NewsWhore
11-11-2009, 05:20 PM
In today's Hoy newspaper, Economist Bernardo Vega writes about the widespread practice in the Fernandez administration of contracting commercial loans rather than loans with institutions that would demand transparency and the holding of tenders. He makes the point that President Leonel Fernandez had announced taking on US$200 million in FAD Spanish funds, but chose instead to take on US$400 million in loans from the Deutsche Bank in Spain for a variety of uses, such as equipping hospitals and military procurement. He said the Fernandez government learned this procedure from the common practice during Hipolito Mejia's 2000-2004 government.
He observes that DR-CAFTA obliges the Dominican government to hold tenders for its public works projects and government procurement. "Nevertheless, the US government has not complained about all the non-tendered purchases from Spain, which works against possible US suppliers. Neither has it complained when the Brazilians get the contracts for building dams or highways, without tenders," he writes. He adds: "The PRD [the opposition party] the first to issue sovereign bonds and take on loans with the Spanish banks, does not dare to criticize what is happening now, as it was the intellectual father of such trickery and it knows, also, that it could boomerang with an ugly case against those responsible in the past," he writes.
He concludes" "Meanwhile the country takes on debt in operations lacking transparency that could be financed through soft loans and loans subject to transparency."
www.hoy.com.do/opiniones/2009/11/10/301409/... (http://www.hoy.com.do/opiniones/2009/11/10/301409/La-perredeizacion-del-endeudamiento-peledeista)
More... (http://www.dr1.com/index.html#5)
He observes that DR-CAFTA obliges the Dominican government to hold tenders for its public works projects and government procurement. "Nevertheless, the US government has not complained about all the non-tendered purchases from Spain, which works against possible US suppliers. Neither has it complained when the Brazilians get the contracts for building dams or highways, without tenders," he writes. He adds: "The PRD [the opposition party] the first to issue sovereign bonds and take on loans with the Spanish banks, does not dare to criticize what is happening now, as it was the intellectual father of such trickery and it knows, also, that it could boomerang with an ugly case against those responsible in the past," he writes.
He concludes" "Meanwhile the country takes on debt in operations lacking transparency that could be financed through soft loans and loans subject to transparency."
www.hoy.com.do/opiniones/2009/11/10/301409/... (http://www.hoy.com.do/opiniones/2009/11/10/301409/La-perredeizacion-del-endeudamiento-peledeista)
More... (http://www.dr1.com/index.html#5)