Nicaragua News Service March 27 - April 9, 1994 Vol. 2, No. 14 by Colleen Littlejohn Major news stories for the two week period: 1. Discussion over IMF agreement heats up. 2. President vs. National Assembly 3. President and General Ortega disagree 4. National Assembly bans evictions for six months 5. FN 3-80 postpones disarmament 6. US denies possibility of massive deportation of Nicaraguans 7. Health conditions from bad to worse. 8. Suspect arrested in Miami -------------------------------------------------------------------- 1. Discussion over IMF agreement heats up. The two commissions formed to review the pros and cons of the ESAF agreement shortly to be signed between the IMF and the Nicaraguan government began last week after the government issued a Policy Framework Paper to the commission's participants. The document outlined some of the commitments Nicaragua must make in order to be able to receive the stand-by financing. Those specific commitments include: - the laying off of 13,500 public employees between 1994 and 1996, 7,000 of whom will be laid off in 1994. - monthly increase in fuel prices - increase costs for public services in health and education - eliminate the 6% budget transfer to university system - accept the supervision of the IMF, World Bank, AID and IDB of Nicaragua's public works program, tax administration, customs service and reform of the state. - maintain present bank interest rates with built in inflation factor. The discussions had no sooner started when Barricada, in its April 8th edition, accused the government of having officially promised the multilateral institutions that the presidency would veto the new labor code law, which has not even been approved by the National Assembly. The government, via the Minister of Labor, Francisco Rosales and the Minister of Finance, Emilio Pereira, sent a letter to the IMF earlier in the week in which they promised to promote "policies which promote flexibility" in the labor market, and that if necessary the executive would use the power conferred to her in Article 142 of the Constitution (veto power) to implement those policies. Other policies that the government promises to enforce with respect (or without) to an eventual labor code are: prohibition of strikes in the public sector and the guarantee that employees would have almost unlimited rights to suspend employees, even if that suspension violated a work contract. The Secretary General of the FSLN, Daniel Ortega, and National Worker's Front (FNT) leader, Lucio Jimenez resigned from the high level commission. Ortega stated that the signing of the agreement would be a clear sign of aggression against producers, workers and businesspeople." Meanwhile, the Minister of Finance, Dr. Emilio Pereira, stated that the government would sign the ESAF, with or without the FSLN. The initial letter of intent with the IMF was to have been signed on April 5th but was postponed because of the pending discussions with different sectors of the country, the majority of which oppose the signing of the agreement. (La Prensa 4-7) 2. President vs. National Assembly The National Assembly and the executive branch of the Nicaraguan government have not been seeing eye to eye on several issues during the last several weeks. The National Assembly, weeks before, sent the President a law which would facilitate the passing of constitutional reforms. The President has yet to sign the bill into law. One of the reforms being considered is that of prohibiting any close relative of the current president to run for that office in the next election. However, Antonio Lacayo, principal advisor and son-in-law to the President, stated that the delay in signing the bill had nothing to do with the relative issue. The head of the Sandinista bench in the National Assembly, Sergio Ramirez stated that the changes to the Constitution will not be "cosmetic" and expressed hope that the executive branch would support the changes. The Assembly is now studying a proposal which would modify over 50% of the articles in the Constitution. Meanwhile, the executive and the legislature are in a permanent duel as to who exactly has the power to tax in Nicaragua. Approximately six weeks ago the National Assembly passed a law which abolished sales tax on medicines and schools supplies. The law has yet to be signed into law. The Presidency, however, the day before Holy Week vacations in Nicaragua, issued a decree which effectively ordered the same tax reductions as the National Assembly's law. The presidential decree, however, raised taxes on immigration services and also raised fines for traffic violations. One of the Constitutional reforms being discussed in the National Assembly is an amendment that would clearly define the right of the Assembly, and not the executive branch, to legislate in fiscal matters. (La Prensa 4-7, Barricada 3-29) 3. President and General Ortega disagree General Humberto Ortega, head of the Nicaraguan army, declared that there are substantial differences in opinions about content of the new military law that has been under formulation for the past year. President Chamorro, upon returning from an official visit to Mexico last week, repeated her announcement of last September that General Humberto Ortega will be relieved of his command before the end of 1994. On that same day, in a press conference at the National Assembly where he had been in a meeting with Luis Humberto Guzman, the President of the Assembly, General Ortega stated that "Neither Humberto Ortega nor anyone in the army, will retire because of North American pressures. I will never retire in the context of the announcement of September 2nd...I want to be very clear on this point of my leaving under pressure. To insist that Humberto Ortega retire this year is to perceive the elaboration of the new military organization law in a very superficial manner." General Ortega had gone to the National Assembly precisely to discuss matters relating to the formulation of a new Military Organizational Law. The EPS (Nicaraguan army) is insisting that the retirement of General Ortega should be in agreement with the new military law which is still under negotiation between the executive and the army. The Presidency should have presented the new law to the National Assembly in early March. General Ortega affirmed that the problem of his retirement from the army would not be settled until there is a consensus about the new military law. "We have always been subordinated to civilian power, but within the framework of the Constitution and the law." (La Prensa 4-8, Barricada 4-8) 4. National Assembly bans evictions for six months Last week the National Assembly passed a law that would prohibit evictions for a period of six months of those who have received their property from the State, referring to those who received their home or land through Sandinista land reform measures or in demobilization agreements with the Chamorro government. The law also contains sanctions against law enforcement officials or judges who ignore the law and proceed with evictions. The presidency has yet to sign the bill into law. Several organizations of those whose property had been confiscated by the Sandinista government have demanded that the President veto the bill. 5. FN 3-80 postpones disarmament The final disarmament of "EL Chacal" and the rest of the 3-80 Front, which was to have taken place on April 7th, was postponed until April 15th, according to Sergio Caramagna, representative of the Verification Commission (CIAV) of the Organization of American States. Approximately 200 of El Chacal's men have already disarmed but further laying down of arms will depend on the government's capacity to come through with the benefits promised to the irregular forces at the moment of cease-fire. (La Prensa 4-7) 6. US denies possibility of massive deportation of Nicaraguans Last week, via satellite, the associate commissioner for the US Immigration and Naturalization Service (INS), James Pouleo, participated in a conference dialogue with representatives of the human rights organizations in Nicaragua, including the Nicaraguan Pro-Human Rights Association (ANPDH), Permanent Commission on Human Rights), (CPDH) and the Nicaraguan Center for Human Rights (CENIDH). Pouleo assured the human rights representatives that there would not be a massive deportation of Nicaraguans from the United States and that "each case would be analyzed individually." Local newspapers have been publishing reports that the US is ready to deport over 60,000 Nicaraguans whose requests for political asylum have been denied. President Chamorro even sent a letter to President Bill Clinton, asking him to declare a moratorium on the deportation of illegal Nicaraguans in the US, because of the adverse effect it would have on the already overtaxed Nicaraguan economy. US Immigration officials estimate that there are over 350,000 illegal Nicaraguan immigrants in the United States. (La Prensa 4-8, Barricada 4-8) 7. Health conditions from bad to worse. The city of Esteli closed all city schools last week because of a violent outbreak of bacterial meningitis. One student has died and many others are being tested to see what strain of the bacteria is affecting the population. Schools are to be cleaned and fumigated before classes are allowed to begin. Meanwhile, cholera has heavily attacked in the city of Bluefields, in the Autonomous Region of the Southern Atlantic (RAAS). Eight cases were reported in that city last week. To date this year, on a national level, 626 new cases of cholera have been reported, of which 15 have been fatal. 8. Suspect arrested in Miami Jose Manuel Velasquez, also known as the "Tiger," the principal suspect in the killing of Sub-Commandant Saul Alvarez during one of last year's national transport strikes, was arrested last week in Miami by agents of the FBI. Velasquez had entered the States two weeks after the killing and had registered for political asylum, giving an address in Miami which facilitated his capture. Nicaragua immediately requested Velasquez's extradition, and it is expected that he will be transferred shortly to Nicaraguan under the terms of an almost forgotten extradition treaty between Nicaraguan and the United States.