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Fernandez to address the nation tonight President Leonel Fernandez will address the Dominican nation tonight to give details of what his people are calling a "tax correction". Since announcing the need for additional income during his trip to Washington DC, the entire nation has engaged in debate as to whether the government really needs more money or just better administration of the current income levels. Last month, 36 commercial and industrial associations joined in a letter asking the President to re-think the whole process. In today's Listin Diario, reporters suggest that the President might well avoid increasing VAT on a series of items. The speech, which will be broadcast by several local television and radio stations, begins at 9 this evening. According to the paper, the plan is to levy taxes on sports betting and gambling, and there is speculation that the government might return to an ad valorum tax for articles that are currently under a selective consumer tax. | ||||||||||||||||||||||||||||
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Solar power to get a boost One of the world's leading solar energy companies is opening two factories in the Dominican Republic with an initial investment of more than EUR100 million and plans to invest as much as EUR1.0 billion over the next ten years. The president of the National Energy Commission, Aristides Fernandez Zucco announced that Isofoton, the world's fifth largest manufacturer of solar products, and the largest in Spain, plans to install two factories in Haina, just south of Santo Domingo. The company, known as IsoTecsol-RD in the Dominican Republic, makes photovoltaic cells for electricity and solar water heaters. The new plant will produce the photovoltaic plates needed for energy production. Construction is scheduled to start in January 2007. The second facility will be installed in Las Americas Cyber-Park. | ||||||||||||||||||||||||||||
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Verizon paid US$170 million According to most reports, Verizon International handed over a check for US$170 million (RD$5,625,500,000 at the current exchange rate) and ended the legal process that was seeking a payment of US$518 million. The payment will allow the takeover of Verizon's operations in the Dominican Republic by the Mexican firm of America Movil, owned by billionaire Carlos Slim Helu. President Leonel Fernandez described the deal as "friendly". The President also said that he had received a "suggestion from the United States Department of State" to find a solution to the impasse that was holding up Verizon Dominicana's sale to the Mexican group. Late Friday afternoon, the Dominican Telecommunications Institute (INDOTEL) issued a resolution approving the sale under the terms of the agreement. According to President Fernandez, the "friendly solution" to the case proves that the Dominican Republic is "a safe place for foreign investment." According to Diario Libre, Verizon spokespersons still insisted that the company had not paid any tax on the sale of its operations in the DR, while saying that they were satisfied with the agreement. | ||||||||||||||||||||||||||||
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Coal-fired generators still up in the air Due to a lack of financing, the start-up of construction on the coal-fired electricity generators in Azua and Manzanillo is still on hold. Neither the Chinese nor any of the other Asian investors have come up with the money so far, according to Listin Diario. There is a US$30 million letter of credit still pending. Neither Sichuan Machinery nor Emirates Power have put up their guarantees as yet. CDEEE executive Radhames Segura is trying to locate local financing for the project, which is the government's answer to the local power crisis. According to Diario Libre, talks are in process with the Seaboard Corporation and the Vicini Group. | ||||||||||||||||||||||||||||
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CDEEE submits proposal for law The Dominican Corporation for State-owned Electricity Enterprises (CDEEE) has asked the President to submit a bill penalizing electricity fraud with severe economic sanctions and prison terms to Congress. The proposal has been reviewed by a special Presidential commission and would grant discretionary powers to the local electricity companies (the EDEs) to determine whether fraud exists, but it does not have any consumer protection mechanisms. The proposal would punish tampering with electric meters, using electronic devices or making direct connections to the system. Even "attempting to commit fraud" is punishable in the proposal. For users of less than 1000 kw/hr, the suggested penalties go from 15-day to 3-month prison terms and fines that range from 5 to 10 minimum salaries. For larger consumers, the penalties range up to five years in prison and as much as the equivalent of 5,000 minimum salaries. Anyone convicted would have to pay for the stolen electricity, based on an average of the previous five months. An assistant prosecutor will be assigned to the electricity distributors to create an "electricity fraud charge." | ||||||||||||||||||||||||||||
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Autopista Duarte detour Traffic on the nation's major north-south thoroughfare, the Autopista Duarte, is being diverted at the Cruce de Controbas on the way to San Francisco de Macoris. The Public Works Ministry needs to repair a small bridge in the community of Ranchito that was partially destroyed during recent heavy rains. The detour will last until 9 December, according to Public Works spokespersons. Traffic from Santo Domingo and Santiago going to San Francisco de Macoris will be diverted towards La Vega by way of the Sabaneta-Rancho Viejo roadway. Civil Defense workers will be on duty to warn drivers of the detour. | ||||||||||||||||||||||||||||
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Airports get ready for Christmas crush According to Airport Department head Andres Vanderhorst, local authorities are expecting at least 100,000 overseas-based Dominicans to return for the Christmas holidays. Vanderhorst commented that the government had increased customs facilities to encourage more visitors this year. A full 7% increase is expected over last year's numbers. The airport official said that he and his team was working closely with the Armed Forces, the Police and the Airport Security Force to guarantee the safety of all the passengers arriving for the holidays. According to Vanderhorst, "we are working hard to extend all the facilities possible to our hardworking compatriots who spend years working and, in December, they decide to return to their dear little piece of earth." | ||||||||||||||||||||||||||||
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Nice work if you can get it The Central Electoral Board (JCE) has approved some really "juicy" pension settlements for former and recent members of the board. Both El Caribe and Diario Libre comment on just how good these pensions are. According to the articles, recently substituted JCE chief magistrate Luis Arias will receive RD$159,250 (US$5,000) each month for the rest of his life. He worked at the board for eight years. His latest salary was RD$227,000 per month. Paragraph 4, letter D of Article 10 of the Pension and Retirement Plan for the JCE states that magistrates who have accumulated 20 or more years of service at the JCE or any other state institution are entitled to 60% of their basic salary. Letter D of Article 10 says that former officials "who have carried out important jobs", are over 55 years of age and have worked at least six years in any other job will get 60% of their basic salary. Little surprise that there were over 250 applicants for those nine posts! | ||||||||||||||||||||||||||||
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Police solve kidnapping and murder The National Police have shot and killed two of five men who kidnapped, murdered and burned Luis Fernando Rodriguez Montan. The three remaining criminals were captured, and confessed to their crimes. Rodriguez Montan was kidnapped on Friday afternoon while at a house he owned in the Juan Pablo Duarte barrio in East Santo Domingo. The dead men are Milciades Amaury Matos de Leon (Tango) who had a very long rap sheet, and Jesus Sandy Robinson Samboy. The police wounded Ivan Samuel Abreu Molina during the raid, and he is being treated at the Dario Contreras Hospital. Braulio Medina Artiles and Jeison Terrero Encarnacion are both in custody and accused of the kidnapping, murder, dismemberment and incineration of Rodriguez Montan. Witnesses notified the police after observing Rodriguez's vehicle speeding away from his property. The gang used the victim's credit card to purchase food and alcohol. Near midnight the police had located the victim's car and surrounded the house. One of the two dead men, Matos de Leon had seven incidents on his rap sheet, including drug trafficking, murder, assault and robbery. Police chief Santana Paez said that he would not comment on the justice system in relation to this case. The Attorney General's office has announced that it would be seeking the maximum penalties for those accused of this crime. | ||||||||||||||||||||||||||||
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Unions halt traffic to the Cibao After causing chaos in Santo Domingo, the New Option National Federation of Transportation (Fenatrano) and the Cibao Drivers Union shut down traffic on the Duarte Highway for three hours in protests that resulted in broken glass and tear gas grenades. The unions were protesting against Expreso Vegano's operation on the La Vega-Santo Domingo route. The local Traffic Office (OTTT) said that such protests were "embarrassing and disgraceful". OTTT director Persio Veras called on the unions to talk to him and avoid these situations of conflict. Transport vehicle owner unions are extremely possessive of their territory as demonstrated by recent incidents in the town of Licey al Medio, where a driver was shot and killed as part of the protests against drivers from Moca picking up passengers in Licey al Medio on their way to Santiago. Diario Libre's back page editorial "De buena tinta" sharply criticizes the unions' attitude and says that the unions' public image has deteriorated from them being popularly perceived as spokespersons for popular causes to troublemakers who abuse their power. | ||||||||||||||||||||||||||||
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Counterfeiters caught The National Investigation Department (DNI), together with the United States Secret Service and the District Attorney's office in Santo Domingo, has dismantled a counterfeiting operation to make fake currency, passports and bank checks. In their search of the premises, investigators seized a printing press and $400,000 in fake currency. The headquarters for the operation was #32 Osiris Perdomo Street in Santo Domingo. During the operation, Lina Sosa and Alberto Feliz Guzman were arrested. Soto's husband Pedro Santiago is on the run. According to Diario Libre, DNI chief Sigfrido Pared Perez said that "these operations are seldom carried out by just three or five people", adding that he thinks that there are possible international implications. According to Pared Perez, the gang had managed to cash a few counterfeit checks but had not yet put any of the false currency into circulation. He said that the equipment seized was almost brand new. This is believed to be the same gang that cashed checks from the First Lady's Office, as revealed in the papers recently. | ||||||||||||||||||||||||||||
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Baseball Friday night saw the red-hot Gigantes de San Francisco de Macoris shut out the hapless Leones del Escogido 4-0, extending their winning streak to 13. In Santiago, Jose Lima pitched eight innings of one hit baseball and the Aguilas Cibaenas defeated the Azucareros from La Romana 7-1. In San Pedro de Macoris, the Estrellas Orientales defeated the Tigres del Licey 4-3. On Saturday, the Aguilas Cibaenas defeated the Leones del Escogido 7-6, the 13th defeat in a row for the once-powerful club. Meanwhile, in San Francisco de Macoris, the Gigantes won their 14th game in a row 7-0 over the Estrellas Orientales. In La Romana, the Azucareros were defeated by the Tigres del Licey in a close game, 3-2. Sunday was a day for streaks. The Tigres del Licey gave the Leones del Escogido their 14th defeat in a row, by far the worst in the club's history. They lost 5-4. The Estrellas Orientales put the fifth consecutive loss on the Azucareros of La Romana, 5-2, and the Aguilas Cibaenas ended the Gigantes' 14-game winning streak with a 5-2 victory in front of a capacity crowd at Estadio Cibao. Standings
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