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View Full Version : IMF studying Sun Land case



NewsWhore
10-02-2007, 05:10 PM
An IMF mission currently visiting the Dominican Republic to review the country's Stand-by arrangement says that it will study the available information it has received about the Sun Land Corporation loan scandal to see whether or not it has violated the terms of the agreement. Diario Libre writes that it contacted IMF public relations representative Conny Lotze who said that "earlier this year [the Dominican] authorities informed the IMF that this type of loan was not the responsibility of the public sector and that a private firm (Sun Land Corporation) was responsible for it."
The PRD denounced the government for the loan, saying the government acted in violation of the Constitution that requires borrowing to be authorized by Congress.
Spokesman for the government, minister without portfolio and re-election campaign manager for President Fernandez, Francisco Javier Garcia argued yesterday at a press conference that the PRD carried out similar transactions when in government. Javier Garcia politicized the issue saying that the government would reveal "immoral acts" carried out by rival presidential candidate Miguel Vargas Maldonado, during his tenure as minister of Public Works during the Mejia administration. Francisco Javier Garcia argues that the presentation of the US$130 million in promissory notes by the PRD is "political, irresponsible and demagogic."
He reaffirmed that the government does not have any commitment with Sun Land. He said that Sun Land has incurred loans with contractors that work for the state, carrying out public works, including at the UASD. He said that the funds for these works would be included in next year's budget.
The Sun Land transaction is indeed very confusing, and statements from government officers are making it even more confusing. Diario Libre reports that on the one hand the budget of the Office of Engineers and Supervisors of Public Works (OISOE) does not include funds from international loans. The newspaper reports that a letter dated 26 June 2006 that Felix Bautista, director of OISOE director sent to Sun Land Corporation RD, indicates that the payments of the promissory notes on behalf of the Dominican government would be made through the Department of Treasury of the Ministry of Hacienda. The letter indicates that the payment of the promissory notes would come from the OISOE budget, which means that, "there is no need for this to be mentioned in next year's budget." On the other hand, while Sun Land says that the funds are being used to pay for works at the UASD, Diario Libre points out that the funds assigned to the UASD works come to RD$200 million, much less than the US$130 million loan the director of OISOE signed with Sun Land, which acted as an intermediary to secure the loan with foreign banks.

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