2006News

A little shortfall? RD$2.08 billion

The public sector is RD$2.08 billion behind in its payments to the Social Security pension fund. What is more, two government institutions have created their own pension funds, something that contravenes Law 87-01 that regulates the Social Security System. As a result, the National Council of Business (better known as CONEP), along with the Employers Confederation of the Dominican Republic (COPARDOM) have firmly requested the National Social Security Council to designate just who is going to occupy the positions of Superintendent of Health and Risks for Workers and of the Pension Fund. Also missing, according to Hoy newspaper, is the general manager for Social Security. All of these posts are contemplated in Law 87-01, but have yet to be filled. According to the document written by CONEP and COPARDOM, and which details just who gets how much money, “the public sector has back payments of RD$2.08 billion, including late payment fees and interest.”

The shortfall is due to the fact that the Justice Department, the ayuntamientos (municipal governments), the Ministry of Education and the decentralized governmental commercial enterprises have not paid their quotas.

The problem goes a bit further. CONEP and the COPARDOM say that since the terms for the current holders of the three jobs has expired, any decision taken by these officers is open to rejection. The private sector entities also point out that the law allows for the re-appointment of the current official, but only if they are subjected to a thorough job evaluation. In such a case, they can be put up for the posts along with other candidates.