The government is rushing to send out the reprogramming of public expenses, which it completed yesterday, to the International Monetary Fund (IMF) as a requisite for the latter to go ahead with the third and fourth revision of the stand-by arrangement before the end of April. As reported by Diario Libre, Presidential Technical Minister Temistocles Montas stated that the letter of intent has been agreed upon and the submission of the revised balanced budget is all that is pending. Expenses have had to be reprogrammed because no increases in the electricity tariff will be applied during the first semester of this year and extraordinary expenses are required in the power sector, having to do with accumulated debts. The IMF Directorate could meet as early as 7 April to complete the revision of 2005 if the government delivers its proposal on time.
The Central Bank unveiled the adopting of the United Nations-backed methodology for determining the national accounts yesterday. With this, the Dominican Republic adheres to the international statistical standard for the measurement of the market economy today. The base year has been changed from 1970 to 1991.
The System of National Accounts (SCN93) will be implemented to improve and expand statistics available on the Dominican economy. The new method consists of an integrated set of macroeconomic accounts, balance sheets and tables based on internationally agreed concepts, definitions, classifications and accounting rules. It can present data focused on production, spending and income. It encompasses 247 products and 31 economic activities, making it an improved instrument for economic analysis, decision-taking and policy-making.
Governor of the Central Bank Hector Valdez Albizu explained some of the changes. For instance, the government's weight in the Gross National Product, previously measured by the number of jobs, will now depend on total wages, among other aspects. The telcom industry that was measured by number of phones, will now be weighted by tax payments. Commercial banks' contribution to the Gross National Product will depend on their financial statements. "We are facing a transcendental happening for the economic future of the nation," said Valdez Albizu. He highlighted that the new methodology will also enable the government to measure tax evasion levels.
The 1993 System of National Accounts was prepared jointly by the International Monetary Fund, the European Union, the Organization for Economic Co-operation and Development, the United Nations, and the World Bank.
The Ministry of Public Health has launched its mobile health unit program with three vans in Capotillo, providing basic health services 24 hours a day. This is part of the Democratic Security program started by the government in 13 low-income neighborhoods around Santo Domingo. The three vans are located at Calle El Sol and La Isabela and are equipped with modern technological equipment. Diario Libre reports that they were launched by Public Health Minister Bautista Rojas Gomez and Interior and Police Minister Franklyn Almeyda. The units will spend three days in each of the 13 neighborhoods, as well as in border communities and in Santiago. A vaccination program was begun immediately by Public Health personnel. Pediatric and dental consultations were also being offered.
The Dominican government will seek US$80 million in damages to the environment caused by the import of a waste product (rock-ash) from AES Corporation, an electricity generating company in Guayama, Puerto Rico. The Ministry of the Environment and Natural Resources stated that it would file a lawsuit in Washington under the allegations that the company brought 59,000 tons of the waste into the DR illegally. El Caribe reports that because of this case several former government officials are facing trial in the DR for having authorized the import of the material without complying with environmental requirements established by law. Also indicted are several businessmen accused of the import of the material. President Leonel Fernandez empowered Environment Minister Max Puig to file the suit on behalf of the Dominican state. In October 2003 and March 2004, 32,000 tons of rock-ash was brought to Montecristi and 27,000 tons to Samana. The second site is on the shores of the Samana Bay whale sanctuary, a protected area.
Jose Luis Moreno San Juan, director of the Autonomous University of Santo Domingo (UASD) Institute of Energy has told Hoy newspaper that the electricity authorities are trapped in a network between market agents and international organizations.
Moreno said that there is an oligopoly lead by a generation company that causes market agents to send notes to international organizations so these can become the indications that the Dominican government and the energy sector authorities prescribe for the Dominican electricity problems.
He recommended a long-term, 20-year power plan that needs to be accepted by all political parties so that every time there is a change of government, the plans can continue to be implemented. He said the first step is to make the generation costs transparent, and that the electricity rate needs to be based on these. The second step, says Moreno, is to apply a technical tariff, so that consumers who pay for the service receive it at a due price, without having to bear the burden for non-paying users. He said that the theft of electricity is the responsibility, first of the distributors who in the framework of capitalization accepted the responsibility for combating theft, and in second place, of the government, that tolerates the situation. Moreno told Hoy newspaper that the third step is to improve collection rates. "But if we stay only in the topic of collecting payments for energy, as the World Bank, the International Monetary Fund and the Inter-American development Bank want, to not affect the interests of their friends and related companies that are the generation companies, then the problem will never be resolved," he said. He understands that the power problem is not due to generation costs, but results from inflated prices in the sale of these. He said that the government has not had enough authority to make the generation costs more transparent.
Elena Viyella, an energy sector businesswoman and president of the National Council of Business, says that politics need to be put aside in order to find a solution to the energy sector problems. She urged getting to the root of the problem that is seriously affecting the competitiveness of Dominican business. As reported in Listin Diario, Elena Viyella highlighted that power companies need to take on their commitment to increase the number of paying customers. She also understands that the power tariffs need to allow companies to compete. She stressed that the power rates cannot be an obstacle given that the country is a signatory of the DR-CAFTA free trade agreement scheduled to be implemented as of this summer.
She called for finding an integrated solution to the problem and that urged all interested parties to overcome the weaknesses of the power sector capitalization program.
Trade Finance Magazine, a member of Euromoney Group, has decided to classify the Dominican Republic's debt renegotiation with the international private banking system as "Deal of the Year 2005", according to a report by Diario Libre. The magazine's editors informed Dominican authorities that the March edition will include a summary of the negotiation process. The award will be presented to Dominican authorities and creditor banks next June.
The plenary session of the Organization of American States (OAS) Permanent Council met in Washington yesterday and accepted a proposal from the Dominican Republic suggesting the adoption of "Governability and Development in the Society of Knowledge" as the theme for the next General Assembly to be held in this country. Foreign Relations Minister Carlos Morales Troncoso signed an agreement with OAS General Secretary Jose Miguel Insulza to establish both parties' responsibilities for the celebration of the GA to take place from the 4th to the 6th of June at Casa de Campo.
Yesterday, the members of the National Dialogue suggested the creation of a specialized anti-crime force within the police as a way of tackling insecurity in the country. Monsignor Agripino Nunez Collado, speaking for the group, reported that they also decided to ask for more resources for the police, according to Diario Libre. Police officers should receive more qualified training and the Armed Forces should not go out to the streets to help the police with this problem, said Nunez, a stance that is shared by government representatives, civil society and political parties. Msgr. Nunez stated that the Armed Forces are meant to protect the country's sovereignty. In addition to the causes of crime that have already been identified, he cited the lack of border security, the lack of migration control, the return of ex-convicts, drug trafficking and the Haitian problem. The meeting took place at Pontificia Universidad Catolica Madre y Maestra (PUCMM).
According to El Caribe, the National Dialogue is also proposing more qualified training for the Justice Department and the correct application of the Criminal Procedures Code. Nunez stated that according to the statistics, the crime rate has been reduced considerably in areas where the "Safe Neighborhood" program is taking place. Civic group Participacion Ciudadana's Coordinator Pablo Herrera Maluf dismissed the claim that the increase in crime had anything to do with the implementation of the new Criminal Procedures Code and rejected the need to have it modified.
The Senate ratified 10 international treaties that the government has signed with other nations. Diario Libre reports that they were all unanimously approved by the 18 Senators attending the session. The ratified treaties are 1) a multilateral agreement to prevent and punish human trafficking; 2) an accord with Chile for the free performance of paid activities, for relatives depending on diplomatic, consular, administrative and technical personnel of diplomatic missions and consular offices; 3) the Judicial Assistance Agreement between the DR and Spain; 4) an agreement for the protection of non-material cultural heritage; 5) the United Nations Convention against Transnational Organized Crime; 6) the agreement for the security and health of workers; 7) recommendations for the promotion of cooperative associations; 8) a protocol related to an amendment to the International Civil Aviation Convention; 9) an agreement with the government of Finland for the promotion and protection of investments; and 10) the agreement on the transfer of convicts and serving of criminal sentences with the government of Argentina.
A law firm in Sosua, Puerto Plata recently announced its consultation services for the adoption of children. According to Iraima Capriles, an expert in family law, this firm is violating Law 136-03 of the Code for Minors which does not allow business to be done in this field. "It is illegal because human beings are not within juridical trade nor are they in the judicial business, human beings cannot be trafficked with... because of the amount of money they are charging (RD$200,000), this practically becomes human trafficking", said Capriles, as quoted by Diario Libre. She believes that adoption processes should be handled by specialists in dealing with the prospective adoptive parents and the government agency authorized by law to carry out adoptions, the National Children's Council (CONANI). News commentators on "El Matutino de Teo Veras" morning radio show on 91.3 FM disagree. They think that the law firm has the right to offer their professional services as long as the adoption processes they carry out are approved by CONANI.
The National Foundation for Consumer Rights is asking Congress to pass a bill offering incentives for using renewable sources of energy, according to foundation president Alfonsina Cuesta who declared that the project would benefit millions of consumers around the country. Diario Libre reports that they made this request to Chamber of Deputies President Alfredo Pacheco. "This bill will allow the country to generate cleaner energy, respect the environment and reduce the cost of energy for consumers", said Cuesta. Pacheco promised to include the bill on the Chamber's agenda.
The Listin-Hamilton poll carried out between 3-7 March shows that the political figures who enjoy the highest acceptance in the DR are President Leonel Fernandez (60%), Retired General Pedro de Jesus Candelier (58%), Jaime David Fernandez (57%), Amable Aristy Castro (52%), Jose Tomas Perez (51%), and Danilo Medina (50%). Least popular are former President Hipolito Mejia (73%), Hatuey De Camps (65%), Ramon Alburquerque (61%), Rafael Subervi Bonilla (60%), and Federico Antun Batlle (50%).
According to the poll, leading politicians acceptance and rejection rates are:
- President Leonel Fernandez (PLD). 60%-36%.
- Former Police chief, Pedro de Jesus Candelier 58%-32%.
- Former Vice President Jaime David Fernandez (PLD) 57%-32%.
- Secretary general of the Dominican Municipal League Amable Aristy Castro (PRSC) 52%-33%.
- PLD National District Senator Jose Tomas Perez 51%-32%.
- Secretary of the Presidency Danilo Medina (PLD) 50%-37%.
- President of the PRSC Federico Antun Batlle (PRSC) 35%-50%
- PRD Senator Ramon Alburquerque 29%-61%
- Former Minister of Tourism Rafael Subervi Bonilla (PRD) 27%-60%
- President of the PRSD Hatuey de Camps 26%-65%
- Former President Hipolito Mejia (PRD) 23%-73%.
Hoy newspaper page two commentary speculates that the Dominican Municipal League secretary, Amable Aristy Castro, who is known as the kingpin of the eastern province of La Altagracia, has his eyes on the PRSC party's Presidential nomination in 2008. "He has taken advantage of, fully, the position of the DML to establish good relations with the municipalities throughout the country, and there has never been a secretary general of the organization who has had better relations with the municipalities than the polished Reformista politician". Aristy won the Senator seat for the PRSC in the 2004 election, but then resigned in order to stay in his post as secretary general of the LMD where he oversees billions of pesos destined for the municipalities. Aristy is said to have been one of the masterminds of the PRSC-PRD alliance for the 2006 municipal and Congressional election.
A 3-7 March Hamilton-Listin Diario poll showed that if the election were to be held today, 42% would vote for the PLD, 24% for the PRD and 19% for the PRSC.
Attorneys of Banco del Progreso have asked the District Attorney to ensure that coercion measures that could be applied to former bank Executive President Pedro Erwin Castillo Lefeld should not impede the possibility of him traveling to the United States to face charges in courts in New York, Florida and Colorado, in connection with the assets the defendant owns in those locations, which were allegedly purchased with funds misappropriated from the bank. El Caribe reports that the attorneys claim to have collected sufficient evidence to prove in both the Dominican and American courts, that Castillo had embezzled the bank and related companies.
The Justice Department has placed Agustin Severino Rodriguez, murderer of four-year-old Grisell Altagracia Diaz Cabrera (see DR1 Daily News 15 March 2006) in protective custody, and he was immediately transferred to the Fortaleza 2 de Mayo jail in Moca. El Caribe reports that the instruction judge made this decision after the criminal had confessed to the murder.
A man accused of posing as a "publico" driver to rape 21 women was sentenced to 30 years in prison by the Criminal Chamber of the National District Court of Appeals. Juan Pablo Acosta Santana was found guilty of torture, rape, violence against women, and robbery. He was also fined RD$200,000 and ordered to pay RD$1 million in compensation to Cruz Maria Echavarria, Heidi Alvarado and Mariday Bottier. Acosta was indicted on 14 March 1998 and sent to trial on 19 July 2000.
The police also announced the arrest of six men it suspects are responsible for the robbery and murder of jewelry store owner Dorka Parada at the Joyeria Rita of Plaza Nuevo Sol in Santo Domingo. The arrested men (four watchmen, their supervisor and chief of operations) were all employed by the Guardianes del Sur watchman company under contract for security services to the shopping center. The police announced that it has recovered 121 items of jewelry from a San Cristobal pawnshop.
The judiciary has announced coercion measures against a suspected copper trader. Virgilio Antonio Nunez will have to pay a RD$2 million bond and show up at the Santo Domingo Province District Attorney's department every 15 days as part of the coercion measures applied by Judge Miguelina del Carmen Campusano. He is accused of illegally trading with 10 tons of copper allegedly stolen from Tricom and Verizon (see DR1 Daily News 15 March 2006). His warehouse assistant, Jose Luis Aybar will also have to report to the DA department regularly. Diario Libre reports that police are still looking for other people who engage in the illegal purchase of copper, part of which was sold to China and Taiwan. It is reported that the theft of this material causes losses of approximately RD$1 million per month to telephone service providers, the state and other companies.
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