2000News

President Leonel Fernández press conference

President Leonel Fernández addressed the nation and afterwards gave a press conference. He spoke in the presence of his cabinet members. Following are some of the main topics addressed and summaries of the answers. INDOTEL President-elect Hipólito Mejía has said that even if he violates the Constitution he will replace President Fernández’s recently appointed Telecommunications Institute president, Mariano Germán. President Fernández said that in the most recent meeting with President-elect Mejía they discussed possible solutions to the impasse. Mejía says that it was unethical of the President to appoint the Indotel president, when his government had only 2-1/2 months to go. The law that created Indotel establishes the president of the organization should remain in the post for four years. President Fernández said that the removal of the incumbent by decree would place the judicial order and the state of law in the DR in danger. Corruption President Leonel Fernandez said that during his administration justice has been free to act and will be likewise regarding corruption in his administration. He said that he does not fear persecution from the PRD government that starts 16 August 2000. He said that he will remain in the DR to defend himself. "My life has been a clean slate, marked by honesty, I have a clear conscience, I did not come to the government to become a rich man," he said. He said the officers of his government should have the same attitude. "No one is going to seek exile, no one will suffer a heart attack; they will confront here who or what is necessary." He defended his government as the most honest of governments in the Dominican Republic. Price of fuel President Fernández said he does not feel in the obligation to increase the price of fuel as his economic team has put in place alternative measures, such as fund transferences and savings to pay the foreign debt. Nevertheless, he said the government has a deficit of RD$1,000 million to meet the foreign debt payments. This deficit will increase to RD$4,000 million by December 2000, if additional measures are not taken. He said that the increase in the cost of petroleum is the main enemy, President-elect Hipólito Mejía will have to confront. Power crisis President Fernandez said that the debt with the foreign energy generators and distributors is US$52 million that is perfectly manageable. [The generators and distributors say the government owes US$120 million.] He said he inherited a debt of US$102 million. He said that the solutions to the energy crisis are in place, and that time is needed. He said that the debt with AES is RD$75 million and with Union Fenosa RD$300 million. He spoke of the power plants both AES and Unión Fenosa are installing to increase the generation capacity and reduce power outages. He said the government is absorbing a RD$200 million monthly subsidy on the fuel cost increases so that these are not passed to consumers. [Regardless of this subsidy Dominican consumers pay one of the highest power rates in the Americas, affecting the competitiveness of Dominican industry.] He defined the reform and capitalization process as complicated and contradictory. He said that the electricity companies are not aware of the Dominican social reality and want to go too fast. "And I myself have had to talk with the managers of these companies to make them see that their quest for profitability, their quest for profits and earnings cannot be beyond the welfare of the Dominican Republic," he said. Increases in # government employees President Fernández addressed recent declaration by soon-to-be Administrative Secretary of the Presidency Pedro Franco Badía that 9,000 employees had been added since January 2000, at an additional cost of RD$50 million per month. He said that the present payroll is 263,000 employees, down from 264,000 employees. [The government privatized most of the state enterprises, which considerably reduced the number of public sector jobs outside of the central government and its autonomous institutions.] On government debt President Leonel Fernandez said that the government debt with contractors and suppliers is not more than RD$3,000 million. This does not include debts with state institutions and autonomous institutions, such as Banco de Reservas, CDE, Inespre and Banco Agricola. He said he inherited an internal debt of RD$5,000-6,000 million from the Balaguer administration. He said the government has created the mechanisms of paying this debt with bonds. He denied there is a crisis in the economy. He said the country has averaged 8% GDP growth in the past three years, and inflation of 6%. He said that inflation was 0.2% and growth was 11.5% for the first trimester of the year. He said that the foreign debt represents 2% of the GDP, and the domestic debt is no more than 1%. On role of PLD in the opposition President Fernández spoke of the reticence of the PRD to participate in dialogue and that it constantly gave the PLD administration the shoulder, giving instead preference to an attitude of confrontation. "Now that they are in government, they will understand that to govern one needs to take into account and respect all," said Fernández. He spoke against the resource of strikes as a way to oppose a government. "They lead nowhere." he said. "There should be a responsible, constructive, although rigorous opposition," he said. "I understand it should be rigorous in the sense of pointing out weaknesses, but not with a destructive mind." He said the PLD will establish their position in their coming congress. Fernandez after 16 August 2000 He confirmed that he is working on the creation of a foundation that would dedicate itself to foster education programs. He commented that the positive side of leaving the presidency is that he will recover his personal freedom. "A President is no more than a slave with a title of nobility," he said. "One has to adapt to that aspect, even psychologically. One cannot commit no sin without it being known." He said he would be at the disposal of his political party, the PLD and would work so that the PLD made a comeback in 2004.