CHAVEZ ACCUSES USG OF FUNDING "COUPMONGERS"

C O N F I D E N T I A L CARACAS 000634 SIPDIS NSC FOR CBARTON USCINCSO ALSO FOR POLAD USAID DCHA/OTI FOR RPORTER E.O. 12958: DECL: 06/03/2013 TAGS: PREL PROP VE SUBJECT: CHAVEZ ACCUSES USG OF FUNDING "COUPMONGERS" Classified By: POLITICAL COUNSELOR ABELARDO A. ARIAS FOR REASONS 1.4 (B ) AND (D) -------------- SUMMARY -------------- ¶1. (C) During his February 8 and 15 "Alo, Presidente" broadcasts, President Chavez accused the USG of supporting opposition efforts to oust him by funneling $60,000 to the NGO Sumate and millions more to assist other opposition groups. Chavez also claimed that the CIA's refusal to provide any information on Sumate to a journalist's FOIA request is conclusive proof that the National Endowment for Democracy (NED),a Sumate funding source, is a CIA front organization. Chavez made no mention of USAID funding to Sumate. End Summary. ¶2. (U) During his February 8 "Alo, Presidente" broadcast, President Chavez accused the USG of supporting opposition efforts to oust him by funneling $60,000 to the NGO Sumate and also announced he would provide proof that the USG is spending millions of dollars to assist other opposition groups. Emboffs confirmed that the National Endowment for Democracy (NED) approved a grant to Sumate for $53,400 in September 2003 to work on referendum and general electoral activities. On February 15, Chavez referred to free-lance journalist Jeremy Bigwood's FOIA request to the CIA on Sumate, and the CIA's subsequent refusal to confirm or deny that it possessed such information, as proof that the NED is a funding arm of the CIA for Venezuelan opposition groups. During the same broadcast, Chavez asked the Solicitor General to analyze Sumate's original funding request to determine if it included grounds for charging the NGO with treason. ¶3. (U) During the February 8 broadcast, Chavez also mentioned the National Assembly of Educators (ANE) as one recipient of NED funding, claiming it was associated with the opposition party Democratic Action (AD). He also asserted that Democratic Coordinator spokesman Jesus Torrealba is ANE's director. ANE spokesperson Leonardo Carvajal explained that the organization most recently received NED funds between 2001 and 2002, according to a February 9 news report. Carvajal also denied that the ANE is associated with AD, saying that "no ANE board director belongs to any political party," though he indicated the ANE had been linked with the MAS party during 1975-1988. (Note: Carvajal is closely allied with the opposition, and ANE is a member of the Democratic Coordinator.) ¶4. (C) Presumably unbeknownst to Chavez, USAID/OTI awarded Sumate a grant for $89,000 in August 2003 to verify the reliability of the National Electoral Register (REP) by visiting the homes of randomly chosen registered voters. The study found the REP was 97 percent reliable, information which benefits both the government and the opposition. Following standard procedure, USAID/OTI asked a reputable Mexican statistician to review Sumate's methodology and asked Sumate to delay releasing the study results until the statistician's review was complete. Sumate agreed to the request but then announced the study results anyway. Due to this procedural disagreement, the embassy reduced the grant amount to $42,000 to cover work accomplished up to that point (late 2003). In addition, Sumate's higher profile as an opposition NGO made it more difficult to carry out an ostensibly non-partisan study. -------------- COMMENT -------------- ¶5. (C) This GOV attack on Sumate, a highly effective and well organized opposition group, as a puppet of the USG is a centerpiece of Chavez' anti-referendum campaign. Chavez is using the news of opposition participation in NED programs as further "evidence" of a USG plot to remove him from power. That pro-government groups have been beneficiaries of those same programs will continue to be staple fodder in Venezuela's political battles. Allegations similar to Chavez' comments appear on the website www.venezuelafoia.info, "...devoted to investigating US meddling in Venezuela." The website includes the Bigwood FOIA request, the CIA's response, and names the NED as a Sumate grantor. The website also concludes that NED has exclusively supported various opposition groups with grants totaling more than $800,000 and thereby contributed to the country's political destabilization. SHAPIRO NNNN 2004CARACA00634 - CONFIDENTIAL