Nicanet - The Nicaragua Network

Nicaragua Network Hotlines for October 10, 2006

News topics covered in this Hotline include:


Topic 1: First shipment of Venezuelan oil arrives

On Oct. 7 the first shipment of Venezuelan oil arrived at the Nicaraguan port of El Rama. The shipment of 84,000 gallons was met by FSLN presidential candidate Daniel Ortega and a number of mayors representing the Association of Municipalities (AMUNIC). In April AMUNIC signed a contract with the Venezuelan state oil company PDSVA which will allow 10 million barrels of oil (equivalent to Nicaragua's annual demand) to be imported as part of the Bolivarian Alternative for the Americas (ALBA) promoted by Venezuelan President Hugo Chávez. The oil will be sold to the recently created company Bolivarian Alternative for Nicaragua (ALBANIC) with preferential payment conditions. ALBANIC must pay for 60% of the oil within 90 days while the remaining 40% can be paid over 25 years with at 1% interest. The oil can be paid for either with cash or with Nicaraguan products such as corn and beans.

Until now it is has been impossible for the oil to be imported as a result of the lack of cooperation from the Bolaños government which claims that the preferential oil contract constitutes Venezuelan intervention in Nicaragua's internal affairs. While it is true that the FSLN is promoting this deal, it is not true, as the Nicaraguan and international media have charged, that the oil will come to benefit only Sandinista-run municipalities or organizations, or, as President Bolaños has claimed on several occasions, that the FSLN electoral campaign will be financed by the importation of the oil. In fact the deal was signed by all 151 Nicaraguan mayors not just the Sandinista mayors and ALBANIC, not the FSLN or any other political organization, will be administering the project. It is inevitable, though that, should the Venezuelan oil come to relieve the economic catastrophe taking place in the country as a result of soaring oil prices, the FSLN will gain credibility among the population for being the organization which made the deal possible.

Meanwhile the country continues to suffer prolonged daily power cuts which are causing chaos and disruption in schools, hospital, businesses, homes, institutions and all other organizations across the country. The Supreme Electoral Council (CSE) recently expressed its concern about the possibility of power cuts taking place during the general elections, a situation which would have "disastrous" effects according to CSE President Roberto Rivas.

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Topic 2: Montealegre claims that parties to the “pact” plan to prevent his candidacy

Revelations about Nicaraguan Liberal Alliance presidential candidate Eduardo Montealegre's role in saddling Nicaragua with an internal debt that now exceeds its foreign debt has robbed him of his second most important campaign asset – his honesty. (His most important asset is the support of the US State Department.) Montealegre fought back last week claiming that the FSLN and the Constitutional Liberal Party (PLC), the parties to “the pact,” are planning to prevent him from running in the Nov. 5 general election. He is claiming to be the victim of a scheme to carry out a "constitutional coup d’etat" and steal the Nicaraguan people’s "right to choose” their next president.

In a televised message broadcast on Canal 2 on Oct. 3 Montealegre said that the two political parties of the pact are using their influence within the government such as the National Assembly, Supreme Electoral Council (CSE) and the Comptroller General Office (CGR) to “attack [my] ... credibility, ...and make unfounded accusations [against me] in the Supreme Electoral Council” with the aim of “inhibiting” my candidacy.

“The political persecution and abuse I have suffered during the last few months... which began with the CENIS case, is going to intensify ... because, undeniably, these elections are being fought between two forces, ... the pact, led by Daniel Ortega and his partner Arnoldo Alemán, and the political force being led by Eduardo Montealegre, which will bring progress.” CENIS are the bonds sold to bail out several banks that failed, mostly through fraud, several years ago. Those bonds converted the private losses of the banks into public debt that must be paid back with interest from the national budget. Montealegre was Minister of Finance and executed the CENIS scheme.

According to Montealegre, Ortega feels his ambitions to win back power are being threatened and so will do “everything he can to get me out of the way.” On “November 5th [Ortega] will attempt to culminate this fraud,” said the ALN candidate. “This is a conspiracy being carried out before you [the Nicaraguan people] and the international community,” he said, although he went on to say that the “conspiracy” will not succeed.

The other presidential candidates did not take Montealegre’s claims seriously. PLC candidate José Rizo said it is “normal” for “political apprentices” to speak of legal inhibitions, fraud and coup d’etats. Vice presidential candidate for the FSLN alliance Jaime Morales Carazo said as far as he could tell there is only one dirty campaign being carried out against a presidential candidate which is the “campaign of fear” against Ortega involving “national and international forces.” Presidential candidate for the Sandinista Renovation Movement (MRS) Edmundo Jarquin said “I don’t imagine any candidates would be prevented from running at less than a month before the elections." The Nicaraguan newspapers are reporting that there will be 13,000 national and international observers monitoring the election.

The Nicaragua Network and Quest for Peace have a pre-election delegation in Nicaragua right now following up on our June delegation which condemned US Ambassador Paul Trivelli's inappropriate involvement in the campaign and blatant support of Montealegre. The findings of the current delegation will be released in Nicaragua at a press conference on Friday and full-page ads signed by over 800 US citizens and residents apologizing for our government's interference will appear in both La Prensa and El Nuevo Diario. The nonpartisan ads express confidence that Nicaraguans will vote for the candidates of their choice.

Earlier in the week Montealegre received another blow with the news that the vast majority of ALN leaders and candidates in the southern department of Rivas had abandoned the party in favor of the PLC alliance led by José Rizo. Former ALN departmental leader Pedro Bonilla justified this decision saying the ALN “talks about democracy but they don’t practice democracy.” Among those to abandon the ALN in favor of the PLC is the National Treasurer of the Nicaraguan Resistance Party (PRN) and ALN alliance deputy candidate Silvia García Hernández.

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Topic 3: Rumsfeld in Nicaragua for VII Conference of Defense Ministers of the Americas

Defense ministers and other representatives of all the countries of the hemisphere except Cuba took part in the VII Conference of Defense Ministers of the Americas in Managua last week (Oct. 2 - 4). Little information was offered to the press. A small number of participants gave copies of their speeches to the press although the majority did not. A declaration was issued, although the recommendations and conclusions were declared nonbinding for member countries.

The Conference of Defense Ministers of the Americas has taken place every two years since 1994 as a forum for discussion of regional security problems and threats such as drug trafficking, people trafficking, organized crime, terrorism, and natural disasters.

On Oct. 2 diplomatic sources revealed that a confrontation between military and political representatives had taken place after the Inter American Board of Defense (the military wing of the Organization of American States, OAS,) proposed to convert itself into the organization responsible for coordinating the agenda of the conference in future. While some countries, such as Colombia, expressed their approval of this proposal, others, including Argentina, were strongly opposed to the idea. Interestingly the Secretary General of the OAS José Miguel Insulza opposed the idea saying not all aspects of political and social problems require the intervention or monitoring of military organizations in order to be resolved.

Insulza, who gave a copy of his speech to the press, said the social problems resulting from poverty in the American continent "should be considered as a security risk" for the continent. "One of our main concerns should be the risks created from the increase of drug trafficking, organized crime and the proliferation of gangs in our cities." Insulza went on to express concern for the "capability of democratic governments in confronting the challenges of governability" across the continent.

On Oct. 2 in his speech to the conference Nicaraguan president Enrique Bolaños announced plans to construct a 286 kilometer canal joining the Pacific Ocean and the Caribbean. Bolaños said the project will cost US$18 billion and take 12 years to build. According to the President one billion metric tons of goods will cross the continent by the year 2025, only 350,000 of which will be able to pass through the Panama Canal. "The galloping increase in world trade demands an additional canal to the Panama one, and Nicaragua is the best place to build it," Bolaños went on before asking for the support of the 34 Defense Ministers for this project. A canal through Nicaragua has been proposed for over 450 years but never built. There is no particular reason to think that lame duck Bolaños will be able to make it happen in the few months he has left in office. However, we will continue to monitor both the canal and proposals for high speed freight railroads which are called "dry canals."

Much to the surprise of the Nicaraguan press US Secretary of State Donald Rumsfeld avoided commenting on the Nicaraguan elections. In a press conference on Oct. 3 Rumsfeld was asked whether the US government would modify its policy towards Nicaragua specifically in terms of military cooperation should the FSLN assume government in January. Rumsfeld replied by saying "I don't involve myself in US politics, so you can be sure that I am not going to involve myself in Nicaraguan politics." He did, however, urge the Legislative and Executive branches of the Nicaraguan government to work together so as to guarantee the destruction of the 400 SAM-7 missiles in possession of the national army.

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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.