Since its origins as a nation, the Dominican Republic has suffered from the “Guacanagarix Complex” and, as much as each and every one of the governments has tried to correct previous events, new ones emerge that in the end reveal institutional weaknesses and the lack of a sanctioning penalty on facts considered fraudulent, in many cases.
What is the similarity? In the country, in the governmental aspect, the so-called complex remained for a long time. Guaganagarix was an important ruling cacique, deceived by the Spanish conquerors of the island at the time of the conquest in 1492. He gave gold in exchange for mirrors to the Spanish upon the arrival of Christopher Columbus to his chiefdom, Marién, an area that he controlled. But, his ignorance had no limits and until today that term remains registered and reproduced in society that “lays a carpet” and gives advantages to the foreigner to the detriment of the native.
Due to cultural evil, from which the country has not yet detached itself, there are several cases in international arbitration under social pressure or the “discovery” of new rulers who have managed to rescind them.
Such is the case of the vaunted “Shadow toll” on the Samaná Highway, rescinded as a result of a negotiation that, according to current president Luis Abinader, the Dominican State will pay US $ 410 million for the US $ 1,900 million in the time remaining for the completion of the four-year and four-month agreement.
Abinader said last Thursday night in an address to the nation that with this negotiation the country saved US $ 1.5 billion. In addition, the toll cost will be reduced by 20% on the journey from the Las Américas highway to Samaná.
The Juan Pablo II Highway or Northeast Highway was inaugurated on December 13, 2008. It connects the city of Santo Domingo with Samaná, from South to North.
In general, according to archives of publications in this medium, the country had been subjected to seven arbitration cases in 2018, one for US $ 300 million for the Lajún company and another for US $ 708 million for alleged “extra costs” of the construction company Odebrecht. The rest was in the World Trade Organization (WTO) for generic tobacco packaging adopted by Australia in its market.
Contested contracts
One of the contracts that generated great controversy was that of Gulf And Western, from Central Romana. Those contracts negotiated in the reformist governments of the late President Joaquín Balaguer were terminated in the term of the also late Antonio Guzmán Fernández, which forced the company to return US $ 38 million to the Dominican State.
Odebrecht
In New York, the construction company Odebrecht submitted the country to the international court for an alleged “extra cost” in the amount of US $ 700 million assumed in the construction of the Central Terminal in Punta Catalina. The State reached an agreement.
Lajún case
The Jamaican investor Michael Lee-Chin had also sued the Dominican State for US $ 300 million, alleging that the land on which he managed the Duquesa landfill for 10 years had been acquired under the Lajún Dominicana company. That demand was considered “an absurdity” by the then legal consultant of the Executive Power, Flavio Darío Espinal.
Mexican Ica Controba. At that time, a problem was generated for the country, despite the fact that the resources for the construction of an aqueduct on the Northwest Line came with resources from the oil agreement with Mexico. The country has an oil agreement in force with Mexico and Venezuela that did not advance with Mexico, the so-called San José Agreement.
Barrick Gold
The Dominican Government reached an agreement without going to arbitration. The controversy arose after the mining company Barrick Pueblo Viejo signed a contract with the Dominican State, after acquiring the shares of the Placer Dome in 2006, and which received multiple questions, especially regarding the tax scheme that was structured in 2009 when the price of gold fell and consequently the percentage proportion with which the Dominican State was left.
During the administration of former President Danilo Medina, it was possible to renegotiate the agreement signed in the Government of former President Leonel Fernández on the basis of a ratio of 97 to 3, that is, for every US $ 100 the country received US $ 3 and Barrick kept US $ 97.
Medina informed the country that Barrick Gold is a serious company, committed to responsible mining, and complying with environmental standards and best practices, but “considered unacceptable that of the US $ 1,753 million in export earnings per year, the Dominican Government would receive US $ 56 million. He specified that of US $ 100 of export earnings from gold and other metals, the country would only receive US $ 3.
Other internal cases
In 1998, the private company Hermanos Yarull summoned the Rosario mining company and the Central Bank to take them to arbitration for overdue debts and early termination of the mining contract. In the government of Jorge Blanco, in 1982, political differences with the political faction of Jacobo Majluta generated strong conflicts over the loan of US $ 150 million for the construction of the Madrigal Dam, with IDB sources.
The aqueduct of the Northwest Line was another.
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