BANKING SERIES #3: FORMER BANINTER EXECUTIVES

UNCLAS SANTO DOMINGO 007566

SIPDIS

E.O. 12958: N/A
TAGS: EFIN KCRM KJUS PGOV PINR
SUBJECT: BANKING SERIES #3: FORMER BANINTER EXECUTIVES
RELEASED ON BAIL



1. The following is the third in a series of reports on the
Dominican Banking sector.


2. On December 20, an Appeals Court panel of three judges
ruled to allow the release of former Baninter President Ramon
Baez Figueroa and Vice-President Marcos Baez Cocco on RD $100
million bail each. After some delay because of coordination
issues between the defendant's lawyers and the Attorney
General's Office the two were finally released on Tuesday,
December 23. The ruling has had widespread coverage in all
local daily newspapers and has sparked debate among Dominican
authorities on the legitimacy of the decision.


3. The panel, headed by Judge Miriam German Brito, ruled
that the incarceration of the two men since their arrest last
May was unconstitutional. Baez Figueroa and Baez Cocco had
been detained for their suspected involvement in the massive
USD $2.2 billion Baninter banking fraud. Some Dominicans
have spoken out in favor of the decision, saying it was the
right thing to do even if it seems wrong to the public.
Among those has been Jose Alfredo Rizek, Executive Director
of the Fundacion Institucionalidad y Justicia (FINJUS) -- a
prominent USAID-supported NGO that promotes judicial reform
-- and Jorge Subero Isa, President of the Dominican Supreme
Court. Rizek commented that Dominican authorities have
traditionally abused constitutional rights of detainees,
imprisoning them for long periods before filing formal
charges. Several commentators including him believe the
ruling advances reform of the Dominican judicial system.
Others, like Maximo Aristy Caraballo, Attorney General for
the National District, voiced concern that the decision could
open the door to release of other accused defrauders and
money launderers.


4. It is expected that the two men will be celebrating
Christmas at home with their families, but how long they will
stay in the country is on the mind of many Dominicans. If
the men do decide to flee, it will not be to the United
States since neither is a US citizen or permanent resident
and Embassy's NIV section revoked both men's visas in May,

2003.


5. Embassy will continue to report further developments in
the investigation and prosecution of this case.
HERTELL