ECUADOR: MORE CHAOS IN CONGRESS

C O N F I D E N T I A L SECTION 01 OF 02 QUITO 000705

SIPDIS

E.O. 12958: DECL: 03/30/2015
TAGS: PGOV KJUS EC
SUBJECT: ECUADOR: MORE CHAOS IN CONGRESS

REF: QUITO 664

Classified By: DCM Arnold Chacon. Reason 1.4 (b&d).


1. (C) Summary: Despite conciliatory overtures by President
Gutierrez to resolve the Supreme Court issue, confrontation
flared again in Congress on March 30 over the selection of a
new Attorney General. The battle over the new Attorney
General has temporarily crowded out debate over the
President's new proposed law to vacate the Supreme Court
pending a referendum on how to select a new one. The PRIAN
is voting against the government on both issues, leading the
government to seek new allies in Congress. President
Gutierrez hinted to the Ambassador that he was seeking those
allies in the moderate Left. Thus far, conflict in congress
has not threatened the stability of the government directly.
It continues to divert the GOE from governance, however,
negatively affecting USG interests. We continue to encourage
dialogue as the path to progress. End Summary.

Another Rumble in Congress
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2. (U) March 30 was the final date for Congress to choose
from among the three candidates for Attorney General selected
by the National Judicial Council (CNJ). Seeking to close off
debate, President of Congress Omar Quintana opened the battle
by immediately closing the congressional session, declaring
lack of quorum. Opposition members sought to hold the
session elsewhere in the Congress building, provoking
Quintana to rage through the halls and nearly come to blows
with opposition members. Fifty-seven opposition members, led
by PSC deputy Cynthia Viteri, then moved to another building,
re-opened the session, and again voted to reject all three
candidates. To prevent Quintana from blocking transmittal of
the resolution to the CNJ, as he had done with an earlier
resolution approved by 60 legislators March 23 (RefTel),the
rebel legislators then personally delivered the resolution to
the CNJ. The government's congressional allies declared the
session illegal and Quintana vowed to swear in Jorge Lopez,
the first of the three candidates and a Gutierrez ally, on
March 31.

Supreme Court Issue Diverted
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3. (U) The fight over the Attorney General has temporarily
diverted Congress from the unresolved conflict over the
Supreme Court. After a humiliating rebuff by the opposition
to his invitation to public dialogue on March 23, President
Gutierrez signaled new flexibility by introducing a
resolution in Congress on March 28 which would declare the
current Supreme Court terminated upon Congressional passage.
The bill echoes elements of the President's referendum
proposal, reducing the number of justices from the current 31
to 16, adding an age limit of 75, and describing a selection
process through electoral colleges. The measure would then
be put to the people in a binding referendum. Congress has
not taken up the President's bill, diverted instead by the
fight over the Attorney Generalship. The ad-hoc Assembly of
Quito, led by Mayor Paco Moncayo, is calling for immediate
Congressional action to terminate the court, threatening to
convoke civil society to plan a strike. The Supreme Court
stayed home on March 30 due to a bomb threat against their
building.

GOE Flirting with ID
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4. (C) Appearing serene amidst mounting political turmoil,
President Gutierrez on March 28 told the Ambassador that he
continued to seek dialogue with the opposition on the court
issue, but the opposition was not biting. PRIAN leader Noboa
continued to resist any change to the court, and did not want
to face his tax obligations either. Gutierrez said he was
offering his bill in response to the UN Rapporteur's
suggestion that he offer new proposals to move the issue.
Asked by the Ambassador whether he had sought dialogue with
Social Christian Party leader Jaime Nebot or his
congressional allies, Gutierrez said no. Instead, he said,
he hoped to exchange views with the moderate faction in the
Democratic Left (ID). Gutierrez said that this faction, led
by Congressman Andres Paez, was interested in discussing a
broader agenda including, in addition to the court issue,
agreement on hydrocarbon exploitation and free trade. He was
favorably disposed, and asked the Ambassador to use her good
offices to encourage the dialogue.

Alliance Over?
--------------

5. (C) What does all this mean? First, it is clear that the
government's earlier alliance with the PRE, PRIAN,
independents and small leftist parties has frayed. The PRIAN
has defected to fight for its own Attorney General and to
preserve the composition of the Supreme Court. This break
reflects banana magnate Alvaro Noboa's interest in protecting
his business empire from legal challenge. The PRIAN retains
a strong interest, however, in working with the government to
protect the current composition of the Supreme Electoral
Tribunal. Noboa believes he lost his first bid for the
presidency, due to electoral fraud, and wishes to retain
control of the TSE to prevent that from happening again in

2006. Meanwhile, Gutierrez is clearly looking for allies
among the opposition to resolve the Supreme Court issue, and
seemed very hopeful about prospects within the ID. We are
less sanguine about the chances of this dialogue reaching
fruition, given the splits inside the ID, where the radically
anti-Gutierrez faction is dominant. Moncayo is a potential
counterweight, but has been reluctant to enter into dialogue
thus far.
Comment
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6. (C) The ongoing battles in Congress reflects intense
political competition but, at least since February 16, have
lacked the massive street support to directly threaten the
government's stability. The government has benefited from
the indigenous movement's continued preoccupation with
internal divisions, and the public's growing fatigue with
incessant political infighting. Meanwhile, with Congress
diverted, key USG priorities including TIP and
money-laundering legislation, remain blocked. Our efforts to
encourage dialogue have had a positive effect on the
government; we will redouble our efforts with the
opposition.
KENNEY