TUESDAY, JUNE 19, 2012

Nicaragua News Bulletin (June 19, 2012)

1. Colombian spy arrested
2. Waivers still up in the air
3. Violence against Women Act to go into effect
4. World Food Program head visits Nicaragua
5. Illegal logging enforcement up
6. National Assembly creates Financial Analysis Unit
7. Tax reform on the agenda
8. Lobster divers need other jobs
9. Assembly works on better address system

1. Colombian spy arrested

On June 12, Nicaraguan authorities arrested Colombian citizen Luis Felipe Rios Castaño and accused him of spying for the Colombian armed forces. Shortly thereafter, two Nicaraguan military officers, Lieutenant Amaru Alvarez Granera and Captain Ruben Leonidas Castillo Ruiz, were arrested and accused of revealing military secrets. Head of the Nicaraguan Army Gen. Julio Cesar Aviles said, “This Colombian citizen has confessed. He worked for the intelligence services of the Republic of Colombia.” He went on to say, “He was looking for national defense plans, the country's development plans, and information about cooperation between the Nicaraguan Army and other armed forces.” About the Nicaraguans who were detained, Aviles said, “They gave information to this confessed agent and are both being processed under military justice and will be sanctioned according to the military penal code.” He added that Rios compensated the Nicaraguan officers financially for the information they provided.

Rios evidently arrived in Nicaragua at the end of 2010 presenting himself as a correspondent for a defense and security magazine. Nicaraguan authorities began surveillance of him in August of 2011. A Managua judge ordered preventive detention for Rios and set a hearing for June 26. Prosecutor Armando Juarez said US$30,000 in multiple payments was sent to Rios via Western Union from Colombia's Naval Cadets' School. Juarez said that the money went to pay his informants for information about Nicaragua's defense strategies and military aid from Russia and Venezuela and that Rios' handlers in Colombia were high level officers of the Colombian armed forces. Juarez said that he did not know if the spy operation was begun by the administration of Colombian President Alvaro Uribe or his successor Juan Manuel Santos, who took office in Aug. 2010. Santos stated on June 15, “They are investigating the information about a supposed spy, a Colombian citizen captured in Nicaragua; I have ordered an investigation.” The issue was widely covered in the Colombian media. Colombia and Nicaragua have a maritime border dispute before the World Court where a decision may be announced before the end of this year. (El Nuevo Diario, June 15, 16; Radio La Primerisima, June 15; La Prensa, June 15)

2. Waivers still up in the air

While the US State Department maintained absolute silence on the subject, some analysts were predicting that the United States this year would not extend to Nicaragua the waiver relating to budgetary transparency but that it was possible that the waiver on the property issue would be granted. These waivers, indicating a country has complied with certain conditions, are mandated by US law for aid to continue. If the waiver on transparency and governability is not granted, it will mean a loss to the Nicaraguan government of about US$12 million in aid. The administration of President Daniel Ortega does not include the assistance from Venezuela in Nicaragua's national budget because it is administered by bi-national and private agencies, although it is reflected in Nicaragua's balance of payments statements. This has been sufficient to win the approval of the International Monetary Fund. However, the United States also questions the legitimacy of the elections of Nov. 2011 (following the lead of Nicaragua's opposition parties) and the US could show its disapproval by denying this waiver.

In the case of the property waiver, the Nicaraguan government has resolved 59 cases this year, thus matching or exceeding past years and fulfilling the conditions of US law. These are cases of people who lost their properties during the years of the revolution in the 1980s, became US citizens, and then demanded compensation under US law. At this point, many of the remaining claimants are among the worst human rights violators of the Somoza dictatorship. If the waiver is not granted, a larger sum of US aid will be withheld and the US will be required to vote against loans to Nicaragua from the international financial institutions. [Visit http://www.nicanet.org/?p=1133to find out how to contact the State Department in support of the issuing of the waivers.]

Nicaraguans well remember how the US was able to block international loans to Nicaragua under the Sandinista revolution during the 1980s, thus incorporating those institutions into the US embargo of Nicaragua. There was some discussion last week about whether the US is able on its own to veto loans from the World Bank, the International Monetary Fund (IMF) and the Inter-American Development Bank. Nicaragua's representative to the World Bank, Manuel Coronel Novoa, told Informe Pastran that the US “does not have the minimum voting power necessary to block the concessionary loans [from the World Bank] to any of the countries that receive them.” He added, “Neither does the United States have the voting power in the IMF to impede an agreement with any country.” It could be that while the US does have a veto on important decisions at the IMF (decisions that require an 85% majority when the US has 17% of the vote), that veto power may not extend to IMF agreements with individual countries. And, if Coronel Novoa is correct, it may not extend to World Bank concessionary loans to the world's poorest countries. [However, the Nicaragua Network recommends that you call the State Department and your representatives in Washington in support of both waivers; go to http://www.nicanet.org/?p=1133.] (Informe Pastran, June 15, 18)

3. Violence against Women Act to go into effect

The head of the Women's Police Stations, Commissioner Erlinda Castillo, reminded citizens that, on June 22, the Law to Stop Violence against Women goes into effect and crimes against women will no longer be able to be resolved by mediation between families. This law recognizes all forms of violence against women as criminal acts and makes them punishable by law. In addition the law establishes sanctions for officials who delay or deny justice to women victims of violence. Special prosecutor for women Deborah Grandison said that the law requires all officials to treat these cases with “due seriousness,” and that the enforcement of these provisions will depend on the population reporting misconduct.

The Supreme Court, prosecutors, and the Directorate of Legal Aid are all involved in the implementation of the law which will require several changes, including extending hours of operations of Women's Police Stations to 24 hours a day and further training of officers. Last week, the National Police launched a campaign against domestic and sexual violence and human trafficking, with the slogan, "You have value! You can!" So far this year, women's police stations have recorded the killing of 18 women. The record shows that the rate of domestic violence was down by six percent in the first quarter of 2012. National Police Deputy Director Francisco Diaz said that domestic violence is a social and cultural phenomenon with many different causes, adding, “In order to reduce these crimes we must strengthen prevention with a community focus.” (La Prensa, June 13)

4. World Food Program head visits Nicaragua

Ertharin Cousin, executive director of the World Food Program (WFP) of the United Nations, visited Nicaragua for three days last week. In the Department of Matagalpa, she met with residents of Apantillo where 143 school children benefit from WFP food programs and said that “Nicaragua is now a mid-level country.” She added, “At a world level we work in the most vulnerable places. Here in Nicaragua the government is taking more responsibility in this sector and we come in to close the gap, where there is one, to guarantee food security.” At a press conference in Managua with Foreign Minister Samuel Santos, she added that Nicaragua was a fruit that was maturing and the WFP would “continue our support until the moment comes when that fruit can be cut.” She said, “In Nicaragua we are focusing our capacity to see how we can continue working with the government's plan to implement the ever greater food security for the most vulnerable.” The WFP helps 300,000 people in Nicaragua, through the school meal program, Food for Work, and a program for pregnant women, among others. Cousin said that, “Investing in the people of Nicaragua is a good investment because here there is progress” in the struggle against poverty. (El Nuevo Diario, June 16; La Prensa, June 15; Informe Pastran, June 15)

5. Illegal logging enforcement up

Troops from the Army's Ecological Battalion seized 60,000 board feet of Crabwood, a precious hardwood with the Latin name of Carapa nicaraguensis, illegally cut in the Bosawas Nature Preserve in the municipality of Prinzapolka in the North Atlantic Autonomous Region. The wood was valued at US$90,000. Col. Francisco Ruiz Sandino, chief of the Ecological Battalion, said this is just one of many illegal logging confiscations made by his battalion since it began operations last year. For instance, in Mulukuku, they seized three trailers each carrying 15,000 board feet of mixed species in the sector of Bilwi/Puerto Cabezas. The effort to stop deforestation by illegal logging in the Caribbean region is conducted by the Army in cooperation with the National Forestry Institute under Operation Green Gold. Also the Ecological Battalion is working with the Ministry of Environment and Natural Resources, together with experts from the University of the Autonomous Regions of the Caribbean Coast, to constantly monitor Saslaya Park. Col. Ruiz said, “We are working on the creation of three new ecological posts to stop the invasion of colonists.” (La Prensa, June 17; El Nuevo Diario, June 18)

6. National Assembly creates Financial Analysis Unit

The National Assembly gave final passage to legislation creating a Financial Analysis Unit (UAF) to combat money laundering and other illicit financial activity on June 12. The vote was 63 in favor (the Sandinista Party deputies), 24 opposed (from the opposition) and one abstention. The UAF will be able to ask for information about any suspicious financial transaction from an individual or corporation. Business and opposition political parties oppose two articles in the new law alleging that they would give the government the power to investigate based on political reasons. Leaders of the Superior Council on Private Enterprise (COSEP) state that the only reason for a UAF investigation to be initiated should be because of a Suspicious Activities Report from a bank while Articles 4 and 9 would allow for broader investigations. Defenders of the articles say that there are other ways to launder money, including casinos, jewelry stores, automobile dealerships, etc. and the law needs to be broad enough to cover them. Business leaders, however, would prefer a list be included in the law of the specific types of businesses covered in order to limit the discretion of government officials. Jose Adan Aguerri, speaking for COSEP, said that this law was not passed based on consensus with the different economic sectors in contrast with 53 previous laws and he asked President Daniel Ortega to veto Articles 4 and 9. Members also said that COSEP would ask the Supreme Court to rule on the law's constitutionality based on provisions giving citizens privacy.

Sandinista Deputy Walmaro Gutierrez countered by saying, “The UAF will not have any legal power to start proceedings against any Nicaraguan except based on conclusive technical reports” that would be turned over to prosecutors. And Sandinista Deputy Edwin Castro adds that the law was passed to put Nicaragua into compliance with “demands from international powers that we combat money laundering.” (Informe Pastran, June 12; El Nuevo Diario, June 14)

7. Tax reform on the agenda

At the latest on July 2, the government will begin talks with all sectors of the national economy on tax reform which must be approved by Sept. 30 in order to go into effect on Jan. 1, 2013, according to presidential advisor on economic issues Bayardo Arce. Big business groups, the sector of small and medium sized businesses, unions and others will be consulted in order to gather the views of all economic sectors about new proposals. At the same time, Arce said, the government will be analyzing the impact of the tax reform measures of 2009 before submitting a bill to the National Assembly. Arce said that, among other things, the government is studying the possibility of reducing the income tax paid by salaried workers while at the same time expanding the coverage of the tax. He said that a team of experts is going over all the tax exemptions to sectors of the national economy to determine the impact each has on the country's development.

Arce stated that any reforms will be put in place gradually and that the International Monetary Fund has been informed of this plan of gradual implementation. “We have positive conditions to show them,” he said, “in cattle, in coffee we have opened other markets; in general food is an area with great potential; we are committed to agrofood development. We have to review how we maintain the stimulus for the sectors of greatest interest.”

Immediately, business and union leaders spoke up in favor of keeping taxes low for their sector. Mario Amador, president of the Nicaraguan Chamber of Industries (CADIN), said that each business and agricultural sector had hired its team of legislative advisors and economists who will show the positive effect of the benefits they receive and the negative impact that any tax increase for their sector would have for the country. (El Nuevo Diario, June 12; La Prensa, June 15)

8. Lobster divers need other jobs

People in the North Atlantic Autonomous Region are raising questions about Law 613, passed by the National Assembly in February 2011, which is ending free diving for lobster, an occupation which has crippled or killed dozens, maybe hundreds, of young men from decompression injuries known as “the bends.” The law will take effect February 2013 and will prohibit both diving without air, and diving with air in a hose from the surface, “for commercial purposes.” No one questions the fact that free diving for lobster causes crippling injuries and death, but the Caribbean Coast is an area with few jobs. A delegation from the National Workers Front (FNT) met in Bilwi (Puerto Cabezas) with Ibar Diezen, a leader in the lobster divers' union, who said there was an urgent need for the government to provide alternate employment for the many people who make their living in this dangerous occupation. Bilwi Mayor Guillermo Espinoza said his government is looking for alternatives because, in the municipality of Puerto Cabezas alone, there are more than 500 paraplegic former lobster divers. (El Nuevo Diario, June 18)

9. Assembly works on better address system

The National Assembly is working to create clearer addresses in Managua. The current system which identifies a location from a prominent landmark is bewildering to tourists, frustrating for emergency services, and the source of difficulties for delivering Managua's mail, of which 200,000 pieces (out of 5.5 million) get lost each year. Deputy Agustin Jarquin said currently it is very difficult to get addresses right when one is told “From the such and such bar, so many blocks toward the setting sun.” Government officials and urban planning experts are working together to name every street in the capital and to create addresses which are easier to find. It is a huge undertaking in the sprawling city. The cost of installing signage alone also makes it a very expensive project. In addition to working with postal and emergency services officials, the National Assembly is collaborating with legislators from other Central American countries who have experience with creating a system of addresses in their cities. (El Nuevo Diario, June 16)
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