VZCZCXYZ0003
PP RUEHWEB

DE RUEHMU #0698/01 0861508
ZNY CCCCC ZZH
P 271508Z MAR 06
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC PRIORITY 5760
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RUEHCV/AMEMBASSY CARACAS 0596
RHEFDIA/DIA WASHINGTON DC
RUEAIIA/CIA WASHDC

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 
--------------------------------------------- -------- 
 
 
¶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 
--------------------------------------------- ---------- 
 
¶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 
--------------------------------------------- ----------- 
 
¶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