NICARAGUAN MAGISTRATE CRITICIZES SUPREME COURT

C O N F I D E N T I A L MANAGUA 000698

SIPDIS

SIPDIS

DEPT FOR WHA/CEN

E.O. 12958: DECL: 03/22/2016
TAGS: PGOV KCOR KJUS NU
SUBJECT: NICARAGUAN MAGISTRATE CRITICIZES SUPREME COURT
LEADERSHIP CRISIS, CORRUPTION

REF: A. MANAGUA 0304

B. MANAGUA 0036

Classified By: Ambassador Paul Trivelli for reasons 1.4
(b and d)


1. (C) Summary: During a recent discussion with RLA,
Nicaraguan Supreme Court (CSJ) Justice Guillermo Vargas
Sandino expressed dismay regarding the ongoing CSJ leadership
crisis that began on March 16 when PLC and FSLN-affiliated
justices failed to agree on the appointment of presidents and
vice presidents to the CSJ plenary and four Chambers. Vargas
Sandino blames partisan jockeying for the impasse, which has
shut down the top of Nicaragua's judicial system, and claims
he will not participate in any ad-hoc leadership solution
without consensus. Vargas Sandino also voiced disgust with
the blatant political patronage that determines the Court's
membership and explained how the CSJ has used procedural
issues to avoid presenting ex-President Arnoldo Aleman with a
notification of the pending money laundering hearing against
him in Panama. End Summary.

FSLN, PLC HACKS SQUABBLE OVER POLITICAL SPOILS, LEAVE
NICARAGUANS IN THE LURCH
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2. (C) RLA met with Nicaraguan Supreme Court Justice
Guillermo Vargas Sandino on March 20 to discuss the CSJ's
ongoing leadership crisis, the pending hearing against
ex-President Arnoldo Aleman in Panama, and other issues.
(Comment: Vargas Sandino, the longest-serving Justice, was
originally appointed by former President Violeta Chamorro and
is widely regarded as the only independent, non-political
magistrate in the Court. His term is due to expire on
December 15, and he does not believe he will be re-appointed
due to his consistent opposition to politically-motivated PLC
rulings. End Comment.) Vargas Sandino explained that,
according to the FSLN-PLC political pact to control
Nicaraguan government institutions, positions are rotated
yearly between the two parties. On March 16, the terms of
the presidents and vice presidents of the CSJ and the four
Chambers -- Constitutional, Criminal, Civil, and
Administrative -- expired. The last time magistrates were
appointed, Aleman brokered a deal with the FSLN (in exchange
for legal manipulation permitting Aleman greater freedom) to
allow the Sandinistas to control eight of the sixteen seats
in the CSJ, splitting the vote down the middle (with Vargas
Sandino presumably voting Liberal).


3. (C) According to the Ortega-Aleman pact, the FSLN was
"scheduled" to receive the CSJ presidency and presidency of
the Criminal Chamber, with the PLC obtaining the vice
presidency and presidency of the other Chambers. The FSLN,
worried about PLC control of the Constitutional Chamber
during an election year, decided to try to renegotiate the
deal. (Note: The Constitutional Chamber decides election
disputes and was most recently controlled by the Sandinistas,
who, using legally dubious methods to achieve a quorum,
issued rulings allowing the FSLN-controlled Supreme Electoral
Council (CSE) to make decisions without its PLC members and
ratifying CSE decisions favorable to Liberal dissident
Eduardo Montealegre. End Note.) The magistrates, who Vargas
Sandino has witnessed making phone calls for guidance to
Aleman and FSLN leader Daniel Ortega, failed to reach an
agreement during a marathon meeting on March 17.


4. (C) According to CSJ regulations, Vargas Sandino would, as
the most senior Justice, assume temporary administration of
the CSJ and Judiciary Branch until a final decision is made.
However, the FSLN magistrates insisted that the CSJ operate
under a committee of four justices (three would be FSLN) led
by Vargas Sandino. He declined, asserting that he would not
take responsibility for the Court in the absence of
consensus. (Note: On March 22, the magistrates finally
ratified the membership of the Administrative Chamber, which
will allow the Court to at least pay its bills. Vargas
Sandino was absent for "family reasons." End Note.)

MAGISTRATES IGNORE JUDICIAL CAREER LAW AND EMPLOY PARTY
LOYALISTS TO PERPETUATE CORRUPTION
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5. (C) Vargas Sandino commented that the new and widely
praised Judicial Career Law, which outlines qualifications
and requirements for new magistrates, is frequently ignored
and disregarded. Political connections and abject obedience
to party objectives, regardless of legality, continue to
trump academic qualifications and legal experience.
Specifically, Vargas Sandino lamented the recent appointment
of FSLN loyalist Oscar Loza to Managua's Appeals Court, as
Loza is not qualified and never took the "required" exams.
Vargas Sandino also remarked that Rogers Camillo Arguello, a
CSJ justice who was involved in the theft of $609,000 of
cocaine money from a CSJ bank account (ref B) should never
have been appointed to the CSJ for the same reasons. He
stated that Arguello's criminal charges for slander and
defamation against a reporter who covered the story were
"disgracefully" and illegally dismissed as part of a
political deal.


6. (C) In addition to the infamous "narco dollars" case,
Vargas Sandino mentioned that there are many cases where
illegal payoffs have been made to Sandinista CSJ Justice
Rafael Solis for a favorable result. Vargas Sandino stated
that payment arrangements are made through FSLN operative
Lenin Cerna. Most notable cases of payoffs for favorable
results include the matters involving civil litigations to
recover property by the Cerna (no relation to Lenin Cerna)
and Saborio families and that of Alvaro Robelo.


7. (C) Vargas Sandino further explained that the Sandinistas
are scheming to subvert heretofore relatively independent
judicial institutions by insisting on the appointments of
political hacks instead of qualified civil servants. He
specifically identified the Registrars of Property in Boaco,
Esteli and Chontales, the appointment of physicians and
laboratory technicians in the Institute of Legal Medicine,
and the appointment of public defenders.


8. (C) Last week's event launching a commission that will
draft a proposed Code of Judicial Ethics was a mockery,
claimed Vargas Sandino. The commission is chaired by Justice
Ligia Molina Arguello, whom he described as one of the most
corrupt judges on the Court.

PANAMANIAN MLAT REQUESTS IMPEDED BY BUREAUCRATIC DELAYS
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9. (SBU) Vargas Sandino described how the CSJ avoided
complying with two MLAT requests from the Government of
Panama (GOP) to notify ex-president Arnoldo Aleman of pending
hearings against him in that country. In November 2005, the
CSJ unanimously decided (Vargas Sandino included) after a
considerable delay not to rule on an MLAT request for
procedural default since the GOP had submitted the request to
the wrong institution (the Attorney General rather than the
National Prosecutor).


10. (SBU) The CSJ's Criminal Chamber split on party lines
after the submission of a second GOP request. After another
long delay caused by inaction on the part of PLC Chief
Justice Manuel Martinez, Vargas Sandino determined that the
request was incomplete because it lacked some required
document certifications. On those grounds, Vargas Sandino
denied the request and proposed returning it to the Attorney
General so that Panama could correct the procedural
deficiencies and return it on time. Naturally, the Court
pigeon-holed the request until the deadline passed for
re-submission.

COMMENT: VARGAS SANDINO UNDER FIRE
--------------


11. (C) The Deputy Attorney General told RLA that Vargas
Sandino's "complicity" in PLC legal delay tactics is "proof"
that he is no longer independent, but another Aleman stooge.
RLA later discovered, however, that the source of the
information were some Sandinista justices attempting to smear
Vargas Sandino's reputation. In a judicial system filled
with unqualified, corrupt political hacks, Guillermo Vargas
Sandino is often the only voice urging respect for justice
and the rule of law -- a voice that is too often drowned out.
TRIVELLI