Identifier
Created
Classification
Origin
06LAPAZ1842
2006-07-06 15:09:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy La Paz
Cable title:
TRANSREDES AND GONI ON TRIAL
how-toVZCZCXYZ0009 PP RUEHWEB DE RUEHLP #1842 1871509 ZNR UUUUU ZZH P 061509Z JUL 06 FM AMEMBASSY LA PAZ TO RUEHC/SECSTATE WASHDC PRIORITY 9860 INFO RUEHAC/AMEMBASSY ASUNCION 5980 RUEHBO/AMEMBASSY BOGOTA 3298 RUEHBR/AMEMBASSY BRASILIA 7147 RUEHBU/AMEMBASSY BUENOS AIRES 4404 RUEHCV/AMEMBASSY CARACAS 1687 RUEHPE/AMEMBASSY LIMA 1689 RUEHMN/AMEMBASSY MONTEVIDEO 3901 RUEHQT/AMEMBASSY QUITO 4318 RUEHSG/AMEMBASSY SANTIAGO 8875 RHEHNSC/NSC WASHINGTON DC RHEBAAA/DEPT OF ENERGY WASHINGTON DC RUCPDOC/DEPT OF COMMERCE WASHINGTON DC RUEATRS/DEPT OF TREASURY WASHINGTON DC
UNCLAS LA PAZ 001842
SIPDIS
SENSITIVE
SIPDIS
STATE FOR WHA/AND L.PETRONI
TREASURY FOR SGOOCH
ENERGY FOR CDAY AND SLADISLAW
E.O. 12958: N/A
TAGS: ECON EINV ENRG EPET BL
SUBJECT: TRANSREDES AND GONI ON TRIAL
REF: LA PAZ 1248
UNCLAS LA PAZ 001842
SIPDIS
SENSITIVE
SIPDIS
STATE FOR WHA/AND L.PETRONI
TREASURY FOR SGOOCH
ENERGY FOR CDAY AND SLADISLAW
E.O. 12958: N/A
TAGS: ECON EINV ENRG EPET BL
SUBJECT: TRANSREDES AND GONI ON TRIAL
REF: LA PAZ 1248
1. (SBU) Summary: The Morales administration claims that
Enron improperly acquired shares in the Bolivian-Brazilian
pipeline through a dubious contract between Enron and the GOB
signed by former President Gonzalo "Goni" Sanchez de Lozada.
The GOB claims that Enron and its subsidiary Transredes owe
Bolivia USD 130 million and has named Goni as a defendant in
the case. Hydrocarbons companies Transredes and Petrobras
told Econoff that the charges are a politically-motivated
attempt to gain control of Transredes and persecute Goni.
End summary.
The GOB's Charges Against Enron and Goni
--------------
2. (SBU) The Morales administration decided to reopen the
2004 case against Enron and its subsidiary Prisma, the
partial owner of Bolivian pipeline operator Transredes.
(Note: Enron is in the process of selling Prisma to Ashmore
Energy. End note.) The GOB claims that Enron/Prisma failed
to invest USD 260 million in the construction of the pipeline
to Brazil as it had pledged to do in a contract with YPFB
(Bolivia's state oil company). Despite its reported lack of
investment in the pipeline, Enron/Prisma acquired 17 percent
of the shares of the pipeline through a revised contract with
YPFB, which was approved by former President Gonzalo "Goni"
Sanchez de Lozada. The GOB claims that the defendants owe
the government USD 130 million for these shares and has
charged Goni with nine crimes related to the signing of the
contract with Enron.
Transredes' Response
--------------
3. (SBU) Transredes executive Maria Claudia Dabdoub told
Econoff on July 4 that GOB charges against Transredes and its
managers were politically motivated. She asserted that
Transredes had acquired its pipeline shares legally and that
the company did not owe the GOB money. She added that
Prisma's shares in Transredes were being sold to Ashmore
Energy so Transredes was no longer partially-owned by Enron.
Moreover, any transgressions possibly committed by Enron
could not be attributed to Transredes, she said.
Petrobras Says the Charges are Political
--------------
4. (SBU) A Petrobras official told Econoff that the charges
against Enron/Prisma/Transredes were political. He said that
the charges had two purposes: to persecute Goni and to
enable the GOB to obtain the 16 percent of Transredes' shares
required to gain majority control of the company for free
(reftel). Petrobras, which financed the construction of the
Bolivia-Brazil pipeline, speculated that the GOB would claim
that the USD 130 million owed by the defendants was
equivalent to the amount owed by the GOB to purchase 16
percent of Transredes' shares.
5. (SBU) Comment: Some analysts suggest that the subject
contract unfairly favored Enron, giving the company more than
it merited at the GOB's expense. Others argue that the
charges are a political mechanism through which the GOB seeks
to gain majority ownership of Transredes without having to
provide compensation. The truth likely lies somewhere in
between. End comment.
GREENLEE
SIPDIS
SENSITIVE
SIPDIS
STATE FOR WHA/AND L.PETRONI
TREASURY FOR SGOOCH
ENERGY FOR CDAY AND SLADISLAW
E.O. 12958: N/A
TAGS: ECON EINV ENRG EPET BL
SUBJECT: TRANSREDES AND GONI ON TRIAL
REF: LA PAZ 1248
1. (SBU) Summary: The Morales administration claims that
Enron improperly acquired shares in the Bolivian-Brazilian
pipeline through a dubious contract between Enron and the GOB
signed by former President Gonzalo "Goni" Sanchez de Lozada.
The GOB claims that Enron and its subsidiary Transredes owe
Bolivia USD 130 million and has named Goni as a defendant in
the case. Hydrocarbons companies Transredes and Petrobras
told Econoff that the charges are a politically-motivated
attempt to gain control of Transredes and persecute Goni.
End summary.
The GOB's Charges Against Enron and Goni
--------------
2. (SBU) The Morales administration decided to reopen the
2004 case against Enron and its subsidiary Prisma, the
partial owner of Bolivian pipeline operator Transredes.
(Note: Enron is in the process of selling Prisma to Ashmore
Energy. End note.) The GOB claims that Enron/Prisma failed
to invest USD 260 million in the construction of the pipeline
to Brazil as it had pledged to do in a contract with YPFB
(Bolivia's state oil company). Despite its reported lack of
investment in the pipeline, Enron/Prisma acquired 17 percent
of the shares of the pipeline through a revised contract with
YPFB, which was approved by former President Gonzalo "Goni"
Sanchez de Lozada. The GOB claims that the defendants owe
the government USD 130 million for these shares and has
charged Goni with nine crimes related to the signing of the
contract with Enron.
Transredes' Response
--------------
3. (SBU) Transredes executive Maria Claudia Dabdoub told
Econoff on July 4 that GOB charges against Transredes and its
managers were politically motivated. She asserted that
Transredes had acquired its pipeline shares legally and that
the company did not owe the GOB money. She added that
Prisma's shares in Transredes were being sold to Ashmore
Energy so Transredes was no longer partially-owned by Enron.
Moreover, any transgressions possibly committed by Enron
could not be attributed to Transredes, she said.
Petrobras Says the Charges are Political
--------------
4. (SBU) A Petrobras official told Econoff that the charges
against Enron/Prisma/Transredes were political. He said that
the charges had two purposes: to persecute Goni and to
enable the GOB to obtain the 16 percent of Transredes' shares
required to gain majority control of the company for free
(reftel). Petrobras, which financed the construction of the
Bolivia-Brazil pipeline, speculated that the GOB would claim
that the USD 130 million owed by the defendants was
equivalent to the amount owed by the GOB to purchase 16
percent of Transredes' shares.
5. (SBU) Comment: Some analysts suggest that the subject
contract unfairly favored Enron, giving the company more than
it merited at the GOB's expense. Others argue that the
charges are a political mechanism through which the GOB seeks
to gain majority ownership of Transredes without having to
provide compensation. The truth likely lies somewhere in
between. End comment.
GREENLEE