ARGENTINA POLITICAL ROUNDUP FOR MARCH 17

C O N F I D E N T I A L BUENOS AIRES 000625

SIPDIS

SIPDIS

STATE FOR WHA/BSC, WHA/EPSC, AND INR/R,
SOUTHCOM FOR POLAD

E.O. 12958: DECL: 03/17/2015
TAGS: PGOV PREL PHUM SNAR AR
SUBJECT: ARGENTINA POLITICAL ROUNDUP FOR MARCH 17

REF: A. BUENOS AIRES 0451




B. BUENOS AIRES 0497


C. BUENOS AIRES 0562



Classified By: DCM Hugo Llorens for Reasons 1.4 (B)(D).




1. (U) Reftels and other Mission reporting available at

http://www.state.sgov.gov/p/wha/buenosaires




2. TABLE OF CONTENTS



-- ACEVEDO STEPS DOWN FROM TUMULTUOUS GOVERNORSHIP

-- NARCOTICS UPDATE: THAT WHICH WAS LOST IS NOW FOUND

-- TELERMAN TAKES THE HELM

-- MISIONES PROVINCE IN FLAMES



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Acevedo Steps Down from Tumultuous Governorship

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3. (SBU) The Governor of Santa Cruz Province, Sergio

Acevedo, abruptly resigned on March 15 for what he claimed

were ""strictly personal reasons."" Acevedo declined to give a

press conference, answer questions or give any further

justification for his departure. This unanticipated and

unexplained mid-term resignation has led to much speculation.

The most frequently reported hypotheses center around

several high profile social and political incidents that

occurred in his province in recent months. Incidents such as

the controversy surrounding the repatriation of provincial

funds from Swiss banks (deposited by Acevedo,s predecessor,

President Kirchner, just before the 2001 economic crash),the

conflict with oil and gas workers in February (Reftel A) -

which involved roadblocks, salary demands, one killed police

officer and a heavy Gendarmeria presence ) and President

Nestor Kirchner,s apparent reluctance to associate himself

with the governor recently, have all played into theories as

to what precipitated the resignation. Vice-governor Carlos

Sancho will replace Acevedo. (COMMENT: Others cite the

infighting between Kirchner insiders, Local Secretary Carlos

Zannini, Minister of Planning Julio De Vido and Acevedo.

Sources report that De Vido has been keen on ousting Acevedo

as a means to position himself for his run at the

Governership in 2007. Acevedo told DCM the morning after his

resignation that pressure from Buenos Aires (i.e. President

Kirchner and Casa Rosada officials) made it impossible for

him to govern the province and comply with his mandate as

governor. The resignation of Acevedo narrows Kirchner's

already limited circle of advisors and removes from the scene

one of Kirchner's more honest and pro-U.S. officials. END

COMMENT.)




4. (U) In related news, the salary demands first heard at

the Las Heras oil workers protests in Santa Cruz, appear to

have had their desired effect: on March 15 the GOA announced

that in April the taxable income floor will be raised to 2400

AR pesos (estimated 800 US dollars) per month for single

people and 3200 AR pesos (estimated 1066 US dollars) for

married couples.



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Narcotics Update: That which was lost is now found

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5. (C) On March 18, responding to an anonymous phone tip the

Federal Police searched a shipping container bound for Spain

looking for cocaine. A cursory search of the container

failed to turn up any narcotics, but after a second call the

Federal Police completely unloaded the container and

discovered between 300 and 350 kilos of cocaine concealed

inside a shipment of frozen fish. Gendarmeria General Anibal

Maizteguai confirmed to DEA that the shipment included the

160 kilos of cocaine that the Gendarmeria had previously lost

during a botched controlled delivery operation. He asserted

that the seizure contained the exact number of identically

wrapped packets bearing the same seal as the lost cocaine,

and agents who worked that case were even able to identify

the incisions they had made on some of the packets to test

for purity prior to the controlled delivery operation.

(COMMENT: If as seems likely, the cocaine is indeed the 160

kilos lost during the recent controlled delivery, this could

help defuse press criticism regarding the botched operation.

News sources and pundits have loudly criticized the handling

of the controlled delivery while largely ignoring the fact

that eight of the nine suspects in that case are already in

custody. END COMMENT.)




6. (C) The Federal Police believe the seizure is related to

the February 23 seizure in Argentina of 200 kilos in a

similar shipment (Reftel B) and the March 9 seizure of 400

kilos located in frozen fish by Spanish authorities following

information provided by GOA law enforcement. Also of note,

the cocaine not believed to be part of the control deliver

bore the marking common to the Salta based Motok family. The

Motok family, the second biggest narcotics transportation

crime group based in Argentina, was a major target of the DEA

funded Northern Border Task Force (NBTF) and has been largely

dismembered. (COMMENT: The fact that this seizure appears to

connect three of the highest-profile narcotics investigations

of the year serves to illustrate the complex and

interconnected nature of narcotics smuggling operations in

Argentina. END COMMENT.)



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Telerman Takes the Helm

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7. (U) On March 13, Jorge Telerman was formally sworn in as

Mayor of Buenos Aires, following the March 7 vote in the

Buenos Aires legislature to remove Anibal Ibarra from office.

(Reftel C) In his inaugural speech, Telerman acknowledged

the ""weaknesses of the State"" that allowed the Cromagnon

tragedy that precipitated the downfall of his predecessor.

Telerman praised President Kirchner and the Buenos Aires

legislature. Telerman also thanked on several occasions his

political ""teacher and father,"" 1980s Peronist Party (PJ)

strongman Antonio Cafiero, who brought Telerman into

politics. Vice President Daniel Scioli, several Cabinet

members, and a host of Peronist leaders from the Capital and

Buenos Aires province were in attendance.




8. (U) Telerman has announced he plans to form a cabinet

modeled on the cabinets of the provincial governors. His

nominations are largely all Kirchneristas or from Ibarra's

team, including Raul Fernandez as Secretary General, Donato

Spacavento as Minister of Health, Javier Gonzalez Fraga as

Production Minister, and Diego Gorgal as Minister of

Government.




9. (C) Bio Note: In the 1970s, Jorge Telerman was active in

the Communist Youth Federation, along with former Mayor

Anibal Ibarra. Telerman started his career as a journalist

in the 1980s on ""Badia y Compania"" TV show on Channel 13.

Through his personal friendship with Antonio Cafiero, who he

met in 1981, he became Cafiero's spokesman when he was

Governor of Buenos Aires province (1987-1991). He later

served under Foreign Minister Guido di Tella in the Menem

administration. He became Menem's Ambassador to Cuba in


1998. In 1999, he served as Eduardo Duhalde's spokesman and

campaign advisor during Duhalde's 1999 presidential campaign.

Telerman was one of two Peronists that Anibal Ibarra

incorporated into his administration when he became Buenos

Aires Mayor in 2000, with Telerman serving as Ibarra's

Secretary of Communication (July 2000-2003). Telerman ran on



SIPDIS

Ibarra's reelection ticket as the Deputy Mayor and head of

the City Secretariat of Social Development (mid-2003 ) Nov.

2005). Since November 14, 2005 Telerman has been the acting

Mayor of Buenos Aires. Jorge Telerman was born November 29,

1955 in Buenos Aires City. He is married and has children.




10. (C) Although Jorge Telerman has long been active in the

Peronist Party, he has had difficult relationship with the

current head of the Buenos Aires City branch of Peronism,

Cabinet Chief Alberto Fernandez. His friction with Fernandez

and his reputation for independence has earned him the

moniker of ""Non-PJ Peronist,"" a characterization that

Telerman does not deny. Telerman recently told the

Ambassador that he does not consider himself a Peronist, but

does have good relations with the Buenos Aires Peronists.



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Misiones Province in Flames

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11. (U) On March 13, a group of 3,000 farmers and forestry

workers in the central Misiones town of San Vicente

vandalized the town hall, demanding that Mayor Luis Benitez

be removed from office. Although these protesters were not

professional piqueteros responding to a larger piquetero

organization or leader, as we have seen in other instances,

they did employ the same tried and true tactics: the

protesters stormed the municipal building and adjacent police

station with sticks and stones, set it on fire and obstructed

firefighters, access to the blaze. The day of riots left

the building completely destroyed and the streets strewn with

litter.




12. (U) The group of agricultural workers, which began as a

collection of roughly 400 people demanding the federal

subsidies last Tuesday, had grown to an angry mob of 3,000

within a week. They accuse Benitez of misappropriating

$99,000 pesos in federal subsidies disbursed to the

municipality as federal relief for farmers following the

severe droughts in January and February. They are also

accusing Benitez of illicit enrichment, irregularities in his

administration and neglect of local roads. Following the

arson seventeen people were arrested, though eleven were

later released. The director of the local hospital confirmed

32 injured, the majority of which were police officers.




13. (U) Mayor Benitez has defended himself by blaming the

media for ""political intentionality,"" and strongly accused a

local radio station and television channel of encouraging

people for the last three months to ""attack police and burn

the town hall."" The radio and television stations he blames

are owned by a vocal opponent of his administration. Also

pointing fingers in a similar direction is the secretary of

the Agricultural Producers Association of Misiones (APAM),

the group that initiated the demands a week ago. He says he

thinks the main perpetrators were ""government operatives

supported by anti-Benitez councilmen"" who infiltrated the

group and provoked violence. The investigating judge that

arrested the protesters has said that he too suspects

""infiltrators"" and that he will investigate at least one

member of the city council. He has also said he will

investigate the radio station for ""instigating violence.""




14. (U) The episode, while abnormally violent, is not the

first symptom of political instability in the town. San

Vicente has had seven mayors in the last eight years.

Benitez,s predecessor is a fugitive wanted on corruption

charges, and even Benitez himself has previously been accused

of corruption. In 2005 he was dismissed on charges of

mismanagement of funds and illicit enrichment, only to regain

his seat through appeal. Benitez has said publicly he will

not resign, but has asked the city council for a leave of

absence.



GUTIERREZ


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