2005News

Billing Shell

The government is asking Shell to pay RD$237 million in past due payments dating back to 1994. As reported in Hoy newspaper the dividends are due on Dominican Petroleum Refinery profits of RD$1 billion. The source says that the new government has asked the refinery to deliver the financial statements for 2002 and 2003 that are pending. The source said that the measures are part of the new interest on behalf of the Fernandez government that the practice of the unilateral management of the operations by Shell be discontinued. The contract signed with Shell stipulates the government’s participation. Reportedly, the government has requested that a Dominican general manager be hired. Reportedly, government earnings were affected because purchases of hard currency needed for refinery operations were carried out unilaterally by Shell in the past. Since this practice was discontinued with the change of government in August 2004, there have been savings of around RD$175 million, as reported in Hoy newspaper.