 Maplecroft’s in-depth Country Risk Report on the Dominican Republic offers high-level analysis and maps of the governance framework; the regulatory and business environment; political violence; human rights; and the environment.
Corruption remains pervasive in the Dominican Republic, with irregularities, bribery and other corrupt practices a particular risk when dealing with public administration agencies and officials. The current administration is perceived to be permissive of (if not complicit in) this environment. Companies are exposed to high levels of corruption, both through their local supply chains and as they engage in governmental contracts. As a result, foreign investors face legal, reputational and financial risks if allegations of corruption emerge in relation to their dealings with officials or local partners and suppliers.
Rule of law is not effectively enforced and poses serious risks to foreign companies and investors operating in the country. The main hindrances emerge from the ample power of the executive branch, widespread corruption in the public sector, and the politicisation of justice. Foreign companies face significant uncertainty when dealing with the judiciary. They could potentially be at risk of unfair proceedings in the judicial process, as irregularities and undue influence from other branches of government take place, often with impunity. In addition, weak rule of law prevents companies from relying on the enforcement of contracts and on the enforcement of dispute settlement.
Source: http://www.maplecroft.com/about/news/country-reports
INVESTOR WARNING
- The Spanish hotel chain Grupo Barceló on Wednesday joined a growing choir of foreign companies which have complained of a lack of requested legal security for foreign investment, just two months after a similar complaint by the Ambassador from the United Kingdom.......
And the British ambassador slams the country on lack of investment security and cited a company he said recently shut its doors after being extorted..... (UPDATE) - Dominican business leaders rally behind the UK Ambassador..... (Update 2) - High court to probe judge’s possible link to UK Ambassador’s extortion claim....
Arturo del Tiempo, Torre Atiemar and 1200kg of cocaine sent from the Dominican Republic to Spain is the probably just the top of the iceberg behind the recent years construction boom in Santo Domingo. What's more interesting is that President Lionel Fernandez has stated that this project was a model for foreign investments in his country.......
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INVESTOR WARNING - Major League Baseball player Julio Lugo, swindled out of RD$50.0 million (US$1.2 million) in the Dominican Republic. “This sends a bad message not only to Major Leagues players, but also to foreign investors afraid of investing their money in the country, fearing that what happened me can happen to them.” He said.....
The head of the East Region Hotels and Tourist Projects Association yesterday called the Higüey (Punta Cana and Bavaro) Titles Registrar “disorder and mafias” which creates uncertainty, threatens and scares away foreign investment......
Dominican Watchdog Note: This is just a few cases, there are hundreds of investment fraud cases in the DR and foreign investors are not likely to ever see their money again - Over 300 Million gone from Investors in Punta Cana area!!!
The President has promoted and financed one of two project with the national banks money..... What was there in it for him? |
