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Viewing cable 07MANAGUA585, OVERVIEW OF MINISTERS AND SENIOR OFFICIALS IN
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| Reference ID | Created | Released | Classification | Origin |
|---|---|---|---|---|
| 07MANAGUA585 | 2007-03-06 15:50 | 2011-06-21 08:00 | SECRET//NOFORN | Embassy Managua |
VZCZCXYZ0021
PP RUEHWEB
DE RUEHMU #0585/01 0651550
ZNY SSSSS ZZH
P 061550Z MAR 07
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC PRIORITY 9339
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHINGTON DC
RHEHNSC/NSC WASHINGTON DC
S E C R E T MANAGUA 000585
SIPDIS
NOFORN
SIPDIS
E.O. 12958: DECL: 02/26/2017
TAGS: KDEM PGOV PREL PINR
SUBJECT: OVERVIEW OF MINISTERS AND SENIOR OFFICIALS IN
ORTEGA ADMINISTRATION
REF: A. 02 MANAGUA 1588
¶B. 02 SECSTATE 123985
¶C. MANAGUA 241
¶D. MANAGUA 392
¶E. MANAGUA 466
Classified By: Classified by Ambassador P. Trivelli for reason 1.4b
¶1. (C) SUMMARY: Within two weeks of his January 10
inauguration, President Daniel Ortega had appointed all his
ministers save one, the Minister of Defense. Political
opposition leaders have characterized the new ministers as
"nobodies" who exercise virtually no authority or influence.
Instead, Ortega is concentrating power in the hands of
"consejos" (councils) led by Ortega loyalists, including his
wife, Rosario Murillo. Ortega's political maneuvers have
drawn fire from legal experts, human rights organizations,
and political opposition leaders, concerned that Ortega is
circumventing laws advance his aspirations for the
institutionalization of a "direct" democracy. END SUMMARY.
Foreign Affairs - Samuel Santos
- - - - - - - - - - - - - - - -
¶2. (U) A long-time member of the FSLN, Santos most recently
served as the party's Secretary for International Relations.
He is a private businessman with real estate, hotel, and
coffee interests and is a founding member of the Nicaraguan
Stock Market. In the 1980s, he served in a variety of
positions in the FSLN government, including Minister of
National Reconstruction, vice president of national
development, and mayor of Managua. Santos holds a BA from the
National Autonomous University of Nicaragua.
¶3. (C) The FSLN's primary interlocutor in recent years with
the senior diplomatic community in Managua, Santos represents
one of the new government's kinder, gentler public faces, but
one who likely exerts little influence on Ortega,s inner
circle. Reflecting his personal economic interests, however,
Santos does seem to respond and take action in cases that
could affect the Nicaraguan tourism or investment climate.
Career civil service members within the ministry, as well as
a former minister in the Bolanos government, have commented
that Santos is "being used" to assuage the international
community's concerns about the Ortega government during the
transition period, but may not last in office more than 12
months. Santos is known to have been involved in
facilitating arms trade during the Sandinista era of the
1980s. In 1999, Santos was found prudentially ineligible for
a U.S. visa under 212(a)(3)(B) on grounds of terrorism.
Santos continued traveling to the U.S. until he was detained
in Miami in 2004 as a result of the 1999 P3B entry. His visa
was canceled and Santos withdrew his application for
admission to the U.S. Following his appointment as Foreign
Minister, Santos was granted a visa waiver.
Industry and Commerce - Horacio Brenes
- - - - - - - - - - - - - - - - - - -
¶4. (U) Horacio Brenes is a 57-year-old businessman from
Matagalpa who became increasingly active in business
associations and politics in Matagalpa beginning in 1995 when
he founded the Pro-Matagalpa Trade Fair Committee. The
committee soon transformed itself into the Foundation for the
Development of Enterprise in Matagalpa (FUDEMAT). With the
foundation as his base, Brenes ran for mayor of Matagalpa in
1996 on an independent ticket called Matagalpa 2000, but was
defeated by the PLC candidate. In 2000 and 2004, he ran for
mayor on the PLC ticket, but was defeated by the FSLN
candidate. However, as a member of the City Council, he
worked in a "unity pact" with his FSLN rivals. In town
meetings held in Matagalpa and Boaco organized by Ortega's
wife and campaign manager, Rosario Murillo, Brenes stepped
forward as one of a small group of liberals supporting
Ortega's campaign for unity. Brenes graduated from the
Central American Institute for Business Administration
(INCAE). Brenes also studied at Louisiana State University
for three years in the late 1960s. He is married to Tamara
Hawkins, whose grandfather was from the United States. He
has two sons and two daughters, two of which attend
university in Florida.
Finance and Public Credit - Alberto Guevara
- - - - - - - - - - - - - - - - - - - - - -
¶5. (U) Guevara holds masters degrees from the National
University of Nicaragua in Economics and Development and in
Public Finance. He also studied macroeconomics in Chile on
an Interamerican Development Bank scholarship. Until April
2006, Guevara worked as a junior researcher in the Central
Bank's (BCN) unit calculating the GDP deflator. He also
covered issues of debt sustainability, national income
accounting, and statistical programs for the management of
information systems. He is close to presidential economic
advisor Bayardo Arce.
¶6. (C) Guevara's ability to administer the Ministry of
Finance is questionable, as he appears to lack managerial and
political experience. Guevara was actually dismissed from
the Central Bank last year on charges of sexual abuse
perpetrated while moonlighting as an economics professor.
Following his dismissal, the FSLN reportedly found him a job
in a party member's construction company.
Central Bank - Antenor Rosales
- - - - - - - - - - - - - - -
¶7. (SBU) Rosales holds a masters degree in law and a BA in
business. He is close to presidential economic advisor
Bayardo Arce. Rosales served as the FSLN's representative on
the board of the Superintendent of Banks and Other Financial
Institutions. He also served on the Board of the Nicaraguan
Renewable Energy and Environment Company. In the mid-1990s,
Rosales was a partner, along with other notable Sandinistas,
in Interbank (the Intercontinental Bank) which collapsed in
2000 as a result of mismanagement and non-performing loans,
helping to trigger the collapse of the Nicaraguan financial
system. There is no evidence that Rosales was involved in
misconduct. From 1979 to 1994, Rosales served in the
Sandinista Army, rising to the rank of colonel.
¶8. (C) Rosales is characterized as confident and charismatic
by interlocutors and former employees state that "he only
accepts one answer for things - his own." He was known to
subject professors in graduate school to long lectures on the
short-comings of their economic models. However, Rosales is
seen as having a moderating influence on Ortega through Arce.
He is one of the few Sandinista leaders that has not (so
far) dismissed key personnel from his institution.
Government - Ana Isabel Morales
- - - - - - - - - - - - - - - -
¶9. (U) Morales holds a masters degree in international
relations and three post graduate degrees in various facets
of the law. She worked for 19 years in the Ministry of the
Interior, today known as the Ministry of Government, where
she served as both deputy and, later, director of immigration
services for nearly 15 years. The niece of Vice President
Jaime Morales, she is a former Sandinista guerrilla fighter
recognized for being the only survivor of the Veracruz
massacre. At the time she was recruited to fight against the
Somoza regime, she was a student activist.
¶10. (S) Embassy sources reported that, in a meeting with her
staff and senior members of the National Police (NNP),
Morales declared her intentions to reconstitute the ministry
as it was in the 1980s as the Ministry of Interior. She
announced that she would personally take control of NNP
operations and intelligence (Ref. B). Morales was apparently
immigration director when Nicaraguan passports were obtained
by subjects involved in the first attack on the World Trade
Center. Further, post has information that in 1997 and 1998,
Morales was linked to illegal alien trafficking on at least
six occasions (Ref. D).
Transportation and Infrastructure - Fernando Martinez
- - - - - - - - - - - - - - - - - - - - - - - - - - -
¶11. (U) Pablo Fernando Martinez Espinoza is well known in
Nicaraguan construction and engineering circles. From 1984
to 1990, he was a member of President Daniel Ortega's first
administration, serving as Vice Minister of Construction. In
the early 1990s, Martinez founded CEICO SA, a construction
company that has received a number of government contracts to
build roads and bridges, as well as a dock at the Port of
Corinto and an airport on Corn Island. CEICO has also won
contracts to maintain and rehabilitate national roads from
the government's Roadway Maintenance Fund (FOMAV). Martinez
has been a member of the Executive Council of the Nicaraguan
Chamber of Construction. He holds a degree from the Central
American University in Civil Engineering, and has worked as
the Dean of the College of Engineering at the same
institution. He is one of the founders of the National
Engineering University.
¶12. (SBU) Many of Martinez's interlocutors in the business
sector like him and think he may be the man to shape up this
troubled ministry. Currently, his company has contracts for
many of MTI's largest infrastructure projects as well as all
road maintenance in Nicaragua. He has not renounced his
ownership of CEICO since his appointment, raising the specter
of potential conflict of interest.
Health - Martiza Cuan
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¶13. (C) Quan is a general health practitioner with a
master's degree in public health. She is a former director
of the Bertha Calderon hospital in Managua and has also
served as director at a number of health centers in different
parts of the country. Under the Sandinista regime, she
worked at the Ministry of Health and has worked on health
programs funded by foreign donors and most recently served as
the director of the Women's Integral Health Project (PROSIM).
Ministry personnel describe her as a soft-spoken
well-meaning technocrat in over her head as Minister.
Agriculture and Forestry - Ariel Bucardo
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¶14. (U) Bucardo holds a degree in business management and
social sciences, and a master's degree in sustainable
development. Before his appointment as Minister, Bucardo
served as president of the National Rural Fund (CURUNA), a
savings and credit cooperative. He has spent most of his
professional career working in the areas of basic food
production and agricultural exports. Bucardo is a founder of
the Sandinista-affiliated National Federation of Cooperatives
(Fenacoop) -- which was known for leading land invasions on
properties of foreigners and wealthy Nicaraguans -- and of
the Association of Farm Workers (ATC). He was also president
of the National Union of Agriculture and Cattle Farmers
(UNAG) during the 1980s. He served as a member of the
National Council for Economic and Social Planning (CONPES) as
well.
¶15. (SBU) In his capacity as a UNAG official, Bucardo
appears to have been a constant critic of CAFTA and may be
Ortega's source of information in this regard. In public
statements, he has stressed the value of recent trade and
cooperation agreements with Venezuela and Iran.
Education - Miguel de Castillo Urbina
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¶16. (C) De Castillo Urbina is a professor of Education
Science at the National Autonomous University of Nicaragua
(UNAN) and coordinates the Latin American Forum of Education
Policy (FLAPE). He has written several books on education
and educational policy and often authors long pieces on
educational policy in the daily newspaper El Nuevo Diario.
He was vice minister of education during the previous
Sandinista government. He proudly characterizes himself as a
Marxist and is strongly opposed to school autonomy and
decentralization. De Castillo has already taken several
missteps linked to raising public school coverage; he is
viewed as hard-headed and dogmatic.
Environment and Natural Resources - Amanda Lorio Arana
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¶17. (C) Amanda Lorio Arana is a sociologist who worked for
the Agricultural Development and Reform Ministry during the
1980s. She has since been certified by the Upledger
Institute (United States) and the International Therapy
Examination of Healthcare Practitioners. Before being named
minister, she practiced reflexology at a medical office in
Managua. She has reportedly treated First Lady Rosario
Murillo, and it was through this connection that she was
selected as minister. Lorio freely admits that she has no
background on environmental issues.
Family - Rosa Adilia Vizcaya
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¶18. (C) Adilia Vizcaya was appointed as Minister of Family
in mid-February following the sudden removal of Glenda
Ramirez Noguera, who held the position for only 21 days.
Ramirez, who is the sister-in-law of Presidential Economic
Advisor Bayardo Arce, a close friend of the First Lady,
Rosario Murillo, was seen as a moderate with independent
ideas about how to run the Ministry. In addition, there are
indications that Ramirez may have fallen out of favor with
Ortega, leaving her vulnerable to attack. Adilia Vizcaya,
originally appointed as Secretary General of the Ministry of
Family, according to media reports, was favored by FSLN
hard-liner Nestor Moncada Lau for the Minister position.
Lau, a former member of Lenin Cerna's state security forces
in the 1980s -- connected to a variety of crimes including
assassinations, transporting explosives, and smuggling
automatic weapons -- is believed to have orchestrated
Noguera's ouster with Adilia Vizcaya and a leader of the
Sandinista labor union. No further information is available
on Adilia Vizcaya at this time.
Ortega's Maneuvering may Leave Ministers with Little Real
Power
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-
¶19. (C) Through a series of rapid legislative reforms to Law
290 (Ref. C) and presidential decrees, it appears that Ortega
is maneuvering to implement the first stages of direct
democracy and undermine the ministries. First, Ortega
successfully pushed through the National Assembly a reform to
Law 290 (Law 612) that expands his power to "create
(secretaries and) councils (Consejos) that he deems
convenient for the better development of his government and
to determine (their) organization and functioning." To date,
Ortega has created or announced eight councils including the
Council of Communication and Citizenry headed by his wife;
the Council of Food Security; the Council of Peace and
Reconciliation; the Council of the Atlantic Coast; the
Council of the Family; the Council of Sustainable
Development; the Council of the Fight Against Drugs; and the
Council of Economic and Social Planning.
¶20. (SBU) Legally, neither Law 290 nor Law 612 reforms allow
Ortega to cover the salaries of the heads of these councils,
stating that "these councils will not cause budget
expenditures and participation (in them) will not generate
economic remuneration." To circumvent this restriction,
Ortega is reverting back to original Law 290 language that
allows remuneration for "secretariats." Two weeks ago,
Ortega issued Presidential Decree 21-2007, dividing the
Office of the Presidency into "advisors," "office of the
presidency," "councils," and "secretariats," and has re-named
the heads of the councils as secretaries, allowing them to
receive salaries. In practice, however, Ortega continues to
refer to these advisory organs as "councils" and publicly
declared over the weekend that the ministries will be
accountable to them.
¶21. (C) Ortega's moves to transfer power from the ministries
to his councils have drawn strong criticism from local human
rights organizations and the Nicaraguan Liberal Alliance
(ALN) political party, both of which have filed formal
denunciations with the Supreme Court of Justice (CSJ).
Privately, opposition leaders, including Sandinista
dissidents belonging to the Sandinista Renovation Movement
(MRS), have characterized the ministers as "nobodies",
believing Ortega's new ministers are "place holders with no
authority or influence" (Ref. E).
¶22. (SBU) Although Ortega's wrangling with Laws 290 and 612
may be legally dubious, legal experts insist that the
appointment of Ortega's wife as the head of the Council of
Communications and Citizenry -- which recently took control
of the public relations and travel budgets for all government
ministries -- is a clear violation of Law 438 on public
probity. This law states that "the spouse or common-law
partner...of the public servant who appoints or contracts or
of the person from whom this authorization emanates" is not
eligible to exercise public functions. In response, Ortega
insisted that "She (Rosario) will occupy the office or
offices that may be necessary for her to occupy," leaving no
doubt of the influence his wife will wield in his
administration.
Who's Who in the Inner Circle
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¶23. (C) Although they do not carry the formal "minister"
title, there is little doubt that the heads of the Councils
and others appointed under Presidential Decree 21-2007, form
Ortega's inner circle. Biographies for the key players
appointed thus far are provided below.
Secretary of Communication and Citizenry - Rosario Murillo
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¶24. (C) Together since the 1970s and officially married last
year, Murillo is President Ortega's closest confidant. She
currently serves as coordinator of the Council for
Communication and Citizenry and functioned as Ortega's
campaign manager during his successful bid for the presidency
in the 2006 elections. Murillo is the mother of Zoilamerica,
who, in 1998, publicly accused stepfather Ortega of having
abused her for more than a decade. Murillo has consistently
defended her husband in the case. Some believe that she has
used her knowledge of the case to gain and maintain power and
influence over Ortega. Murillo is a great believer in
spiritualism, a hypochondriac, and, putting it mildly, sports
an eclectic wardrobe.
¶25. (U) Born on June 22, 1951, Murillo was educated in the
UK and France and is fluent in both English and French.
Prior to becoming involved in the Sandinista movement, she
was a language professor and worked for ten years as the
assistant to the late Pedro Joaquin Chamorro, Director of La
Prensa newspaper. In 1969 she joined the Sandinista
underground movement and during the 1980s she was a member of
the Nicaraguan National Assembly and Minister of the
Nicaraguan Institute of Culture. She is also a published
poet (of largely erotica), writer and journalist.
Presidential Advisor for Economic Affairs - Bayardo Arce
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¶26. (U) Before his appointment as Presidential Advisor for
Economic Affairs, Arce served as a FSLN deputy in the
National Assembly from 1997-2007, where he served as
president of the Economic Commission. He is believed to
bring a more pragmatic approach to the FSLN's economic
policies. Arce joined the FSLN in 1969 and became a member
of the urban resistance in 1970. He is a long standing
member of the FSLN National Directorate and has held various
other positions within the party. Arce is also a successful
businessman, exporting agricultural products. He is close to
First Lady Murillo.
¶27. (C) In 2002, Arce's U.S. non-immigrant visa was revoked
under 212(A)(2)(I) of the INA for money laundering for his
role in the collapse of Intercontinental Bank (Interbank) in
2000 (Refs. A and B).
Private Secretary for National Policy - Paul Oquist
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¶28. (U) Oquist holds a doctorate in political science from
UC Berkeley and is a naturalized Nicaraguan citizen, who
renounced his U.S. citizenship in the 1980s. Oquist was head
of the transition team for the Sandinista government to the
UNO government in 1990. During the 1980s, he worked in
then-President Ortega's office, first as the coordinator of
the state's management system and then as Ortega's Chief of
Staff. Oquist was a long-time consultant for the United
Nations Development Program where he worked as a governance
expert on projects throughout the world.
TRIVELLI