2003News

Power collections collapse

Edwin Croes, general manager of the Ede-Norte and Ede-Sur power distributors now under government control, told Hoy newspaper that collections fell RD$1.2 billion in November. He attributed the decline to a mafia operating within the distributors’ structure, as well as to the increased blackouts and the suspension of the fraud control police operation (PAEF). Following the buyout, the government cut funding to the PAEF program that was at the service of the companies when under the management of the Spanish company, Union Fenosa. Croes complained employees have not been paid in the two months nor have they received funds for the operation of inspector vehicles. Croes explained he suspects an inside mafia is responsible for the reduced billing. He said that insiders are apparently negotiating billing total reductions with large and middle-sized clients for a fee. Croes threatened that those caught would be treated severely -not just lose their jobs as he said was the practice in the past. He also mentioned that many of those found delinquent in the past latter found jobs in the Superintendence of Power or with the companies they were irregularly assisting. Meanwhile, Ede-Este, which controls a third of the power distribution market and was not bought back by the government, reports that collections only fell RD$60 million, about 5% of total billing. This is attributed to the worsening of the economy and the extended blackouts.