Permanent People’s Tribunal on European Multinationals In Latin America – Union Fenosa

23 November 2007

Between Vienna and Lima - As part of its on going process and campaign on European Transnational Corporations (TNCs) in Latin America and Caribbean, the member organisations of the Enlazando Alternativas EU-LAC bi-regional network, including TNI, have held several Hearings on European TNCs throughout 2007. The first Session of the Permanent People's Tribunal was held in Vienna in May 2006 and heard cases on public services (water and energy); natural resources; agrofood chain; world of work; financial services and Banks. A second Session will be held in Lima in May 2008. Cases presented in Vienna have had further hearings in Glasgow, Madrid, Bogota, Havana, Managua, The Hague and Bilbao. The Hemispheric Social Alliance and the Nicaragua Social Movement 'Another World is Possible' with the support of many organistions both within Nicaragua and other countries in the region of Central America and the Enlazando Alternativas network, organised a PPT Hearing in Managua (October 10-13) on the operations of the European Electricity TNC /Union Fenosa /and the collusion of the Nicaraguan government, the Spanish government and the IFIs who have provided the legal architecture in which Union Fenosa has acted with impunity.
1. INTRODUCTION The stated purpose of the Permanent People’s Tribunal, established in 1979 as a successor to the Russell Tribunals on Vietnam (1966-1967) and on Latin American dictatorships (1974-1976) is to make visible and juridically qualify all of those situations where the massive violation of fundamental human rights find no recognition or institutional redress, either at a national or international level. Throughout 25 years of history and through 33 sessions, the Permanent People’s Tribunal has accompanied, anticipated and supported the struggle of the people against fundamental human rights violations, including the denial of self-determination, foreign invasions, the new dictatorships, economic enslavement and environmental destruction. The Tribunal has begun an atypical session within its trajectory as it involves a session that is made up of several Hearings being held at different times in order to closely examine the type of intervention carried out by Transnational Corporations (TNCs) in their diverse fields of action. This will provide the Tribunal with a privileged opportunity that will allow it to directly observe economic practices that have a profound effect on civil and political, economic, social and cultural and environmental rights of the residents of the different countries where the TNCs operate. According to the agreement defined with the International Lelio Basso Foundation and the Secretary General of Permanent People’s Tribunal (PPT), this Hearing has had the collaboration of the Nicaraguan Social Movement “Another world is possible.” Numerous organizations from Nicaraguan joined in and participated: Association of Consumers of Quilalí Nicaraguan Consumer Defence Association. Association of Consumers of Granada Association of Consumers of Leon Association of Consumers of Masaya Association for the development of the 19 de Julio Community Association for the Human Rights of Trans, gay and lesbian people Soy Association of Nicaragua Association of those affected by Nemagon International Study Centre Global Action Committee Zapatista Solidarity Committee Base Christian Communities Popol Na Foundation El Arena Solidarity Group Consumer Defence League of Nicaragua Indigenous of Subtiaba Movement Nicaraguan Community Movement Matagalpa Community Movement Matagalpa Environmentalist Movement Estela Social Alternative Movement Nueva Segovia Social Movement Matagalpa Social Movement Movement to recover Sandinismo National Consumer Defence Network Young People for the Defence of Human Rights Network From the international arena the following joined and participated: Social Continental Alliance International Union Penosa Campaign Entrepueblos Association Jubilee South Bi-Regional Network of Latin America and the European Union Enlazando Alternativas The jury named by the Permanent People’s Tribunal included as Judge:
  • Vilma Núñez de Escorcia: vice president of the Supreme Justice Court of Nicaragua between 1979 and 1988; National Human Rights Commissionaire until 1990 and then Founding President of the Nicaraguan Human Rights Centre – CENIDH. She has also been vice president of the International Human Rights Federation since 1988.
As Co-Judges
  • Juan Hernández Zubizarreta, from the Basque Country. Professor of Labour Law and Social Security from the University of Basque. Member of the Economic and Social Council of Basque. Former Dean of the University School of the University of Labour Relations of Basque. Member of the research team for the Hegoa University Institute.
  • Ivonne Yánez of Ecuador, Environmental activist for more than 20 years. Founding member of the renowned group Ecological Action of Ecuador and the International Oil Watch Network. Licensed in Biology, with a masters in International Relations from FLACSO.
  • Gustavo Castro Soto (México), Founder of the “Water and Energy” Campaign in Chiapas. Members of the South Jubilee Network, Campaign to Demilitarize the Americas (CADA) and the Mexican Action Network on Free Trade (RMALC), member of the Mexican Movement of those Affected by Dams and in Defence of Rivers (MAPDER) and the Latin American Network against Dams and for Rivers, Communities and Water (REDLAR). Founder of Other Worlds, A.C.
And in representation of the General Secretary of PPT – Gianni Tognoni, Dolores Jarquín. The work was carried out through three public sessions preceded by an inaugural session, according to the detailed program included in the Annex. All were attended by a large number of members of different social organizations. Witnesses and experts spoke about the central demand, the documented cases, and the conceptual analysis from an economic and human rights perspective and responded to questions from the Jury. The Jury wishes to underline the high quality of the reports and testimony that were presented, as well as the wealth of the documentation that was placed at the disposition of the Tribunal in both printed and electronic form, in order to support – with copies of original documents – all the details of the cases and the situations addressed in the Hearing, where it was possible to confirm a series of human rights violations. It is evident that the violation of these rights benefit from legal loop holes in international law, which has allowed many decision making levels, fundamental to the survival of the people and their enormous social sectors, to remain in the profit-hungry hands of major capital. However, it is important to categorically indicate that the existing regulations at an international level, the product of juridical development, provide a framework that must be respected, adapting the conduct of Transnational Corporations and the requirements and demands that Governments make on those corporations so that they respect the human rights that, as a State, they are obligated to guarantee their citizens. The lack of this compliance on the part of involved actors – Union FENOSA, Government of Nicaragua, Government of the Spanish Kingdom and International Financial Bodies, has demonstrated the serious harm they are causing to a large number of people (men, women, children) in Nicaragua. The impact of the conduct of the Transnational Corporation Union FENOSA in Nicaragua, product of the privatizations imposed by the International Monetary Fund (IMF) and obediently applied by the government of Nicaragua, has given rise to situations that openly contradict respect for the human rights in general of Nicaraguans and in particular the Economic, Social and Cultural rights recognized in international instruments as well as the International Labour Organization Conventions (ILO) that refer to Labour Rights. 2. EVENTS General Considerations We consider that the TNC Union FENOSA has violated the institutional, constitutional legal framework and international regulations, with the support of national co-actors, who are also named as responsible in the current legal suit. This conduct has led to the violation of the human rights of the majority of Nicaraguans. Union FENOSA is a company of Spanish origin that is also operating in 12 other countries. It is currently present in Argentina, Belize, Bolivia, Brazil, Canada, Colombia, Costa Rica, Chile, Egypt, the United States, the Philippines, Guatemala, Holland, Hungary, Ireland, Kenya, Morocco, Mexico, Moldavia, Nicaragua, Panamá, Portugal, United Kingdom, Czech Republic, Túnez, Uruguay, Venezuela and Zimbabwe. It provides electricity and gas services to 8.7 million customers. It is worth pointing out that the Jury is aware of the innumerable conflicts and legal violations in relation to Union Fenosa in Central American countries, in the Caribbean (Dominican Republic from where it was expelled) and Colombia. In Nicaragua, the Union FENOSA began to operate in the year 2000 when the Executive branch of government granted the concession and the National Assembly approved a 30 year period for the distribution and commercialization of electric energy, granting a dominant monopoly to DIS NORTE (Distribución de Electricidad del Norte S.A.) and DISSUR (Distribución de Electricidad del Sur S.A.) with 79.54% of the shares. Since then Nicaraguans have suffered constant violations as, under the argument of running at a loss (based on audits), Union FENOSA opted to commit irregularities, failing to pay the generators, who then stopped providing electricity. Together, the two prefer to leave the population without electricity as this allows them to blackmail governments, including the current government, ignoring the impact they have on the population and on the economy of the country. It is possible to affirm that the permanent rationing has been generating the following damages and problems: the population has been psychologically affected by the change in works shifts to take advantage of the available electricity; public health problems because of a lack of refrigerators for fresh food, both in businesses and in homes; an anxiety crisis among the elderly when they lack energy in their homes; serious problems of citizen safety in the night time; health care problems (delays in daily attention, diagnostics or surgical interventions); lack of water supplies among many populations due to the lack of electricity; suspension of classes in schools, institutes or universities and delays in study plans; higher costs in all businesses, trade and markets due to reduced work hours and the need to complement the lack of energy with generators. This results in hearing problems because of the noise and respiratory problems because of contamination produced by generators. There is also an impact on local communication media as it is only able to publish when there is energy supply and countless losses to electric equipment because of major increases in tension linked to rationing. It is possible to conform the existence of discrimination in rationing that goes beyond the alleged strategic reasons. According to the company, the rationing is discriminated by zones to not affect hospitals, military zones, business zones, government buildings, etc. However, in practice and according to multiple testimony, in rural low income zones and in shanty towns in Managua and other key cities, the rationing lasts for much longer than what is reported. When customers ring the Union FENOSA client service number, the argument given by the operators is that there are many people in the neighbourhood who don’t pay. It has been possible to confirm the lack of investment in the maintenance of the electricity distribution network, provoking loss of human life and continuous interruptions that leave customers without electricity (in rural zones a little bit of rain or wind are sufficient factors to leave the population without electricity). It has been possible to confirm the lack of investment in maintaining street lighting that is billed on the invoices. In the event of a damaged transformer multiple cases have been detected where if a paying customer asks to have it fixed they are told they must ask their neighbours to pay otherwise it won’t be fixed. The result is that a population is left without electricity for weeks as the company attempts to obligate it to collect money from its own neighbours. It is possible to confirm a lack of attention to residents from shanty towns that have been asking to be legalized for years, despite the fact that the company complains about energy theft from those areas. At the same time these complaints do not coincide with information provided by the vice president of Union FENOSA in Nicaragua who said that the theft on the part of the shanty towns only represents 6 percent of the total technical losses, which are around 30 percent. It is possible to affirm a reduction of its presence in national territory, in particular in rural zones as part of a cost saving policy, where personnel have decreased by 70%, even when the number of customers has increased by 35%. As a result in San Juan de Limay or Quilali, rural zones that are 2.5-3.0 hours away by bus from cities with a Union FENOSA office, most of the population cannot travel to lodge a complaint as they would lose a day of work. It is possible to confirm that many mayors’ offices divert funds, using part of their meagre resources to facilitate officials who address problems that are in fact caused by Union FENOSA, which is absent in the area. On the other hand, mayor offices such as San Juan de Limay have had to divert of their budgets to invest in shantytowns that Union FENOSA refuses to cover, regardless of the law that stipulates electricity must be provided populations located even more than 150 meters from the urban centre. The abuses of customers who receive electricity are innumerable. According to the Executive President of the National Institute of Energy (INE, the regulator) it receives 3,000 complaints from customers a month or 36,000 a year. Given that there are 600,000 clients, this means that 6% of the clients make a second tier complaint after addressing the company. The vice president of Union FENOSA informed us that they receive some 4,500 complaints a month (54,000 a year). As a result, 9% of all clients file complaints. Union FENOSA claims to implement active Corporate Social Responsibility policies and has received diverse international awards. In 2008 Union FENOSA has declared a Day of Solidarity with Nicaragua, contributing US$300,000 for school projects regarding promotion, access and permanence. However, these alleged responsible practices are nothing more than human marketing scheme that seeks to hide the serious social impact provoked by the company in its daily activity in Nicaragua and in other areas. The principal abuse of Union FENOSA regarding clients of its electricity service are: - Unjustified increase of bills above what is regulated by the INE (Nicaraguan Institute of Energy): a) charges for inappropriate bills (municipal taxes or for street lighting where none exists); b) charges for unjustified delays; c) charges for re-connection for erroneously cutting off supply; d) charges for mistakes in meter readings (closely linked to the precarious labour situation and contracts, as detailed below); and e) changes in accountants who double consumption. - Customers receive disproportionate bills after making payment arrangements; there is no transparency (workers are not authorized to report on rates); workers enter and change meters without the authorization of customers, the telephone attention service fabricates information when it explains the causes of blackouts outside of the rationing hours; there is no respect for the 15 days of notification prior to suspending the service, the rate is indexed to the US dollar, which is illegal, there is a delayed response in repairing problems (diverse examples of weeks passing without any attention for problems in different zones of the country); Customers filing a complaint are obligated to remain in their domicile to avoid the electricity being cut off as Union FENOSA is not able to communicate with contract workers who are responsible for disconnecting the service; lack of an agile response from Union FENOSA when there are reports of serious problems that put people’s lives in danger, such as the case of a girl in the Eastern Market of Managua who was fatally electrocuted in May 2007; charging new users up to three months of consumption when the law only permits 32 days; obligating new customers in a property to assume the debts of former residents; late payment accusations on the part of the Union FENOSA, which then considers the accused customer to be a new client, obligating payment of a new deposit. The labour policy of Union Fenosa Union FENOSA’s cost reduction policy affects its workers and contract workers. The increased labour flexibility policy generated more than 400 lay offs as of November 2000 after it obtained the majority of the distribution network. This flexibility also creates a situation where workers are in a permanently precarious labour situation. At the same time, the company has institutionalized the contracts in order to carry out services related to the electricity distribution, including meter reading, billing, service cuts, installation of services, call centres, etc. These systematically violate the rights of their workers and Union FENOSA is responsible for this situation that includes: the application of a polygraph for contracts, not giving workers a copy of their contracts, not paying social security, salaries that do not cover the cost of a basic family food basic, failing to fulfil labour safety norms, contracting of untrained personnel to carry out the designated tasks, high rotation of personnel, failure to pay per diem and others. All of this practice leads to an increase in working costs together by a deterioration of services provided the clients. Union FENOSA harasses unions, denouncing them before the police and filing legal suits against union leaders and workers who refuse to negotiate a labour agreement. There is sufficient evidence to establish that the contractors are “closely related” companies that end up provoking “increases in real losses”, higher levels of inefficiency and poor service, which is repeatedly and increasingly denounced. Co-parties responsible for the energy crisis The problem of the electricity sector in Nicaragua is a complex problem where, together with the principal responsibilities that correspond to the Union FENOSA there are other responsible parties. Previous governments of Nicaragua contributed to the energy problem when they failed to concern themselves with seeking a change in the energy matrix (generation of electricity) that would decrease Nicaragua’s dependency on oil by creating a matrix based on renewable energy sources. Nicaragua has an enormous renewable energy resources. The state has not exercised its required role in defence of its population: the regulator (Nicaraguan Institute of Energy – INE) in practice is in-operative as it has allowed the Union FENOSA and the generators to systematically fail to comply with the legislation. The current Government of Nicaragua The media publicized the Nicaraguan government signing of a “Memorandum of Intention” in Spain at the end of June 2007. In that agreement, however, the only thing the Spanish company did was commit itself to doing what it is already committed to doing under the terms of its contract. This allowed the company to avoid compensating the Nicaraguan people for failing to fulfil its obligations, creating a serious energy crisis. In exchange, the Nicaraguan government committed itself to promoting in the National Assembly the adoption of Law 554 on Energy Stability and the Law to Protect and Promote the Responsible Use of Public Services. With these laws it aims to freeze the electricity rate for consumers and use the Treasury to pay the difference between the rate that is charged and the real cost of the energy. For its part, Union FENOSA suspends a suit filed against the government in the Multilateral Investment Guarantee Agency (MIGA – member of the World Bank Group). There it demanded $53 million from the Nicaraguan government for the undue appropriation of its investments when the INE began the arbitration process. The government’s commitment lies in dropping that arbitration processes and not opening any others that could negatively affect relations. At the same time, the government will turn to the Central American regional market to obtain energy that will allow it to compensate for the generation deficit in the national market. International Financial Institutions These have played a key role, supporting a model that justified privatizations as a way to free up resources to pay the debt, providing the juridical guarantees so that private capital investment could invest, with an eye only to obtaining short term benefits. The ideological arm of all of this has been, as always, linking the so-called debt alleviation and refinancing to conditions linked to the privatization process and the signing of Public Private Partnerships (PPPs). Generator Companies linked to the Nicaraguan elite and the political class The companies are responsible as they, seeking the maximum short term profit, without taking into account any other criteria, do not carry out the necessary investment in their plants, which would avoid technical problems related to a lack of maintenance, such as those which have recently taken place. However, if that has happened it is because the different governments linked to the privatizations have permitted it. This has led to the current situation where the generators are playing an important role in shutting off the electricity supply to FENOSA, either because of technical problems or a lack of investment, the lack of efficient mechanisms for Union FENOSA to pay them for the delivered energy or as means to pressure the government to allow them to continue charging in extremely advantageous conditions for the companies. The Spanish government gives Union FENOSA both political and economic support as demonstrated by multiple declarations in the media on the part of members of different Spanish governments and the support provided the Structural Adjustment Plans and all the conditions imposed by the International Financial Institutions (of which the government forms a part) and by the change in bilateral development aid policies, provided through so-called Development Aid Funds. These funds, which have become bilateral foreign debt in Nicaragua in favour of the Spanish government have significantly changed their nature, moving from health and education projects to projects clearly aimed at supporting the privatized electricity sector. The Tribunal has been able to determine that Union FENOSA has acted in a similar manner in Guatemala, as the abuse and tactics used by the company to increase its earnings in detriment of the living conditions of the Guatemalan population present the same elements. In the context of this session, the Tribunal was able to hear presentations from representatives from El Salvador and Honduras with similar problems: In Honduras-the transnational ACEA of Italy through the companies Aguas de San Pedro; In El Salvador, the Spanish transnational fishing firm Calvo and the US electricity company AES Corporation. 3. CONSIDERATIONS
  1. Neoliberal globalization involves privatizations, the deepening of liberalisation and the radical deregulation of financial and investment regimes. This scenario was created so that the main beneficiaries would be the multinational corporations whose headquarters are principally located in countries in the industrialized North. The advance of the power of TNCs over all areas of the economy and society take place to the detriment and dismantling of national states in the South that maintain an exclusively functional role regarding transnational capital. The reality that the peoples face is that corporate rights are superimposed over fundamental and collective human rights. The corporations linked to energy that include oil and electricity companies have appropriated the energy resources and have converted what are rights into sources of profit, such as access to water or energy that constitute indispensable rights for the fulfillment of the right to a dignified life.
  2. Global Commercial Law that regulates the rights of the transnational companies takes a hierarchical position well above the rights of the social majorities. The juridical strength that represents the multilateral trade and investment regulations, regional and bilateral treaties, exploitation contracts and arbitration tribunals are the backdrop against which the transnationals act with total impunity. International Human Rights Law is made subservient to power relations, to their privatization and to bilateral asymmetry. These, however, are norms that are not capable of neutralizing the political economic and juridical power of the TNCs. The regulatory pyramid should be inverted, with Human Rights on the vertex.
  3. In the case of Nicaragua this has been obvious. Bowing to international pressure, a significant part of its generators were privatized and passed to the hands of the Nicaraguan oligarchy and US capital and the two companies responsible for energy distribution in the country were sold to Union FENOSA. From this moment, the possibility of advancing toward a sustainable and sovereign society regarding energy was truncated.
  4. The privatization process of a basic need public service in a country with more than half the population living on less than a dollar a day is doomed to failure as private capital seeks benefits that are disproportionate, that come before the strict fulfilment of human rights of residents, taking advantage of governments trapped in a cycle of economic and political dependency. As a result, it is very difficult to guarantee universal rights such as access electricity for all citizens. According to the testimony and reports from experts, International Financial Institutions place conditions on Governments, favouring the interests of Transnational corporations, without taking into consideration the impact that these have on the Nicaraguan population.
  5. The Spanish government politically and economically supports Union FENOSA through different formulas. On the one hand, the presence of Spanish political or institutional officials defend the interests of Union FENOSA in Nicaragua. On the other hand, the support for the conditions imposed by the International Financial Institutions of which the Spanish government forms a part. And finally, the change in the focus of official development aid through the Fund for Development Aid (FAD) credits where a significant amount became dedicated to projects linked to the electricity sector, coinciding with the arrival of Union FENOSA in Nicaragua.
  6. The different Nicaraguan governments are responsible for the fraud committed in the privatization of electricity distribution and generation services as well as the changes in the juridical structure that supported them. The political parties are also responsible because they supported those changes in the National Assembly.
  7. The Governments have not respected the constitutional mandate to promote, facilitate and regulate the provision of public services. It has been sufficiently demonstrated by the evidence that was provided that the judicial branch has not safeguarded the rights of the Nicaraguan citizens, favouring by action or by omission the Union FENOSA company.
  8. Until 2006, the INE had not fulfilled its task as a regulator of the concession, according to article 18 of Law 272 as it did not initiate any sanctioning file.
  9. The current negotiations between the Nicaraguan government and the Union FENOSA are taking place with an absolute lack of transparency and in great secrecy.
  10. It has been demonstrated that the private generating firms are also responsible for the current energy crisis, as they are intentionally operating under their actual capacity.
  11. The activities of Union FENOSA in Nicaragua flagrantly violate human rights: violation of the concession contract, the lack of investment in the electricity and public lighting networks, electricity blackouts, discrimination in rationing, abuse of clients and the Labour and Union rights of their employees and sub-contracted personnel. With these practices they violate Human Rights, such as the right to life, to health, education, information, safety, the normal development of economic activities as well as the most vulnerable sectors such as children and the elderly – indeed the dignity of every person. The crisis caused by Union FENOSA is particularly harsh for women. In demonstrating Union FENOSA’s conduct of corporate social irresponsibility, we see the contradiction with its discourse on Social Responsibility as contained in its minutes and public reports.
4. RULING This is a first specialized Hearing and which would lead to a deliberating session, where it would be necessary to further investigate many of the facts and legal aspects that are the object of this Hearing. However, the data and facts presented in this Hearing have sufficient strength, coherence and conviction to sustain, according to the Universal Declaration of Human Rights, the American Declaration of the Rights and Duties of Man, the International Economic, Social and Cultural Rights Pact, the International Civil and Political Rights Covenant and its Optional Protocol and the American Convention or the San Jose Pact, whose established rights include unrestricted respect on the part of the Nicaraguan State, according to what is established in Art. 46 of the Political Constitution of Nicaragua. And, also according to the general principles of International Law consecrated in the UN Charter and the Right to Development, considered an obligation for the States established in the contemporary International Law, among others. For all the above, the Jury resolves to accuse:
1. The TRANSNATIONAL UNION FENOSA, both in its central headquarters and in its Nicaraguan and Guatemala branches for:
  • Serious and massive violations of the labour rights of its workers, with the systematic implementation of a labour flexibilization policy.
  • Actions or omissions that contribute to the deterioration of living conditions and physical and mental health for a growing part of the Nicaraguan and Guatemalan population, specifically the human right to an adequate Standard of living, also contributing to maintaining the poverty levels that do not allow the population to enjoy the Human Right to Development.
  • Fraud and deceit of customers when it assumes social responsibility commitments that it flagrantly fails to fulfil in the mentioned countries.
  • The shareholders of Union FENOSA are equally responsible as are the rest of the shareholders of Disnorte and Dissur.
  • For failing to fulfil its duty as required by the Political Constitution, National Laws and International Human Rights Law, to guarantee all residents of the country the Human Rights recognized by said instruments, as well as the Labour Agreements celebrated in the framework of the ILO and of which Nicaragua is a signatory.
  • For failing to fulfil its obligations to guarantee the adequate operation of the regulator, the Nicaraguan Energy Institute (INE) so that it efficiently and opportunely obligate Union FENOSA fulfil the commitments derived from the agreement and its regulations.
  • For failing to guarantee the Right to effective Judicial Guardianship and Access to Justice of those affected by the irregular conduct of the Union FENOSA Transnational, due to the lack of an independent Judicial Branch, rather than one that is subject to partisan interests.
  • For omission in its duty to guarantee appropriate information to the population about signing Covenants and Agreements with International Financial bodies and Transnational Companies that affect the daily life of the population, violating their human rights.
3. The GOVERNMENT OF THE KINGDOM OF SPAIN, country of origin of Transnational Union FENOSA for:
  • Allowing that legal entity to fail to fulfil international human rights standards in its economic activity in other countries that it would be obligated to respect in its country of origin.
4. The INTERNATIONAL FINANCIAL BODIES, in particular the International Monetary Fund for the conditions it imposes such as the privatizations and treatment in favour of transnationals. The World Bank, the InterAmerican Development Bank and the Central American Economic Integration Bank, that provided the financial resources for the implementation of the IMF impositions, which subsidize and protect transnational capital investments.
5. RECOMMENDATIONS 5.1. Implement the mechanisms to obtain compensation, indemnity but also the payment of the social, economic and ecological debt generated by the transnational Union FENOSA to the Nicaraguan people. 5.2. Establish administrative and criminal responsibilities for the damages, harm, contract, law and national regulatory violations caused by the transnational, both regarding government authorities and the company itself. 5.3. Annul the contract with Union FENOSA and the “Memorandum of Intention” of June 2007 signed by the Nicaraguan government. “We do not owe, we do not pay”. 5.4. Remove the Transnational Union FENOSA from Nicaragua and the countries in the region for its irresponsibility and violation of human rights. 5.5. Link all the countries in Latin America where they has been conflict with Union FENOSA to present it to TPP in Lima 2008, in particular there is a need to permanently observe and monitor the conduct of this transnational in Guatemala. 5.6. Seek new sources of energy other than hydrocarbon dependent fuel sources, which are urgently needed in the face of climate change. There is an urgent need to implement new schemes of energy and modifications to the energy matrix that do not repeat the mechanisms implemented to date which generate poverty, monopoly, debt, exclusion, forced displacement of the population, centralized systems etc. There is a need to generate social participation for the elaboration of a new energy matrix. 5.7. Promote, monitor and ensure the unrestricted fulfilment of human rights, without these being subordinate to a commercial logic, through legal, administrative instruments and other actions, specifically regarding access to energy that allow people to enjoy their basic human right to an adequate standard of living. At the same time, eliminate all law that criminalized protests and social dissent. 5.8. Generate public policies that guarantee access to electric energy in sufficient quantity and quality and raise these to an autonomous constitutional rank as electricity guarantees the enjoyment of many associated human rights. 5.9. Petition the Secretary of the Permanent Peoples Tribunal (PPT) to hold a special URGENT Tribunal to investigate the serious Human Rights violations, in particular to life and health, such as the emblematic case of the banana workers affected by Nemagon in Nicaragua, as well as thousands of people affected in this country and all of Latin America by the indiscriminate use of agro-toxins in other types of crops. In Managua, October 13, 2007 Vilma Núñez de Escorcia Juan Hernández Zubizarreta Ivonne Yánez Gustavo Castro Soto