2005News

Suit and counter-suit

The first act has the municipal government of the National District suing power distribution company EdeSur for RD$622 million due in compliance with the Electricity Law. According to the law, the electricity distributor is supposed to pay the municipal government 3% of its gross income. Now Mayor Roberto Salcedo of the National District has started two embargoes against the accounts of EdeSur according to sources. The Listin Diario newspaper says that the legal procedures began last December as the city government sought the money legally due to the municipal government. EdeSur had a projected income of RD$8.95 billion in 2004 and is expected to collect RD$11.3 billion in 2005.

Act II has the electricity distributor EdeSur counter-suing the municipal government and accusing Mayor Salcedo of violating an agreement. Ruben Bichara, the administrator for the government-owned EdeSur, says that his company will sue to collect the RD$960 million that is owed by several other municipalities. According to statements in the Listin Diario, Bichara said that his company feels that Salcedo’s demands are “undignified and inconsiderate.” Bichara said that Salcedo had violated a gentlemen’s agreement that was made in the presence of Interior & Police Minister Franklin Almeyda, the head of the Dominican Muncipal League Amable Aristy and the head of the Dominican Municipal League and the head of the Federation of Municipalities Fausto Ruiz. The deal was that Salcedo would wait until a study was finished and would accept the results of that study. An official of the municipal government said that EdeSur was overcharging for power supplied for street lights in an effort to reduce the amount owed on the 3% tax stipulated under the Electricity Law.