VZCZCXYZ0043
RR RUEHWEB

DE RUEHMU #1425 3320001
ZNY CCCCC ZZH
R 270001Z NOV 08
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 3437
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEAIIA/CIA WASHDC
RHEHNSC/NSC WASHINGTON DC

C O N F I D E N T I A L MANAGUA 001425 
 
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 PGOV NU
SUBJECT: NICARAGUA: 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