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SANTO DOMINGO.- Venezuela will retain more than US$30 million from the total pledged to the Dominican Government for the purchase of a 49 percent stake in the country’s only refinery Refidomsa, as payment for oil and derivates supplied to Santo Domingo through the Petrocaribe deal.
The deal, approved by the Executive Branch, stipulates that Hugo Chavez’s Administration would disburse US$133.4 million to the Dominican Government and thusly the State-owned petroleum group PEDEVESA assumes that percentage in Refidomsa, the propane gas reception and storage complex in Puerto Viejo, Azua, among others oil facilities.
The Dominican Government had announced that the sum would be the used to cover part of the more than 350 million dollar electricity subsidy, already depleted despite being earmarked in this year’s Budget.
The until now secret operation became public after Budget Office director Luis Hernandez revealed contract’s details to a Chamber of Deputies commission, which subpoenaed him to explain the Refidomsa deal’s current situation to Congress.
Venezuela president Hugo Chavez and Dominican par Leonel Fernandez signed the 49% deal in Santo Domingo on May 5, which adds the Dominican Republic to Caracas’ its of crude refining facilities that include Cuba, Jamaica and Curazao.
The transfer of the stake was delayed several times after it was announced in mid 2008 and according to information disclosed prior to close of the sale, the price agreed was around 130 million dollars.
Caracas had announced that the purchase would lead to doubling Refidomsa’s production, currently estimated at 30,000 barrels daily, and would rely on its successful oil technology to reach 100,000 daily.
Venezuela, through Petrocaribe, provides oil and derivatives with preferential financial conditions to the region’s countries.
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Did Leonel think he could outfox a fox like Hugo while leonel is more stupid than a cow.
I was just told by someone in SDQ that part of the Metro's wall fell on a group of people last nite, injuring about a dozen people , one person is a friend of the family. This is impossible, there hasn't been an earthquake to shake that new structure apart......Get me the structual engineer and the steel engineer. I want to see the load calc's. someone cut corners on leos baby. I hope they get compensated for this mishap.......NEW homes for the survivors and a million peso's in the bank......yeahright!!!
Don't forget that the government was boasting about how this money was what would balance the budget (which of course wasn't balanced anyway). Now on top of all the other monies that we need, which is the reason that taxes are rising, gasoline prices are going up, companies are being asked to pay itbis ahead of time, etc., now we have to figure out how to replace this 1,000,000,000RD.
What crappy leadership we have suffered. And for too long.
You have to look at this way. Because Hugo held back the $30 million, the DR country is now square with its payment for petroleum products. There can be no excuses from the government regarding high consumer prices for fuel now having the opportunity to factor out interest rates and penalties for late payments to Petrocaribe.
The problem is now up to the official bean counters as how the books will reflect the money diverted from the refinery deal to credit fuel purchases.
What kind of spin on this transaction will the government generate to save face.
22% discount.
Now where are those pathologically corrupt officials going to get their kickback?
Time for a revolution.
good looking out Omero..