NewsWhore
10-23-2007, 05:20 PM
On the heels of all the unanswered questions about a US$130 million loan with Sun Land Corp, on their CDN radio show yesterday, investigative reporters Huchi Lora and Nuria Piera revealed that the Fernandez administration had taken out another loan with Sun Land, this time for US$200 million. The contract is similar to the one for US$130 million dated May 2006, but this time President Leonel Fernandez authorized his former minister of Public Works, Manuel de Jesus (Freddy) Perez to sign 14 promissory notes on behalf of the government by Decree No. 144-06 dated 20 June 2006. Mrs. Heredia Lambert signed for Sun Land Corporation RD, S.A. As in the case of the US$130 million loan, this did not follow the usual procedure of Congressional approval.
The PRD recently submitted a recourse of unconstitutionality to the Supreme Court of Justice against the US$130 million contract, for borrowing without Congressional approval. Supporters of the deal say that the government is not indebted and that this type of contract is common practice in the DR.
The June contract specifies that the US$200 million financing would be invested in the construction of the Duarte Highway with San Francisco de Macoris highway, reconstruction of the Navarrete-Puerto Plata highway, Miches-Uvero Alto, San Juan-Barahona and Cruce de Matayaya-Banica-Pedro Santana highways as well as for the reconstruction of the bridges over Soco, Cumayasa and El Regajo rivers; for the completion of Jacobo Majluta avenue and the entrance to Santo Domingo from the Las Americas expressway, as well as for the construction of the Santiago Central Park and an overpass over Estrella Sadhala avenue in Santiago.
The promissory notes have monthly consecutive expiration dates, starting one month after a 12-month construction period to be charged to the annual budget of the Ministry of Public Works.
The US$130 million contract was signed by Felix Bautista, director of the Office of Supervisors of Public Works (OISOE) in May 2006. Bautista subsequently went on to authorize Sun Land to build just five of the projects with the budget, as Lora and Piera discovered from documentation they have obtained.
The promissory notes from the loans authorized by President Leonel Fernandez are being traded on the international markets. In case of arrears in payment, there is an additional 2.16% interest charge on the value of the note. The government has not responded to press inquiries about the interest rates on the either the US$130 million or US$200 million notes.
Reports on this new deal are published in El Dia, Diario Libre and Clave Digital online publications today.
More... (http://www.dr1.com/index.html#2)
The PRD recently submitted a recourse of unconstitutionality to the Supreme Court of Justice against the US$130 million contract, for borrowing without Congressional approval. Supporters of the deal say that the government is not indebted and that this type of contract is common practice in the DR.
The June contract specifies that the US$200 million financing would be invested in the construction of the Duarte Highway with San Francisco de Macoris highway, reconstruction of the Navarrete-Puerto Plata highway, Miches-Uvero Alto, San Juan-Barahona and Cruce de Matayaya-Banica-Pedro Santana highways as well as for the reconstruction of the bridges over Soco, Cumayasa and El Regajo rivers; for the completion of Jacobo Majluta avenue and the entrance to Santo Domingo from the Las Americas expressway, as well as for the construction of the Santiago Central Park and an overpass over Estrella Sadhala avenue in Santiago.
The promissory notes have monthly consecutive expiration dates, starting one month after a 12-month construction period to be charged to the annual budget of the Ministry of Public Works.
The US$130 million contract was signed by Felix Bautista, director of the Office of Supervisors of Public Works (OISOE) in May 2006. Bautista subsequently went on to authorize Sun Land to build just five of the projects with the budget, as Lora and Piera discovered from documentation they have obtained.
The promissory notes from the loans authorized by President Leonel Fernandez are being traded on the international markets. In case of arrears in payment, there is an additional 2.16% interest charge on the value of the note. The government has not responded to press inquiries about the interest rates on the either the US$130 million or US$200 million notes.
Reports on this new deal are published in El Dia, Diario Libre and Clave Digital online publications today.
More... (http://www.dr1.com/index.html#2)