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NewsWhore
09-20-2007, 06:30 PM
Diario Libre reports the government violated Law 141-97 when awarding the lease of the Jarabacoa Hotel Montana, to Pareatis, S.A. Law 141-97 establishes that the Commission for the Reform of Public Enterprise (CREP) is the entity in charge of leasing or capitalizing state hotels grouped under Corphotel, a division of the Ministry of Tourism. The law also establishes that a tender needed to be held in order to lease the property.
Recently, the Ministry of Tourism and the new Corphotel director, Freddy Majluta announced the leasing of the hotel to show business promoter Felix Cabrera Castillo of Pareatis. Diario Libre mentions that a tender was not held. The 35-year lease establishes that the company would pay US$2,000 a month for the mountain property, with a 10-year grace period, so that the company may recuperate its proposed RD$300 million investment during the period. The renovations funded by the state at the hotel are advanced. The contract establishes that Pareatis would invest RD$25.7 million to complete the remodeling by early next year. The contract establishes that the company would make a RD$300 million investment in the hotel through 2010. Press reports indicate that the government has already advanced the renovations 80%.
Diario Libre reports that the contract enables Pareatis to lease sections of the hotel to third parties, and authorizes the exemption of all taxes on operations and construction.
Trajano Santana, of the PRI political party, founded by a brother of Freddy Majluta, said that the lease was awarded to Felix Cabrera in payment of a political debt, as reported in Diario Libre. Reportedly, Cabrera paid at his expense for live entertainment for Fernandez's campaign. Santana mentions that the contract is in violation of Law 340-06 on public contracting.
The newspaper reports that Felix Cabrera is the organizer of the United Palace show on 22 September in NY and another on 23 September in Boston for President Fernandez's electoral campaign among expatriate voters in those cities.

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