NewsWhore
06-22-2009, 06:50 PM
Hacienda Minister Vicente Bengoa has dismissed claims that the sale of 49% of the Dominican government shares in the Dominican Petroleum Refinery could put the country's fuel supply at risk. On Friday, 19 June, he described the elements in the private sector that are warning about the risks of the sale as "vultures." Bengoa says: "There are vultures circling that are not interested in the 49% shares of Refidomsa, but they want the previous set-up we had with Shell, to control and administer the refinery, and then let it go bankrupt to blame the state," he said, as reported in Diario Libre. Bengoa defends the sale by saying that on the contrary, given that Venezuela is the country's main oil supplier, supplies would be guaranteed.
National Business Council (CONEP) president Lisandro Macarulla says he does not object to the government's sale of a 49% share in the Dominican Petroleum Refinery, Refidomsa. He said that his concerns are about the buyer, Venezuela and warned that the Hugo Chavez government has been very hostile to his country's private sector. Supporters of the deal say there are many foreign investors in the DR, and they have never threatened the country's sovereignty.
Macarulla said that President Leonel Fernandez should take advantage of the current financial crisis to change the economic model, so that the government can meet social needs and resolve the electricity problems more effectively. As reported in Hoy, Macarulla spoke out in favor of an agreement with the International Monetary Fund so strengthen investor and business confidence in the country, bringing discipline in government spending and controlling politicians' hearty appetites that are so common during an electoral period. Macarulla described the current economic model as obsolete, saying that it allows for fiscal deficits, as happened last year when it limited investments that would have spurred development. He called for investments aimed at stimulating job creation.
Juan Bautista Vicini, president of the Vicini Group, warned against the creation of a fuel monopoly. He says that there are usually clauses that protect the minority investor in 51-49% deals, to ensure it has participation in important decisions. He also observed that the DR maintains a large debt with Venezuela for purchase of fuel, implying this could work against the country, depending on the deal that is signed. The contract has not been made public.
"My only observation is that the Dominican state needs to take measures to protect itself because its partner will be its lead supplier and care must be taken so that any clause that determines who the suppliers are," said Vicini during an interview on the Z-101 Gobierno de la Manana talk show.
More... (http://www.dr1.com/index.html#3)
National Business Council (CONEP) president Lisandro Macarulla says he does not object to the government's sale of a 49% share in the Dominican Petroleum Refinery, Refidomsa. He said that his concerns are about the buyer, Venezuela and warned that the Hugo Chavez government has been very hostile to his country's private sector. Supporters of the deal say there are many foreign investors in the DR, and they have never threatened the country's sovereignty.
Macarulla said that President Leonel Fernandez should take advantage of the current financial crisis to change the economic model, so that the government can meet social needs and resolve the electricity problems more effectively. As reported in Hoy, Macarulla spoke out in favor of an agreement with the International Monetary Fund so strengthen investor and business confidence in the country, bringing discipline in government spending and controlling politicians' hearty appetites that are so common during an electoral period. Macarulla described the current economic model as obsolete, saying that it allows for fiscal deficits, as happened last year when it limited investments that would have spurred development. He called for investments aimed at stimulating job creation.
Juan Bautista Vicini, president of the Vicini Group, warned against the creation of a fuel monopoly. He says that there are usually clauses that protect the minority investor in 51-49% deals, to ensure it has participation in important decisions. He also observed that the DR maintains a large debt with Venezuela for purchase of fuel, implying this could work against the country, depending on the deal that is signed. The contract has not been made public.
"My only observation is that the Dominican state needs to take measures to protect itself because its partner will be its lead supplier and care must be taken so that any clause that determines who the suppliers are," said Vicini during an interview on the Z-101 Gobierno de la Manana talk show.
More... (http://www.dr1.com/index.html#3)