NewsWhore
07-27-2006, 02:10 PM
More details are trickling into the press on the controversial Empresa Nacional para el Desarrollo (Enade) contract signed by the Executive Branch. The agreement establishes the company will receive 10% of the gross income collected by Bienes Nacionales on payments of property already sold, plus 15% of new sales of state property. The contract also establishes the government will pick up the tab for all administrative and legal fees undergone to carry out the collections.
Clave newspaper today reports that the 15% fee appears excessively generous when compared to the 5% average market commission for real estate sales. Clave comments that the high commission did not take into consideration the considerable volume of transactions it covers. Clave mentions all the urban lots in Samana, all government housing projects built by the state, and government property marked for tourism development, as well as those under government departments such as the State Sugar council, the Dominican Agrarian Institute, among others.
Clave reports that on 27 July 2005, President Leonel Fernandez issued Decree 150-05 that gave a special power of attorney to the administrator of Bienes Nacionales, Aristipo Vidal to sign the concession contract. Reportedly, Bienes Nacionales carried out a short-listed tender won by Enade. Clave says that Enade was an inactive company prior to being benefited with the generous contract.
The government sent the contract to the Senate on 18 July 2006, when it then became public knowledge.
As of this date, reportedly, the company had carried out collections for RD$240 million for mortgage payments in 25 residential government projects nationwide. As reported, Enade was authorized to give Mother's Day discounts of 25-50% on the payments to encourage payments and 15% discounts to those paying off their arrears. This increased first year collections by RD$36 million over Bienes Nacionales own collection efforts.
Clave reports that Grupo Peralta, of Eulalio Peralta, a supplier of the Armed Forces, is the owner of the company. Clave reports that the contract sent to Congress establishes the address of Enade as Av. Bolivar 830, Ens. La Esperilla. That address is the domicile of honorary consul of the Czech Republic, Jose Ramon Brea, who in turn is the representative of Carimex.
Interestingly, Enade is thus linked to another controversial financial deal carried out by the Fernandez administration. Carimex was chosen by the Ministry of Interior & Police as supplier to The Sun Land Group, the company involved with the disputed US$132 million foreign commercial bank loan for police equipment. The Technical Minister of the Presidency, Temistocles Montas recently said that loan was an error and that the economic team of the government rejected it, and Finance Minister Vicente Bengoa, one of the signatories of the contract, would admit that it violated the Law of Public Credit.
Meanwhile, in El Caribe, lawyer Marisol Vicens Bello writes that it is clear that the Enade contract was awarded due to trafficking of influence, given that the company had no experience in real estate or collections. She comments that some day government officers will be held accountable for corruption, mismanagement and negligence. She adds that the Enade contract ties the government to a 10-year deal, and includes a clause that states that if terminated without justified cause, the government would have to pay the total of fees estimated through its termination, even if the contract did not have the approval of the Senate.
As reported in the Listin Diario, Enade president Gustavo Franchella said that they will continue operating as usual, despite the Senate rejecting the deal. He told the newspaper that an estimated 300,000 families occupy state property irregularly. The plan is to regularize the land ownership status of these.
Link To Original Article (http://www.dr1.com/index.html#5)
Clave newspaper today reports that the 15% fee appears excessively generous when compared to the 5% average market commission for real estate sales. Clave comments that the high commission did not take into consideration the considerable volume of transactions it covers. Clave mentions all the urban lots in Samana, all government housing projects built by the state, and government property marked for tourism development, as well as those under government departments such as the State Sugar council, the Dominican Agrarian Institute, among others.
Clave reports that on 27 July 2005, President Leonel Fernandez issued Decree 150-05 that gave a special power of attorney to the administrator of Bienes Nacionales, Aristipo Vidal to sign the concession contract. Reportedly, Bienes Nacionales carried out a short-listed tender won by Enade. Clave says that Enade was an inactive company prior to being benefited with the generous contract.
The government sent the contract to the Senate on 18 July 2006, when it then became public knowledge.
As of this date, reportedly, the company had carried out collections for RD$240 million for mortgage payments in 25 residential government projects nationwide. As reported, Enade was authorized to give Mother's Day discounts of 25-50% on the payments to encourage payments and 15% discounts to those paying off their arrears. This increased first year collections by RD$36 million over Bienes Nacionales own collection efforts.
Clave reports that Grupo Peralta, of Eulalio Peralta, a supplier of the Armed Forces, is the owner of the company. Clave reports that the contract sent to Congress establishes the address of Enade as Av. Bolivar 830, Ens. La Esperilla. That address is the domicile of honorary consul of the Czech Republic, Jose Ramon Brea, who in turn is the representative of Carimex.
Interestingly, Enade is thus linked to another controversial financial deal carried out by the Fernandez administration. Carimex was chosen by the Ministry of Interior & Police as supplier to The Sun Land Group, the company involved with the disputed US$132 million foreign commercial bank loan for police equipment. The Technical Minister of the Presidency, Temistocles Montas recently said that loan was an error and that the economic team of the government rejected it, and Finance Minister Vicente Bengoa, one of the signatories of the contract, would admit that it violated the Law of Public Credit.
Meanwhile, in El Caribe, lawyer Marisol Vicens Bello writes that it is clear that the Enade contract was awarded due to trafficking of influence, given that the company had no experience in real estate or collections. She comments that some day government officers will be held accountable for corruption, mismanagement and negligence. She adds that the Enade contract ties the government to a 10-year deal, and includes a clause that states that if terminated without justified cause, the government would have to pay the total of fees estimated through its termination, even if the contract did not have the approval of the Senate.
As reported in the Listin Diario, Enade president Gustavo Franchella said that they will continue operating as usual, despite the Senate rejecting the deal. He told the newspaper that an estimated 300,000 families occupy state property irregularly. The plan is to regularize the land ownership status of these.
Link To Original Article (http://www.dr1.com/index.html#5)