Haiti Update: Vote on New Government?, PetroCaribe, and Immigrants Arrested in Bolivia

Update: Jean Henry Céant was confirmed as Haiti’s new Prime Minister following votes in both the Senate and Chamber of Deputies on Saturday, September 16. 

In July, widespread protests in Haiti following an announced cut in fuel subsidies led to the resignation of Prime Minister Guy Jack Lafontant and dissolution of the cabinet. Since the resignation, Haiti has been without a functioning government. President Moïse nominated Jean Henry Céant to the post of Prime Minister on August 7, but his confirmation in Parliament has been delayed. Last week, with a scheduled recess looming, Céant formally presented his list of proposed ministers to Parliament.

The slate of ministers has proved to be controversial. Of the 18 ministers proposed, 6 were part of Lafontant’s government, and 3 have had their eligibility challenged. One of the nominees, Osner Richard named Minister of the Environment, has already been forced to step down on the basis of his holding dual citizenship (with the United States). Additionally, of the 4 appointed Secretaries of State, 3 were part of the previous government. The selections have led to widespread criticism that Moïse is controlling the selection process in an effort to keep the government under the control of his Haitian Tèt Kale Party (PHTK), despite opposition concerns about the government that led to the resignation of Lafontant back in July.  The PHTK holds the largest bloc of seats in both houses, but is far from a majority in either, and thus must hold together a coalition to get the slate of ministers passed. At this point, the votes do not seem to be there.

Deputy Jerry Tardieu, who represents Pétion-Ville as a member of the Verité party, has been among the outspoken critics of Moïse role in the selection process. From Haiti Libre:

I…recommend that the Executive reconsider the formation of the Government as soon as possible, leaving the designated Prime Minister free to choose leading figures who can inspire confidence in society and give the government a serious image. This indiscriminate insistence on imposing personalities stamped PHTK, even when they are competent, is contrary to the wishes of the living forces of the nation who had opted for the establishment of a government of openness that soothes and builds confidence. It proves that President Jovenel Moïse has still not taken the right measure of the events of July 6 and 7, 2018, does not understand the stakes of the hour and even less the risks for tomorrow.

To the [designated] Prime Minister Céant, I hope that he has the courage to resign if he can not have the free hand, that is to say the freedom to choose credible and competent personalities to form a Government capable of providing solutions immediately.

There was no vote before deputies recessed Monday. However, President Moïse ordered a special session of parliament, calling members back to Port-au-Prince to hold a vote on the new government. We’ll update when we hear the results of the special session.

PetroCaribe

Hanging over the process of selecting a new government is ongoing outrage over embezzlement of money through the PetroCaribe fund. PetroCaribe was a regional effort put forth by the Venezuelan government in 2006, that allowed governments to purchase oil at a discount in order to use funds for development projects. Under PetroCaribe’s agreement, the government purchases oil from Venezuela, paying back 60% of the purchase price within 90 days. The extra funds are to be paid back over 25 years at 1% interest. In theory, the extra funds are to be used to develop infrastructure, at rates below what multilateral lenders would provide.

In October last year a senate committee led by Evallière Beauplan (Northwest Department) released a scathing audit that showed misappropriation of funds through the awarding of $1.7 billion in non-bid contracts for reconstruction projects between 2008 and 2016. The beneficiaries of the contracts included people closely associated with former president Martelly (also of the PHTK) and his prime minister Laurent Lamothe. Some of the accused are part of the current government, like Wilson Laleau, who is Moïse’s chief of staff. Public anger over the corruption, which has left Haiti with over $2 billion in debt to Venezuela with little to show for it, continues to grow and played a significant role in animating the protests in July.

Some examples of the waste include (via the Miami Herald):

[C]onstruction overages that include the ministry of public works paying for 10 miles of road that actually measured 6.5 miles; the signing of a contract between the ministry of public health and a deceased person; large disbursements by government ministers with no documents to support the expenditures, and tens of millions of dollars paid to Dominican and Haitian firms for post-earthquake roads, housing and government ministries that never materialized or weren’t completed.

One of the most blatant allegations involved the reconstruction of the Ministry of Foreign Affairs building, one of 40 government buildings that crumbled during the earthquake. The Dominican firm Hadom was awarded a $14.7 million contract, and paid $10 million up front, to construct the building that remains unbuilt. Hadom’s lucrative Haiti contract is among several given to Dominican firms after the quake that became the subject of separate probes in Haiti and in neighboring Dominican Republic, where Hadom owner and Dominican Senator Félix Bautista was accused of embezzlement. The Bautista case was eventually dropped by the Dominican Republic’s Supreme Court.

As the economic situation in Haiti continues to deteriorate – projected growth this year was lowered to 1.2% by the IMF – frustration with the government only increases. A campaign asking Kot Kòb Petwo Karibe a (“Where did the Petro Caribe money go?”) has launched on social media, and protests continue in the streets. The situation remains volatile. It is hard to know how much hinges on the new government, or what space it will have to operate within the confines of the neo-liberal policy constraints Haiti is forced to operate under, but if the new government returns many of the same players back to power, it will only fuel the opposition.

100 Haitians Arrested in Bolivia

Last week we reported on the increasing challenges faced by people who have migrated out of Haiti looking for new opportunities. Earlier this week, over 100 Haitians were arrested in Bolivia as they traveled through the country from Brazil and Chile – two countries where many Haitians have resettled since the earthquake in 2010.

The arrests also included two Haitians and five Bolivians (the four drivers of the buses and a woman who processed tickets), all charged with trafficking.

 

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