Nicaragua Network Hotline

Nicaragua Network Hotline
November 19, 2003

This hotline is prepared from the Nicaragua News Service 
and other sources. To receive a more extensive weekly 
summary of the news from Nicaragua by e-mail or postal 
service, send a check for $60.00 to Nicaragua Network, 
1247 E St., SE, Washington, DC 20003.  We can be reached 
by phone at 202-544-9355. Our web site is: www.nicanet.org 

Topics included in this hotline are: US Continues Pressure 
on Political Unity and SAM Missiles, Money Laundering Case 
against Former President Aleman, Sandino Foundation Head 
Caught in Fraud Scandal, More Nicaraguan Troops May to Go 
to Iraq, CAFTA Talks Continue, and, Water Rationing in 
Managua.

1.  US Continues Pressure on Political Unity and SAM 
Missiles 

The US government continued to interfere in Nicaragua's 
democratic process last week as Dan Fisk, Deputy Assistant 
Secretary of State for Western Hemisphere Affairs, 
followed on the heels of his boss, Colin Powell to meet 
with factions of the Constitutional Liberal Party (PLC) to 
demand that they unite for the municipal elections next 
year.  He also repeated U.S. "concerns" that the 
Nicaraguan army has SAM-7 missiles.

Besides meeting privately with PLC leaders, Fisk attended 
a cocktail party held in his honor by Ambassador Barbara 
Moore to which members of Nicaragua's other political 
parties--with the exception of the Sandinistas--were 
invited. 

Edwin Castro, an FSLN deputy in the National Assembly, 
called Fisk's statements a clear intervention in the 
internal affairs of Nicaragua.  He likened them to the 
statements by Oliver Garza before the municipal elections 
of 2000 and the national elections of 2001.  He said that 
he was not concerned about not having been invited along 
with representatives of other political parties to meet 
with Fisk.  If we had been invited, he said, "that would 
mean we were doing something wrong as a party."

While true, Moore's snub of Nicaragua's largest single 
party; the party which created modern Nicaraguan 
democracy, cannot go unchallenged.  As well, each time a 
US government official intervenes in Nicaragua's internal 
political process, we need to complain.  Call or write 
Secretary of State Colin Powell again this week and demand 
that the US stay out of Nicaragua's election and that 
Ambassador Barbara Moore be ordered to stop showing 
preference for one political party over another. The 
direct line to the Secretary of State is 202-647-9572 and 
the fax is 202-647-2283. The address is Secretary of State 
Colin Powell, US Department of State, 2201 C St. NW, 
Washington, DC 20520.

The SAM-7 controversy brought a surprising rejoinder from 
Auxiliary Catholic Bishop of Managua Eddy Montenegro. 
 Montenegro is one of the most retrogressive of 
Nicaragua's ultra-conservative Catholic hierarchy.  He 
said that the Nicaraguan government should insist on 
something in return for destroying the SAM missiles.  "It 
would be ideal," he said, "that if the powerful developed 
nations believe that their security is threatened by these 
weapons, that they would say, 'Here we'll give you these 
helicopters in exchange.'"  Because, he went on, "I 
remember during the time of Hurricane Mitch when I was a 
member of the Emergency Committee, I saw how the Army with 
its four helicopters rescued people from the rivers 
overflowing their banks, sometimes at risk to their own 
lives."  

Former president Daniel Ortega weighed in on the issue 
during a speech in Waslala marking the 27th anniversary of 
the death of Carlos Fonseca. He said that the Sandinista 
party was opposed to unilateral disarmament, but that it 
was the National Assembly that should decide the issue. 
 He added, "It is we, the Central Americans, who should 
decide what armaments we should and should not have.  The 
Yanquis don't have a horn to toot here in Central 
America."

2. Money Laundering Case against Former President Aleman 

Criminal prosecutor Ivan Lara presented more than 1,000 
folios of documents in the government's case against 
former President Arnoldo Aleman for money laundering 
during his term as president.  The documents include 
records of transfers of millions of dollars from the 
National Treasury and transfers that the Banco de la 
Produccion (BANPRO) made from the accounts of the 
companies SINFRA and Casco into Aleman's private 
foundation.  The documents show how the former president 
bought a Bell helicopter and paid the debts on a property 
called Montecristo all with government money.  Also 
documented are the US$900,000 that were taken out of Banco 
Nicarag|ense (BANIC) and transferred in a money laundering 
operation to the company Asefinsa and a loan for 
US$170,000 that the national insurance institute (INISER) 
made to the company Desarrolladora Integral, SA.

Mauricio Martinez, Aleman's defense lawyer, placed in 
evidence debate in the National Assembly which he said 
indicated that the intentions of the lawmakers was that 
Law 285, under which the former president is being 
prosecuted, were that the money laundering referenced in 
the law would have to be related to drug trafficking. 
 Therefore, he maintained, Aleman was not being correctly 
charged under the law.  He called the evidence presented 
by Lara, "wrapping of nacatamales," referring to the many 
layers of banana leaves used to wrap the famous Nicaraguan 
tamales.  In order to rebut the prosecution's evidence, 
Martinez said that he would call as witnesses President 
Enrique Bolaqos and Vice-President Jose Rizo and other 
present and former high level government officials.  By 
the end of the week, Judge Juana Mendez, who is hearing 
the case, had announced that the she would take the 
testimony of President Bolaqos in his office on November 
17, the Vice-President on the 18th, and after him the 
Minister of the Treasury, Eduardo Montealegre.

3. Sandino Foundation Head Caught in Fraud Scandal

The present board of directors of the Augusto C. Sandino 
Foundation (FACS) has asked the government to investigate 
the 18-year tenure of Edwin Zablah as executive president 
of the FACS.  The board has accused Zablah of using funds 
of the FACS for his and his family's benefit and of money 
laundering in the transfer of large sums of money from the 
FACS to accounts abroad that are not listed in the books 
of the foundation.  Zablah was dismissed from his post on 
July 14.  The Attorney General's office will "do an audit 
of the FACS, because that is what the Police have 
recommended," according to prosecutor Julio Centeno. 

Jose Angel Buitrago, current president of the FACS, 
alleged that Zablah, who has barricaded himself in the 
FACS headquarters, colluded with Managua Judge Francisco 
Lopez to seize seven bank accounts and three properties 
belonging to the Foundation, and eight bank accounts 
belonging to FIDESA, a credit agency which is under the 
umbrella of the FACS. 

Factions in support and opposition to Zablah have formed 
around the controversy. One, composed of FACS workers and 
FSLN party leadership, defends Zablah.  This group has 
demanded a reversal of his dismissal.  The other, formed 
by the recently elected Board of Directors headed by 
Buitrago, also includes former Sandinista Commandante 
Henry Ruiz.  The case is presently in the courts.  

4. More Nicaraguan Troops May to Go to Iraq

Nicaragua is preparing to send a replacement contingent of 
troops to Iraq when the initial group returns in February. 
 This second group will also be a mixture of medical and 
landmine experts.  The Army's Second Chief of Operations, 
Colonel Oscar Balladares, the contingent's future leader, 
will be traveling to Poland and Spain in order to 
coordinate the deployment.  The Minister of Defense and 
the Head of Army Operations will pay a visit to the 
current set of troops in Iraq in December.   The 
Nicaraguan government still has outstanding expenses from 
the first deployment, and it trying to obtain enough funds 
to include a full life insurance for each of the 112 
soldiers already there.  La Prensa reported today that the 
lack of life insurance puts in doubt the sending of the 
replacement troops. 

5. CAFTA Talks Continue

Last week, in advance of this week's Free Trade Area of 
the Americas (FTAA) negotiating meeting in Miami, a 
"mini-round" of negotiations for a Central America Free 
Trade Agreement was held in Washington, DC.  Central 
American trade ministries sent representatives to closed 
door sessions with staff of the US Trade Representative 
The conclusions reached in this impromptu session with the 
USTR remain unknown.  However, it is possible that the 
agreement may not be ratified in January, due to US 
intransigence on the issue of agricultural subsidies.  The 
US is demanding that Central American countries drop trade 
barriers to US agriculture while being unwilling to lower 
US subsidies that would result in Central America farmers 
going out of business just as has happened in Mexico.

The top trade negotiators and Ministry representatives 
from Central America will also meet with US Trade 
Representative Robert Zoellick in Miami, during the FTAA 
ministerial in Miami this week, in preparation for the 
last round of negotiations scheduled for December 8-12 in 
Washington, DC.  The Nicaragua Network and other 
organizations are planning protests during the DC meeting. 
 If you live in the DC area or within drive distance call 
202-544-9355 for details. 

Even those Nicaraguans supportive of CAFTA demand more 
concessions from the U.S. in terms of the section on 
agriculture.  Oscar Aleman, the technical coordinator for 
the private sector in the negotiations, has said that the 
current offers "don't present great benefits for the 
Nicaraguan farmers."  The President of the Inter-American 
Development Bank, Enrique Iglesias, has also promised to 
push for a better deal for agriculture; he worries about 
how that market may be affected.  Central Americans who 
wish CAFTA to go into effect worry that it may be stalled 
in the U.S. Congress due to concerns over the labor laws 
delineated therein.  A few prominent members of 
legislature, including Representative Levin and Senators 
Baucus, Jeffords, Bingamen, and Kerry, have brought up the 
need for more stringent laws and compliance in the labor 
section of the treaty.

6. Water Rationing in Managua 

The evils of privatization were made apparent yet again 
last week when the Nicaraguan Aqueducts and Sewers Company 
(Enacal) began to ration water in areas of Managua due to 
its debts to the privately-owned Spanish electric company, 
Union Fenosa, which bought Nicaragua's electric 
transmission lines. Enacal also claims that part of the 
reason that it is "drowning in debt" is the large number 
of people who use the water supply illegally without 
paying fees. The rations have affected thousands of its 
costumers, and can last up to ten hours at a time. The 
rationing  program violates the Rules of Service of the 
National Institute of Water and Sewage (INAA), which has 
received no report from Enacal thus far.  The INAA calls 
for sufficient warning on programmed outages, for an 
emergency supply during longer outages, and for 
corresponding compensation for the period of the outage.  

The Coordinator of the Consumers' Defense Network, Ruth 
Zelma Herrera, has also called attention to the private 
water and electricity companies because of their 
insistence on deposits.  Zelma Herrera points out that, 
though the deposits made on these services are to be 
returned after a year, they never are.
**********
To subscribe to this Hotline, send an e-mail to 
[EMAIL PROTECTED] from the address which should 
receive the Hotline.  To unsubscribe, send an e-mail to 
[EMAIL PROTECTED]

#############################################################
This message is sent to you because you are subscribed to
  the mailing list <[EMAIL PROTECTED]>.
To unsubscribe, E-mail to: <[EMAIL PROTECTED]>
To switch to the DIGEST mode, E-mail to <[EMAIL PROTECTED]>
To switch to the INDEX mode, E-mail to <[EMAIL PROTECTED]>
Send administrative queries to  <[EMAIL PROTECTED]>