Local November 8, 2013 | 9:21 am

Officials: Airports contractor ‘had no authority’ to issue US$550 bond

Santo Domingo.- The Airports Commission and the Securities Superintendence on Thursday told the Senate committee that investigates the US$550 million bond issued by the contractor which manages Dominican Republic’s State-owned airports (AERODOM), that they didn’t approve the measure and learned of it months later.

Securities superintendent Gabriel Castro said the bond issue violates Securities Law 19-00, since they neither requested it nor were they given the mandatory authorization.

Moreover, Public Works minister Gonzalo Castillo, as President of the Airport Commission, said when the new Administration took office, AERODOM sought a meeting of the entity, but didn’t wait for the Commission to analyze their request, proceeded to issue the bond, which in his view violated the management contract.

For his part, Internal Taxes agency director Guarocuya Feliz said AERODOM transfer the revenue it retains but doesnot pay taxes directly because the contract provides for total exemption.

Meanwhile Senate Commission president Adriano Sánchez Roa said the after hearing the AERODOM executives, government officials, interested parties as well as some sub-leasers, has all the evidence needed to render to deliver a report to the full Senate floor, “in which the defense of the national interest will prevail."

Also present in the hearing were senators Julio Cesar Valentin, Tommy Galán, Carlos Castillo, Luis René Canaán, Arístides Victoria, Charlie Mariotti, Eddy Mateo and Manuel Paula.

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