Judge Victor Martinez ordered the release of 10 of the 12 men accused of the RD$1-billion fraud against the state and other irregularities in connection with Plan Renove. Attorney General Francisco Dominguez Brito filed the charges against those behind the governmental transport plan, including six cabinet ministers from ex-President Hipolito Mejia’s administration.
Pedro Franco Badia and Ramon Emilio Jimenez and Gervacio de la Rosa were released without bail, but ordered to visit the Department of Prevention of Corruption (Depreco) on the last day of the month as a department requirement.
The judge ordered Siquio Ng de la Rosa, Diogenes Castillo, Milciades Amaro Guzman, Francisco Perez Castillo, Casimiro Antonio Marte and Fabio Ruiz to post a RD$1-million bail (RD$17,000 cost), and Angel Rondon a RD$5-million bail (RD$60,000 cost). Sam Goodson, a US citizen resident, is also included in the case, but is abroad.
Domiciliary arrest was ordered for Juan Julio (Johnny) Morales from 20 November to 19 February 2005.
District Attorney Jose Manuel Hernandez Peguero described the court’s decision as “complacent.”
Judge Martinez said that the prosecutors could decide to ask him to step down from the case by reason of his known active political affiliation. He admitted that he had been mayor in San Jose de Ocoa, winning on the PRD party ticket.
Depreco director Octavio Lister said that the important thing is that the judge has confirmed there were sufficient incriminating elements to sustain legal prosecution.
The case revolves around a US$159-million loan taken on by the Mejia government to finance the acquisition of 5,648 vehicles, purportedly to improve public transportation in the DR. The program was criticized for irregularities from day one, however. In January of last year, even the Mejia administration’s controller general, Federico Lalane, released findings of an audit that found a long list of irregularities, including the allocation of vehicles to family members and friends of Plan Renove’s board of directors of the program and affiliates, the import of trucks and forklifts that had nothing to do with public transportation and irregularities in the method of purchase. A more recent audit was carried out by the Chamber of Accounts, whose members were appointed by the Mejia administration.
The Attorney General’s office has resubmitted the findings from Lalane’s audit, and that of the Chamber of Accounts, and also included new evidence of wrongdoing in its presentation of the case to the judiciary. New accusations say that board directors and people related to them held on to payments made by the beneficiaries for their monthly fees, keeping them for their own gain. There is even a signed authorization dated 17 July 2003, whereby the board authorized the unions to retain 4% of the 13% annual financing charge on the vehicles.
Interestingly, there has been no arrest order for Juan Hubieres, the director of one of the larger transport unions to benefit by Plan Renove, Fenatrano, and now fellow beneficiary, Conatra’s Antonio Marte has called for his detainment also. Meanwhile, Hubieres says that the government should include TV producer Freddy Aguasvivas in the case for his close relations to Sam Goodson and Johnny Morales, two of those heavily implicated in the scam. Fabio Ruiz told the press that the government should investigate who it was who bought the first OMSA buses during the 1996-2000 Fernandez administration for US$83,000 apiece, a price that, according to him, was exaggerated by US$23,000.
Upon filing the accusations in the legal system last week, Attorney General Dominguez Brito said, “This country cannot sustain a fraud of RD$1 billion.” The Que se dice column in Hoy commented on Saturday that, while it is true that the country cannot withstand such swindle, neither can it take another mascarade disguised as a fight against corruption.
Orlando Gil, the Listin Diario’s political commentator, speculated on Saturday that the decision to proceed with the Renove corruption case on Friday coincided with the ambassadorial members of the Dublin Group’s meetings with President Leonel Fernandez on Tuesday and Foreign Minister Carlos Morales Troncoso on Thursday. These ambassadors have stated that international aid is of no use if it ends up in private pockets or in the pockets of government officials.