President Leonel Fernandez inaugurated the 20.91 kilometer road from Cruce Las Yayas to Padre Las Casas in the southwestern Azua province. Listin Diario reports the project was built with an investment of RD$103.3 million. Also inaugurated was the Center for Computer Training installed by the Dominican Institute of Telecommunications (INDOTEL) and Fundacion Sur Futuro directed by Melba de Grullon.
A man was arrested in Padre Las Casas, Azua, when he entered the area where a few moments later President Leonel Fernandez inaugurated the road fro Cruce Las Yayas to Padre Las Casas. The man was carrying a homemade gun known as "Chilena". Listin Diario reports that according to people who know the man, 35-year-old Modesto Paniagua is allegedly an unhappy PLD activist. They believe it could have been that he thought he could get past the security checks without being detected. But he was being checked by undercover agents mixed with the public who eventually stopped and searched him, finding the gun. He was also carrying three capsules (bullets) well hidden under his testicles. He was sent to Santo Domingo for investigations. Sources told Listin Diario that Paniagua would be indicted.
Tax evasion in Las Americas International Airport cargo area has reached RD$19 million but could be as high as RD$40 million, according to Customs Director Miguel Cocco as reported by Listin Diario. Investigations are advanced and seven employees have been fired while another 12 are being investigated. If they are found to be involved, they too will be fired. Merchandise imported without paying established duties was women's clothing. Cocco has warned that all those involved, importers and accomplices, will be punished exemplarily.
Diario Libre focuses today on Aerodom, the company that has the tax-exempt concession to manage the Las Americas, Puerto Plata, Barahona, Samana and La Isabela airports. The newspaper highlights the company is a master in the art of negotiating with government. The report mentions that the company has barely carried out half of the US$230 million in investments it committed to make at Las Americas, Gregorio Luperon, Maria Montez, Samana airports. Instead, the company successfully negotiated to receive US$2.30 per arrival and departure of passengers at the airports, in addition to its management fees already contractually established. Diario Libre explains the company has justified in addendums that the economic difficulties of the country have impeded it to secure financing abroad. The reporter mentions that the Aerodom El Catey terminal, which the company is building west of Samana is being carried out with the US$2.30 charge per entry or departure of passenger. Aerodom had won the airports management tender with its commitment to expand the runway at Arroyo Barril airport in Samana, which its contender, a French company, said could not be done. Aerodom reports that it has invested US$45.2 million to build El Catey airport, that is slated for a November inauguration. Diario Libre reports the company had made investments for US$118 million in Dominican airports as of 2005.
Migration Director Carlos Amarante Baret called for farm and engineering companies to limit themselves to the legal 20% of foreigners in their work force. The restriction has existed for years but is systematically ignored by employers.
Radhames Segura, spokesman for CDEEE, the government electricity corporation, admitted that the government is obliged to pay 30% overcharge when compared to international standards when purchasing power from local generators. He told Hoy newspaper that the government seeks to renegotiate the Agreement of Madrid (signed in the Mejia government), the Smith and Enron agreement (signed during the Balaguer administration) and the Cogentrix agreement (signed during a previous Fernandez administration). He said the renegotiations are necessary to reduce the overpricing.
During the interview, he said that the DR needs to seek alternate fuels to reduce costs, thus he justified the interest in the coal-fueled power plants that are slated to be installed during this government. This week, Emirates Power was chosen to install four 300-megawatt plants. Segura told the newspaper the price of the kWh would be US$0.05, and the plants would be installed in Manzanillo and Hatillo, Azua. He said this would be much less than the present US$0.10-.12 cent the government is now paying to Itabo power generation company. He said World Bank environmental protection standards would be enforced.
Segura accepted criticism of the errors in the capitalization of power in the Dominican Republic, started under the Fernandez government (1996-2000). But he said that when the Mejia government had the opportunity to correct the errors, and instead he chose to worsen these, in detriment to Dominican consumers.
He said that the Fernandez government had left contracts that would have expired in three years, but the Mejia government extended their duration to 15 years. He said that the Madrid Agreement signed by the Mejia government Sept-October 2001 instituted a "perverse incentive." He explained that the earnings of the power companies increase, and their yield, with the price of petroleum. "This perverse incentive paradoxically means higher prices of fuel generate increased profits for the producers," he said. He explained that the way the formula is structured based on an initial price that had to do with the fuel and another with the cost of operation and maintenance. The formula was not adjusted even if the price of petroleum increased, said Segura. He says there is an over-indexing in favor of the generators, which results in a 25-30% overcharging in the prices of power.
He said the addendum was instated in violation of the Electricity Law that says that contracts need to be granted in tenders. He said that President Fernandez has entrusted a commission to negotiate with the producers.
The bicameral commission that is studying the 2006 Budget and Public Expense Bill prepared a preliminary report based on points negotiated with government technicians. According to a report by Diario Libre, the commission's chairman Hugo Rafael Nunez explained that the report will help expedite the bill's approval when the Executive Branch submits the addendum to Congress containing the issues agreed upon. The Fernandez government is at present using the 2005 Budget.
Franco Uccelli, of Bear Stearns brokerage house, reports today on the delay in congressional agreement to the London Club debt restructuring agreement. He says that the delays are putting the debt relief accord at risk.
He tells that in mid-October, the Dominican government had announced that it had reached an agreement with a group of international commercial banks, known as the London Club, to defer for up to five years (two years of grace plus three years for repayment) US$180 million worth of debt payments coming due in 2005-2006.
And that the country's minister of finance had confirmed this week that the accord has only been sanctioned by the country's senate and urged the lower house of congress to expedite its approval to prevent it from becoming inoperative.
He explains that the first interest payment under the terms of the restructuring agreement was due in early January, but the government has not been able to pay it because the agreement's full congressional ratification is still pending. "This means that the London Club could pronounce the accord void at any time due to non-payment and could declare a default on the outstanding debt," he writes.
"While we are not aware of the London Club's intent to exercise its right to call off the deal, we believe that it is risky for the Dominican Republic to continue to try its patience, particularly at a time when the country is gearing up to launch a new international bond to buy back its Union Fenosa debt," he concludes, while observing that headline indicators remain solid in the Dominican Republic, but bumps along the way continue to make this a less than perfect story.
Meanwhile, all the attention in the Chamber of Deputies seems to be focused on passing the 2006 Budget. Alfredo Pacheco, president of the Chamber of Deputies, says today that if Congress does not pass the budget by 15 February, the 2005 budget would have to be implemented throughout the entire year. This would mean the government would have discretionary use of surplus resources.
Wages are worth much less, is the conclusion of an analysis done by Listin Diario that calculates that if a person earned RD$20,000 per month in 2000 at a RD$16.18 currency exchange rate, the salary was equivalent to US$1,236.10. Today, the same salary in pesos calculated at a RD$30.28 exchange rate would be equal to US$660.50. To earn the same amount of dollars the person would have to receive RD$37,429, or a RD$17,429.10 increase. Two great enemies of the real salaries of Dominicans have been devaluation and inflation. The peso has devaluated 87.1% since 2000.
As of yesterday, the DR will preside for the next six months the Council of Ministers for the African, Caribbean and Pacific (ACP) states and the Ambassadors' Committee, according to official sources quoted by El Caribe. The President of the National Office for European Development Funds (ONFED), Onofre Rojas, will preside the Council of Ministers and Federico Cuello will be the Dominican ambassador to the Ambassadors' Committee in Brussels. Rojas stated that the ACP group, composed of 79 countries, is one of the most stable and consistent in the international scenario. He explained that the Council of Ministers accepted a proposal by the DR to hold a summit with the United Nations, the ACP states, and the European Union, with the intention of getting the EU to establish a much firmer cooperation towards the ACP group.
The European Union announced it has available RD$230 million to equip 13 vocational schools nationwide. The first to benefit are the polytechnical schools Victor Estrella Liz and Cardenal Sancha in Santo Domingo; Jose Delio Guzman in Bonao and Federico Henriquez y Carvajal in Barahona.
Today, new Haitian ambassador Fritz Cineas will present his credentials to President Leonel Fernandez as confirmed by the President himself yesterday in Azua. Diario Libre reports that Fernandez did not explain why it took one month to receive the official presentation of the new diplomat.
Attorney General Francisco Dominguez Brito announced he will take a three-month unpaid leave of absence beginning 16 February to campaign for his candidacy as Senator of Santiago for PLD. He made the announcement during a press conference yesterday. The leave was requested yesterday to President Fernandez. During Dominguez's leave, Joint Attorney General Rodolfo Espineira will be Acting AG.
"Politics is like war, and with the onset of the so-called pink alliance, I have been called and I take on the commitment to lead the battle front," stated Dominguez Brito in his acceptance words.
Hatuey De Camps' party, the PRSD, will have to change the colors that identify the organization as determined by the Central Electoral Board (JCE) that bases its decision on the law that says the colors of the national flag cannot be used for partisan activities, as reported by Diario Libre. Disgruntled De Camps has agreed to change the blue stripe to green, not without claiming he is the victim of persecution from electoral judges that respond to the interests of Hipolito Mejia's faction, the PPH.
A group of 78 Dominican ex-convicts, including physician Pedro Rafael Gonzalez Pantaleon, arrived in Santo Domingo yesterday after they were deported from the US. They flew in on a DC-9 aircraft rented by the US Department of Justice. Gonzalez Pantaleon had been sentenced to five years and six months under Medicare fraud charges. He said he will call for a press conference in the upcoming days to tell the truth on his imprisonment. Diario Libre reports he had been arrested by INTERPOL in Amsterdam in 2000 for committing a US$25 million fraud against the US health insurance system.
The nominees for the 2006 Casandra Awards have just been released. The Casandra Awards honor the best in the performing arts and show business during the year. The winners are selected by voting members of the Asociacion de Cronistas de Arte, the local arts reviewers circle. The event will be held at the National Theater on 24 March.
The nominees this year are:
Classics & Theater:
Best Actor of the Year: Johanny Sosa (Andrea), Frank Perozo (La Maldicion del Padre Cardona), Luisito Marti (Los locos tambien piensan)
Best Movie Actress of the Year: Zoe Saldana (La Maldicion del Padre Cardona), Flor de Bethania Abreu (La Maldicion del Padre Cardona), Any Ferreiras (Andrea)
Best Theater Director: Germana Quintana (Eva y el sexo, El prestamista), Maria Castillo (Los hijos del Fenix), Angel Hache (Paradise), Waddys Jaquez (Requiem por la Damian), Jose Nunez (El Regreso)
Best actress of the Year: Cecilia Garcia (Victor Victoria, Carolina Rivas (Victor Victoria), Giamilka Roman (La conferencia), Lidia Ariza (Miss Pina Colada)
Best Drama Production: Paradise (Angel Hache), El prestamista (Germana Quintana), Los Hijos del Fenix (Maria Castillo), Requiem por la Damian (Waddys Jaquez), El regreso (Jose Nunez)
Dance, Music and Shows:
Best Classical Dancer: Armando Gonzalez, Maikel Acosta, Lisbell Piedra, Pastora Delgado, Carolina Silvestre
Best Classical/Modern Choreographer: Victor Ramirez, Guillermo Cordero, Patricia Ascuasiati, Carlos Veitia
Best Classical/Modern Performance: Victor Victoria (Guillermo Cordero), El Lago de los Cisnes (Ballet de Alina Abreu), Los Famosos Momentos Clasicos, Carta Post Data (Monika Despradel), Don Quijote (Academia de Ballet Concierto)
Best Children's Show: El color del silencio, La Pinky y los Piratas de Barbanegra, Alambrito y la Tia Nancy.
Best Popular Show Choreographer: Guillermo Cordero, Chiqui Haddad, Isadora Bruno
Best Folklore Ballet: Ballet Folklorico Nacional, Ballet Folklorico de la USAD, Ballet Centro de la Cultura de Santiago
Best Classical Vocal: Francisco Casanova, Otilio Castro, Paola Gonzalez, Modesto Acosta, Juan Cuevas
Most Outstanding Dominican Artist Abroad: Michelle Jimenez, Francisco Casanova, Juan Luis Guerra, Michel Camilo
Best Merengue Orchestra: Sergio Vargas, Kinito Mendez, El Jeffrey, Eddy Herrera, Rubby Perez
Best Salsa Musician: Michell, Sex Appeal
Best Pop Rock 2004: Alex Ferreira, CeroBit, Auro & Clemt, Los Manolos, TKR
Best Contemporary Religious Music: Nancy Amancio, Michelle Khury, Alfareros, Lily Goodman, Renacer en el Espiritu (Padre Chelo)
Best Orchestration and Musical Arranger: Rando Camasta, Ramon Orlando, Manuel Tejada, Juan Valdez, Freddy Macumba
Best Songwriter: Wason Brasoban, Anthony (Romeo) Santos, Pavel Nunez, Enrique Feliz, Ramon Orlando
Best Music CD: God's Project (Aventura), Mas que suficiente (Chichi Peralta), Sin fecha de vencimiento (Negros), Piel sin alma (Raulin Rodriguez), MQ (Milly Quezada)
Merengue of the Year: Estoy dolido (Eddy Herrera/Martin de Leon), Nos quieren dividir (Sergio Vargas/Charlie Mosquea), Si yo me vuelvo a enamorar (Jeffrey/Carlos Brito), Sin ti (Fernando Villalona/Aramis Villalona), Perro ajeno (Rubby Perez/Ramon Orlando
Bachata of the Year: La pared (Joe Veras/Enrique Feliz), La boda (Aventura/Anthony Romero), Estoy perdido (El Chaval), Todas tus cosas (Jimmy Bauer/Cherito Jimenez), El beso (Aventura)
Concert of the Year: Tours 20 anos (Juan Luis Guerra), A Chavon por ti (Alfareros), Que cante el cantante (Rubby Perez), Cuando se quiere de versa (Francisco Casanova)
Best Show: Espectacular (Jackeline Estevez), Vivan los 80 (Amaury Sanchez), Politicum forte (Freddy, Cuquin and Boruga), Parodia nacional (Julio Sabala)
Best Vocals: Vickiana, Jackeline Estevez, Joseguillermo, Pavel Nunez, Marcel
Best Bachata Performer: Frank Reyes, Raulin Rod, Joe Veras, Aventura, Anthony Santos
Best Grassroots Music Group: Krisspy, Jovanny Polanco, El prodigio, Jose el Calvo
Television & Radio:
Best Specialized Program: Con Jatnna (Jatnna Tavarez, Color Vision), Fashion TV (Tita Hasbun, Color Vision), Cocina Gourmet (Eugenia Rijo, Telecentro), Sabrina en fin de semana (Sabrina Brugal, Color Vision)
Best Investigative Journalism: El Informe (Alicia Ortega-Antena Latina), Nuria (Nuria Piera, Color Vision), La Vida Misma (Mirna Pichardo, Color Vision), Latitud Cero (Lisette Selman-Miguel Susana, Telecentro)
Best Daily Variety TV program: Chevere Night (Telesistema), Con Freddy & Punto (Color Vision), El poder de las 12 (Supercanal 33), Gozalo (Color Vision), Perdone la Hora (Color Vision)
Best Weekly Variety TV Program: Divertido con Jochy (Telesistema), Sabado de Corporan (Color Vision), 9 x 9 Roberto (Color Vision)
Best Variety Show: Hola Gente (Tania Baez, Antena Latina), Noche de Luz (Luz Garcia, Antena Latina), Muy Personal (Miralba Ruiz), Gianny Espectacular (Gianny Paulino)
Best Children's TV program: Sabado Chiquito de Corporan (Color Vision), Vivan los Ninos (Channel 29, Santiago), Saltarin y Gasparin (Televida), El Club de Isha (Telemicro)
Best Youth TV Program: Iandra Full (Teleantillas), Conecta 2 (Telecentro, De Calle con Dafne (Ame 47), En accion con Manuel & Hermes (CERTV), Zona Roja (Telecentro)
Best Comedy Program: Tirimundati (Telemicro), Raymond y Miguel (Telesistema), El cabo y su cuartel (Telesistema)
Best Comedian: Manolo Ozuna (Color Vision), Raymond Pozo (Telesistema), Oscar Perez (Color Vision), Fausto Mata (Boca de piano), Telemicro), Fernando Rodriguez (Certv-Color Vision)
Best Radio Broadcaster: Miguel Susana (Telecentro), Roberto Rodriguez (Microondas Nacionales), Lisette Selman (Telecentro), Elisa Mariot (CDN), Eugenio Garcia (Virus TV)
Best Presenter: Luis Manuel Aguilo (Telecentro), Michael Miguel Holguin (Supercanal 33), Milagros German (Telesistema), Jochy Santos (Telesistema), Nelson Javier (El cocodrilo)
Best Dominican-produced Movie: Andrea, Los locos tambien piensan, La maldicion del Padre Cardona
Best Music Video: Que ironia (Juan Basanta, Andy Andy), La boda (Juan Basanta, Aventura), Maria Elena (Alberto Zayas, Negros), No me acostumbro (Alberto Zayas, Opalo), Ahora quien (Eriko Zapata, Victor)
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