Friday, December 17, 2010

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email: Corruption blights foreign investment in Dominican Republic


Empresarios estadounidenses relatan a su Embajada en Santo Domingo cómo algunos funcionarios exigen sobornos e incluso llegan a las amenazas

JORGE MARIRRODRIGA - Madrid -

United States believes that the climate of corruption in the Dominican Republic to foreign investment left at the mercy of government officials demanding bribes in a "bold" in a country where surveys show that people accept these facts. Some U.S. investors have even received threats, corrupt officials have been promoted to positions of greater responsibility.
The complaints are directed against the Dominican government, "which is successful in attracting investment through good public relations with rhetoric in favor of business, and even signing contracts with favorable terms for foreign investors, when in fact the outlook for investors is embroiled with foreign brokers and a corrupt legal framework conducive to satisfy the whims of public officials, "according to reports sent to include Washington.
Embassy in Santo Domingo is particularly the case echoes of the securities firm Advent International, which managers explained to U.S. officials in mid-2009 for the inconvenience, threats and demands for bribes suffered when purchased Aeropuertos Dominicanos Siglo XXI (Aerodom), the concessionaire for the management of various airports in the Caribbean country. It was the first of many investments Advent intended to do in Dominican Republic and was formalized in October 2008. "Only seven months then [one of the officers of the company] told a political counselor of the embassy that Advent would make no further investment in the country and helped reinforce Aerodom in six or seven years, "said in a report to the Charge d'Affaires Richard Goughnour .
Aerodom owners, as related by the embassy, \u200b\u200bpointing to an official, Andres Van Der Horst, once president of Aviation and which currently holds no public office. After several very negative reports by the commission Van der Horst demanded that the airport free storage of agricultural export products, a sector in which the Dominican official has interests familiares. Ante la negativa, los directivos recibieron la visita del general Jaime Osas, quien colocando un arma de fuego sobre la mesa, señaló: "Vengo a arreglar una cuenta pendiente entre usted y mi jefe". Poco después, relata el cable enviado a Washington, Van der Horst exigió explícitamente un soborno de cinco millones de pesos dominicanos, unos 143.000 dólares. Las quejas llegaron a algunos ministros, que reconocieron que el funcionario era un corrupto. Finalmente tomó cartas en el asunto el presidente, Leonel Fernández, quien aseguró que daría instrucciones para que Van der Horst se retractara. Los dueños de Aerodom destacaron que la intervención de Fernández estaba "ayudando". En la actualidad Andrés Van der Horst is president of the minority Liberal Party of the Dominican Republic. Corruption
for an ethanol plant
In another report, Ambassador Robert Fannin relates the odyssey that Forbes Energy Company went through in 2008 to get the permissions of an ethanol production plant, with 700 million dollars, would be a of the largest foreign investments in the country and the largest private nature in the field of biofuels in the world. "[The managers] are facing unnecessary delays interpreted as indications for bribes by government officials. Also had two requirements have direct high-level officials for cash payments." A signature that would stop coming around. According to the cable, the former minister of tourism, Félix Jiménez, offered to pave the way in exchange for 10 million dollars. An assistant defense minister made a similar request. To complicate matters further, the document reflects the concerns that the project can be held hostage to the rivalry between two senior officials, Radhames Segura, vice president of the Dominican government agency utilities and Minister of Economy, Temistocles Montas, "in those which are rumored to have presidential ambitions. " Ambassador Fannin
expressed in the document concern the fact that the minister could be appointed ambassador Jiménez in Washington, and proposes to revoke the visa of entry into the USA for corruption. Jimenez was removed from government in 2008 and was not nominated the U.S. ambassador, since it occupies Roberto Saladin. The company was finally able to start business.
The reports sent to Washington on corruption in the Dominican Republic extended in time and in 2007 highlights how a survey reflects the general tolerance of the population to this type of practice. 82% of Dominicans then considered corruption as tolerable and 67% had a family member or friend who had paid bribes to speed up administrative processes. At the same time the U.S. reports explain the various legal measures adopted by Leonel Fernandez, who came to power in 2004 to combat corruption. And a cable states in its conclusions: "While corruption has more impact than ever in the minds of the Dominican population, there has been little real progress in the fight against it. The culture of impunity is weakening, but the prospect of effective punishment has not progressed much. "

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