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Santo Domingo.- A special Chamber of Deputies Commission and the Government’s economic team yesterday discussed the viability of a bill that would allow the official sector to dip into the around RD$120 billion pension fund, to build houses for people of low income.
The controversial Bill to Develop the Mortgage and Trust Market in Dominican Republic, already approved by the Senate, was discussed by the Commission of deputies with the public financial sector’s representatives to debate the legislation’s benefits and problems.
The pending legislation would allow the government to provide the land and issue a bond in cash to buy the house.
Pension Fund superintendent Joaquin Gerónimo affirmed that the pension fund isn’t in any danger and hailed Congress’ treatment of the initiative. “We want this law to be approved because the Pension Fund needs this new project diversity which will allow alleviating our necessity to diversify the fund.”
Several sectors, especially the labor unions, have warned of pilferage once the Government is allowed to make use of the Pension Fund.
Several years ago Geronimo promoted the failed "Juan Marichal Center," considered by many another project for officials to dip into the public coffers.
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May?
That is a question for the people to decide by way of referendum.
And no free chicken allowed.
I think maybe some people may approve in principle but are very nervous about the misuse of this investment and that is simply a question of judgment of the people administering the fund ..as I do not know them I can not comment ..but I do know that this type of investment is not uncommon .
All managers of pension funds have to make investment decisions and at times it is not easy to find an investment that has capital growth combined with annual income ,I personally think this idea has both.
I also think that this is a little like the debate we had on overseas borrowing where many writers here , especially in years past , were horrified at the level of borrowing we have now here whereas I and others saw it as a great way to win against the economic downturn and to quickly improve our infrastructure .Many writers opposed to my view were wary because they said that much of the money would not go into infrastructure but into officials pockets ..again I think it is judgment .
It's all about the track record, the culture, the absence of know how..
I see a big flashing red light.
Or "Ujustgotflucked S.R.L.