Independent economist Jose Luis Aleman warned during a seminar on the sovereign bonds held at the Pontificia Universdad Catolica Madre y Maestra about the lack of tenders and controls on public works that would be built with money from the bond issue. The Jesuit priest who is director of the School of Economics of the University said there is much skepticism about how the funds will be used given the track record of corruption and pilfering of resources. “Experience shows that these bonds will not be used as promised, maybe 60 or 70% will be used as planned,” he said. Given the lack of controls in the state and the discretionary power the government will retain, he said, “it is obvious that some good things will get done, but also they will make many people rich.” He said that one of the most negative effects will be the need to schedule more bond issues to pay off the first issue. Father Aleman said this would force the DR into increasing debt. At the seminar, several less costly options of financing were suggested to the government such as selling the Montellano sugar lands and other state property or using financing from the World Bank or InterAmerican Development Bank, among others.
