Identifier
Created
Classification
Origin
04CARACAS2197
2004-07-09 14:54:00
CONFIDENTIAL
Embassy Caracas
Cable title:  

MAVERICK DEPUTY MAKES CORRUPTION ALLEGATIONS

Tags:  PGOV ENRG VE 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L SECTION 01 OF 02 CARACAS 002197 

SIPDIS


NSC FOR TSHANNON AND CBARTON
ENERGY FOR DPUMPHREY AND ALOCKWOOD

E.O. 12958: DECL: 07/06/2014
TAGS: PGOV ENRG VE
SUBJECT: MAVERICK DEPUTY MAKES CORRUPTION ALLEGATIONS


CLASSIFIED BY: CHARGE D'AFFAIRES STEPHEN MCFARLAND; FOR REASONS 1.4(B)
AND (D)

------
SUMMARY
-------

C O N F I D E N T I A L SECTION 01 OF 02 CARACAS 002197

SIPDIS


NSC FOR TSHANNON AND CBARTON
ENERGY FOR DPUMPHREY AND ALOCKWOOD

E.O. 12958: DECL: 07/06/2014
TAGS: PGOV ENRG VE
SUBJECT: MAVERICK DEPUTY MAKES CORRUPTION ALLEGATIONS


CLASSIFIED BY: CHARGE D'AFFAIRES STEPHEN MCFARLAND; FOR REASONS 1.4(B)
AND (D)

--------------
SUMMARY
--------------


1. (C) NATIONAL ASSEMBLY DEPUTY ROGER RONDON (PODEMOS)
ATTACKED THE RULING FIFTH REPUBLIC MOVEMENT (MVR) AND HAD HIS
HANDS SLAPPED AS A CONSEQUENCE AFTER A WEEK-LONG MID-JUNE
CAMPAIGN TO BRING A VOTE OF CENSURE AGAINST MINISTER OF
ENERGY AND MINES RAFAEL RAMIREZ_. RONDON FAILED TO BRING THE
VOTE TO THE FLOOR OF THE NATIONAL ASSEMBLY AND WAS STRIPPED
OF THE ENERGY COMMISSION PRESIDENCY AS WELL AS HIS MEMBERSHIP
IN HIS PRO-GOV PARTY. SINCE THEN, THE MAVERICK RONDON HAS
CRITICIZED OTHER CHAVEZ LOYALISTS, ALLEGING MOST RECENTLY
THAT THE GOV HAD STAGED THE INCIDENT OF THE COLOMBIAN
"PARAMILITARIES" TO DISTRACT ATTENTION FROM THE RUN-UP TO THE
AUGUST RECALL REFERENDUM. END SUMMARY.

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ALLEGATIONS AGAINST ENERGY MINISTER RAMIREZ_
--------------


2. (U) ON JUNE 10, NATIONAL ASSEMBLY DEPUTY ROGER RONDON,
THEN PRESIDENT OF THE PERMANENT ENERGY COMMISSION OF THE
NATIONAL ASSEMBLY, REQUESTED THAT THE ASSEMBLY'S PLENARY
CENSURE MINISTER OF ENERGY AND MINES RAFAEL RAMIREZ_. RONDON
REPORTEDLY REQUESTED THE CENSURE VOTE BECAUSE RAMIREZ_ HAD
FAILED ON FOUR OCCASIONS TO RESPOND TO SUMMONSES FROM THE
COMMISSION TO TESTIFY ON ISSUES SUCH AS GAS PRICING AND
DOMESTIC FUEL DISTRIBUTION PROBLEMS. AFTER A WEEK-LONG
CAMPAIGN, HOWEVER, RONDON WAS UNABLE TO BRING THE VOTE TO THE
FLOOR. HE WAS SUBSEQUENTLY STRIPPED OF THE PRESIDENCY OF THE
ENERGY AND MINES COMMISSION AND OF HIS MEMBERSHIP IN THE
PODEMOS PARTY.


3. (C) DURING HIS CAMPAIGN AGAINST RAMIREZ_, RONDON MADE A
NUMBER OF OTHER ALLEGATIONS, CHARGING RAMIREZ_ (AND HIS WIFE
AND MOTHER-IN-LAW) WITH CORRUPTION AND MISMANAGEMENT.
ATTORNEY IVAN LARA, STAFF DIRECTOR OF THE ENERGY AND MINES
COMMISSION, TOLD ECONOFF JUNE 28 THAT CERTAIN OF RONDON'S
ALLEGATIONS, SUCH AS HIS CHARGE THAT THE MINSTER HAD
ILLEGALLY SIGNED A DEAL WITH FREE MARKET PETROLEUM IN 2003,
WERE ACCURATE. (NOTE: THE HYDROCARBONS LAW RESERVES THE
MARKETING OF VENEZUELAN OIL TO PDVSA. IN EARLY 2003, RAMIREZ_
SIGNED A CONTROVERSIAL CONTRACT WITH FREE MARKET WHICH WAS
INTENDED TO COVER THE SALE OF VENEZUELAN OIL TO THE U.S.

PETROLEUM RESERVE. MANY QUESTIONS WERE RAISED ABOUT THE
CONTRACT AND THE DEAL, TO OUR KNOWLEDGE, HAS NEVER BEEN
FINALIZED.) WHEN ASKED ABOUT THE CORRUPTION ALLEGATIONS,
HOWEVER, LARA SIMPLY SHRUGGED AND SAID THAT CORRUPTION IS
RAMPANT IN BOTH THE MINISTRY AND PETROLEOS DE VENEZUELA
(PDVSA). (NOTE: FOR THAT MATTER, LARA REPORTED THAT RONDON
HIMSELF HAS AN OIL SERVICES COMPANY THAT IS RECEIVING
PREFERENTIAL CONTRACTS FROM PDVSA IN EASTERN VENEZUELA.)
RAMIREZ_, WITH HIS ACCESS TO THE VAST ASSETS OF PDVSA
(INCLUDING COMPANY PLANES),IS PLAYING AN IMPORTANT ROLE IN
CHAVEZ'S REFERENDUM STRATEGY AND IS UNTOUCHABLE, SAID LARA.
RONDON HAD SOUGHT TO DISTANCE HIMSELF FROM THE GOV AND HAD
ULTIMATELY PLAYED AN EXTREMELY INEPT HAND WITHIN THE
COMMISSION AND THE PLENARY, ACCORDING TO LARA.


4. (C) LARA ASSERTED THAT RONDON WAS "CARRYING THE WATER"
AGAINST RAMIREZ_ FOR A MOVEMENT CALLED THE "CATEDRA JUAN PABLO
PEREZ ALFONSO" OR JPPA, WHOSE MEMBERS INCLUDE FORMER
VENEZUELAN AMBASSADOR TO SAUDI ARABIA CARLOS MENDOZA
POTTELLA, AND VICTOR POLEO, FORMERLY IN THE MINISTRY OF
ENERGY AND MINES. THE JPPA, NAMED FOR THE VENEZUELAN OIL
MINISTER WHO PLAYED A LEADING ROLE IN THE CONCEPTION OF OPEC,
ADVOCATES A HIGHLY NATIONALISTIC ENERGY POLICY THAT WOULD
ELIMINATE THE PARTICIPATION OF FOREIGN OIL COMPANIES IN
VENEZUELA. MUCH OF THE FODDER FOR RONDON'S ALLEGATIONS, SAID
LARA, CAME FROM "INSTITUTIONALISTS" WITHIN PDVSA.

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RONDON'S ASPIRATIONS
--------------


5. (C) PATRIA PARA TODOS (PPT) SECRETARY GENERAL JOSE
ALBORNOZ TOLD POLOFF JUNE 25 THAT THE FIGHT BETWEEN RONDON
AND MINISTER RAMIREZ_ IS LARGELY REGIONAL, STEMMING FROM THE

CARACAS 00002197 002 OF 002

TE IN ITALY (MARKETING
VENEZUELA'S PATENTED HEAVY OIL PRODUCT "ORIMULSION" TO
ITALIAN POWER PLANTS) IS AT THE CENTER OF RONDON'S
ACCUSATIONS. ALBORNOZ ALLEGED RONDON IS GETTING HIS
INFORMATION ABOUT BITOR FROM ITS GENERAL MANAGER, WHO IS THE
BROTHER OF DEPUTY LUIGI D'ANGELO, A FORMER MVR DEPUTY WHO
BROKE WITH THE PARTY EARLIER THIS YEAR. D'ANGELO JOINED THE
"FEDERAL BLOC," SIX DEPUTIES ALLIED WITH RADICAL ACTIVIST
LINA RON, WHO HEADS THE PRO-CHAVEZ "UNIDAD POPULAR
VENEZOLANA" (UPV). ALBORNOZ PREDICTED THAT RONDON WOULD
EVENTUALLY JOIN RON'S UPV FACTION, WHICH HE DISMISSED AS A
"SCRAP HEAP" FOR DISAFFECTED CHAVISTAS. (NOTE: RONDON HAS
NOT INDICATED WHETHER HE WILL JOIN RON'S FACTION, JOIN THE
OPPOSITION, OR SIMPLY PLAY FREE AGENT.)


6. (C) OTHER OBSERVERS ALLEGE THAT ROGER RONDON HAD HOPED TO
BECOME THE PRO-CHAVEZ CANDIDATE FOR THE GOVERNORSHIP OF DELTA
AMACURO STATE WHERE HE WOULD LIKELY HAVE HAD ACCESS TO
WINDFALL BENEFITS WHEN THE WORK ON THE OFF-SHORE DELTANA
PLATFORM NATURAL GAS BLOCKS BEGINS LATER THIS YEAR. BUT
RONDON WAS PASSED OVER FOR THE MVR'S YELITZA SANTAELLA, WHICH
REPORTEDLY LEFT HIM ANGRY AND DISSATISFIED.

--------------
AND RONDON ROLLS ON...
--------------


7. (C) SINCE HIS DEMOTION, RONDON HAS CRITICIZED OTHER CHAVEZ
LOYALISTS, ALLEGING MOST RECENTLY THAT THE GOV HAD STAGED THE
INCIDENT OF THE COLOMBIAN "PARAMILITARIES" TO DISTRACT
ATTENTION FROM THE RUN-UP TO THE AUGUST RECALL REFERENDUM.
IN REACTION, MVR DEPUTIES PROPOSED STRIPPING RONDON OF HIS
CONGRESSIONAL IMMUNITY SO AS TO SUBJECT HIM TO POSSIBLE
CORRUPTION CHARGES. MVR NICOLAS MADURO CLAIMED THAT "DARK
INTERESTS" WERE BEHIND RONDON"S ACCUSATIONS THAT WOULD SOON
BE MADE PUBLIC.

--------------
COMMENT
--------------


8. (C) RONDON'S MOTIVES AND PERSONAL INTERESTS ASIDE, IT IS
POSSIBLE HE DOES HAVE INCRIMINATING PROOF OF CORRUPTION
WITHIN THE MINISTRY AND PDVSA. THE THREAT BY HIS FELLOW
CHAVISTAS TO STRIP HIM OF HIS CONGRESSIONAL IMMUNITY IS A
WARNING TO OTHER WOULD-BE DEFECTORS. THE PRO-CHAVEZ DEPUTIES
HAVE MAINTAINED THEIR SLIM MAJORITY, AND HAVE USED IT TO
MUSCLE THROUGH LEGISLATION IMPORTANT TO THE REVOLUTION.
PLAYING HARD BALL WITH RONDON EMPHASIZES THE IMPORTANCE THEY
ATTACH TO MAINTAINING THEIR HOLD ON THE LEGISLATURE AND TO
ALLEGATIONS OF CORRUPTION.
MCFARLAND

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2004CARACA02197 - CONFIDENTIAL