MRS LOSES CAUCUS STATUS BUT CONTINUES AS MOST

C O N F I D E N T I A L SECTION 01 OF 02 MANAGUA 000284

SIPDIS

SIPDIS

DEPT FOR WHA/CEN

E.O. 12958: DECL: 01/29/2017
TAGS: PGOV PINR KCOR KDEM NU
SUBJECT: MRS LOSES CAUCUS STATUS BUT CONTINUES AS MOST
VOCAL OPPOSITION GROUP

REF: MANAGUA 0070

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


1. (C) Summary: The Sandinista Renovation Movement (MRS) has
lost its official status as a caucus in the Nicaraguan
National Assembly, but its deputies continue to offer the
most vocal opposition to President Daniel Ortega. MRS
members are disappointed by the larger Nicaraguan Liberal
Alliance's (ALN) apparent lack of resistance to Ortega's
legislative assaults, and believe that convicted ex-President
and leader of the Liberal Constitutional Party (PLC) Arnoldo
Aleman is stronger than ever. They also assert that some of
the Bolanos era officials were corrupt, but the level of
corruption was at its peak during Aleman's presidency and
that part of the judiciary's weaknesses are structural. End
Summary.


2. (C) During a January 26 cocktail with emboffs, MRS leaders
Edmundo Jarquin (former presidential candidate),Dora Maria
Tellez (MRS party president),Enrique Saenz (deputy),and
Luis Carrion discussed the MRS' role in the National
Assembly, the increasing power of Ortega and Aleman, and
corruption in the Bolanos administration and the judiciary.
The meeting was relaxed and cordial -- including former
revolutionary commander Dora Maria Tellez, whose U.S. visa
was denied two years ago for terrorist activities during the
1980s.

Plight of the Opposition: Shrinking MRS, Inert ALN
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3. (C) MRS deputy Enrique Saenz confirmed that the party's
deputies lost their official caucus status after Mario Valle
left the caucus following the elections and Juan Ramon
Jimenez was expelled for allegedly "plotting" with the
Sandinista Front (FSLN) to exclude Saenz from the Assembly's
Executive Board (reftel). (Note: The MRS won five seats in
the national elections, but the loss of Valle and Jimenez
leaves the party with only three deputies, one short of the
four necessary to form a caucus under Assembly rules. End
Note.) Saenz explained that the MRS has lost office space
and funds for administrative staff, as well as a special
salary supplement for the deputies that is used to fund
caucus expenses. Tellez insisted that the three remaining
deputies will retain their identity as MRS representatives
and continue to criticize objectionable actions of the Ortega
administration.


4. (C) The MRS leaders expressed their disappointment with
the ALN's lack of leadership and vocal opposition to Ortega's
legislative assaults -- especially the reforms to the Organic
Law and Law 290 that grant the FSLN more power. Carrion
repeated the rumor that Ortega is threatening to support PLC
efforts to prosecute ALN leader Eduardo Montealegre for his
alleged role in the Cenis (debt bonds) scandal. (Note:
During a January 29 meeting with Ambassador, Montealegre
asserted that Ortega is not blackmailing him. Montealegre
agreed that the ALN should have been more organized and
forceful in opposing the Law 290 reforms and explained that
an agreement with the PLC not to "fast-track" the reforms
fell through at the last minute. End Note.)

Caudillos More Powerful Than Ever
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5. (C) The MRS representatives pledged to continue their
vocal opposition of Ortega's anti-democratic actions, but are
concerned that pact leaders Ortega and Aleman are "more
powerful and emboldened than ever." As an example of
Ortega's confidence, Carrion noted that he had published the
reforms in the official register before the vote in the
National Assembly. In addition to the Ley Organica and Law
290 reforms, which grant the FSLN more power over the
Assembly and centralized authority over the Executive, Ortega
has extended his covert influence over the police and
military. According to Tellez, Police Commissioner Carlos
Palacios is a corrupt FSLN hard-liner whose role is to keep
Police Chief Aminta Granera in line with compromising
information he reportedly possesses.


6. (C) Carrion and Tellez agreed that Arnoldo Aleman has
increased his influence over the PLC and marginalized critics
such as Jose Rizo and Jose Antonio Alvarado (the former
presidential and vice presidential candidates on the PLC
ticket). They noted that "everyone" in the PLC went to pay

MANAGUA 00000284 002 OF 002


homage to Aleman at his 62nd birthday party on January 23.
Carrion and Saenz commented that the opposition forces must
organize an "offensive" against the FSLN instead of just
reacting and playing defense.

Corruption in the Bolanos Administration and Judiciary
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7. (C) When asked about corruption charges against prominent
members of the Bolanos administration, Tellez responded that
many officials were corrupt, including relatives of the
former President. She specifically mentioned the
well-publicized cases against former Transportation Minister
Pedro Solorzano (a Bolanos confidant) and immigration chief
Fausto Carcabelos (married to a Bolanos relative). They all
commented, however, that endemic corruption reached its
height under the Aleman administration.


8. (C) Tellez responded to a remark by the Ambassador about
systematic corruption in the judiciary by stating that much
judicial corruption is caused by an organizational defect.
In Nicaragua, judges are jointly allocated to a general
region instead of being assigned to a specific district.
This allows claimants to "shop around" for a
sympathetic/bribe-able judge, she explained. Tellez believes
that reform efforts are doomed to failure unless structural
adjustments occur.

Comment: Aleman's Power
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9. (C) While it is true that latter-day Aleman critics Jose
Rizo and Jose Antonio Alvarado have been marginalized within
the PLC (septel),many in the party rank and file are upset
over the PLC's failure in the national elections and the
pact-driven accommodation of the FSLN. Aleman's continued
influence will depend on the patience of moderate PLC
deputies and local leaders to tolerate continued FSLN
manipulation and Aleman's success in rigging the upcoming
internal PLC elections.
TRIVELLI