Nicanet - The Nicaragua Network

Nicaragua Network Hotlines for September 19, 2006

News topics covered in this Hotline include:

Topic 1: Still no end in sight for energy crisis

Electricity distribution service continued to worsen with the Spanish transnational Union Fenosa able to provide only 75% of the national demand. Power cuts of up to twelve hours were reported in many areas. On Sept. 11, President Enrique Bolaños called an emergency meeting with representatives of the energy sector. Some of the smaller electrical generating companies agreed not to switch off their power plants despite being owed large sums of money by Unión Fenosa. The largest generating company, GEOSA, refused to join the agreement and shut down its production. Unión Fenosa promised to loan itself US$9 million from its headquarters in Madrid so it could pay part of its debts and buy electricity from neighboring Central American countries. US$9 million is the amount Bolaños has been trying to ram through the National Assembly to cover debts of the company which won the franchise when electricity distribution was privatized several years ago. The FSLN has opposed the bail-out and apparently has now been joined by the Constitutional Liberal Party (PLC). Together the two parties hold more than 90% of the seats in the National Assembly.

On Sept. 12 President of the National Energy Institute (INE) David Castillo told the press that after the meeting Bolaños had requested that INE authorize a “drastic” increase in the electricity rate and abandon the process of arbitration against Unión Fenosa. “Bolaños also ordered the state-owned plant Hydrogesa,” which generates hydroelectricity in Lake Apanás, “to be turned on to full capacity,” despite the fact that this will exhaust the lake's capacity to generate electricity during the coming dry season. Castillo said INE had rejected Bolaños' requests and criticized the president for ordering the over-exploitation of Lake Apanás.

PLC Vice President Wilfredo Navarro announced that his party had “suspended its support of the US$9 million” subsidy for Unión Fenosa “because we have realized that the government, the generating companies and Unión Fenosa are creating a fictitious crisis as a pretext for increasing the electricity rates.” Navarro said the government is attempting to “blackmail” the Assembly into voting in favor of the US$9 million. “The PLC bench will not allow an increase in the electricity costs to consumers,” he went on.

While the authorities continue to fail to resolve the crisis the Nicaraguan economy is being pushed closer to a state of total collapse, the catastrophic effects of which are being suffered by the poorest sectors of society.

Ramiro López, Director of Hospitals at the Ministry of Health (MINSA), called for the government to take urgent action to resolve the current energy crisis before the ministry experiences a financial catastrophe. According to López MINSA is forced to spend 80,000 cordobas a day (US$4,550) on gasoline to power generators in hospitals and health centers across the country.

On top of the amount spent on gasoline, MINSA has had to spend large sums of money to repair machines and equipment damaged as a result of unexpected power cuts. According to López, all four ventilators, worth US$20,000 used in the intensive care unit of the Lenin Fonseca hospital were damaged on Sept. 9 during a power cut. “We wrote to Unión Fenosa requesting that they pay for the repair work, but they haven't replied,” said López, adding “this is not new; they have damaged several of our machines and have not paid for the repairs of any of them.” During a press conference on Sept. 12, Managing Director of Unión Fenosa José Ley Lau admitted that some hospitals were being affected by power cuts of up to four hours but denied that these power cuts could result in machinery being damaged.

Return to top.
Topic 2: Ortega: OAS is planning to discredit electoral process

In his speech at a two day conference of the Permanent Council of Political Parties of Latin America and the Caribbean (COPPPAL) held in Managua on Sept. 11 and 12, the Sandinista Party (FSLN) leader and presidential candidate Daniel Ortega warned that the Organization of American States (OAS) is planning to discredit the forthcoming Nicaraguan general election process. According to Ortega the OAS electoral observation mission currently in Nicaragua “will present a report disqualifying the electoral process” in October “just a few weeks before the election.” The intention, he said, being that the report “receive the support of a majority of OAS member country representatives so as to disqualify our [an FSLN] victory.”

The FSLN leader went on to say that he doesn't think this report will be supported by a majority of OAS members but even so “it will have its impact.” As pointed out by Ortega the OAS has installed the biggest and most expensive electoral observation mission in any Latin American nation over the last year with 80% of the mission being funded by the US government. “This is why,” he added, “with all due respect to some of the members of the OAS mission and the Carter Center, we have said that we do not trust electoral observers.”

Ortega's statements were criticized by the leadership of the other three large political alliances competing for the Presidency. Vice President of the Constitutional Liberal Party (PLC) Wilfredo Navarro describes Ortega's comments as “anachronistic” saying the OAS mission is the “guarantor” of transparency in the electoral process.

Victor Hugo Tinoco, of the Sandinista Renovation Movement (MRS), said that electoral observation is essential because the Supreme Electoral Council (CSE) is not impartial and mistrusted by the political parties. Head of the Nicaraguan Liberal Alliance's (ALN) electoral campaign Adolfo Arguello said “we do not understand how anyone could feel uncomfortable that an organization with the reputation of the OAS is accompanying us during this electoral process.” President of the small Alternative for Change (AC) alliance Orlando Tardencilla, however, called for an investigation into Ortega's claims saying that it is “wrong” for electoral observers to bless some candidates and disqualify others.

The OAS reacted to Ortega's claims with a press statement issued in the organization's headquarters in Washington DC. In the statement it was pointed out that the OAS role has not been questioned during the other 14 elections it has monitored in the region over the last year. “The OAS electoral observation mission in Nicaragua is not part of the internal political debate and will not comment on public declarations made by the political leaders or authorities of that country,” read the statement. Distrust of the OAS mission was caused by an intemperate speech by US Ambassador to the OAS and former ambassador to Nicaragua John Maisto in which he called for the rejection of Ortega and of Jose Rizo, the PLC candidate.

Return to top.

Topic 3: Police reveal findings of investigation into methanol poisoning

On Sept. 12 representatives of the local government in Leon confirmed that over 50 people have died as a result of consuming methanol (also called “wood alcohol”) mixed with water and sold as unrefined liquor. Later in the week another two deaths from methanol poisoning were reported in Chinandega. By Sept. 16 the Ministry of Health (MINSA) had registered 742 people who had been treated for methanol poisoning since Sept. 3 when the first suspected cases were reported. Dozens of patients have lost their sight and as many as 60% of all those affected will likely suffer some kind of permanent damage to their sight and/or kidneys. According to police findings over 15 people were involved in the scheme to sell methanol stolen from a chemical company as unrefined liquor. José Ángel Rodríguez Martínez was named as the coordinator of the crime. Ten other suspects were also accused.

Return to top.

Topic 4: US government to spend US$12 million for Nicaraguan electoral process

Under pressure from a Supreme Electoral Council (CSE) investigation of the International Republican Institute (IRI), the US Embassy in Managua issued a statement on Sept. 13 confirming that the US government has allocated US$12 million "to pay for technical support" in the current presidential campaign. These funds, which are funneled through National Endowment for Democracy core groups such as the National Democratic Institute (NDI), the IRI and the International Foundation for Election Systems (IFES), as well as through the US Agency for International Development fund electoral observation missions such as that of the Organization of American States (OAS), technical assistance for the CSE, registration of voters, training poll waters, and civic education.

“These funds represent a strong commitment from my government to the Nicaraguan people's desire for free, transparent and inclusive elections,” said US Ambassador Trivelli. “I want to be very clear,” he went on, “we have not financed, and we will not finance, any specific electoral campaign.” Trivelli has made a multitude of public statements and threats that the US relationship with Nicaragua will be "reexamined" if the FSLN or PLC win the election and Trivelli has also made positive statements about ALN candidate Eduardo Montealegre's presidential candidacy.

One day earlier on Sept. 12 Trivelli and State Department official John Feely were no shows at a scheduled meeting with CSE President and Vice President Roberto Rivas and Emmet Lang. The meeting was to discuss the IRI's use of out of date information to train poll watchers. Trivelli said he did not turn up for the meeting because the US Embassy considers the case to be closed. The CSE investigation into the matter, however, continues.

Return to top.


Topic 5: Investigation shows children are affected by migration of their parents

On Sept. 12 Martha Cranshaw, representative of the Network of Nicaraguan Migrants, presented the findings of an investigation called “What does emigration mean for my family?” According to the Migrants Network figures, of 900,000 Nicaraguan emigrants working outside the country, 450,000 have children living in Nicaragua.

All of the children interviewed as part of the investigation said their lives had changed after their family was divided. 77% say they permanently feel sad since their parents left Nicaragua to work in other countries. Children whose parents live in other countries are likely to experience changes in their behavior and to be considered problematic by the adults who look after them. They are more likely to experience difficulty concentrating at school and to drop out of school at an early age. Teenage boys whose parents work in other countries are more likely to start drinking alcohol while teenage girls are at a greater risk of becoming pregnant. The impact on children is greater when their mother migrates to another country to work.

Return to top.

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.