SANTO DOMINGO.- Electricity superintendent Francisco Méndez yesterday confirmed the Dominican Government’s purchase of all shares of the Electricity Distributor of the East (EdeEste), and as part of a settlement to a lawsuit in which the lawyers had already been paid US$12 million.

The Government acquired EdeEste’s entire stake reportedly for as much as US$25 million, after a negotiation headed by State-owned Electrical Companies (CDEEE) vice-president Radhamés Segura.

The business leaders grouped in the (Conep) called EdeEste’s purchase an “involution,” which far from clearing up the panorama, now adds one more pitfall toward a rational solution to the electricity problem, for which it deplores the Government’s attitude.

EdeEste earned US$20.38 million in February and operating expenses of US$34.57 million, for a deficit of US$14.19 million, or US$2.22 million less (13.55%) than the expected deficit of US$16.41 million.

The deficit forced the Government to disburse RD$288.78 million (US$8.09 million) to EdeEste.

After the subsidy the deficit in February was US$6.10 million.

“With the purchase of the EdeEste shares the personnel would no longer have excuses as will now have major motivation to work and increase revenues and the State doesn’t have to disburse funds or contribute tax revenues to a private company, and instead to one it owns," Méndez said.