CHAVEZ RETURNS, RESHUFFLES HIGH-LEVEL BRV POSTS

C O N F I D E N T I A L SECTION 01 OF 03 CARACAS 002393

SIPDIS

SIPDIS

HQSOUTHCOM ALSO FOR POLAD
DEPT PASS TO AID/OTI RPORTER

E.O. 12958: DECL: 08/11/2021
TAGS: PGOV KDEM VE
SUBJECT: CHAVEZ RETURNS, RESHUFFLES HIGH-LEVEL BRV POSTS

REF: A. CARACAS 002348

B. CARACAS 000532

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Classified By: POLITICAL COUNSELOR ROBERT RICHARD DOWNES FOR REASON 1.4
(D)

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SUMMARY
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1. (C) President Chavez's return from his most recent world
tour sparked a series of shifts in the BRV leadership.
Several high-level officials have been moved, resigned,
threatened to resign, or been replaced. Along with Nicolas
Maduro's appointment as Foreign Minister (ref a),Chavez
announced on August 8 the appointment of Jose "Chino" Khan, a
National Assembly (AN) Deputy, as Minister of Basic
Industries and Mines. These moves suggest a further
radicalization of BRV policy, favor those thought to be close
to Vice President Rangel, and weaken the so-far inept but 100
percent government controlled National Assembly. There were
a number of other changes, notably presidential brother Adan
Chavez's return from Cuba to assume the position of Minister
of the Secretariat of the Presidency, replacing Delcy
Rodriguez, who some say will replace Adan. Chavez's actions
since returning from his world tour suggest he is refocusing
at least some of his attention on domestic matters in the
run-up to the December election. End Summary.

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AN DEPUTY MOVING UP
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2. (C) Along with his appointment of National Assembly
President Nicolas Maduro as Foreign Minister, Chavez
announced during a televised address on August 8 that Jose
"Chino" Khan, coordinator of the Fifth Republic Movement's
(MVR) bloc in congress, would assume the role of Minister of
Basic Industries and Mines. Khan replaces Victor Alvarez,
who Chavez said left the post due to health reasons. Khan is
a two-time National Assembly Deputy and is considered to be a
member of Maduro and Jose Vicente Rangel's camp. Khan in May
accompanied Chavez on his European tour. Former AN Deputy
Pedro Diaz Blum, who worked with Khan during his
congressional tenure, told Emboff on August 9 that Khan is a
hard worker and that, while not well known, is in Chavez's
confidence. Diaz also said that Khan is a member and
supporter of the defunct Boston Group.

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MORE AN VACANCIES TO COME?
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3. (C) There is also speculation in press that two more
deputies could be assuming Cabinet positions. Jose Albornoz,
Secretary General of the pro-government Patria Para Todos

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(PPT) party, is rumored to be a potential replacement for
Vice President Jose Vicente Rangel. While there have been
rumors of his departure for months, however, it is not clear
at all that Rangel is likely or intending to leave. Albornoz
has long-served in an unofficial cabinet role, including
sitting in on cabinet meetings and advising Chavez on a
variety of issues. He is also currently leading the National
Assembly witchhunt investigating Sumate's financing of the
canceled opposition primary.


4. (C) Deputy Francisco Ameliach is apparently in the
running for Jesse Chacon's job as Interior and Justice
Minister. Chacon appears to be falling out of favor with the
BRV. During his weekly Alo Presidente address, broadcast
from a ranch in Bolivar State, Chavez on August 6 vented his

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frustration with various federal and state-level officials
for their lack of progress on combating crime, focusing his
attack on Chacon, head of CICPC Marcos Chavez, and DISIP
Director General Henry Rangel Silva, thereby focusing the
blame for policy failures on anyone but himself. Chavez told
them to submit their resignations if they do not feel capable
of addressing the crime issue and claimed that "we cannot
allow peasant leaders to be killed, massacred." Ameliach was
the NA president before being replaced by Maduro and is
considered one of Chavez's strongest supporters in the
Assembly. Former Venezuelan Ambassador to Mexico Vladmir
Villegas told Poloffs on August 9 that the movement of
several key AN figures could portend a call for new
legislative elections, intended to revalidate and
re-legitimate the completely pro-Chavez Assembly.

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ADAN COMES HOME
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5. (C) Chavez's brother, Adan Chavez, has returned to
Caracas to replace Delcy Rodriguez as Minister of the
Secretariat of the Presidency after his tenure as Ambassador

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to Cuba. Press sources indicate that Rodriguez's departure
was due to her "differences" with Chavez during his recent
international travel. It is unclear whether she will be
appointed to another government role, although the Caracas
rumor mills has it that either she or Ali Rodriguez might
replace Adan in Havana. While the Minister of the
Secretariat of Presidency is vaguely defined--Chavez said

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when he created the position in February that it is designed
to "look for higher efficiency levels in the government"--it
will increase Adan's profile in the BRV.

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CARNEIRO ON HIS WAY OUT, THEN BACK IN
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6. (C) Significant uncertainty also surrounds Social
Development and People's Participation Minister Jorge Luis
Carneiro's recent quasi-resignation. Carneiro initially
resigned as announced in order to facilitate an investigation
into military procurement activities during his tenure as
Defense Minister, and his statement came on the heels of a
communique issued August 5 that said he placed his post at
the disposal of the Chavez government and would help the
"national government's efforts to combat corruption." The
attorney general's office--at Chacon's behest--is in the
process of investigating the purchase of 1,016 motorcycles by
the then-National Guard Commander Miguel Ramirez. On August
8, Carneiro announced with glee, however, that he had
received a phone call from Chavez refusing his resignation
and that he will remain in his current position. Carneiro
actively supported Chavez during the April 2002 inter-regnum.


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HOUSING MINISTER CALLS IT QUITS
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7. (C) Housing Minister Luis Figueroa resigned in June
after ten months on the job amidst criticism of his inability
to reach the BRV's ambitious housing goals. Press reporting
indicates that in 2006, the Housing and Habitat Ministry
planned to construct some 150,000 houses, but by the end of
the year's first semester had only built 35,500 units. The
lack of viable housing and the BRV and state-level
governments' apparent inability to address such needs have
sparked small but frequent protests around the country and in
the capital. Figueroa's replacement, Chavez's third Housing
Minister since he created the Ministry in September 2004, is

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part of a recurrent BRV strategy to appear to be tackling the
problem and meet constituents' demands. Figueroa was
replaced by Ramon Carrizalez Rengifo, who had previously
served as Infrastructure Minister. Carrizalez in turn was
replaced by Jose Cabello Rondon, former director of the
Maiquetia International Airport Autonomous Institute and
president of state airline Conviasa. Miranda State Governor
Diosdado Cabello is Cabello Rondon's brother.

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Comment
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8. (C) Chavez has returned home from his whirlwind world
tour and is refocusing at least some of his attention on
domestic matters in the run-up to the December election.
This is not the first high-level shake up this year (ref b),
and it will probably not be the last. Shifting cabinet-level
posts is a tried-and-true strategy Chavez to clean house and
demonstrate to voters that he is combating problems even in
his own government prior to elections. It also fits a
pattern by Chavez of shifting blame to others for his
government's policy failures. Recent and prospective
replacements with radical Chavez allies also suggest Chavez
is serious about continuing to implement his revolution at
home and abroad. The appointment of Nicolas Maduro as
Foreign Minister (ref a) denotes a further radicalization of
his foreign policy, and some of these changes, including
Maduro and Khan, also appear to benefit those thought to have
ties to Vice President Rangel. The potential movement of
several key AN figures will no doubt have some implication on
the Assembly process and could be an early sign of the BRV's
intention to move forward with rumored new legislative
elections at a later date. The decision to pull Adan out of
Cuba is curious given current events on the island, but
bringing him back to Caracas to work side-by-side with Chavez
might be a sign of even greater attention paid to BRV
relations with Havana.

WHITAKER