and 15 other indicators disqualifying it from receiving the funds. In order to receive funds, a country must have a reasonable score in the areas of justice, public investment and economic policy, but a low score in the area of corruption disqualifies a country from receiving funds. The DR received a -0.1 in corruption and -0.18 in the application of laws, and a -0.21 in the area of public investment. The Millennium Challenge Program was created by President George W. Bush as an incentive for countries to fight corruption, respect human rights, increase medical efficiency, open up markets for trade, and have sustainable political budgets. The fund will increase by US$5 million this year, and unfortunately in the two years of the program's existence, the DR has never been chosen as a recipient.
A Dominican baseball coach working for the Florida Marlins organization in the DR, Felix Antonio Rubio, has been sentenced to 20 years in jail for allegedly abusing two young boys he was recruiting to play for the team. Though the children's father had come to a cash settlement with the accused, the Public Ministry went ahead with the case. According to the complaint, after practice the coach took the boys, then 11 and 13, to a nearby river where they bathed in the nude and then went back to his house where he showed them pornographic videos and seduced them. According to Diario Libre, the children's father said that he did not believe the accusations and defended the trainer. However, at that moment the children burst into tears and told the judge just how everything had happened in explicit terms. The identities of the young men have not been released.
Over the weekend, most of the nation's newspapers featured dramatic photographs of the work being carried out on the Santo Domingo - Samana Expressway. Heavy equipment and bridge footings were featured, along with finished stretches of highway. According to the reports, the trip from Santo Domingo, which can take as much as four hours, will be reduced to just one and a half hours upon completion of the highway, which is scheduled for late 2007. Minister of Public Works, Freddy Perez traveled the entire length of the 106 kilometers of the project that is supposed to cost US$165 million. The Samana Expressway will have three toll plazas that will be powered by wind-generated electricity.
The Santiago Industrial Free Zone Corporation has donated RD$75 million to the municipal authorities to assist with efforts to reclaim the Rafey open-air garbage dump and convert the area into a refuse landfill. The announcement was made by the corporation's president, Carlos Sully Fondeur. The Rafey open-air refuse dump has been an eyesore and a major source of pollution for more than a decade, and Santiago's mayor, Jose Enrique Sued has promised to eliminate it this term.
According to Hoy newspaper, the insurance industry has grown by 16% over the last year, and Chamber of Insurers president Dr. Luis Eduardo Guerrero said that the increased rate of stolen cars is one of the reasons for this. The industry grew from RD$14 million to RD$17 million during the period in question, and car theft policies grew to RD$375 million. Guerrero also informed that a cross-institutional agreement is in the works to help stop the theft of cars.
El Caribe newspaper is reporting that police and army officials arrested 620 illegal Haitians with fake passports over the weekend, and impounded five vehicles and other items. The operation took place in the northeastern provinces of Mao, Dajabon and Monte Cristi. 15 kilos of cocaine were also found during the joint operation by the National Police and the Army. The report says that the illegal migrants paid between RD$1,500 and 3,000 to be taken over the border to either Navarrete or Santiago, and named a man, Expedito Rodriguez, in connection with the human trafficking.
In Andres, Boca Chica, assailants have raided boats tied up at the local docks. Diario Libre says that the lack of constant patrols by the Navy is partly to blame for the robberies. Many of the boats that have been broken into belong to foreigners. The robbers move about in small craft and are armed with pistols. The newspaper talked to several tourists who did not want their names in print, and they said that they had never seen the navy patrolling the area. One couple was surprised by six men as they slept aboard the Golden Dawn that was anchored at the wharf in Andres, in front of the Club Nautico. They said that they were tied up and everything they had was stolen, including a 12 ga. shotgun, and money. Navy officials said that they patrol the area from the beach in Boca Chica to Andres, but only from the shore since they do not have any patrol boats available.
Dominican Luis Castillo recorded his first interception of the year yesterday as his team, the San Diego Chargers, beat the lowly San Francisco Forty Niners 48-19. Castillo also added a sack, for a season total of four, surpassing his 2005 mark of 3.5, and added a tackle. The 6'3", 290-pound lineman is quickly becoming one of the NFL's rising stars and through his success is increasing the popularity of football in a nation dominated by baseball.
Placido Polanco, Detroit's diminutive second baseman, has been voted the Most Valuable Player of the American League Championship Series (ALCS). He batted for an average of .529 (9/17) and extended is post-season hitting streak to nine games. In the ninth inning of the fourth and deciding game against the Oakland Athletics, Polanco got a hit just two swings of the bat before the dramatic walk-off home run by Venezuelan Magglio Ordonez ended Oakland's dream of a World Series. In a line-up of big swingers and big strikeouts, Polanco's effective bunting was crucial for Detroit's entry into the post-season. When he injured his shoulder in mid-August, Detroit fell in the standings, but his return in late September revived the club and his .396 average. His scoring position was an important factor to Detroit's revival.
Kareng Pena Sanchez, an 18-year old student at Bani's Maximo Gomez polytechnic institute, has won the 2nd Annual National Math competition, held over the weekend. Pena Sanchez was awarded a RD$50,000 account by BanReservas, a new laptop computer and school supplies. First Lady Margarita Cedeno de Fernandez congratulated the young woman on her success in the competition and said she was a role model for Dominican youth. Eight other finalists were also recognized for their achievements and received RD$8,000 bank accounts from BanReservas.
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