There is widespread disagreement concerning the sale of the nationalized cement manufacturing facility to a Swiss multinational. In a surprise move, Pedro Breton, head of CORDE, the state enterprises corporation, revealed that the government had ordered the sale of 70 percent of the company’s shares to Swiss-based Umar LTD-Holderbank, one of the world’s leaders in the cement industry.
Immediately thereafter, business and political leaders expressed their dissatisfaction with the way the negotiations had been conducted. They argue that the sale should have been debated by the Congress and maintain that the transaction sets a bad precedent for future privatization in the Dominican Republic.
The country’s laws stipulate that the sale of any government-owned enterprise valued in excess of RD$20,000 must be authorized by Congress, which was not done in this case.
Speaking before the national assembly at the request of Congressmen, Mr Breton explained that the sale was mandated by the President himself because of the serious crisis that the company is currently experiencing. He argued that the terms of the sale will benefit both parties equally. Umar is investing US$47 million to modernize and equip the facilities and expects to produce 800 metric tons per year. Money-hemorrhaging state companies have become a constant source of worry for the Dominican government.