More than 200 companies affected by “fiscal terrorism” in Nicaragua

These are the news you need to know today, September 7th | More than 200 small, medium, and large companies have been affected by “fiscal terrorism” acts promoted by the municipality of Managua, La Prensa newspaper reported. Among those accused is businesswoman Victoria Cárdenas, wife of the opposition leader Juan Sebastian Chamorro.

Imara Isabel Castro Martínez, a judge from the fifth local criminal court of Managua, issued an arrest warrant and search warrant of her residence for evading tax payments. According to the regime, she to pay 9.5 million cordobas. Cárdenas denies having had such an income, and affirms that the intimidation practices and fiscal repression are linked to her husband's political activities.

“(...) it is absurd, considering that most of the lots were sold more than 13 years ago. It is an expropriation charge for a false income”, declared Cárdenas.

• This story may interest you: Businesses in Nicaragua Struggle to Survive the Economic Crisis

2. Warnings of greater tax evasions in Nicaragua

The tax law expert Julio Francisco Báez has warned that taxpayers can no longer bear a new increase in the tax burden and foresees that this could lead to greater tax evasion and manifestations of tax disobedience.

Baez assured that the 2019 tax reform aggravated the situation that was negative in itself due to the political crisis that began the year prior. “The tax reform laid the foundation for the disaster, and the pandemic exacerbated it. The data is especially interesting. What was reformed and what has decreased since? The economic indicators that decreased were those affected by the reform”, said the expert.

• Read this opinion article on the matter: The Straw That Will Break the Camel’s Back in Nicaragua

3. ASSA Group buys Army shares in Banco de Finanzas

The entrance of the Grupo ASSA building in Managua. Photo: Confidencial

Sources linked to the Mercantile Registry confirmed to CONFIDENCIAL that ASSA Group bought 25% of the shares of Banco de Finanzas (BDF), previously owned by the Military Social Welfare Institute.

The transaction, estimated at some 19 million dollars, is a way of shielding BDF from the sanctions that the United States imposed on the head of the Nicaraguan Army, Julio César Avilés, on the second of July.

With this operation, ASSA Group - which is directed by Panamanian businessman Stanley Motta - has become the major owner of BDF and now controls 80% of the shares. The remaining 20% of the shares are held by individual shareholders.

• Read the full report: Nicaraguan Army Sells Shares in Bank, Divests Risky Assets

4. Avianca will fly to Nicaragua in September

The Colombian airline Avianca reported on its website that it will resume flights to and from Nicaragua on September 19, after the company suspended flights on April 23 as a result of the Covid-19 pandemic.

Other airlines, such as Aeromexico, American Airlines, and Copa Airlines, will keep their flights suspended until at least October, due to the fact that Daniel Ortega’s regime maintains the requirement that airlines must provide the list of passengers and copies of their passports 72 hours in advance, and that the crew must present negative Covid-19 tests even if they do not enter the country.

Tourism sources have explained that airlines see this procedure as impossible to fulfill, given the fact that passengers tend to buy tickets days and even hours in advance. Asking for the information of tourists in advance is a procedure followed with charter flights, not commercial flights.

5. Amount of suspected Covid-19 cases exceeds 10,000 in Nicaragua

A man does his groceries in the city of Managua, while protecting himself with a face mask. Photo: Confidencial

The most recent report by the Independent Citizen Observatory reflects that the amount of suspected Coronavirus cases reached 10 121, while 2 699 people have died with symptoms associated with Covid-19.

At the ceremony to celebrate the 41st anniversary of the founding of the Nicaraguan Army, Daniel Ortega said that the pandemic is not over, and asked citizens to follow the recommendations of doctors. He and vice president Rosario Murillo were the only ones who did not wear masks at the event.

6. Political prisoner’s health remains critical

Political prisoner Justo Emilio López, 67, is in critical condition at the Antonio Lenín Fonseca hospital (Managua), due to a stroke. His family demands that he is given effective medical care in order to save his life.

López was taken to the Institute of Legal Medicine. His sister Emérita Rodríguez, 70, who was taking care of him, was prevented from talking to her relatives even though she is not being deprived of her freedom, her family said.

• Read the full report: Medical Attention Demanded for Political Prisoner from Ometepe

7. What does the National Police do with seized narco-dollars?

An investigation by Chequialo revealed a record level of seizures of $14,500,000. The Nicaraguan Police claims that the money was abandoned, in different situations and locations of the country, by narcotraffickers.

Elvira Cuadra, an expert in national security issues, considers that these seizures, without drug gangs being dismantled, are suspicious. She does not rule out that these could be payments of organized crime gangs to the Police or the Government of Daniel Ortega.

“It is a great coincidence that these seizures are taking place randomly, that they find (the money) and that the people arrested are not really important to the group or organized crime cell behind it,” she warned.

8. National Coalition remains paralyzed

Signing of the National Coalition, on June 25, 2020. Photo: Confidencial

The National Coalition remains paralyzed and clinging to discussions about its functioning and eventual electoral reforms. Its members agreed that they will seek their own ballot box, and will demand that Article 80 of the Electoral Law be amended, which establishes that only a group with legal status can lead an alliance in the national elections.

However, the members of the Coalition explained that if the reforms they seek are not achieved, in an electoral system controlled by the Sandinista Front, they will have to run in one of the already existing party boxes. Although for now there are no conditions for a free and transparent election.

• This opinion article may interest you: A Frankenstein called the National Coalition

This article has been translated by Ana Maria Sampson, a Communication Science student at the University of Amsterdam and member of our staff*