ELECTORAL FRAUD SPARKS IADB APPREHENSIONS

C O N F I D E N T I A L MANAGUA 001424 SIPDIS STATE FOR WHA/CEN, WHA/EPSC AND EEB TREASURY FOR SARA SENICH USDOC FOR 4332/ITA/MAC/WH/MSIEGELMAN E.O. 12958: DECL: 11/25/2018 TAGS: EAID ECON EFIN NU PGOV SUBJECT: ELECTORAL FRAUD SPARKS IADB APPREHENSIONS Classified By: Ambassador Robert J. Callahan for reasons 1.4 b & d ¶1. (C) Summary. On November 24 the Inter-American Development Bank (IADB) Country Representative for Nicaragua called on the Ambassador to share concerns following the Sandinista National Liberation Front's (FSLN) manipulation of the November 9 municipal elections. She had received the same message that the Ambassador received from President Ortega, i.e., that the GON leadership is indifferent to the loss of foreign assistance as a result of widespread election fraud perpetrated by the government in the November 9 municipal elections. In December, the IADB will convene a meeting in Washington to discuss the current situation in Nicaragua. The IADB is Nicaragua's largest donor, contributing approximately $100 million to the country on an annual basis. End Summary. ¶2. (C) IADB Country Representative for Nicaragua Mirna Lievano de Marques requested a meeting with the Ambassador on November 24 to share views on the political climate following widespread fraud in the November 9 municipal elections. Lievano told the Ambassador that IADB Regional Director Gina Montiel visited Managua on November 16 to discuss IADB's five-year strategic plan for Nicaragua with GON officials. According to Lievano, Montiel was pressured on numerous occasions during her trip by Nicaraguan Finance Minister Alberto Jose Guevara to give Nicaragua a glowing report on its IADB five-year plan to the press. Montiel refused, much to Guevara's dismay. In December, Lievano plans to travel to brief the IADB Executive Board on the economic and political situation in Nicaragua. Lievano added that on November 19 the IADB in Washington announced the approval of a $20 million loan for Nicaragua. She opined that the timing of this announcement was unfortunate given the circumstances. ¶3. (C) The Ambassador told Lievano he had delivered a clear and stern message at the highest levels of the GON that electoral fraud would result in a wholesale review of current U.S. assistance to Nicaragua. Regrettably, GON leadership was unconcerned, and seems to be indifferent to world opinion. Lievano said that she had picked up similar signals from her GON counterparts, which was surprising to her considering the IADB's annual contribution of approximately $100 million in foreign assistance to Nicaragua. COMMENT -------------- ¶4. (C) Lievano appeared utterly perplexed and disturbed by the recent turn of events. The IADB is Nicaragua's largest donor and fills a critical void in its national budget. In Lievano's words, the IADB in Washington has "lots of questions" regarding the present climate in Nicaragua. Meanwhile, Finance Minister Guevara, a diehard FSLN loyalist, has been actively participating in pro-Sandinista street protests donned in camouflage gear drumming up support among the party's faithful. CALLAHAN