Nicaragua News Service September 12-19, 1994 Vol. 2, No.40 by Colleen Littlejohn Major news stories for the week: 1. Teachers march to demand salary increase. 2. FACS food donation finally released 3. Government readjusts economic growth projections 4. Lacayo accuses Sandinista representatives of bribery 5. Coffee producers in tax rebellion 6. ATC demands salary adjustments 7. Rondon still proclaiming immunity 8. Barricada staff demands professionalism and autonomy 9. Community Movement expresses lack of confidence in OTU 10. Maryknoll Sisters celebrate 50 years in Nicaragua ____________________________________________ 1. Teachers march to demand salary increase. Approximately seven thousand teachers marched last week to demand an 80% increase in their basic salaries. In Nicaragua, a primary school teachers earns a basic salary of 315 cordobas ($44) while a high school teacher earns the equivalent of almost $59 (420 cordobas). Some additional salary is earned for years of service - 20 years is worth an additional $11.19. The teachers are also demanding improved fringe benefits, which at present, due to the complete failure of the government's social security system, do not represent any benefit. The march was called for by the two largest teachers organizations in the country, ANDEN, the largest union but still not formally legalized, and the National Federation of Nicaraguan teachers. The Ministry of Education, contrary to what has happened in former marches, has publicly approved the demands of the teachers. (Barricada, Sept. 23) 2. FACS food donation finally released At the end of last week the food donation of the European Union for drought victims via the Sandino Foundation, was finally released after the government decided to exonerate the donation from taxes. A $60,000 fine, however, was paid by the EU for storage penalties caused by the government itself. The EU decided to pay in order to not hold up the process any more. 3. Government readjusts economic growth projections Despite announcements earlier this year that the Nicaraguan economy would grow by over 4%, the government was forced to recognize this week that the rate would only be 2%, according to Dr. Evenor Taboada, President of the Nicaraguan Central Bank. The government had projected a 4% growth rate on the basis of improved coffee prices, but that that optimism was damaged by the ongoing energy crisis, the drought and the transportation strike. Various independent economists, including Dr. Jose Arias, co-editor of the monthly magazine, CABLE CENTROAMERICANO, affiliated with the former Central Bank president Francisco Mayorga, accused the government of still being too optimistic in that they consider that the gross domestic product will only grow by 0.5%, which given Nicaragua's birthrate of at least 3.5% means practically nothing. Taboada, in his announcements however, did value as a "success" the first stage of the IMF imposed structural adjustment proposals because the country has achieved macroeconomic stability, and sufficient external resources. He also announced that the IMF would shortly be setting up an office in Nicaragua to monitor the adjustment programs. With respect to total exports, the president of the Central Bank announced that the country would export approximately $300 million. The most important export activity is now cattle raising and coffee has declined to second place. The biggest source of dollars, however, for the Nicaraguan economy is the monthly amounts sent to their families by Nicaraguans who live abroad, an amount estimated at over $200 million a year. It was announced further that inflation is expected to be 10% for 1995. (Barricada, Sept. 23) 4. Lacayo accuses Sandinista representatives of bribery Antonio Lacayo, Minister of the Presidency, accused Sandinista legislators, without mentioning any names, of coming to his office and offering to change their "pinata" homes for another house of lesser value plus the sum of $20,000. Lacayo made the accusation on a popular morning TV show "Good Morning Nicaragua". Sandinista legislatures are demanding an investigation into Lacayo's accusations and are considering suing him. Later in the week, as a result of the controversy, Lacayo stated that he only meant one legislator, Jose Leon Talavera of Rivas. Talavera had already made public the fact that the Minister of Finances had asked him to give up his house in exchange for another one given that his house was being claimed by a US citizen. Talavera, to facilitate the government's position vis a vis the US, agreed but stated that the government had to put some basic maintenance into the new house before the switch, which was not done. Lacayo is extremely annoyed with the FSLN delegates because they oppose the re-election of the president and the no-election of close family members of the current president. These are two reforms to the Constitution which are being discussed. Daniel Ortega did not comment publicly on the bribery accusations. Ortega, however, was in a marathon 12 hour meeting with most of the FSLN representatives of the National Assembly at which both parts agreed to call another meeting between the officers of the FSLN bench and the National Directorate in order to "re-establish communication and look for agreements which will resolve the crisis within the FSLN." (Barricada, Sept. 20) 5. Coffee producers in tax rebellion The National Union of Coffee Producers (UNICAFE) told the government last week that their members are willing to stage a national struggle against the payment of 30% of their anticipated income tax that the government wants to force them to pay on their 1994-1995 crop, which has not even begun to be harvested. The Union insists that the duty of their members is to pay those taxes before the end of the fiscal year 1994-1995 which closes on September 30th, 1995. The government argues that the prepaid taxes will help to repair roads, provide public security in the coffee zones plagued with kidnapings, and also fund social welfare type projects. But UNICAFE insists that those services are not subject to negotiations in that they are obligations of the Nicaraguan government to fulfill according to the present Constitution. The UNCAFE is the organization of all coffee producers regardless of political affiliation. The FSLN National Directorate issued a statement in support of UNICAFE position and pronounced themselves in solidarity with any actions that the organization decides to implement to defend their interests. (Barricada, Sept. 21) 6. ATC demands salary adjustments The ATC demanded last week that the official minimum wage for farm workers be raised to 15 cordobas (US $2.10) per day, plus fringe benefits, in order to "advance in the real stability of the farm work force." At present the official minimum wage is set at 6 cordobas (84 cents) but the average wage now paid is between 8 and 10 cordobas a day. (Barricada, Sept. 21) 7. Rondon still proclaiming immunity Despite a recent order from Antonio Lacayo to renounce his government immunity which is preventing the National Development Bank from taking his land for lack of loan payments, Agricultural Minister Roberto Rondon still clings to his executive privileges, according to the Judge who is hearing the case. Last week Rondon was supposedly to get a loan from a consortium of private Nicaraguan banks, in order to pay up the BND. (Barricada, Sept. 20) 8. Barricada staff demands professionalism and autonomy The staff of Barricada, one of the principal and most respected daily newspapers in Nicaragua, held a press conference last week in which they reaffirmed their support for the 1991 decision of the FSLN National Directorate to end the designation of the newspaper as the official organ of the FSLN. [The newspaper continues, however, to be owned by the FSLN Party.] The press conference was a public show of support for the editor-in-chief of Barricada, Carlos Fernando Chamorro, whose resignation is being demanded by a number of the members of the FSLN Sandinista Assembly who criticize Chamorro for being partial to the political line of Sergio Ramirez. (Barricada, Sept. 20) 9. Community Movement expresses lack of confidence in OTU The Nicaragua Community Movement's National Coordinator, Enrique Picado, has requested a meeting with Emilio Pereira in order to make clear exactly what is the function of the newly created Office of Urban Titling (OTU). Supposedly the office was created to facilitate the turning over of land titles to those who benefited from Laws 85 and 86 of the previous government which allowed thousands of people to become owners of their own homes or land parcels if they were in possession of them as of February 25th, 1990. The government, however, in an initial statement following the official announcement last week of the OTU, seems to be taking into account the idea of giving land titles only to the Law 86 beneficiaries. According to Picado, the government's statement indicates "an attitude which will provoke more insecurity and instability for thousands of families." The Community Movement has also petitioned the National Assembly to extend for six more months the current law in effect against evictions. One of the persons threatened with eviction is Commandant Henry Ruiz of the National Directorate of the FSLN. (Barricada, Sept. 20) 10. Maryknoll sisters celebrate 50 years in Nicaragua The Maryknoll sisters last week celebrated their fiftieth anniversary in Nicaragua with a public service and reception held at the "Maura Clark" house located in Ciudad Sandino. Maura Clark was a Maryknoll sister who had worked for many years in that neighborhood of Managua but was murdered in 1980 by Salvadoran army officers shortly after moving to that country. The Maryknoll sisters came to Nicaragua in September of 1944 at the invitation of Bishop Niedhammer of the Capuchin fathers. The first six sisters worked initially in a Managua Catholic school and later opened a clinic in the mining town of Siuna, located in the Atlantic Coast Region. Presently there are 12 sisters working in Nicaragua in Managua, Leon, San Juan de Limay, Rosita, Somotillo and Villanueva. (La Prensa, Sept. 22)