Verizon Dominicana and the Dominican government have reached a tentative agreement, a move that settles the dispute over capital gains tax payment totaling US$518 million, the press was told. Diario Libre writes that the deal, which is reportedly for US$200 million, less than half of the government's original request, will be finalized today, when all details would be announced at a press conference. Listin Diario quantifies the deal would be for US$160-US$170 million. This would allow Verizon Dominicana to sell the company to the Mexican corporation America Movil, if they so choose. The controversy with Verizon started when the telecommunications company announced the sale to American Movil, prompting the government to ask Verizon to pay the US$518 million in tax on the capital gains for selling the company. Diario Libre reports that the tax department (DGII) was asking Verizon Holding Corporation, owner of Verizon Dominicana, to pay a 25% tax on the US$2.06 billion sale of the company. Verizon rejected the government's request, saying they didn't owe the government anything. The standoff ensued with neither side seemingly willing to budge. The government said it would not negotiate with Verizon, and the tension threatened the sale of Verizon to America Movil. Because of the uncertainty caused by the case, America Movil gave Verizon a mid-December deadline to settle its problems or face cancellation of the sale. Both sides have instead reached this amicable agreement and the Dominican Institute of Telecommunications (INDOTEL) will now issue a resolution allowing for the sale of Verizon Dominicana to America Movil. President Leonel Fernandez headed the meeting while Finance Minister Vicente Bengoa was present, together with American Ambassador Hans H. Hertell. Also present was Verizon President Jorge Ivan Rodriguez and DGII head Juan Hernandez.
President Leonel Fernandez will be speaking to the nation early next week in order to describe, in detail, the fiscal reform. The reform, which has been under public scrutiny since it was announced, looks to collect an extra RD$18 billion. Press Secretary Rafael Nunez will announce the time and date for the President's speech at a press conference today.
National Planning Office (ONAPLAN) director Guarocuya Felix has revealed that as part of the imminent cuts in public spending, government workers' salaries will be reduced. Felix stressed that this was not the only move the government was making in order to cut spending, but did explain that the budget for 2007 will depend on the final version of the fiscal reform and that once the reform has been announced then the details of the salary cuts will follow.
The Office for the Reorganization of Transport (OPRET) has finished the 600-meter section of the Santo Domingo Metro that extends from 27 de Febrero Avenue to the National Theater. The excavation on the section began on 13 May and was expected to be finished in two months. This has actually taken five months, due to a series of setbacks. Hoy reports that the excavation of the tunnel below 27 de Febrero was delayed by weeks when the excavation machine was damaged. OPRET director Diandino Pena says that this section was the most dangerous of all the metro.
Foreign Relations Minister Carlos Morales Troncoso said that the Dominican Republic is willing to join in the international effort to help Haiti emerge from its continuous crisis, while stressing that the Dominican Republic is not prepared to compromise its sovereignty with regards to migratory issues. Speaking at the International Conference for the Economic and Social Development of Haiti, which is being held in the Spanish capital Madrid, Morales Troncoso disputed accusations of mistreatment and discrimination towards Haitians in the DR. The minister added that the DR has aided Haiti in every way possible, because of solidarity and due to necessity. He explained that if Haiti were to collapse, this would threaten the viability of the Dominican state.
By the look and sound of it one would think that Presidential elections are next week, but the reality is that the hype over the next President is causing current work to be neglected by government officers. Diario Libre reports that none of the 51 points on the Chamber of Deputies' agenda yesterday were covered because 90-legislator quorum was not met. The reason? Many PLD members of the Chamber were outside Congress holding meetings, lobbying and campaigning for their preferred candidates. There are voices of reason though, which are calling for the campaigning to stop until the time is right. Chamber president Julio Cesar Valentin said that it is not the time for internal PLD campaigns and called the campaigning for Danilo Medina "premature." Former Vice President Jaime David Fernandez says that the topic should be put on hold until next year and reminded the public that there are more important things that need to be focused on like the budget, the fiscal reform and the constitutional reform.
Electricity Superintendent Francisco Mendez says that Law 125-01, approved in 2001, which obliges the energy distributors to credit users for the hours that they do not have power, was way too ahead of its time and that there has been no real progress in the energy situation. He is quoted in Hoy newspaper as saying that the law was put in place in order for the sector to move forward, but it has in fact taken steps backwards. Mendez also said that the credit program would force the government to invest an added RD$10 or RD$20 million in the sector to keep it sustainable because of all the blackouts. Mendez did however point out that on average, Dominicans are receiving more power in 2006 than they did in 2004. In 2004 Dominicans received 750 kilowatts of energy per month, in 2005 they received 800 kilowatts per month and in 2006 they are receiving 850 kilowatts of energy per month. He also says that the average price of energy has stayed the same, RD$2.85 per kilowatt in 2004 to RD$3.12 per kilowatt in 2006, adding that the average duration of power outages has decreased from 6.3 hours down to 3 hours.
American Ambassador Hans H. Hertell says that on 8 December a group of American congressmen and women will be visiting the DR to conduct a preliminary study of the economy before DR-CAFTA goes into effect. Though he didn't have the full agenda of the trip, Hertell said that the group would visit some bateyes and industrial zones. He explained that the group would also be discussing the environment and the use of natural resources in relation to DR-CAFTA.
Negotiations between the Coral Tourist Corporation, owner of the Coral Hotels, and Grupo Globalia, owner of Air Europa, Viajes Halcon, and Viajes Ecuador are at advanced stage, according to Hoy newspaper. Hoy is also reporting that the BHD bank will not be part of the negotiations between the two companies because since October 2005 the BHD Group removed the non-financial companies that make up the company from its portfolio. The negotiations will instead be aided by the Tourist and Real Estate Investment Company (Grupo Intur), which the BHD Group created in order to fulfill the requirements mandated by the Dominican Financing System. The deal between the two companies looks to increase the amount of accommodations for clients, increase the values in service of both companies and penetrate new markets, taking advantage of the resources that both companies have.
Long lines, long waits and violent outbursts affected public transport in Santo Domingo yesterday. Press reports say that 17 people were reported injured as a result of clashes between two bus companies that seek to maintain their route monopolies. As a result, The conflict that has led to the rising tensions and stoppages in service is between two of the country's largest transport companies, Fenatrano and Conatra. Hoy newspaper reports that the problem is that they are fighting over control of a bus route between San Pedro de Macoris and Boca Chica. In various parts of San Pedro there were clashes between drivers, and in one case a fare collector was shot and taken to a hospital. Hoy also reports that a woman was hit in the head by a rock as she rode on a bus from Villa Mella to Villa Consuelo in Santo Domingo. Fenatrano leader Juan Hubieres was quoted in Hoy as saying that Office for Transport Reorganization (OPRET) director Diandino Pena was trying to undermine a contract signed earlier in the week that clarifies that Conatra would only have control of two bus stops between San Pedro and Boca Chica. Diario Libre reported that Diandino Pena met separately with Juan Hubieres and Conatra head Antonio Marte and agreed to change things back to the way they were before the conflict began. Pena annulled resolutions 098-06 and 099-06, and resolution 057-05 came in effect, specifying that buses going from Santo Domingo to the eastern part of the country can makes stops, but buses coming from the east (Higuey, Hato Mayor, El Seybo, La Romana, Miches) cannot make stops along the way. Hubieres has lifted the bus stoppage, so service should be back to normal, but Diandino Pena says he doesn't know what it would take to get Hubieres and Conatra president Antonio Marte together for a meeting.
Hoy newspaper's editorial criticizes that the government has allowed the bus companies to again get away with imposing the "law of the jungle."
Edward Juarez Pagliocco, director of the International Immigrant Foundation, is urging Dominicans to wait for the new immigration laws in the United States to be passed before they decide to try to travel to the US and remain there illegally. Juarez says that Dominicans need to be patient and that the new immigration laws would favor them. The foundation develops educational programs and guides people who are interested in going to live in the United States legally. Juarez, who was interviewed by Diario Libre, says that the general Latino community in the US has a very positive image of Dominicans, but there is still a negative perception of Dominicans by the wider US public. He did however point out that this has changed favorably in recent years. Juarez also said that more collaboration between Latino communities in the US was needed, and that Dominicans who reside in the country illegally should begin their legalization process immediately.
Drug traffickers took another hit yesterday as Department of Drug Control (DNCD) officials found 67 kilos of cocaine in 64 packets during a raid in La Romana and Miches. According to Diario Libre, seven men were caught in connection with the case.
Today is International World AIDS Day. An estimated 39.5 million people are affected by HIV/AIDS worldwide. The Dominican Republic is one of the countries in the region that is most affected by the disease, with an estimated 1.1% of the population infected. In recent years, there has been progress on AIDS awareness in the country, and on the protection of the rights of people infected with AIDS, and this work is continuing. Currently only 3,718 people are reported to be on antiretroviral medications, which help fight the disease, but there is always a need for more resources to help in the fight against AIDS.
The owner of Jazzy's Elite strip club and its administrator Wilkin Casado Patricio have both been sent to jail for one year, accused of responsibility for a fire at the establishment. The fire broke out in the early hours of Monday this week and claimed the lives of nine people. Santo Domingo prosecutor Perfecto Acosta petitioned for the jailing, and Judge Marcia Raquel Polanco agreed. They ruled that the men were in violation of article 334 of the Penal Code on pimping and law 137-03, on human trafficking. Acosta said that the club will be closed until a full investigation of the situation is completed.
The cool breezes that are typical of winter in the DR have arrived earlier than usual this year, thanks in part to the weather phenomenon known as El Nino, according ot the National Weather Office (Onamet). Onamet said that 13 tropical storms had been expected to hit the region this year and that four would be elevated to hurricane status, but the presence of El Nino impeded that. The Atlantic hurricane season ended on 30 November 30, a relief for the region.
The wins just keep on coming for the Gigantes. With a 6-3 victory over the Aguilas last night, the Gigantes matched their team record of 11 straight wins and stretched their lead in the Dominican Winter Baseball League. The Gigantes now lead the second place Tigres by two games and the third place Aguilas by three games. Going into this weekend of play it is now looking to be a three-team race, but as has been the case this year we could have a new leader topping the standings come Monday. A few wins here coupled with a few losses there will make this a great weekend for baseball.
Standings
| Team | W-L | Avg. | Games Behind |
| Gigantes | 23 - 11 | .676 | -- |
| Licey | 21 - 13 | .618 | 2.0 |
| Aguilas | 19 - 13 | .594 | 3.0 |
| Estrellas | 16 - 18 | .471 | 7.0 |
| Escogido | 11 - 22 | .333 | 11.5 |
| Azucareros | 11 - 23 | .324 | 12.0 |
The contents of this webpage are copyright © 1996-2008. DR1. All Rights Reserved.