Fernando Fernandez says that Customs could lift the US$1 billion fine that would have been levied against Barrick Pueblo Viejo for violations in their first shipments, following the renegotiations. Fernandez said that Customs would be installing a laboratory to guarantee that the shipments made by Barrick contain exactly what is stated in the declaration. Mechanisms for monitoring the shipments were incorporated in the preliminary agreement.
The Medina administration will receive US$483 million more than originally expected following the renegotiation of the special lease agreement with Barrick Pueblo Viejo, as reported in El Dia.
A final agreement needs to be drafted and returned to Congress. The political composition of the Congress that will approve the agreement is almost the same as the chamber that approved the previous contract signed by Medina’s predecessor and president of the ruling PLD party, former President Leonel Fernandez, and which he described as “unacceptable.” In 2009, of 178 deputies, only 11 voted against, 25 abstained and 27 were absent. The Chamber of Deputies and the Senate are still headed by the same PLD legislators, Abel Martinez and Reinaldo Pared Perez, who were in the posts when the Barrick contract was initially approved without modifications.
The contract replaced the Placer Dome contract, signed in 2001 during the President Hipolito Mejia government, which established that the mining would require US$300 million in investment, with the state receiving 50% in benefits.
In an interview in El Dia, mining expert Osiris Leon stated that “Leonel, who has always been extremely generous with everything that guarantees keeping himself in power, ordered the legislators to approve, without reading, the urgent modifications to the contract, the same way it was sent by Barrick Gold,” said Leon.
Barrick negotiated a contract that established that the Dominican government would receive its share of the profits after the investment costs were covered. Barrick claims to have invested US$4 billion. Minister of Economy Temistocles Montas said that SGS of Switzerland is auditing Pueblo Viejo Dominicana Corporation and will reveal whether Barrick has invested US$4 billion. Recently, there were news reports of major imports of large equipment.
PRSC deputy Marino Collante told acento.com.do that the lesson learned is that legislators should not give in to pressure from their political leaders.
Collante said that President Leonel Fernandez, Miguel Vargas Maldonado and Hipolito Mejia of the PRD, and Carlos Morales Troncoso of the PRSC had exercised pressure on the legislators to pass the Barrick contract. He said that political guidelines would no longer be followed blindly; they will at least be “analyzed.”
www.acento.com.do/index.php/news/77733/56/Leonel-Miguel-Hipolito-y-Morales-presionaron-a-favor-de-Barrick.html
http://eldia.com.do/nacionales/2013/5/9/113822/Barrick-Gold-y-la-historia-de-un-contrato-muy-complejo
www.acento.com.do/index.php/news/77733/56/Leonel-Miguel-Hipolito-y-Morales-presionaron-a-favor-de-Barrick.html