MAVERICK DEPUTY MAKES CORRUPTION ALLEGATIONS

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. -------------- 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. -------------- 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 NNNN 2004CARACA02197 - CONFIDENTIAL