Nicaragua's Ortega used a front to take over the country's electricity sector, investigation alleges

Daniel Ortega and Rosario Murillo, the authoritarian marriage ruling over Nicaragua, used a company as a front to acquire state-owned electricity distribution companies Disnorte and Dissur, an investigation by Confidencial alleges.

The acquisition, valued at $140 million, involved a complex transaction that has raised questions about the involvement of ALBA de Nicaragua SA (Albanisa), a conglomerate under the control of the ruling family.

The local subsidiary of Fenosa Natural Gas began searching for a buyer for 84% of Disnorte and Dissur's shares at the beginning of 2013. The selection of TSK and Melfosur, companies without experience in managing distribution systems, surprised many in the Nicaraguan electricity sector. This sale led to speculation that the real buyer was Albanisa, leveraging Agronegocios Comerciales SA as a front.

The in-depth investigation showed that TSK-Melfosur never held full ownership of Disnorte and Dissur. They owned a minority share, while the remaining 84% was controlled by Agronegocios Comerciales SA. A source linked to Albanisa disclosed that the true administrator was Gustavo Acosta López of Albanisa, serving as the government delegate in the distributor.

The use of TMI, the TSK and Melfosur consortium as a public face masked Albanisa's acquisition from the private sector and potential U.S. scrutiny due to sanctions.

In December 2020, the Sandinista-controlled National Assembly "nationalized" TSK's and Melfosur's shares in Disnorte and Dissur. This expropriation did not affect Agronegocios Comerciales SA's holdings. By this time, Disnorte and Dissur had ceased payments to Albanisa due to fears of U.S. sanctions. The distributors owed approximately $220 million to Albanisa.

Agronegocios Comerciales SA's involvement extended beyond electricity distribution. It acquired properties such as Pueblo Viejo, a 110-acre property with a hotel, and other real estate projects. Tirso Celedón, associated with several real estate ventures and the now-defunct Banco Corporativo (BanCorp), was identified as a key figure in managing the ruling family's business interests.

Celedón briefly served as a government official in 2022, appointed to the Central Bank of Nicaragua. However, his appointment was terminated after 101 days, reflecting the volatility and political maneuvering within the regime.

Despite international sanctions, the acquisition of Disnorte and Dissur allowed the Ortega-Murillo family to consolidate control over Nicaragua's electricity distribution. This control complements their interests in energy generation, further entrenching their influence over the country's energy sector through front companies and intermediaries like Agronegocios Comerciales and Tirso Celedón.