Identifier
Created
Classification
Origin
04CARACAS2599
2004-08-12 20:55:00
CONFIDENTIAL
Embassy Caracas
Cable title:  

VENEZUELA: GOV CONTINUES TO ACCUSE CANTV

Tags:  PGOV ECON KDEM VE 
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C O N F I D E N T I A L CARACAS 002599 

SIPDIS


NSC FOR CBARTON
USCINCSO ALSO FOR POLAD
STATE PASS TO DCHA/OTI

E.O. 12958: DECL: 08/12/2014
TAGS: PGOV ECON KDEM VE
SUBJECT: VENEZUELA: GOV CONTINUES TO ACCUSE CANTV

REF: CARACAS 2563

Classified By: Political Counselor Abelardo A. Arias for reason 1.4 (d)

-------
Summary
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C O N F I D E N T I A L CARACAS 002599

SIPDIS


NSC FOR CBARTON
USCINCSO ALSO FOR POLAD
STATE PASS TO DCHA/OTI

E.O. 12958: DECL: 08/12/2014
TAGS: PGOV ECON KDEM VE
SUBJECT: VENEZUELA: GOV CONTINUES TO ACCUSE CANTV

REF: CARACAS 2563

Classified By: Political Counselor Abelardo A. Arias for reason 1.4 (d)

--------------
Summary
--------------


1. (C) The GOV continues to accuse CANTV, the
telecommunications company handling the automated voting
August 15, of attempting to manipulate the referendum
results. Vice President Jose Vincente Rangel warned CANTV
and its "North American associates" that the GOV would act if
the company and its opposition-affiliated executives tried to
steal the vote from Chavez, and Podemos Deputy Ismael Garcia
said CANTV President Gustavo Roosen's answers at the National
Assembly were "not sufficient." CANTV employees fear a GOV
take-over after the referendum and Verizon President of
International Operations has expressed concern to the
Ambassador about Verizon's investment in CANTV. Still, CANTV
is ready for the referendum August 15. End Summary.

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GOV Believes CANTV Could Manipulate the Vote
--------------


2. (U) VP Jose Vincente Rangel warned CANTV executives and
their "North American associates" August 10 that the GOV
would act if the telecommunications company attempted to
manipulate the results of the referendum. Rangel told
reporters there have been signs from the company that have
led the GOV to believe CANTV might not "honor" its
obligations to the State and the Venezuelan people. He said
CANTV would be taking a "great risk" if it perpetrated
fraudulent activity during the referendum. Rangel identified
CANTV President Gustavo Roosen and CANTV board member Ricardo
Hausmann as supporters of the opposition to justify his
claims of potential sabotage by CANTV.


3. (U) Podemos Deputy Ismael Garcia (who is trying to
resurrect his image after his failing role in leading the
Chavez effort against the signature appeals) told reporters
August 10 that the answers given by Roosen to the special
National Assembly commission August 9 were "not sufficient"
and that the commission would continue to investigate CANTV's
handling of the automated voting. Roosen spent six hours
testifying before the commission, addressing questions
related to trumped up accusations of CANTV's bias in favor of

the "Si" campaign. Garcia and other pro-government deputies
grilled Roosen on everything from opposition conspirators in
CANTV to the possibility of Verizon counterparts in the U.S.
manipulating the data. (reftel)


4. (U) The Venezuelan military inspected CANTV cables along
the regional highway in the state of Aragua this week to
thwart any plans to destabilize the region before the
referendum. Aragua state Governor Didalco Bolivar said the
presence of the military along the highway would help guard
against any potential acts of sabotage by "terrorists"
seeking to cut off light, gas, water, or telecommunication
services. Chavez opponents saw the action as a hint of the
government's preparation to act against CANTV.

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CANTV, Verizon Concerned ...
--------------


5. (SBU) CANTV employees (one working in the operations
centers for the referendum and another advising Roosen) told
embassy FSN August 11 that the National Electoral Council
(CNE) has required that all CANTV operators remain in the
operations centers August 12-16 without outside
communication. They said CANTV operators will be supervised
by military officers at all times - this despite the fact
CANTV is merely transmitting the data and will never have
access to it.


6. (SBU) According to these employees, CANTV is conscious of

the GOV's capacity to intervene in the operations of CANTV.
While the similarities with PDVSA are not exact, they said
there could be a move to "clean out" CANTV as was done to
PDVSA in 2003. CANTV employees know Chavez sees the
telecommunications sector as strategic and think he might try
to take it over if he wins the referendum. They believe the
CANTV executives named by Deputy Garcia August 9 as part of
an "opposition conspiracy," including Roosen and Director
Jorge Dominguez, would be the first to be fired.


7. (C) Verizon's President of International Operations, Dan
Petri, called the Ambassador August 11 to discuss his
concerns for Verizon's investment in CANTV, given the
government's accusations. Verizon has 28% share of CANTV,
while the GOV has 6% share.

--------------
... But Ready for the Referendum
--------------


8. (SBU) CANTV communications official Amado Fugett told
poloff August 12 the accusations against his company amounted
to nothing more than "political noise." Fugett said CANTV
had made some adjustments at the CNE's request based on the
concerns expressed by the GOV and Chavez supporters. He said
the company hosted National Assembly deputies,
telecommunications regulatory officials, and military
officers to review the setup at CANTV's two operations
centers that will be used during the referendum. Tests of
the system have been successful, he said, and it will be
ready for the August 15 referendum.

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Comment
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9. (C) CANTV and Verizon have reason to be concerned by the
GOV's threats and accusations. In a television interview
August 10, VP Rangel said he "never agreed with the
privatization of the telecommunications sector." Still, the
GOV is unlikely to use the referendum as an immediate pretext
for nationalizing CANTV. More likely, the GOV is laying the
groundwork to cry CANTV foul and contest the results if
Chavez loses the referendum.
Shapiro


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2004CARACA02599 - CONFIDENTIAL