Nicanet - The Nicaragua Network

Nicaragua Network Hotlines for May 22, 2007

News topics covered in this Hotline include:

Topic 1: Ortega creates National Council for Literacy to reduce illiteracy by 2009


The goal of the newly created National Council for Literacy is to reduce illiteracy in Nicaragua from 35% to 5% by the end of the year 2009. In the past 16 years, illiteracy has grown in Nicaragua and persists as an issue for more than 30% of the population over 14 years of age.

The Council will be responsible for organizing the National Literacy Campaign, which will bear the name of Cuban independence leader José Martí according to a decree signed by Ortega during the commemoration of the 112th anniversary of the birth of the Nicaraguan hero, Augusto C. Sandino.

The Council will be headed by First Lady Rosario Murillo and will collaborate with the Ministry of Education. It is formed by the Carlos Fonseca Association, the National Council of Universities (CNU), the July 19th Sandinista Youth, the Nicaraguan Association of Educators (ANDEN), and the Secondary Education Student Federation (FES), among other groups.

Ortega says that the Council “has an enormous challenge”: to promote the most significant governmental program in the educational area. The Council will begin project operations July 19 on the 28th anniversary of the triumph of the Sandinista Revolution. According to Ortega, the campaign will be the continuation of the program started 28 years ago by the Sandinista Revolution which reduced the illiteracy rate from over 50% to 12.5%. Authorities plan to update the original program, called the National Literacy Crusade, which won UN acclaim for the first Sandinista government (1979-1990).

More than 5,000 blind and deaf will be part of the program to learn to read and write under the Cuban method “Yes, I can,” using also Braille and sign language as part of the plan. Audiovisual media will be incorporated in the program, with the use of televisions and printed booklets donated by Cuba to reach the most remote areas of the country. Venezuela sent 17 expert trainers and donated some 55,000 bags with teaching supplies.


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Topic 2: Eighteen percent increase in minimum salary approved

 After ninety days of negotiations, Sandinista labor unions and the government signed an agreement to raise the minimum salary by 18% to US$90 per month beginning June 1st. According to union sources, the average minimum wage in Nicaragua was US$77 monthly, before the signing. The approval marks the highest minimum wage increase in the last three decades.

Negotiations began last March when the private sector represented by the big business association, the Superior Council of Private Enterprise (COSEP), proposed an increase of 10.4% and Sandinista unions demanded a 25% increase. On May 16 Secretary of Labor Jeannette Chávez announced the end of the round of negotiations to modify the minimum salary in nine different sectors of the national economy. According to Chávez, 6,000 affected workers will be in the public sector.

On May 1, President Daniel Ortega ordered Minister of Finance Alejandro Guevara to increase the proposal of the public sector to match the labor unions’ proposal. COSEP representatives walked out of the meeting minutes before the agreement was signed. “We do not accept it and expect to see an increase in unemployment,” said COSEP spokesman and president of the Chamber of Commerce, José Adán Aguerri. “They took President Ortega’s orders without taking into account the competitiveness and productivity of the country,” he added. He said he believed the economic situation would become more difficult and the country would see further growth of the informal sector as a result. That’s just what big business says in every country when the lowest paid workers are due for a small raise.


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Topic 3: National Assembly approves Law of Access to Public Information


The National Assembly approved a new Law of Access to Public Information, regulating the right of access to public information by a vote of 69-92 with votes from the FSLN and the Constitutional Liberal Party (PLC). The new law gives the public greater access to information from government agencies and codifies a “shield law” allowing journalists to protect the identity of their sources. The law requires public employees to disclose information about their responsibilities with the threat of a fine equaling six month’s salary.

The law requires public organizations to disclose information and to have it published on a webpage. Details about organizations or entities now considered public information include the organization’s structure, operation, services, fees, bank balance, names and wages of the personnel, according to the law. The law also requires access to information about all contracts, subcontracts, and tax exemptions for private companies doing business with the State.

The law nevertheless regulates the right of the government employees and military to protect all “information that can put the security and integrity of the State at risk and defends national sovereignty.” It establishes the right to protect “reserved information,” such as the purchase and sales of military armament. Offices of Access to Information will be created in order decide the classification of information and will be responsible for attending the citizens’ requests.

Sandinista Deputy (FSLN) Edwin Castro declared this the best law on access to public information in all of Central America and rejected charges by some that it is to be used to regulate the media. Castro emphasized that the law will put an end to the exclusivity of journalists, because now citizens will have the same access to public information. He believes that by giving Nicaraguan citizens the power to access public information, the new law will lead to more transparency and responsibility in government.


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Topic 4: Former President Bolaños questioned on embezzlement

The Comptroller Generals Office is investigating former President Enrique Bolaños for the embezzlement and misuse of public funds during his presidency. Bolaños was interrogated concerning irregularities in his audit last year of over US$333,000.

Marvin Vílchez, director of the audit, and four other auditors are investigating whether Bolaños used embezzled money to pay the utility bills on his house and on the houses of two of his relatives. They are also investigating whether he used the State’s money for gifts for weddings, baptisms, first communions, medical attention, special trips, a $1,200 portrait of his wife and for political mobilization.

Bolaños ended his five-year term in January 2007. Ironically one of the hallmarks of Bolaños’ early presidency was a much touted campaign against corruption which resulted in convictions against Byron Jerez, who headed the tax office under former president Arnoldo Aleman, and Aleman himself who got a 20 year sentence for money laundering. Jerez’ conviction was later overturned and Aleman, who spent a short time in jail and was released first to “house arrest” and then “town arrest,” has now been released to “country arrest” essentially giving him freedom to travel anywhere within Nicaragua.

Currently Bolaños occupies a seat in the National Assembly and another in the Central American Parliament (PARLACEN), both of which give him immunity from prosecution. Bolaños, like Alemán, said that he made certain decisions because otherwise the country would have collapsed.

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Topic 5: Law to regulate Venezuela-Nicaragua Petroleum Fund proposed by MRS

The three member bench of the Sandinista Renovation Movement (MRS) proposed legislation last week to regulate the use of the income from the oil agreement between Nicaragua and Venezuela. According to the MRS proposal, the earnings would finance the country’s social priorities. MRS president Enrique Sáenz said that the new law would create the “Venezuela-Nicaragua Development Fund” to administer US$333 million from the oil agreement. The MRS also proposed to distribute specific percentages of this amount to seven specific sectors of the Nicaraguan economy, including health and education, already announced priorities for use of the funds by the new FSLN government.

The basis for the MRS proposal is that the terms of the agreement between Nicaraguan Petroleum (PETRONIC) and Venezuela Petroleum (PDVSA), which includes paying for a percentage of the oil over a 20 year period, is that the State guarantees payment making it public debt which must be approved under present law by the National Assembly. However, with only three seats in the 92 member legislature, the MRS’ ability to pass legislation is limited.

National Assembly Third Secretary and National Liberal Alliance (ALN) deputy, Javier Vallejo, did not dismiss the possibility of ALN members supporting this initiative in the Assembly. However, ALN and MRS votes combined fall short of a majority so it is questionable whether this bill is going to be passed into law.

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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 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.