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Daily News - Thursday, 28 December 2006

DR1 breaks for the New Year
DR1 will be taking a New Year's holiday break and the news will not be updated on Friday, 29 December, Monday, 1 January and Tuesday, 2 January, on the occasion of the New Year holiday. The long weekend news summary will be published on Wednesday, 3 January. Readers can always check in to the 24/7 posts and news commentary at our DR1 Forums. See http://www.dr1.com/forums
For more information on holiday dates for 2007, see http://dr1.com/travel/prepare/holidays.shtml

2007 is Year of the Book
President Leonel Fernandez has announced that 2007 will be known as the "Year of the Book and Reading." Education Minister Alejandrina German applauded the decision, commenting that it would contribute to the strengthening of education in the country.

President and former PM
Former Spanish Prime Minister Jose Maria Aznar had a special luncheon yesterday with President Leonel Fernandez. Aznar is in the country on a private visit and praised the county for its continued economic growth, although he did mention his concern about the increase in socialist governments in the region. The Presidential Press Secretary informed the media that President Fernandez had invited Aznar. President Fernandez was accompanied by Vice President Rafael Alburquerque and Foreign Minister Carlos Morales Troncoso.

Budget goes to Congress
The Executive Branch is expected to send its 2007 RD$254 billion budget proposal to Congress for approval today, with the request that the budget be approved. The Technical Minister to the Presidency will deliver the proposal to Congress. If the proposal is not approved by this weekend it will have to wait for approval in the New Year, but El Caribe newspaper reports that it is expected to be approved before 1 January 2007.

Fiscal reform soon law
In consecutive readings last night, the Chamber of Deputies approved the fiscal reform, passing the much-debated tax plan. The bill now moves to the Presidency for signing into law. Although the PRSC and PRD representatives absented themselves in protest against the reform, 91 of the 93 PLD legislators voted in favor. Only Pelegrin Castillo and Jose Ricardo Taveras of the National Progressive Force allied to the PLD voted against the reform. During the marathon meeting of the Chamber, the government austerity plan was also passed into law. The plan aims to reduce government spending, mainly on government members' salaries. The new fiscal reform includes an additional RD$3 tax on diesel fuel, RD$5 on regular gasoline and a RD$5 reduction on premium. The reform also imposes a new tax on vehicles, for the "right to circulate". Cars between 5 and 10 years old will pay a RD$3,000 tax, which will be adjusted yearly for inflation. Cars older than 10 years will pay an RD$1,500 tax. Sports betting parlors will be taxed by 20% and lottery houses will be taxed a yearly sum of RD$31,000, which will also be adjusted yearly for inflation. The lottery houses will also pay a 15% tax on winnings. Fees for permits for these types of establishments also will increase from RD$150,000 to RD$180,000 in Santo Domingo, and from RD$100,000 to RD$120,000 in other parts of the country. The fiscal reform also includes a 17% charge for the first vehicle license plate, a 16% tax on insurance services and a 0.15% tax on banking transactions. Alcohol will have a new ad-valorem tax of 15% and tobacco a 100% ad-valorem tax.

Forcing contraband
Although the fiscal reform was passed into law yesterday, former International Monetary Fund consultant Emil Sunley is warning that the increased taxes on tobacco and alcohol will only increase the amount of contraband, and continued to argue for the removal of those taxes. Sunley says that alcohol should be taxed according to unit, because an ounce of alcohol is an ounce of alcohol in those types of beverages. Sunley, speaking in Listin Diario, says that bearing in mind the damages caused by tobacco, there should be taxes on each unit of tobacco consumed.

Legislators approve metro money
The bill allocating more money to the Santo Domingo Metro has been passed. The bill, which was introduced on 21 December, looked to transfer RD$6.6 billion from this year's budget. The transfers will reduce the Education budget by $854 million, Public Health by RD$706.9 million, the Presidency by RD$2.3 billion, Finance by RD$1.37 billion and Agriculture by RD$150 million. Of these funds, the Presidency will receive RD$3.73 billion to transfer RD$1.1 billion for the construction of the Santo Domingo metro, RD$1.89 billion to the Office for the Supervision of Public Works and RD$720 million for social protection. The bill also allocates RD$2.6 billion to the Ministry of Public Works, RD$85.6 million to the Ministry of Foreign Relations, RD$50 to the Ministry of Finance, and RD$46 million to Interior and Police, RD$12.6 million to Armed Forces, RD$15 million to Public Health and RD$17.1 million to Agriculture. The law also authorizes the transfer of RD$5.09 billion of the surplus of revenues produced with the implementation of the Petrocaribe agreement to be used in the subsidy of the electricity sector.
Hoy newspaper points out that the bill includes a modification that involves the transfer of RD$20 million to the Chamber of Deputies and RD$80 million to the Senate from government funds allotted to other departments.

No drinking and driving
The Interior and Police Ministry has decided to enforce the resolution issued this summer that makes it illegal for passengers and drivers to drink alcoholic beverages in their vehicles. The measure also calls for the transit authority (AMET) to use sobriety tests and breathalyzers to determine if a driver is under the influence of alcohol. This measure seeks to reduce the amount of vehicular casualties. The government will be buying between 1,000 and 1,200 breathalyzers in order to equip AMET officials. The law also says that bottles containing alcohol must be sealed if carried by the passenger or driver, otherwise they must be stored in the trunk. If a driver is caught drinking and driving he will have his car towed away, and will be arrested and fined. The resolution was originally passed on 25 July 2006, when the limit on the sale of alcohol was passed, but there is no word on why it wasn't enforced until now.
In the DR, drinking and driving has been part of the culture, with booze vending drive-ins and sales at gasoline stations allowed by the government.

Still in the dark
Although energy sector representatives have met 12 times this year to discuss the country's power problems, there have been no concrete resolutions and the energy system continues in decay. Of those 12 meetings held this year President Leonel Fernandez was present at six, with no results to show at all. El Caribe newspaper reports that the government had made renegotiating the energy contracts, constructing carbon plants, reduction of theft and corruption, and lowering the subsidies on the energy sector a priority for 2006, but none of these issues were ever dealt with seriously. Even State Run Electricity Companies head Radhames Segura has admitted that the efforts by the government to solve the energy problem have been in vain, an energy problem that makes energy 25% more expensive for the consumer. The blame game continues as usual. The energy generators blame the energy distributors for the high cost of energy. Because of the faults within the system, the Energy Superintendent has had to pay users more than RD$133 million this year alone in credit for services not rendered by the energy producers, and things don't seem to be getting better. Because of the lack of progress by the distributors in reducing losses within the system, the subsidy for the energy sector this year was RD$600 million. The government has also failed to abide by IMF regulations with regards to the energy sector, which agreed to increase the Index of Cash Recovery at a minimum of 0.64, but this is currently at 0.57. Also the government agreed to reduce technical and non-technical losses to 38%, but which are currently at 44%.
Instead, Congress is studying a new bill aimed at increasing penalties for consumers who steal power, and removing sections of the Electricity Law that penalize distributors and that the Superintendent of Electricity has refrained from applying. The bill would continue to put the onus on paying consumers who are already penalized by having to pay some of the highest power rates in the world for an extremely deficient service. Several studies indicate that politics continues to dominate the energy system, preventing decisions aimed at its true recovery from being taken.

Senasa ironies
The Dominican social security system that would provide coverage to most Dominicans has not yet been able to be implemented, but, as reported in Clave newspaper, the government chose to spend RD$140 million, including RD$100 million for remodeling and furnishing, on the new headquarters for the Seguro Nacional de Salud (Senasa) department. The newspaper points out that luxury decorative items such as marble and carpeting have been used in the headquarters that are located at Calle Presidente Gonzalez No. 19, in the capital's Naco neighborhood. The newspaper points out that a bid for remodeling that would have cost RD$40 million less presented by Targot Comercial/Fulcar & Asociados was turned down to favor Cosmopolitan World, C. por A. It reports that the company was registered with the Chamber of Commerce as a firm whose main business is the import and export of raw material for industry, inputs and chemicals, and to represent international brands, and is, or was, a supplier to the governmental Promese generic pharmaceuticals program. But the firm later diversified to equip the UASD library and a new wing at the Dr. Robert Reid Cabral Hospital. Clave points out irregularities in the pricing, mentioning that the department's sign alone, which measures 2.5 meters wide by 3.5 tall, was budgeted at RD$605,826, which Clave reporters' research showed is three times the market price for the item. The government has already paid the contractor 90% of the total remodeling project.

The failing talk of politicians
Writing in Clave newspaper, sociologist Wilfredo Lozano observes that the language that prioritizes development has disappeared from the speeches of Dominican politicians and has been replaced by the hypocritical argument of the struggle against poverty that would imply precisely development, which is not covered. "The figure of the state as an axis of order and social changes has been trashed and the parties are no longer a means of obtaining freedom, nor do they seek any political sense, because their role has become an ideological implosion. What is important and a priority for politicians today is not the citizens. What is important for them today is to preserve the political elite as an absolute category, devoid of any decent commitment oriented towards social transformations that permit citizens a dignified life. What is left is a state that does not watch over the national heritage but rather is predatory. In a clientelistic state, the political elite has become a federation of factions vying for the public booty that by definition is scarce. A kind of separation between society and politics has taken place, which would be complete if society in its fragmentation had not moved on to seek ties with the political factions to participate in the benefits that these have access to, once they have captured the public bounty. What has occurred is there is an end to political rhetoric as a proponent of order and social change. In all this story, true citizens have been missing.

Good news for retirees
The Chamber of Deputies has approved a legal package for foreign pensioners who choose to retire in the DR, with the hope of increasing the amount of foreign investment in the country. The package, Incentives for Overseas Renters and Pensioners, aims to give citizens who are living abroad the same benefits and exemptions as those received by foreign investors in the country, when they retire here. PRSC member Victor Bisono introduced the legislation and was quoted in Diario Libre as saying that it is a way to dynamize economic activity in the country. The bill has yet to be reviewed in the Senate.

EU repatriates Dominicans
During 2006 the European Union repatriated a total of 2,700 individuals who had served sentences in various European nations. This works out at 225 monthly repatriations. In addition, 3,514 Dominicans were repatriated from the United States during 2006. This figure is up by 298 compared to 2005, even though the US government has tried to decrease the repatriation of large numbers of criminals at one time. Hoy newspaper reports that a majority of repatriation cases are from the state of New York and that a large percentage of these people are likely to try to return to the US, either using fake documents or by making illegal boat trips to Puerto Rico.

Attempted murder case moves slowly
Attorney General Radhames Jimenez says that the investigation into the assassination attempt on journalist Julio Martinez will move slowly and states that Martinez has yet to file a formal compliant against the person he claims tried to kill him. Martinez, quoted in Diario Libre, says that an unnamed government member had hired a man called Jose Venegas to murder him. Martinez is also voicing his concern at President Leonel Fernandez's supposed indifference on the subject. Martinez is a commentator on the "El gobierno de la manana" radio show on Z-101 and Radhames Jimenez said that the supposed murderer had a criminal record and was also linked to the disappearance of journalist Narciso Gonzalez.

Taking a chance at sea
Hoy newspaper publishes an article which estimates that in 2006 alone more than 25,000 Dominicans risked their lives by taking trips in small boats, known as yolas, mainly to Puerto Rico, in search of a better life. The cost of one of these trips is between RD$35,000 and RD$50,000 and Hoy reports that passengers paid a total of between RD$750 and RD$800 million this year for these trips. However, these costs aren't as high as those paid by Cubans or Chinese nationals who try to make it to the DR, reportedly as much as RD$150,000 for a trip. Romana Hernandez of the Institute for Dominican Studies at City College of New York City says that these figures represent negligent policies and unequal distribution of wealth, causing people to take these risks.

Datocentro must pay
The Civil and Commercial Court Second Chamber has ordered Datocentro to pay the Central Electoral Board (JCE) RD$50 million for failure to fulfill contractual obligations, and has also ordered that the contract, which was signed in 1997, should be rescinded. The court came to the decision even though Domingo Russo Pla, who was in charge of Macro Investments for Datocentro, was not present at the ruling. The JCE began proceedings against Datocentro in May 2006 with a US$20 million suit, alleging that the company had not modernized the JCE as had been promised, instead providing the JCE with equipment that didn't work properly. The JCE also informed that because of the lack of work by Datocentro the JCE had to invest an extra US$600,000 for modernizing the census system, and an added RD$92 million in 2000 for modernization of the cedula identification card. Datocentro was contracted in 1997 to help modernize the JCE, with a plan that included modernization of the cedula cards and the census system, and restructuring the city hall offices.
Datocentro is a bankrupt company that has discontinued operations. Despite failure to comply with the JCE contract, the company had not been held accountable until now.

Baseball update
The post-season is under way in the Dominican Winter League and there is no telling what will happen next. In the match up between Licey and Gigantes, sparks flew and benches cleared in the fourth inning after pitcher Francis Lay Bueno whizzed a fast ball past Ronnie Belliard's head. Benches cleared but luckily no punches were thrown. The Gigantes eventually came out on top 9-7. In the second match up, the Aguilas faced the Azucareros. Though they put up a good fight, the Aguilas edged out the Azucareros 3-0. The baseball action continues as each series goes into its second game.

Baseball Round Robin
Some first class Dominican baseball is now under way as the four best of six teams start all over again and play the scheduled 36 games to choose the teams for the playoffs and then the champion team that will represent the DR in the San Juan, Puerto Rico 2-8 February Caribbean Series. The round robin is attractive for tourists, who can catch some big name players as they go to bat for their teams. For most games, tickets should be available the same day at the stadiums, but fans are advised to arrive extra early to grab tickets for any Licey and Aguilas games scheduled for Santo Domingo and Santiago ball parks. Games are scheduled for 7:30pm, games on Friday and Saturday start later at 8pm, and games on Sunday at 5pm.
Tourists staying in the Juan Dolio and La Romana areas can catch games at the Francisco Micheli Stadium in La Romana: on Wed, 27 Dec (Aguilas-Toros), Fri, 29 Dec (Licey-Toros), Tues, 2 Jan (Gigantes-Toros), Thurs, 4 Jan (Aguilas-Toros), Mon, 8 Jan (Licey-Toros), Tues, 9 Jan (Gigantes-Toros), Wed, 10 Jan (Aguilas-Toros), Mon, 15 Jan (Licey-Toros) and Tues, 16 Jan (Gigantes-Toros). Juan Dolio is half an hour from La Romana.
The schedule for Santo Domingo games at the Quisqueya Stadium is: Wed, 27 Dec (Gigantes-Licey), Thurs, 28 Dec (Toros-Licey), Tues, 2 Jan (Aguilas-Licey), Thurs, 4 Jan (Gigantes-Licey), Fri, 5 Jan (Toros-Licey), Tues, 9 Jan (Aguilas-Licey), Wed, 10 Jan (Gigantes-Licey), Sat, 13 Jan (Toros-Licey) and Tues, 16 Jan (Aguilas-Licey).
Santiago games at the Cibao Stadium (about 45 minutes from Puerto Plata) are scheduled for: Tues, 26 Dec (Licey-Aguilas), Fri, 29 Dec (Gigantes-Aguilas), Sat, 30 Dec (Toros-Aguilas), Wed, 3 Jan (Licey-Aguilas), Sun, 7 Jan (Licey-Aguilas), Mon, 8 Jan (Gigantes-Aguilas), Thurs, 11 Jan (Toros-Aguilas), Sun, 14 Jan (Toros-Aguilas) and Mon, 15 Jan (Gigantes-Aguilas).
San Francisco de Macoris games at the Julian Javier Stadium (about an hour from Cabarete, Puerto Plata): Tues, 26 Dec (Toros-Gigantes), Thurs, 28 Dec (Aguilas-Gigantes), Sat, 30 Dec (Licey-Gigantes), Wed, 3 Jan (Toros-Gigantes), Fri, 5 Jan (Aguilas-Gigantes), Sun, 7 Jan (Toros-Gigantes), Thurs, 11 Jan (Licey-Gigantes), Sat, 13 Jan (Aguilas-Gigantes) and Sun, 14 Jan (Gigantes-Toros).
 
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