1999News

CEA tender today, amidst major problems

The Commission for the Reform of the Public Enterprise (CONEP) announced the tender for the 30-year lease of sugar cane fields, cattle fields and ranches, as well as sugar mill infrastructure and production facilities will take place today. This is the first phase of the privatization of the State Sugar Council (CEA) property. A second phase will involve the concession of lands with tourism or urban development potential. The first phase calls for the concession of leases to the property of Barahona, Río Haina, Ozama, Boca Chica, Quisqueya, Santa Fe, Porvenir, Consuelo, Amistad and Montellano sugar mills. The CEA tender has been affected by the millionaire debts maintained with suppliers and workers. The CEA is a deficitary organization that was kept alive with yearly multi-million subsidies from the central government. A major political scandal also presents a major obstacle. Reportedly in the past year, during the administration of the previous CEA manager, thousands of acres of land were sold for very low prices to PLD followers. Defending his administration, the former manager said the sales had the go ahead of the President of the Republic, Leonel Fernández and of today PLD presidential candidate, Danilo Medina. The CEA scandal is viewed as big time corruption, and news analysts say it is right up there with the Hydro Quebec scandal that tainted the government of former President Joaquín Balaguer (PRSC) and the trial for corruption against former President Salvador Jorge Blanco (PRD). Coincidentally, there is talk in the press that these two dormant cases may be reactivated in the judiciary. Companies that are expected to bid today for CEA sugar mills and property are: Impulsora Azucarera del Noroeste (Zucarmex) Booker Tate Limited Consorcio Dominicano Franco Americano Consorcio Pringamosa Consorcio Azucarero Ozama Pantaleon, S.A. Consorcio Agroindustrial Cañabrava Incauca, S.A.