Identifier
Created
Classification
Origin
06LAPAZ1254
2006-05-09 20:15:00
CONFIDENTIAL
Embassy La Paz
Cable title:  

BOLIVIA: FISSURES IN THE MORALES GOVERNMENT

Tags:  ECON PGOV PREL BL SOCI 
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C O N F I D E N T I A L SECTION 01 OF 02 LA PAZ 001254 

SIPDIS

SIPDIS

E.O. 12958: DECL: 03/17/2016
TAGS: ECON PGOV PREL BL SOCI
SUBJECT: BOLIVIA: FISSURES IN THE MORALES GOVERNMENT


Classified By: Amb. David N. Greenlee for reasons 1.4 (b) and (d).

C O N F I D E N T I A L SECTION 01 OF 02 LA PAZ 001254

SIPDIS

SIPDIS

E.O. 12958: DECL: 03/17/2016
TAGS: ECON PGOV PREL BL SOCI
SUBJECT: BOLIVIA: FISSURES IN THE MORALES GOVERNMENT


Classified By: Amb. David N. Greenlee for reasons 1.4 (b) and (d).


1. (C) SUMMARY: President Evo Morales entered his fourth
month in office with rifts developing within his government
and Movement Toward Socialism (MAS) party. Morales' abrupt
firing of associates for alleged corruption, autocratic
management style, and rhetorical attacks against the United
States and Bolivia's neighbors opened these fissures.
Although the challenges remain surmountable, they could widen
over time to undermine the stability of Morales' government.
END SUMMARY.

Dealing Harshly with Corruption Allegations
-------------- ---

2. (U) Morales entered his fourth month of office with
sagging (but still high) approval numbers following weeks of
negative press and signs of nascent divisions forming among
his followers. Morales' handling of allegations of
corruption against his own party members provided the first
flashpoint. With little regard for due process or loyalty to
his followers, Morales in April abruptly fired several MAS
officials accused of corruption. The case of Gustavo
Torrico, the MAS,s former congressional bloc leader, has
been the most high profile to date. Morales removed Torrico
from the congressional leadership in April after public
allegations that he requested special treatment from a public
prosecutor for one of his advisors. Next, Morales fired his
Vice Minister of Telecommunications for alleged extortion,
and his Vice Minister of Hydrocarbons for "irregular acts."


3. (SBU) Morales' preemptory dismissals responded to
political pressure to appear tough on corruption and created
a precedent for the removal of any official on the slightest
charge. Morales even issued a decree in April creating a
commission to investigate corruption and allowing the
executive to remove any civil servant on the merest
allegation of fraud. Such measures have not eased Bolivian
concerns about corruption, however, and many wonder whether
politicized moves to root out corruption themselves fuel more
corruption. As one National Unity deputy expressed to

poloff, Torrico may be back in power within months.

Autocratic Management Style Angers Putative Allies
-------------- ---

4. (SBU) A widespread criticism of the government is that
Morales is seeking to centralize power in the executive,
often ignoring the demands of his base. Our contacts report
that Morales continues to operate as a coca union leader,
making all key decisions with little discussion outside a
handful of key advisors. This management style has created
decision bottlenecks and tension within the government and
party. Contacts in Santa Cruz, for example, report regular
friction between the central government and local MAS
officials. In mid-April, the administration publicly clashed
with MAS party leadership in Santa Cruz over regional
political appointments. Local MAS members surrounded the
Santa Cruz customs office to protest appointments made by La
Paz without consultation. In response, the Minister of Rural
and Agricultural Affairs derided the regional MAS as "lacking
leadership," and La Paz has since removed two local MAS
leaders, including key regional MAS organizer Adriana Gil
(Septel).

Clashing With Social Groups
--------------

5. (C) Similar tension has arisen from Morales, efforts to
control social groups and unions by imposing MAS leadership
onto such groups. In late April, a workers union in Santa
Cruz Department rejected pressure to appoint a MAS member as
its chief. The Secretary of the National Federation of
neighborhood federation recently told poloff that the MAS had
failed so far to impose its candidates on the influential El
Alto neighborhood federation, but would likely continue
trying. Other contacts have said the government, with Cuban
and Venezuelan support, is trying to buy off top social
sector leaders. In addition, various social sector groups
have criticized the MAS for not including them in its

LA PAZ 00001254 002 OF 002


Constituent Assembly candidate lists.

MAS Divided on Approach to US
--------------

6. (C) Another potential problem for Morales is an apparent
division within the MAS on how to deal with the United
States. Athough the distinction is not categorical, there is
a clear ideological reluctance within the executive to
expand working-level ties with the Embassy, while many MAS
deputies have taken a more pragmatic approach. Though the
Defense Attache faces increasing hurdles meeting with
military contacts, and meetings with MAS officials in the
executive become more rare, MAS deputies appear eager to make
Embassy contacts. For example, various MAS deputies, but
only one Vice Minister, attended a recent Embassy reception.


7. (C) Not all MAS deputies support Morales' confrontational
stance toward the US government. One MAS deputy recently
offered a half-hearted defense of Morales, latest criticism
of the Embassy--over the temporary denial of a visa to one of
his vice-ministers--as a misunderstanding. Another MAS
deputy told poloff privately that he disagreed with Morales,
attacks. Yet another MAS deputy did not respond to criticism
of Morales, anti-US rhetoric, but defended Morales as the
indigenous representative of the nation. In a separate sign
of a growing gap between the President and his
representatives, a MAS deputy complained to poloff that the
MAS caucus was not informed of the hydrocarbons
nationalization plan until the night before Morales' public
announcement.


8. (C) COMMENT: Hydrocarbons nationalization has
successfully overshadowed the MAS's internal problems for
now, but the challenges to the government's cohesiveness
remain. As the euphoria generated by nationalization fades,
these divisions are likely to resurface, and could ultimately
undermine the stability of the government. END COMMENT.
GREENLEE