HYDROCARBONS MINISTER IS CENSURED

UNCLAS LA PAZ 002295 SIPDIS SENSITIVE SIPDIS STATE FOR WHA/AND TREASURY FOR SGOOCH ENERGY FOR CDAY AND SLADISLAW E.O. 12958: N/A TAGS: ECON ENRG EPET PGOV BL SUBJECT: HYDROCARBONS MINISTER IS CENSURED REF: LA PAZ 2056 ¶1. (U) The opposition majority in the Senate -- 13 Podemos and 1 National Unity (UN) senators -- censured Hydrocarbons Minister Andres Soliz Rada on August 23 for the state oil company YPFB's alleged violations of Bolivian laws and regulations (reftel). MAS senators protested by not participating in the vote. Soliz' resignation was rejected by President Morales, who reaffirmed Soliz' position and called the opposition "anti-patriotic" for undermining Bolivia's position in natural gas price negotiations and stalling the hydrocarbons nationalization process. ¶2. (U) In anticipation of the censure, executive branch sources announced on August 22 that Vice President Alvaro Garcia Linera, not Soliz, would negotiate new hydrocarbons contracts with private investors and new gas export prices with Brazil, in addition to his duties as GOB interlocutor for Spain, Brazil, Argentina, and the U.S. Garcia Linera traveled to Brazil on August 23 to discuss gas prices with President Lula da Silva. ¶3. (SBU) Comment: Soliz claims that the GOB will sign new contracts with private hydrocarbons companies by the November 1 deadline, but that seems to be wishful thinking. The GOB only began company audits in early August, which will likely not be completed until after the contact migration deadline, according to sector representatives. The opposition's success in censuring Soliz is not only a sign that the GOB's hydrocarbons nationalization is encountering difficulties, but also reveals Morales' lack of absolute control over Congress. We will be watching closely to see if this incident causes Morales to rely more heavily on the Constituent Assembly to execute his agenda. End comment. GREENLEE