Nicaragua Network Hotline

Nicaragua Network Hotline
December 1, 2003

This hotline is prepared from the Nicaragua News Service 
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Topics included in this hotline are: Ortega Seeks New Pact 
With Aleman-led PLC, Judge Mendez Releases Aleman to 
?Municipal Arrest?, Decision made on SAM-7s, and, 
Questions on Funding of Troops.

1. Ortega Seeks New Pact With Aleman-led PLC

FSLN General Secretary and former President Daniel Ortega 
surprised the FSLN Party Congress and caused an uproar in 
political and media circles when he called for a new 
"pact" with the Constitutional Liberal Party (PLC) still 
led by Arnoldo Aleman.  In what may or may not be a 
coincidence, Aleman was released from jail and returned to 
house arrest at the same time. Despite declaring Aleman ?a 
trickster? and claiming that he had no ?blind trust? in 
the PLC leader, Ortega nonetheless said that he had joined 
forces with the Aleman-led PLC, and together they had 
initiated a series of measures designed to ?change 
everything.? Citing the generalized impoverishment of the 
country, the first item was the bringing together of next 
year?s municipal elections with the presidential round 
scheduled for 2006 which would save an estimated US$25 
million. 

He claimed that Sandinistas and Liberals had to unite to 
?bring US interference to a halt and to seek stability.? 
This move to a new agreement with Aleman to divide quotas 
of power between the two party strong men and their camp 
followers, is a reaction to the heavy-handed intervention 
of the US to determine the outcome of the national 
elections in 2006.  US Secretary of State Colin Powell and 
Ambassador Barbara Moore, as well as a bevy of lesser 
officials have been twisting the arms of Liberal 
luminaries to dump Aleman and to bury their squabbles in a 
united effort to keep the Sandinistas from winning the 
presidency in 2006.  Thus the US has pushed the two 
caudillos into each other's arms for their own political 
survival.  Polls show close to 75% of Nicaraguans believe 
that a new Ortega-Aleman pact would destabilize the 
country.

Ortega accused President Enrique Bolaqos of "licking the 
boots" of the United States and, following U.S. orders, 
turning his back on the FSLN after having "used" the 
Sandinistas in his fight against corruption and in the 
passage of important laws in the Assembly.  The US 
influence, rather than strengthen Bolaqos' hand is more 
likely to weaken him.  Only 8 Liberals left the PLC bench 
in the National Assembly to create Bolaqos' Blue and White 
bench.   Without FSLN or PLC support, the government 
controls fewer than 10% of the votes in the National 
Assembly.

Victor Hugo Tinoco, a member of what was formerly known as 
the National Directorate and is now known as the 
Sandinista National Council, said that Ortega's proposal 
had not been debated by the Council.  He said that if 
conversations were to begin with the PLC, they should also 
begin with Bolaqos.  He added, "I'm sure that in two 
weeks, or in one or two months, the PLC will turn its back 
on any negotiated arrangement with the FSLN."  "The 
Sandinista Council must analyze this subject in the next 
few days," Tinoco concluded.

Former and future challenger for the FSLN?s presidential 
candidacy, Alejandro Martinez Cuenca, blasted Ortega 
saying, ?This new pact, especially the liberation of Dr. 
Aleman, brings the whole judiciary into disrepute and will 
cost the party dear. Thousands of us are shocked, both as 
citizens and as Sandinistas.? Martinez Cuenca went on to 
accept that the current situation had arisen thanks in 
part to the lapdog attitude of the Bolaqos administration 
before the current US government, and that it was 
?attempting use external assistance to wrest power from 
the Sandinistas.? But he refused to accept that this 
justified dealing with Aleman.

2. Judge Mindez Releases Aleman to ?Municipal Arrest?

In a second tremendous shock to most Nicaraguans, Judge 
Juana Mindez abruptly released former-president Arnoldo 
Aleman from his prison cell, giving him instead not merely 
a return to his luxury ranch but the freedom to move about 
within the whole municipality of El Crucero, where that 
ranch is situated. Mendez is a Sandinista militant closely 
aligned with Daniel Ortega.  It has been widely believed 
that Aleman's incarceration or freedom was in Ortega's 
hands.  Mendez defended her action claiming, ?The timing 
of the release of Dr. Aleman is entirely coincidental 
viewed in the context of whatever else is happening in 
Nicaragua today.? Mindez said her decision was based on 
the findings of the Public Prosecutor?s Office, which, 
contrary to its former position, had newly declared that 
in Aleman?s case there could be no money laundering 
charge, since according to the strict letter of the law, 
laundering applied only to transactions involving illegal 
drugs. ?Is it my fault that the Prosecutor?s Office 
changed its position?? she asked. ?Am I to be asked to 
make a decision outside the law??

Under Nicaraguan law, the money laundering charge trumped 
all other charges against the former president. However, 
Aleman is accused of a whole list of crimes including 
association to commit crime, electoral malfeasance, fraud 
and the abuse of public funds. Thus, again according to 
Justice Mindez, without the laundering charge, Aleman is 
at present neither innocent nor guilty.  Presumably his 
performance during pact negotiations with Ortega will 
affect the severity of his incarceration or restrictions.

The US embassy in Managua took immediate exception to the 
release of Aleman, denouncing the judicial system as 
?corrupt and politicized.? A day or so later, it issued a 
further announcement declaring that all US assistance to 
that system, set at some US$48 million to be disbursed 
over the next five years, would be cut off. This blow was 
followed almost at once by the declaration of the 
Inter-American Development Bank (IDB) that it was 
withdrawing its support for training programs within the 
attorney general's office. In making their announcement 
IDB officials maintained that the assistance was clearly 
not serving its purpose given that people who had been 
charged with corruption were now being set at liberty.

Beyond the immediate negative impact of these measures, 
observers were concerned that Nicaragua?s long-promised 
entry into the Highly Indebted Poor Countries Initiative 
(HIPC) might be delayed yet again as a result of the 
confusion into which the country had been plunged. Thus, a 
meeting of some 45 foreign diplomats, which included both 
ambassadors and other representatives of international 
missions, expressed its members? disagreement with any 
Liberal-Sandinista accords on the grounds that it would 
affect the institutionality of the country. They noted 
that the PLC and the FSLN had postponed any discussion of 
the Civil Service Law (designed in part to remove blatant 
political party influence within governmental offices); 
?In just the same way,? the diplomats said, ?We could also 
postpone Nicaragua?s HIPC entrance.? 

European Union representative, Giorgio Mamberto, speaking 
after the meeting expressed the general concern over 
Nicaragua?s continued governability saying, ?We have 
supported everything that strengthens this country 
institutionally, particularly concerning justice. It seems 
to us that the political parties should be concerning 
themselves with other matters than the administration of 
justice.? Miguel Lspez, President of the Grand Liberal 
Union (GLU), who attended the meeting, commented on the 
fears expressed that even should the National Assembly 
approve the laws required for entry into HIPC, 
governability might not be restored. He pleaded with the 
representatives to ?ensure that the matters necessary to 
HIPC be continued from their respective capitals, and that 
the rebuilding of trust between Nicaraguans and 
international donors which has been affected in the recent 
past be not jeopardized.?
  
The Supreme Court of Nicaragua issued a statement in 
response to Ambassador Moore's termination of funds. 
 Signed by all the judges present at the time, minus one, 
the declaration reminded the U.S. that Nicaraguan 
diplomats have always refrained from commenting on either 
the U.S. judicial system or its government, due to a 
tradition of mutual respect and friendship.  The judges 
called for the same treatment with regard to the 
Nicaraguan system

TOPIC 3: Decision made on SAM-7s

The head of the Nicaraguan army, General Javier Carrisn, 
has announced that a certain number of the SAM-7 missiles 
will be destroyed, in deference to U.S. wishes as 
expressed by Secretary of State Colin Powell upon his 
recent visit.  The number of missiles to be destroyed has 
not been officially announced, and the major part of the 
missiles will be preserved in order to be included in the 
talks on the general disarmament of Central America. The 
decision by Central American leaders to jointly reduce the 
number of weapons in the region was made on September 4 in 
Belize.  Carrisn added that the country also will retain 
the quantity of missiles required "to defend the Republic 
of Nicaragua."

TOPIC 4: Questions on Funding of Troops

The Attorney General of Nicaragua, Francisco Fiallos, has 
refused to order the Foreign Ministry to reveal the 
identity of the country that paid to send Nicaraguan 
troops in Iraq.  In unknown country, thought to be Taiwan, 
contributed US$700,000 dollars to pay the life insurance 
on the 112 Nicaraguans currently on a humanitarian aid 
mission in Iraq.  The Comptroller's office had requested 
that Fiallos open a civil case against Foreign Minister 
Norman Caldera, that he might divulge the heavily guarded 
information.  The Comptroller made the demand under a 
specific article of the constitution.  However, Fiallos 
has countered that to initiate an inquiry into the Foreign 
Ministry directly defies a dictum of the Attorney 
General's office, which does not require the former to 
comply with information requests from the Comptroller.

Fiallos went on to say that it is a question of national 
security and that, in response, the donor country or its 
allies could be targeted for retaliation.  El Nuevo Diario 
pointed out that the U.S. is the only country that has 
sought allies for its war against Iraq, though Ambassador 
Moore has adamantly denied the U.S. has given any money 
for the Nicaraguan contingent.  The President of the 
Comptroller's office, Francisco Rammrez, is of the opinion 
that Fiallos' decision is illegal.

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