In a recent speech to an audience of dissident PRSC members, President Leonel Fernandez made a comment that has reverberated throughout political circles. Fernandez, who is running for re-election in May, stated that he represented the political forces of Balaguer's policies. Hoy interviewed economist and historian Bernardo Vega on the matter. Regardless of the intent of the political rhetoric aimed at gaining votes from dissident PRSC members, Vega says that Fernandez's comments represent a shift in his political philosophy from his mentor Juan Bosch's motto of "pride over money". Vega explains that in contrast with his first 1996-2000 term, Fernandez has now chosen to adopt Balaguer-style policies of giving out state funds as gifts to the public; inclusion of rival party members in the administration and other elements of patronage and 'caudillismo' like corruption as a form of political adhesion, as well as the emphasis on large public works projects at the expense of social spending. Venturing into politics is now a way to get rich quick, contrary to Bosch's teachings, he explains.
Vega comments that Fernandez has yet to adopt Balaguer's austerity, the ostentation of political conservatism and the practice of continually reshuffling his cabinet.
Vega concludes that today's PLD is closer to the PRSC and PRD principles than to the ideals of party founder Juan Bosch.
Hacienda Minister Vicente Bengoa says that there is no need for tax reform (political code for tax increase) considering that the DR registered a fiscal surplus this year. He told El Caribe that the case is closed, and rhetorically asking how the government could talk about new taxes when the DR will close with an estimated RD$8.6 billion fiscal surplus. He is quoted in El Caribe as saying the DR has a projected growth of 10% with liquid reserves in the Central Bank of US$1.6 billion and gross reserves of US$3 billion. According to Bengoa, the government has lost an estimated RD$12 billion due to tax reductions and eliminations of tariffs and still managed to have a surplus. Bengoa says that the only thing being considered is increasing the tax base on Industrialized Goods Transfers (ITBIS, or VAT).
Agriculture Minister Salvador Jimenez handed over RD$41 million to banana and milk producers yesterday, as part of a direct support program. The funds were agreed to after the devastation caused by Tropical Storms Olga and Noel. Milk producers will get the bulk of the money, RD$35,179,775.6, while banana growers will get RD$6,639,000. In all, AGRODOSA has given producers more than RD$31 million, of which the government has contributed RD$29.7 million.
Hacienda Minister Vicente Bengoa, quoted in Listin Diario, said that the government would not settle the Sun Land loans and would only limit itself to covering the costs incurred by the contractors on works that have already begun construction. Although he didn't provide details, Bengoa noted the IMF's frustration about the lack of information on Sun Land operations. Bengoa said that the Sun Land loans were signed by Public Works Engineers Supervisor Office (OIS) director Felix Bautista, who was not authorized to sign the loans. Bengoa specified that the Law of Public Credit only allowed the Hacienda Minister to sign promissory documents on behalf of the government. He added that those loans were never registered as public credit at the Ministry of Hacienda relieving the government from all costs, except the costs to the contractors. In addition, since the loans were never registered at Hacienda, Bengoa says that nothing was ever hidden from the IMF.
The Customs Department reports that it has registered irregularities in 220 shipment containers, amounting to attempted evasion estimated at RD$554.2 million. The irregularities were discovered when the declarations didn't match the contents in the containers. There were cases where wheat was only paying 14% of the tariffs. According to Listin Diario, the DGA searches 63% of shipment containers that come into the DR, which is high for a customs department. And last year things were worse when 93% of containers were searched.
The Dominican government will buy a total of one million chickens as a way of averting a total collapse of the sector. The poultry sector has been in need of help ever since Haiti placed a ban on chicken and egg imports, causing chicken farmers to lose and estimated RD$600 million in revenues. Listin Diario writes that the chickens will be bought from small and medium-scale chicken producers at RD$15 per pound. Processed chicken will be bought at RD$24 per pound, with an average of 3.5 pounds per unit. Agriculture Minister Salvador Jimenez said that negotiations about the possibility of exporting chickens to Venezuela are still under way and could provide an alternative if the Haitian ban continues in place.
National District Mayor Roberto Salcedo has announced that drivers who park their cars in prohibited areas in the Colonial Zone would receive heavy fines and could risk having their cars towed away. The new Colonial Zone parking rules will be implemented from next week and will come as a welcome development for this heavily congested area of the city. New signs will be placed around the historic area warning drivers about the new rule enforcement strategy. Salcedo explains that in all there are 2,631 car parking spaces in the area.
Education Minister Alejandrina German's response to enquiries by TV and radio investigative reporter Nuria Piera into a Jarabacoa villa that is under construction and that allegedly belongs to the minister has spurred controversy. When asked for her response to the revelation, German told journalists that the claim that she was building a summer vacation mansion worth millions in Jarabacoa was "garbage". Nuria Piera filmed vehicles using Ministry of Education license plates entering the construction site.
Claudio Acosta, in today's 'Que se dice' column in Hoy comments that it is unfortunate that Alejandrina German, who has earned a reputation for lashing out with words but who is also a politician known for being well-versed in matters of government, is not capable of understanding that on this occasion she did not have the right to get out of the problem with a sharp remark. Acosta said that this time she was obliged to provide an explanation to the country and to the citizens whose taxes pay her salary and the privileges she enjoys, even if just to deny what was disclosed in the report or giving believable reasons about how she obtained the funds to build it. He writes: "To just skirt around the issue by evading it or with the usual disqualifications that our politicians have us accustomed to when these are absolutely pertinent criticisms is not only an arrogant and awkward way of admitting to not having valid arguments to respond to the well known journalists, but it also implies a denial of the right to criticize our politicians and their censurable practice of taking advantage of their time in government to acquire wealth overnight or to acquire luxury items, as is the case of the consistent attacks that the government and the PLD are directing at engineer Miguel Vargas Maldonado, the PRD presidential candidate. Unfortunately, like it or not, Alejandrina German is a government official and her obligation is to be accountable and to provide explanations about what she does or doesn't do, especially when there are doubts about the correct management of the resources she has been entrusted with. "Or might the government and PLD members believe that they can continue criticizing the speck of dust in the other's eye, while ignoring or claiming to ignore, the enormous plank encrusted in their own?"
If you are taking the bus in and around Santo Domingo today or tomorrow, be forewarned and expect long lines. Hoy reports that Fenatrano will not be running 70% of its buses in the National District and the province of Santo Domingo because, according to union leader Juan Hubieres, his members are no longer receiving the fuel subsidy provided by the government. The 900,000 gallons subsidized by the government for a three-month period only represents 20% of the two million gallons consumed by the buses. Hoy writes that the transport sector consumes an estimated six million gallons of fuel per month, of which Fenatrano consumes two million. Hubieres blamed the government for the bus strike and is demanding that the government give Fenatrano the bus routes that will feed into the Santo Domingo Metro routes, as well as to continue providing subsidized fuel.
PRD presidential candidate Miguel Vargas Maldonado is making accusations against President Leonel Fernandez, saying that Fernandez is using public money to fund his campaign and that government employees are using their work time and resources to campaign. Vargas expressed these accusations during a meeting with Jose Miguel Insulza, secretary general of Organization of American States (OAS) in Washington, DC. Vargas also claims that Fernandez is trying to encourage opposition members to turn their backs on their parties and join the ranks of the PLD, which according to him is breaking down the party system in the DR. Finally, Vargas is claiming that Fernandez has control over certain journalists, including Miguel Franjul, Luis Eduardo Lora, Manuel Quiterio Cedeno, Miguel Guerrero and Nuria Piera.
According to a report by Business News Americas, Dominican commercial banks reported a 21% increase in net profits in 2007, compared to 2006. The net profits, according to BNA were for RD$8.25 billion (US$253 million). BNA writes that the increase reflects a positive performance by the Dominican economy. Loans also increased by 20% to RD$247 billion. The BNA explains that declining interest rates on commercial loans have forced banks to turn to consumer financing. Not all is positive according to BNA, as significant balance sheet mismatches remained a weakness of the banking system and the capital-to-assets ratio worsened to 9.5% at end-2007 from 10.0% at end-2006.
For more information click here: www.bnamericas.com/news/banking/Bank_profits_up_21*_in_2007
The number of private security companies has increased by 10% and now totals 150. These companies employ a total of 30,000 watchmen, according to Pedro Benoit, president of the Dominican Association of Private Security Companies. Benoit expressed his concern about the rise in crime and said that criminals were using increasingly sophisticated methods. He added that as a result, watchmen would be given better training and announced a Security Management conference where 200 participants from all around the world will attend.
Juma, Bonao has found itself a new celebrity, Jumita. The chicken, owned by Jose Julio Guerrero, is said to lay normal sized greenish-blue eggs. Hoy writes that Jumita's story was brought to light by artist and Bonao native Candido Bido, who provided Hoy with samples of Jumita's green eggs. No reason for the green egg phenomenon has been given.
Dominican singer/songwriter Juan Luis Guerra is once again sweeping up award nominations. This time he is the man to beat at the Billboard Latino Music Awards. It was impossible to think that Guerra would be able to top his performance at the Grammys, but he has been nominated seven times, including best composer and producer of the year. Guerra is also up for artist of the year, tropical album of the year, and tropical song of the year by a duo or group. Three of Guerra's songs, "La llave de mi corazon", "Que me des tu carino" and "La travesia," have all been nominated. Aventura, with five nominations, Hector Acosta, Joe Veras, Anais and Zacarias Ferreira have all been nominated.
www.billboardevents.com/billboardevents/latin/about_awards_2004new.jsp
City Mayor Roberto Salcedo announced carnival activities will be taking place in Santo Domingo starting this Sunday along Mexico Avenue. As occurs in La Vega and Santiago and other interior cities, there will be a carnival parade in Santo Domingo, announced Ramon Rivas, president of the Diablos Cojuelos Unidos organization. The carnival parades end on Sunday, 24 February after when a jury will chose the three winners that will then represent the National District in the Sunday, 2 March carnival parade along the Malecon. Winners of carnival from all over the country come to the city for the big parade.
Down because the NFL season is over? Need a football fix and can't wait for the start of the NFL pre-season? Well, go down to Santo Domingo's Estadio Olimpico Juan Pablo Duarte on 9 February 2008 to see the Dominican Raiders and the Dominican Football League (LDFA) host the Carolina Blitzz, from Carolina, Puerto Rico. The game starts at 6pm and will be the first international contest of the season for the Raiders. The Blitzz, part of the Puerto Rico American Football Federation (PRAFF), is the team that has made the greatest number of visits to the DR in the last 25 years of international competitions held in Santo Domingo and looks to reignite its long-standing rivalry with the Raiders.
For more information on the Raiders, click here: www.dr1.com/articles/football.shtml
The Mexican team, the Yaquis de Ciudad de Obregon, finally got their offense through immigration last night, as they beat up on the previously undefeated Tigres del Licey 7-4. Nelson Figueroa pitched 1 1/3 innings to end the Licey threat and helped the Yaquis get their first win in this year's tournament. The Tigres were in control for most of the game as pitcher Omar Beltre pitched six scoreless innings. But relief pitcher Carlos Marmol, aided by a Ronnie Belliard error, gave up two earned runs and left men on base. The Yaquis would eventually surmount a three-run Tigres lead. Mexican Roberto Saucedo would then hit a three-run shot to give the Yaquis the lead for good.
In last night's other game the Aguilas met the same fate, as they lost 8-5 to the Venezuelan team, Los Tigres de Aragua. The Venezuelan Tigres were lead by the offense of Ramon Castro, who hit a homerun, and Robert Perez, who had two R.B.I.
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