Canadian mining company Skye Resources recently announced its decision to suspend activity in the Fenix Project ferro-nickel mine in El Estor, Izabal. The official reason is the international credit crunch which has prevented Skye Resources from obtaining almost US$1 billion which it needed to finance the project's first two phases over the next ten years. The announcement has dealt a heavy blow to the Guatemalan government, which was counting on a huge increase in investment in the country's mining sector for 2008. During his last year in office, former president Oscar Berger came under fire after his government granted foreign corporations a huge number of mining licenses despite fierce opposition from local communities. The Catholic Church, which has supported indigenous people's anti-mining stance is now lobbying the new Colom's administration to say no to mining.

As part of new diplomatic relations between Costa Rica and China, the Asian giant has purchased the isthmus nation's debt bonds for an unspecific amount. While Costa Rica's Treasury Department remains secretive regarding this transaction, President Oscar Arias defends the alliance, emphasizing its benefits. Meaniwhile, Taiwan has been accused of using “check book diplomacy” with its isthmus partners to reinforce partnerships in the area.

By Marta Nocete Aguilar

By Lorely Aponte

Belizeans went to the polls yesterday in a straightforward competition between the two parties who have dominated Belize's politics since independence in 1981- the present governing People's United Party (PUP) which has ruled for the last two consecutive terms and the opposition United Democratic Party (UDP). The other contenders, who would have to form a coalition as they do not have enough candidates to fill 31 seats, are the National Reform Party, the National Alliance of Belize, Vision Inspired in the People and the National Reality Truth and Creation Party, plus some independent candidates.  Although they did not pose a threat to the UDP and the PUP, collectively the number of these voters were important to both parties had they been able to pick them up.

On February 4, ARENA's National Executive Committee (COENA) announced that it had narrowed a list of eighteen candidates down to five. The final five are: former national police director Rodrigo Ávila, current Vice-President Ana Vilma de Escobar, former foreign minister Fransisco Laínez, the president's former Legal Secretary Luís Mario Rodríguez, and ARENA founder Eduardo Barrientos. These candidates, especially the leading ones, correspond to specific factions within the party, analysts say, and are emblematic of a breach in ARENA between economic and political interests. After COENA cuts the group down to three at the end of February, ARENA's directors and elected officials will choose a final candidate in a March 15 primary, who will go on to face FMLN candidate Mauricio Funes in the 2009 elections.

Between 2003 and 2007 a network of government officials, businessmen, and outside actors stole about US$800 thousand from the Ministry of Education's Fund for Equity and Quality in Education (FECE) in the district of San Miguelito. Analysts say corruption is still endemic.