CDEEE studies lawsuit

[NewsWhore]

Members of the President's Energy Cabinet are planning to meet with the chief executive's legal advisors and a team of outside lawyers in order to study the lawsuit brought by Trust Capitol of the West (TCW) against the CDEEE (the Dominican Corporation of State-owned Electricity Enterprises), the Superintendent of Electricity and the National Energy Commission (NEC). CDEEE administrator Radhames Segura confirmed the fact that TCW was indeed suing them for US$680 million. Diario Libre reports that TCW is a 50% shareholder in EdeEste. Segura said that the government would pursue the case in the courts, but "this is not going to make the government change its plans to solve the electricity problem..." Segura pointed out that in September 1999, the Dominican government entered into partnership with AES, with a 50% share of the corporation as well as the administration. In November 2004, the AES Corporation sold its shares to TCW. TCW is now arguing that since its inception, they have invested US$279 million in EdeEste, and, in addition, they have losses of US$250 million on the books. TCW is demanding RD$535 million for the loss of income and cash flow, or as an alternative, no less than US$680 million for the depreciation of the company that AES kept operating even after the sale.

More... (http://www.dr1.com/index.html#2)