Royal Decameron Announces Plans to Build Resort in the Lower Lempa

Last week the Royal Decameron Hotel Group announced plans to invest $60 million in three El Salvador projects – an expansion of their high-end beach resort in Sonsonate, construction of a four-star hotel in San Salvador, and a beachfront resort in Usulután. The new Usulután facility, which will cost $12 million, will be modeled after their Sonsonate resort with 300 individual cabins, an office center, spas, and a conference room.

Royal Decameron’s announcement wasn’t completely unexpected. Investors have been working to develop tourism in the Lower Lempa for many years, and there are likely several other projects being planned. Though tourism may seem like a great boost for the local economy, it’s a complicated issue and Royal Decameron is likely to face some stiff opposition from Lower Lempa residents.

Usulután is centrally located along El Salvador’s coast. One of the local treasures is the Bay of Jiquilisco, a large inlet known for its fishing, mangrove forests, and beautiful beaches. The stretch of land between the bay and the ocean is the San Juan del Gozo Peninsula. The only things out on the peninsula right now are mangrove forests, a few fishing and crabbing villages, and a nesting ground for endangered sea turtles… and a very fancy highway.

In 2004, the Ministry of Tourism hosted an event for potential investors at the Intercontinental Hotel in San Salvador. An Argentinean architect presented plans for the Espino Resort, as well as other infrastructure development plans. His presentation included draft plans for “El Pueblo,” a high-end shopping center on the San Juan del Gozo Peninsula for tourists that included grocery stores, ATMs, and other amenities. It was all part of a 25-year plan that outlined specific stages of development – land acquisition, construction of a highway to the end of the peninsula, and a dyke that would supply water. Eight years into the plan, investors have acquired land, the highway through the peninsula is complete, and the government announced plans last year to install a water system.

Three people are reported own much of the real estate between La Tirana and Isla de Mendez. Angel Velasquez owns two sections of land totaling 2.5 miles of waterfront property. Eduard Quiroz owns 1 mile of beachfront property, and the Tesak family owns another 3 miles along the coast. CESTA, a Salvadoran nonprofit environmental organization, owns 872 feet of beachfront that they preserve. Sources also claim that ex-president Alfredo Cristiani owns property in the region, as does FMLN politician Facundo Guardado, who has a consortium of investors that includes possible FMLN VP candidate Oscar Ortiz. Royal Decameron is rumored to own 103 acres in the region though it is unclear whether this is the property they plan to develop.

Land acquisition on the peninsula has been quiet, but not free of controversy. Locals report that Quiroz and Velazquez regularly violate land-use and easement requirements. For example, environmental regulations allow landowners to own property up to 50 meters above the highest tide. Quiroz and Velazquez, however, fenced their property at the high-tide point, ignoring the 50-meter boundary. Similarly, in 2006 ISTA (the Salvadoran Land Reform Institute) distributed plots of land to landless families in La Tirana. The families moved in, but lacking roads and utilities, seven of them sold their plots to Velazquez. Ignoring ISTA regulations that require passage between the plots and access to the mangroves, Velazquez fenced off the plots and blocked access to the forests. The president of La Tirana, Nahum Diaz, has spoken out about the violations but to no end. The 23 families in La Tirana have to survive on crabbing and shellfish, while Velazquez controls access to all of the farmland, which he uses to graze his several hundred head of cattle. Residents are also upset because in addition to blocking access to agricultural fields, Velazquez cleared large areas of forest to expand his cattle operation.

As investors were starting to buy up land along the Peninsula, Gustavo Guerrero arrived in the Lower Lempa. He introduced himself as the charity manager for the Tesak family, which owns Bocadeli, a Salvadoran food company. In 2007, Guerrero created the San Juan del Gozo and Jiquilisco Bay Integral Development Association and illegally listed local community leaders as members of the board without their knowledge. The new organization published a full-page add in a Salvadoran paper listing its priorities – building a levee for irrigation, constructing a National University campus in the Lower Lempa, and other investments to build the tourism infrastructure. He is still handing out checks and has financed several projects in the region including hiring the Linares Company to repave of the road in La Canoa. In 2009, one of our local partners said “Gustavo Guerrero is the person that made it possible for the rich to buy land,” which they often did at prices far below-market value.

But land acquisition also included making room for the new highway through the Peninsula, primarily convincing landowners to allow builders to cut across their property. Linares, the company that repaved the road in La Canoa won the contract to build the road. If you’ve been in the Lower Lempa at all over the past few years you’ve seen large dump trucks tearing up and down the main road – that was Linares hauling sand and backfill for the highway.

Few people or groups are currently protesting tourism in the Lower Lempa. Many locals, however, oppose development projects that threaten their fragile environment. The community of Amando López, for example, released a statement in May 2012 stating: “This land is our life and our life is this land, we will never stop resisting any project that threatens our natural resources and our organized communities.” They also said, “we know that so-called development means more problems for poor communities, and we are not interested in the development they are offering, because in the end the only thing they develop are transnational businesses. We care about our livelihoods and our children’s lives, and we want proposals to come from our communities, that respond to our interests, to our livelihoods, our needs, and our own worldview.

While Amando López residents were specifically referring to the Millennium Challenge Corporation in their address, they assure us that these sentiments apply to a wide array of initiatives being imposed on the region, including tourism. Amando López was the only community in the region to reject funding offered by Gustavo Guerrero.

The Jiquilisco Bay is one of El Salvador’s few remaining treasures, and residents know that once it’s gone – it’s gone. The mangrove forests protect the region from flooding, which is happening with greater frequency, and the Bay provides residents with food and a livlihood. Communities are very aware of how fragile their ecosystem is and are unlikely to let outsiders exploit it.

The argument for allowing tourism is that it will provide jobs and economic growth, but local residents understand that most jobs will go to people with degrees in tourism and hotel management. They also know that profits will be distributed to investors in San Salvador and beyond and not stay local. Residents of the Lower Lempa also know better than to count on the government to enforce the environmental laws that are supposed to protect their natural resources.

But as pointed out by our friends in Amando López, there is a bigger issue at play. Many in the Lower Lempa are not interested in the kinds of development that wealthy investors from San Salvador are selling. Communities prioritize food security over tourism, and a healthy environment for their kids over a larger income for themselves. Amando López residents said “this land is ours and we will defend it with the same courage with which we won it.”

Royal Decameron says that they still have to work out some land acquisition issues, so this is a story that will likely play out over the next several years. Along the way they will likely face a healthy opposition to their ideas of development.

 

ARENA ahead of the 2014 Presidential Elections

With the 2014 presidential elections “just around the corner” in El Salvador, political parties are well into the process of picking their candidates. Like other countries, Salvadoran political parties go through a nominating process to decide who will represent them in the general election. While the FMLN has all but officially chosen Sánchez Cerén, the current Vice President of El Salvador, as their candidate, the ARENA party has yet to select their candidate. Some in the ARENA party are still are still trying to change the way party officials will choose their 2014 representative.

El Faro reported on Monday that a group of ARENA reformists have proposed changing the nominating process. The party’s top leaders would still choose the candidate, but their vote would be secret. One party spokesman said, “if passed the reforms could change the invisible structure of the party.”

While it may seem counter-intuitive that secret ballots would somehow eliminate the “invisible structure of the party,” the idea is to provide those who cast votes with some anonymity so they can vote on merit. According to the El Faro article, four main power blocks finance and control the ARENA party. A former official in the Saca Administration (2004-2009) said these interests exert the most influence during the nomination of presidential candidates. Once a president is elected they may try to push an issue every now and then, but for the most part they leave them alone.  The secret ballots during the nominating process would in theory decrease the influence these four powerful interests have over the nominating process.

The nominating process has always been top-down, with the party base having little to no input. The secret ballots won’t change that power structure at all. The party leaders will still be the ones casting votes and the base won’t know whom they voted for. The main shift would be a consolidation of power away from the four interest groups back to the party leaders. One ARENA founder suggested the party give the base a voice in choosing candidates by moving to a party-wide vote. Doing so would bring the party more in line with the independent and inclusive voting practices that the Supreme Court has been discussing for the past year.

The El Faro article indicates that former President Alfredo Cristiani supports the reforms and is currently surveying the AREANA leadership to see if he can muster up a consensus to vote them into the party bylaws. While he has benefited from the current system over the years – it got him elected president in 1989 – it he would likely benefit from the changes. Instead of having to answer to the power blocks, party leaders will have more control.

The proposed reforms are not new; party leaders have been considering secret ballots for many years but they have not had the internal support to get them passed. Opponents of secret ballots argue that the current system has served the party well for the past 31 years and that there is no need for reform. They also argue that the current open system is more transparent.

The 2014 election is important for ARENA. They lost the presidency to the FMLN in 2009 and they want it back. ARENA did well in the March 2012 municipal and legislative elections, taking control of the Legislative Assembly and winning several municipal seats that have been in the hands of the FMLN for many years.

A few names have been tossed around as possible ARENA candidates for 2014. Norman Quijano just won his second term as mayor of San Salvador, and is often mentioned as a possible candidate. He said shortly after the elections that he would certainly be open to the idea of running. Another possible candidate is Ana Vilma de Escobar, who was Vice President under Tony Saca (2004-2009) and is the wife of one of El Salvador’s wealthiest businessmen. As already mentioned, Sánchez Cerén is the likely candidate for the FMLN party, and former-president Tony Saca may try to run as a GANA party candidate. Back in April, Tim’s Blog posted short bios on each of these candidates.

 

 

 

The Debate Over Decree 743 Continues

Last week we posted two stories about Decree 743 – the controversial law that requires El Salvador’s Constitutional Court to make decisions by unanimous consensus instead of a four-vote majority as in the past. Due to the makeup of the court, decree 743 essentially renders the court powerless.

There has been a lot of movement around this issue since our last update – the following are highlights from the week’s developments. Despite all the statements from government officials, legal experts, civil society leaders, and others, there is still a lot that remains unclear about the politics behind the passage of Decree 743 and how the current debate over the law will play out.

Timeline:

Thursday, June 2

• The Legislative Assembly passed decree 743 with the support of the PCN, PDC, GANA, and ARENA conservative parties. Left and centrist parties FMLN and CD legislatures abstained from the vote, meaning that they did not vote against the bill, but just didn’t participate.
• President Mauricio Funes signed Decree 743 into law.

Friday, June 3

• Decree 743 is published in the Diario Oficial, at which point it took effect.
• Sigfredo Reyes, the FMLN President of the Legislative Assembly, called Decree 743 a “tragedy for democracy.”
• By late afternoon, protesters had organized a demonstration in front of the Presidential Palace in San Salvador. Organizers used text messages and social media to spread the word of the protest and several hundred participated.

Saturday, June 4

• In the morning civil society organizations met to discuss Decree 743 and to organize a movement against it.  They also agreed on organizing a larger protest at 3:00pm on Sunday at the Salvador del Mundo Monument, in San Salvador. They created a Facebook page and twitter accounts, and reached out to communities through phone calls and word of mouth.
• The FMLN party issued an official statement denouncing Decree 743.

Sunday, June 5

• Over five hundred people representing all sectors of Salvadoran society participated in the protest at the Salvador del Mundo. Civil society representatives used a pickup truck as a makeshift stage and a loud speaker to denounce the law and voice their opinions on the impact of Decree 743 if it is allowed to stand.

Monday, June 6

• Civil society organizations met again at the University of Central America (UCA) to continue discussing their opposition and planning a strategy to challenge the new law.
• President Funes responded to the objections of Decree 743, stating that it is constitutional and not a restriction of the judiciary. He argued that the law promotes democracy by requiring all of the justices to come to an agreement before making a decision on a case. President Funes also stated that the process for drafting and passing the law was transparent and not done under the table.
• The Constitutional Court declared Decree 743 unconstitutional.

Tuesday, June 7

• Thirty-five civil society organizations held a press conference in which they demanded that the Legislative Assembly repeal the law.
• The Constitutional Defense Forum, a Salvadoran organization, filed a lawsuit with the Supreme Court against Decree 743.

Wednesday, June 8

• The Funes Administration began to evaluate Decree 743 and the possibility of repealing the law.
• Medardo Gonzalez, the Secretary General of the FMLN, demanded that the Supreme Court recognize Decree 743 as law (yes, in contradiction to the FMLN’s Saturday statement opposing the law). In addition, he called the controversial decisions by the Constitutional Court “rebellious and irresponsible” and said that they were motivated by ideological and political motives.
• The right-wing ARENA party called for the repeal of Decree 743 and asked that the FMLN join them. Former president and ARENA leader Alfredo Cristiani stated that ARENA’s support of the decree was based on misinformation that the Court would abolish the Amnesty Law and the law the enables CAFTA.  He said now that he knew the Court will ‘defend’ the Amnesty Law, he will support the repeal of the decree.
• The FMLN met in the afternoon to organize their stand on the law and their next steps.
• Just before 4 pm, Salvadoran attorney Manuel Antonio Cortez Meléndez filed a claim with the Constitutional Court claiming that the Amnesty and CAFTA laws are unconstitutional. These cases had never been formally submitted to the Court prior to this point.
• PDC officials motion to remove the four magistrates from the Constitutional Court for not complying with Decree 743 and declaring it unconstitutional.

Thursday, June 9

• Civil society organizations organized another protest, marching from the Salvador del Mundo monument to the Legislative Assembly. Marchers demanded the repeal of Decree 743 and transparency in the process. One of the main complaints by civil society organizations is that the Legislative Assembly and President Funes were not transparent in passing the law or in discussing their justifications for the law. Once the marchers arrived at the Legislative Assembly, they demanded entrance but only a few were allowed in. Those who remained outside threw eggs at the entrance in protest. On the floor of the Assembly, Diputado Orlando Arevalo (an Independent) accepted a petition from the protestors.
• Early in the day, FMLN representatives announced that they will not support ARENA’s efforts to repeal the law, stating that they have to work with the PDC, PCN, and GANA to “get themselves out of the mess they helped create.” They also refused to meet with civil society representatives, inciting the egg throwing.
• Later in the day, representatives from the FMLN, PDC, and PCN stated that they would support repeal of the law, but only if the four magistrates from the Constitutional Court “demonstrated a change in attitude and don’t invade the functions of the Legislative Assembly.” Medardo Gonzalez stated, “the Court has to change, and if there is change, of course the FMLN will be the first to ask for the repeal of the decree.”
• All five magistrates of Constitutional Court met with members of the Legislative Assembly for four hours in the afternoon. They insisted that they did not negotiate sentences or decrees, and simply clarified ‘misunderstandings’.
• President Funes also released a statement expressing concern over the protests and further justifying his support of the law. His three arguments for supporting Decree 743 are: 1) The decree is constitutional in form and substance; 2) it was presented to prevent the judiciary and legislature from becoming embroiled in conflict; and 3) it does not prevent the Court from acting, and the magistrates are able to achieve consensus. He also stated that the ARENA declaration on Wednesday implies intervention and upon investigation could lead to the removal of any magistrates found negotiating with the Legislative Assmebly representatives.

Friday, June 10

• President of the Supreme Court of Justice, Belarmino Jaime, publicly denies the existence of an agreement between the Court and either ARENA or Alfredo Cristiani.
• The Secretaries General of both FMLN and PCN, Medardo Gonzalez and Ciro Cruz respectively, emerge from a multilateral meeting between the courts and the parties stating the willingness of their parties to sign on to a bill to repeal Decree 743.
• ARENA denies the allegations by President Funes that an agreement was in place between them and the Court, and criticizes Funes for saying so.
• The Archbishop of San Salvador urges the parties to work together to solve the crisis, expressing a wish for all sides to defend the people and the common good.

Monday, June 13

• ARENA’s proposal to repeal Decree 743 received no response from the Committee on Constitutional Legislation and Legislative Assembly.
• FMLN, GANA, PDC and PCN all declined to vote in favor of the repeal.
• Medardo Gonzalez, Secretary General for the FMLN, now says the FMLN will not support the repeal of the decree in any fashion.

The debate over Decree 743 is far from over, and much seems unclear (at least from our vantage point). It seems that it is questionable whether the new law is even in force – last week four of the five Constitutional Court magistrates joined an opinion stating that it was not, which means that the repeal being discussed is not even necessary. It also remains unclear why Cristiani and some in the ARENA party are willing to support the repeal. Perhaps they see this as an opportunity to appeal to the wide sectors of Salvadoran society that oppose the decree in advance of the 2012 municipal and legislative elections.

Funes’ support for the law is also confusing, as well as lacking. The Constitutional Court is one of the only government entities that has been implementing the kinds of change that the President championed while campaigning in 2008-2009. His argument that the law prevents conflict between the legislative and judicial branches of government is wanting – such tension is common and a healthy element of the democratic process. Funes’ argument that Decree 743 is constitutional in both form and substance is circular – sayin’ it is, don’t make it so.

What seems very clear at this point is that civil society organizations did not have an opportunity to comment on Decree 743 until it was already signed into law. But judging by the the numerous statements made since the controversy began, politicians are concerned what civil society has to say and how the people might respond in 2012.

Guatemalan Court finds Manuel Castillo Guilty of Murdering the Three Salvadoran Diputados

Last week, a Guatemalan court found ex-diputado Manuel Castillo guilty of being the intellectual author behind the assassination of three Salvadoran Diputados and their driver in February 2007. El Faro reported that the judges sentenced Castillo to 200 years in prison, 50 years for each murder. The court also found Carlos Alberto Gutiérrez Arévalo guilty of being an accessory to murder and sentenced him to 93 years in prison.

The prosecutor successfully convinced the court that Salvadoran ex-diputado Roberto Silva wanted revenge against the ARENA political party for turning on him when he was being charged with money laundering and corruption. The prosecutor claimed that Silva contacted Castillo to arrange the killings of the ARENA Diputados. Silva is in a detention facility in Arizona where he is being held on immigration charges and was not present for these hearings.

The defense argued that a parallel security force operated by high-ranking Guatemalan officials were responsible for the killings. This is a theory supported by the UN-sponsored International Commission Against Impunity in Guatemala (CICIG, in Spanish). As we posted in November, a leaked CICIG report provided details about the parallel security force, as well as details about the murders. The report claims, in part, that William Pichinte – one of the Salvadoran Diputados – was carrying 20 kilograms of cocaine and $5 million in cash the night they were murdered. Former Guatemalan Interior Minister Carlos Vielmann and Victor Rivera (aka “Zacarias”), who were both involved in the parallel security force, learned of the drugs and money and arranged to have the vehicle detained and searched, and the Diputados and their driver killed.

Since the CICIG report came to light, there has been a lot of dispute about its findings concerning the assassinations of the Diputados. Salvadoran Diputado Roberto D’Aubuisson, the brother of Eduardo D’Aubuisson who was one of the Diputados killed, spoke out against the CICIG report, adamantly denying that drugs were not involved. Ex-Salvadoran President Alfredo Cristiani, who is also head of COENA (the leadership organization within the ARENA party), took a less aggressive position but called for a more thorough investigation before rushing to judgment. The Guatemalan prosecutors refused to investigate those implicated by the CICIG report.

From the beginning, this has been a very confusing case in which the truth seems illusive. Those following the story have had to interpret numerous hypothesis and accusations since the attacks against the Diputados and the assassinations of the four Guatemalan police officers arrested for their murders. Ex-Diputados Roberto Silva and Manuel Castillo, who are notorious for their  involvement in money laundering and organized crime, will be taking the fall for these murders.  The ruling nearly guarantees that the people implicated in the CICIG report will not be prosecuted for this crime.  In the days following the murders, there were reports that it was a drug deal gone bad and that cash and drugs had been stolen from the scene. Though it was the revenge theory pushed by the prosecutors, the drug trafficking theory survives and those in power continue to deny it and attack those who promote it. We hope that the investigations continue, but fear that like so many of the high profile corruption cases in the region, the truth will get buried in confusion.