Analyzing the NEWEST Scandal in DR

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In this week’s edition of the Grubernation Weekly Newsletter:

• MAJOR Corruption Case in DR

• This Week in Dominican Republic News…

• This Will SKYROCKET Real Estate in Punta Cana

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Analyzing the NEWEST Scandal in DR

As you know even better than me, corruption scandals in the Dominican Republic happen and they create massive distrust. This time, it’s SeNaSa, the public health insurance system that millions rely on.

Here’s the timeline:

• Nov 2024 – President Abinader quietly orders an internal review of SeNaSa contracts.

• Aug 2025 – Journalists (including Nuria Piera) expose irregularities: services billed but never provided, sketchy contracts, weak controls.

• Sept 9, 2025 – Abinader publicly confirms an investigation.

• Sept 13–15, 2025 – The Presidency delivers the irregularities file to the Attorney General. The procurement watchdog voids at least one contract.

So yes, corruption — again. The question is: is anything different this time?

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What is SeNaSa?

SeNaSa = Seguro Nacional de Salud. It’s the Dominican government’s national health insurance program, covering more than 7 million Dominicans. It’s especially important under the subsidized regime — the safety net for those without formal jobs or private insurance.

That’s why this scandal hits hard: it’s not about overpriced chairs or road contracts, it’s about the health of ordinary Dominicans.

What’s the Same

• Corruption is systemic. Irregularities keep surfacing — SeNaSa is just the latest chapter.

• Justice drags. Even when cases are strong, trials take years and appeals pile up.

• Only the other guys. So far, the prosecutions have hit former administrations (Danilo’s circle, Leonel’s officials). Until Abinader’s own PRM insiders face the same hammer, many Dominicans will see this as “mismo relajo de siempre.”

What’s Different

1. Real exposure + jail time. Preventive detention isn’t new in the DR — Odebrecht and OISOE had their moments. What’s new is the profile and scale:

   • Jean Alain Rodríguez (ex-Attorney General, Operación Medusa) — jailed in Najayo, later under house arrest for years.

   • General Adán Cáceres Silvestre (head of Medina’s security, Operación Coral) — preventive prison in Najayo.

   • Alexis Medina (brother of ex-President Danilo, Operación Antipulpo) — behind bars in Najayo since late 2024.
     The difference? These are big names spending years, not weeks, in custody — and several have now moved to conviction. By Dominican standards, that’s new.

2. Independent prosecutors. For the first time, the Attorney General (Miriam Germán Brito) wasn’t from the president’s party. She’s a career judge who clashed publicly with Danilo’s AG before Abinader ever arrived. And Yeni Berenice Reynoso, known since Leonel’s time, has pursued cases across party lines. Are they totally free of politics? Of course not. But compared to prior AGs, they may be a different breed.

3. Transparency as posture. Instead of denying scandals, Abinader confirms them himself and dropped a bar: “I may have friends, but never accomplices.” That alone seemingly breaks with tradition.

4. The numbers reflect it. The Corruption Perceptions Index: 28/100 in 2020 → 36/100 in 2024. It’s not “clean government,” but it’s the sharpest upward move in decades.

5. International validation. The U.S. and EU have publicly praised Dominican anti-corruption progress under Abinader — something no prior government ever got credit for abroad.

Sentencing, Reform & Perception

Some may scoff at sentencing timelines or see prison terms as light compared to the crimes. And as an American, I feel that too — in the U.S., corruption sentences are intentionally heavy to deter future abuse.

But that’s a separate reform debate. Within Dominican guidelines as they exist today, the real question is: are more people being exposed and sentenced than before?

And the answer seems to be yes.

The Investment & Society Angle

Here’s where SeNaSa matters beyond politics:

• If handled cleanly and swiftly:

  • Real prosecutions, cancelled contracts, and jail time would reinforce investor confidence.

  • Abinader could continue improving the DR’s credit score — key for refinancing national debt and attracting foreign capital.

  • It would signal to Dominicans that reform isn’t just rhetoric, helping build trust for needed tax and labor reforms.

• If handled like the past (slaps on the wrist):

  • CPI progress stalls, markets write off anti-corruption as window dressing.

  • Dominicans grow even more cynical, making reform politically impossible.

  • Investment slows because transparency is a prerequisite for growth.

Abinader knows this. Anti-corruption isn’t just politics — it’s tied directly to whether the DR can cross into investment-grade economy territory.

My Takeaway

You already know corruption hasn’t vanished. But unlike past scandals, SeNaSa is a test: will Abinader follow through with the full weight of justice, even at risk to his own party, or does this end up another Odebrecht — big noise, no real change?

For Dominicans and for investors, the answer matters.

This Week in DR News…

• New Resorts Opening - The W Hotel is open and can be seen here, but the news of the week is the announcment of a new adults-only Secrets Resort coming to Macao. The W is in Uvero Alto, just north of Macao. And Macao is just north of Punta Cana. When you add Miches in to the north and west of Uvero Alto, you can see the path or progress from Macao through Nisibon and into Miches - with the most aggressive development in Miches currently .

• Abinader’s Recruitment Efforts Paying Off? - In March, the President was in Washington DC presenting to the American Apparel & Footwear Association (AAFA) Executive Summit to promote DR as a hub for manufacturing. This week, I’m told, the AAFA is on the ground doing an exploratory trip with some major brands in tow. Let’s see what news comes from this, but you heard it here first! (Thanks to a tip from a member of the DR Inner Circle)

• Public Investment in Bayahibe - recently, David Collado announced a land use plan for Veron/Punta Cana coming within 60 days. As part of that press release, he noted a similar plan coming for Samana peninsula, but also, Bayahibe. I’ve said Bayahibe has has only private investment but an obvious lack of public support until reading this. To me, that’s noteworthy. In addition, these public investments fall in line with what I had shared in this video about DR increasing spend on public infrastructure through year end so keep your eyes open for multiple announcments as the government doubles down on public investment.

This Will SKYROCKET Real Estate in Punta Cana

I ran around Punta Cana to show you some stuff…

Specifically, 4 projects locally that will be rocket fuel for property values - good news for investors.

In the attachment above, you’ll see 3 of those 4.

The fourth one? That’s exclusive content for the DR Inner Circle 😉 

What are your thoughts on the corruption case? Optimistic it’ll prove progress on anti-corruption efforts? Or same-old-same-old?