ENVIRONMENT MINISTER CONFRONTS ILLEGAL LOGGERS

UNCLAS SECTION 01 OF 02 QUITO 002288

SIPDIS

DEPT PASS TO USAID

E.O. 12958: N/A
TAGS: SENV EAID ECON PGOV EC
SUBJECT: ENVIRONMENT MINISTER CONFRONTS ILLEGAL LOGGERS
AMID RUMORS OF HER OUSTER

REF: QUITO 1828


1. Summary: Minister of Environment Anita Alban took to the
forest on October 1st to investigate illegal logging. The
inspection, which revealed criminal activities, has yet to
generate any concrete judicial response. Alban's decision
to confront loggers takes place amid rumors that she will be
removed from office. MOE workers on strike over forestry
management in the Ministry have further complicated the
political landscape for Alban. End Summary.

UNFAMILIAR TERRITORY
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2. Responding to complaints of illegal logging from the
Indigenous Awa Federation (FCAE),Minister Alban traveled to
Awa territory in northern Ecuador on October 1 to conduct an
inspection. Alban was accompanied by a USAID specialist,
ministry personnel, and a journalist. Consistent with FCAE
claims, Alban's team discovered what appeared to be several
illegal logging operations. While some of the operations
were run by independent groups, others were associated with
known timber companies. Although no one was arrested at
that time, National Forestry Director German Espinoza
ordered the loggers to stop operations. Although they claim
to have no affiliation with the logging operations
discovered by the Minister's group, the timber company
SETRAFOR has agreed to conduct follow-up meetings with FCAE
on October 11 to establish more concrete agreements between
the two and to clarify land title disputes.


3. Alban's inspection took many by surprise. Although
Alban said deforestation was one of her main concerns when
she became Minister in April 2005, she had heretofore done
nothing to address what is the second highest rate of
deforestation among South American countries. Alban's
inaction is not restricted to forestry issues. She has been
absent and weak on a number of high-profile environmental
issues, most notably with respect to the Galapagos (reftel).


4. Inattention to deforestation preceded Alban. Indeed,
this type of active engagement against illegal logging has
not been seen in the Ministry since 2003. Prior to 2003,
the Swiss company SGS provided independent and effective
monitoring of logging activities under a contract with the
Ministry of Environment. Logging interests managed to have
SGS's contract ruled unconstitutional by courts in 2003.
Without SGS monitoring, illegal logging is rampant and the
Ministry of Environment has been unable (and apparently
unwilling) to stop it. That Alban's team did not follow up
the October 1st investigation with any immediate legal
action may suggest more of the same.

MOE STRIKE CONTINUES
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5. An ongoing strike at the Ministry of Environment no
doubt has motivated Minister Alban. Ministry staff, who
initiated the strike on September 22nd, have been voicing
their displeasure over the Ministry's forest management.
Publicly, they claim that they want greater control over
forestry programs. However, Ministry staff acknowledged to
Econoff that a segment of striking employees also are
interested in keeping tax money and jobs. As the strike has
progressed, calls for Alban to resign have grown. Not all
MOE staff are on board with the strikers' demands, and many
continue to do their work. Nonetheless, the employees
association has been successful in garnering press and
pressuring Minister Alban to act.


6. To address the strikers' concerns, Minister Alban also
has developed a proposal on forestry management that
striking employees are reviewing. The proposal, known as
the National System of Forestry Control and Wildlife
Trafficking, allocates $350,000 to be utilized by both
existing staff and contractors. Unfortunately, program
funds will last only 6 months. Together with the illegal
logging inspection, the new forest management proposal
represents Alban's effort to satisfy the demands of striking
staff and portray herself as an active and effective
Minister.

ALBAN'S DAYS NUMBERED?
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7. Minister Alban's recent actions suggest she is worried
about keeping her job. Indeed, the calls for her to resign
are resonating outside of the MOE and continue to grow.
More worrisome for Alban, politicians within the PSC also
have an eye on her Ministry. Congressman Alfredo Serrano,
who represents the Galapagos and has business interests
there, reportedly wants Alban replaced with someone more to
his liking. MOE Sub-minister Alfredo Carrasco's name has
been mentioned as a possible replacement. Carrasco's
evasive responses to questions surrounding the strike and
calls for Alban's removal suggest he is mulling over his
options. Nothing specific appears in the works as of yet.

COMMENT
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8. The arrival of a new Minister could lead to changes in
the Governorship of the Galapagos and the Directorship of
the Galapagos National Park (GNP). Politicization of the
GNP during the last 2-plus years triggered violent
demonstrations in the islands and had damaging effects on
the GNP's monitoring and enforcement abilities. Whether
driven by striking MOE staff or Ecuadorian political
interests, the removal of Minister Alban may well cause more
institutional and social instability.

JEWELL