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Investment firms sue.

Los Angeles-based TCW Group Inc. and France's Societe Generale have sued the Dominican Republic for US$680 million (euro520 million) in electricity revenues they claim were lost to fraud and mismanagement, reports AP (Feb. 7, 2007):

The action is another blow to a crippled electrical sector that government seeks to rescue from a decades-old cycle of blackouts and bankruptcies. The lawsuit alleges the DR violated a deal by failing to crack down on rampant electricity theft, distributing too much power and not collecting enough money from customers, said Rhadames Segura, a Cabinet secretary and VP of the state energy company;

The lawsuit was filed in the Vienna-based United Nations Commission on International Trade Law and in the Paris-based International Chamber of Commerce. The claim dates back to 2004, when TCW bought half the distribution company that powers six southeastern provinces and much of the capital of Santo Domingo. The other half is owned by the state-run electricity company. It was not immediately clear why Societe Generale is a party to the suit.
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Title Annotation:DOMINICAN REPUBLIC
Publication:Caribbean Update
Date:Mar 1, 2007
Words:172
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