Hoy newspaper says that it is the Central Government, not the Municipality of Santo Domingo, that must pay the debt for the first 400 of the 1,200 vehicles that the government authorized the Federacion Nacional de Transporte La Nueva Opcion (Fenatrano) to import. Former Mayor Johnny Ventura had authorized on 23 September 1999 the import of the vehicles, guaranteeing the operational funds of the city government of Santo Domingo by procuring the loan. Hoy newspaper says that the Executive Branch will accept responsibility for the debt.
With Oficio 746, Technical Secretary of the Presidency Rafael Calderon told Mayor Juan de Dios Ventura in writing that the government would provide the municipality with the resources necessary to cover any default that could occur regarding payment of the loan to the governmental Banreservas.
Last month Banreservas discounted RD$3.7 million from the account of the municipality of Santo Domingo, as it was authorized to do with the guarantee. The Banco de Reservas says that Fenatrano owes it RD$19 million, according to the report in Hoy.
Mayor Roberto Salcedo declared that the accounts of the municipality were wiped out by the deduction made by the bank and that he could be forced to let his personnel go and close the municipality.
The buses were purchased from Hyundai Americas Corporation, a company founded for the import of vehicles under the Plan Renove of the Mejia administration. The company representative is Johnny Morales, who has accompanied President Hipolito Mejia on several of his trips abroad. The Hyundai vehicles do not have the support of the Hyundai dealership in the country, Magna Motors. A bid was never held to select the vehicles.
