Nicanet - The Nicaragua Network

Nicaragua Network Hotlines for July 24, 2007

News topics covered in this Hotline include:

Topic 1: Over half a million attend celebration of 28th anniversary of the triumph of the Revolution

Over half a million attend celebration of 28th anniversary of the triumph of the Revolution

Over half a million people attended the celebration of the 28th anniversary of the triumph of the Popular Sandinista Revolution on July 19th in the Plaza de la Fe in Managua. Millions more tuned into the coverage of the event on their radio or TV. Such an impressive turnout at a political event had not been recorded since the 1980s. Honduran President Manuel Zelaya, Panamanian President Martin Torrijos, Venezuelan President Hugo Chavez, Cuban Minister of Culture Abel Prieto, Nicaraguan Government Spokesperson Rosario Murillo and Nicaraguan President Daniel Ortega all gave speeches during the event. The political discourse of the speeches was very much focused on Latin American unity as the only viable option for the region in the face of the social, economic and environmental disaster caused by the imposition of US imperialism.

Zelaya of Honduras said "I am here to make an enthusiastic toast to Central American unity. I consider it important that Central America maintains a policy of unity as the only possible response to those who want to divide the [Central American] people, to those who want to impose on us hunger and ignorance, [to those who want to] isolate us." Martin Torrijos of Panama, son of the late former Panamanian president Omar Torrijos whose government showed great solidarity with the Sandinista uprising during the 1970s, said that "just like we Panamanians stood with Nicaragua in the hour of her struggle, today we are here to express our appreciation and our admiration [of that struggle]."

"It's time for unity;" said the Venezuelan President Chavez, "... The Sandinista Revolution didn't disappear! It has returned from the bottom of the earth, from the very bottom of the soul of the Nicaraguan people. The Sandinista revolution must open its arms, must advance, like it is doing, in the process of unity of the people of Central American, the Caribbean and South American; just like the Bolivarian Revolution is opening its arms, but with respect for the rhythms, sovereignty and individuality of each country. In the face of the threat from the US Empire, which wants to keep us divided, dominated and impoverished, we have no alternative but to unite so as to be free."

President Ortega's speech, which was criticized by the mainstream Nicaragua media as being full of "predictable anti imperialist rhetoric" (Esteban Solis, El Nuevo Diario) lasted for over an hour. After giving a brief history of the imperialist interventions of Europe and the US in Latin America and other impoverished regions, Ortega concluded that the origins of global capitalism are accumulated in the "exploitation of Africa, of Latin America, of Asia. The origins of global capitalism are stained with blood."

"The situation is straightforward," continued Ortega, "those that accumlated all that capital, that wealth - as a result of looting, extermination, concentration camps, over 300 years of slavery of the African people - they are all united! And they are trying to keep us divided so they can dominate us and oppress us better.
They practice this policy throughout the world: dividing people, nations, governments. And every time that governments try to build alliances by listening to the will of the people, the threats start, and the sanctions, and everything else which we know so well. But the world is living a new moment. It's true - this global capitalism, headed by the US empire, has enormous strength, but ... united, the people of Latin America, Africa, Europe and the US (Because in the US there is a movement of courageous people who are demanding that US troops leave Iraq) together and united we will have new victories!"

Ortega went on to thank the people and the governments of Cuba, Venezuela and Taiwan for the solidarity they have shown with Nicaragua during the ongoing energy crisis. According to Ortega, without the help of these nations the energy crisis in Nicaragua would by now be "absolute." With this international help, Ortega said that the government will be able to overcome the crisis by the first trimester of 2008. Ortega went on to ask "how many powerful countries ... have shown solidarity with Nicaragua during the current crisis? Where are the 500 megawatts plants sent by the US so we can resolve this problem?" He went on to criticize the Millenium Challenge program being carried out by the US government in several impoverished nations including Nicaragua saying that despite the hundreds of thousands of dollars which have been spent on the program there have been no tangible results as of yet.

Finally Ortega questioned those media outlets and political figures who criticize the government’s Zero Hunger program saying that, contrary to media reports, the program aims to benefit families of all political tendencies. Ortega asked why officials of previous governments didn't think of creating a program to reduce hunger, pointing out that during the last 16 years of neoliberal governments hunger, unemployment and illiteracy increased.


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Topic 2: Chavez lays first brick on oil refinery which will allow Nicaragua to export petroleum

On Jul. 20 the President of Venezuela Hugo Chavez laid the first brick on the construction site in the municipality of Nagarote, near Port Sandino, where the oil refinery "Supreme Bolivarian Dream" will be built. The construction of the oil refinery, which will cost an estimated US$4 million, is being financed by the Venezuelan government and administered by the mixed public private company ALBANISA (45% of ALBANISA's capital comes from PETRONIC, the Nicaraguan state oil company). Chavez said he hopes the refinery will be fully functioning within four years.

Chavez also announced that his government plans to finance the construction in Nicaragua of a petrochemical plant which would process petroleum derivatives (gasoline, diesel, etc.) and an electricity plant which would generate 400 megawatts. The refinery will have the capacity to produce 150,000 barrels of petroleum a day. Currently Nicaragua consumes 20,000 barrels a day. Nicaragua will be able to export in excess of 100,000 barrels a day which would generate net profits of around US$600 million a year. "Within a few years," said Chavez, Nicaragua will never have to import gasoline again, and the blackouts will be a thing of the past."

Also on July 20 the Nicaraguan Foreign Ministry announced the Venezuelan government's decision to cancel the US$33.2 million debt Nicaragua has with the South American country.

Meanwhile Constitutional Liberal Party (PLC) deputies have been promoting a bill in the National Assembly to give the legislature, where the FSLN does not have a majority, greater control over PETRONIC. This comes shortly after the International Monetary Fund (IMF) pressured the government into including the financial administration of PETRONIC within the national budget. Wilfredo Navarro, PLC deputy, who was involved in creating the bill, said it "aims to establish controls within PETRONIC ... so there isn't a free reign over the Venezuelan aid." The bill is seen by government supporters as an attempt by the right wing to obstruct plans to invest the profits created by the oil agreement with Venezuela into social projects.


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Topic 3: Union Fenosa reveals fraud by its "big" clients while energy expert reveals Fenosa's fraud

On July 18 the Spanish multinational which owns the right to distribute electricity in Nicaragua revealed details of a report into electricity fraud committed by numerous large businesses including nightclubs, restaurants, hotels, cinemas, financial institutions, industrial sites, urbanization projects and large agricultural producers. According to Union Fenosa many of the largest consumers of energy in Nicaragua are connected to the national grid illegally, some have even connected transformers and whole cable networks illegally, while others pay third parties to alter their electricity meters so as to the reduce the amount they pay to the electrical distribution company.

In the press statement in which it reveals the details of massive electricity fraud taking place across the country, Union Fenosa claims that its two distributors Disnorte and Dissur are committed to reducing the amount of energy lost as a result of theft. During the seven years the multinational has been in Nicaragua, however, there has been no evidence that the company has taken measures to reduce the percentage of electricity lost as a result of theft.

Electricity expert Narciso Mayorga, meanwhile, revealed evidence of the fraud being committed by Union Fenosa. According to Mayorga, month after month, Union Fenosa overcharges its clients for the amount of electricity consumed. Mayorga's evidence is backed up by the National Center of Electricity Distribution (CNDN) which confirmed that despite 20% less electricity being distributed as a result of the ongoing blackouts affecting the majority of Fenosa's clients, there has been no similar reduction in the overall amount the Spanish multinational is charging for electricity consumption. Mayorga is currently helping numerous Fenosa clients to seek compensation from the Spanish company for unjustifiable alterations to their electricity bills.

Mayorga encouraged Union Fenosa clients to check the amount of electricity they have consumed each month when the meter is being read and then to compare this figure with the figure that appears on their electricity bill. According to the energy specialist, Disnorte and Dissur simply increase the figure, often by up to 100% or more, thus charging their clients whatever they like. In his speech during the 28th anniversary of the triumph of the revolution President Daniel Ortega promised that the energy crisis will be overcome during the first trimester of 2008. In the meantime the constant blackouts are wreaking havoc in homes, businesses, hospitals, schools and other institutions across the country and creating a virtual economic stand still.


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Topic 4: Interamerican Development Bank accepts that "modernization" of ENACAL was a fraud

Earlier this month, on July 3, the Interamerican Development Bank (IDB) awarded a loan of US$30 million to the Nicaraguan State Water and Sewer Company (ENACAL) to carry out projects to improve the quality of service provided by ENACAL. Among the projects is the legalization of connections in marginalized neighborhoods currently connected illegally to the water distribution network as well as essential work on the infrastructure of the network so as to reduce leaks and take water to neighborhoods where there is currently no service.

Also on July 3 the IDB gave ENACAL the go ahead to cancel the contract it signed in November 2005 with the Chilean multinational INECON-IGT. The Chilean company won the bidding process to administer a loan of US$13 million awarded to the Nicaraguan government to "modernize" the administration of ENACAL. The modernization project was promoted by the Bolaños government.

On July 15, ENACAL President Ruth Herrera explained that the IDB gave permission to cancel the contract after five months of conversations with the new directorate of ENACAL. According to Herrera representatives of the IDB have at last been convinced that the so-called "modernization" of ENACAL was a fraud. At the time of the bidding process Herrera, then Coordinator of the National Consumer Defense Network, warned that what the project was really about was creating appropriate conditions for the privatization of ENACAL, an opinion she still holds today. Of the US$8 million so far been spent by the Chilean company, "not one cent was invested in ENACAL," says Herrera. "The Chilean project was a parapet ... it was an orchestrated move towards privatization." According to Herrera most of the US$8 million has gone to the Chilean firm's consultants. ENACAL will now administer the remaining US$5 million of the original IDB loan. Of course, the people of Nicaragua still have to pay the IDB back for the fraudulently spent US$8 million.

Herrera hopes to reverse the damage caused by years of almost total abandonment of the water distribution network. She has on several occasions described the current state of potable water distribution in Nicaragua as "unsustainable."

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Topic 5: Government program to legalize property occupied by families in marginalized barrios

The government program "Helping You Resolve Your Property Problems," which will be carried out by the government’s Property Administration, aims to facilitate issuing deeds for families who occupy land illegally in marginalized neighborhoods of Managua and other cities across the country. Government Property Administrator Mireya Molina hopes the program will facilitate the legalization of all property in marginalized neighborhoods in Managua and in 54 neighborhoods in other cities.

One of the most serious errors made by the Sandinista government of the 1980s was its failure to complete the legalization of the massive land reform measures it implemented which gave property to hundreds of thousands of landless peasants and urban dwellers. Lack of legal documents made the distributed properties vulnerable for reconcentration by former owners and newly wealthy capitalists. This program appears to be a commitment not to repeat that mistake.

Molina explained that the government program will absorb all the costs of the legalization process and that they are carrying out the legal transactions in the neighborhoods "so that people don't have to spend money travelling to and from our offices." According to Molina the institution is attempting to do "in a few weeks" what previous administrations didn't do "during several years."

This program will benefit those families forced to migrate to Managua and other urban centers after being made homeless by Hurricane Mitch and other natural disasters as well as those who abandoned their homes in the countryside due to unemployment and/or the destruction of the natural resources on which they depended.

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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 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. 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.