Identifier
Created
Classification
Origin
06LAPAZ831
2006-03-24 14:25:00
CONFIDENTIAL
Embassy La Paz
Cable title:
TUTO QUIROGA TRYING TO ACTIVATE OPPOSITION
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C O N F I D E N T I A L SECTION 01 OF 03 LA PAZ 000831
SIPDIS
SIPDIS
E.O. 12958: DECL: 03/23/2016
TAGS: ECON PGOV PREL EPET ENRG BL
SUBJECT: TUTO QUIROGA TRYING TO ACTIVATE OPPOSITION
REF: A. LA PAZ 732
B. LA PAZ 351
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 03 LA PAZ 000831
SIPDIS
SIPDIS
E.O. 12958: DECL: 03/23/2016
TAGS: ECON PGOV PREL EPET ENRG BL
SUBJECT: TUTO QUIROGA TRYING TO ACTIVATE OPPOSITION
REF: A. LA PAZ 732
B. LA PAZ 351
Classified By: Amb. David N. Greenlee for reasons 1.4 (b) and (d).
1. (C) Summary: In a meeting with the Ambassador on March
22, former president Jorge "Tuto" Quiroga was nonchalant
about the possible criminal case against him for signing
hydrocarbons contracts without congressional approval, but
worried about the far-reaching consequences of the
politically-motivated charges. Quiroga proudly recounted
Podemos' recent public attacks against Senate President
Santos Ramirez on corruption; he also laid out plans to
attack President Morales on GOB mismanagement of contracts
and the recent Lloyd Airlines strike, and to force the GOB's
hand on hydrocarbons in advance of the Constituent Assembly
(CA). Regarding the GOB's case against former President
Gonzalo Sanchez de Lozada, Quiroga asked us to stay our
course and delay a response to the GOB's diplomatic note,
both for his interest and ours. While Quiroga's party is
mounting attacks against prominent MAS leaders, he does not
appear to be focused on developing a concrete plan for the
CA. Like many former political elites in this country,
Quiroga appears to overestimate both his ability to affect
the political changes already underway and his understanding
of what is driving those changes. End summary.
--------------
LAWSUITS AGAINST EX-PRESIDENTS
--------------
2. (C) In a meeting with the Ambassador on March 22, former
president Jorge "Tuto" Quiroga was nonchalant about the
possible criminal case against him for signing hydrocarbons
contracts without congressional approval. (see reftel A).
Quiroga said that during his administration, he signed only
four hydrocarbons contracts, all of which were for
exploration, not exploitation. (NOTE: The Constitution
provides that Congress must approve all contracts for
exploitation of natural resources). Of the four, Quiroga
reported that one company failed to discover any reserves,
another halted exploration for environmental reasons, and the
remaining two companies are still in the exploration phase.
Quiroga believes his case is "straight-forward," and he plans
to invite media representatives to the sites of the
hydrocarbons concessions so the public can see that there has
been no exploitation of hydrocarbons resources.
3. (C) Quiroga commented that the GOB's case against former
president Carlos Mesa could be more problematic for Mesa.
According to Quiroga, by sending hydrocarbons contracts
(including one signed by him) to Congress, Mesa acknowledged
they were for exploitation. Attorney General Pedro Gareca
gave Mesa immunity from any legal suit while he was in
office; Quiroga says that defense no longer applies. Mesa
argues that Gareca is not qualified to pursue the case
because he presented an irrevocable resignation letter to
Congress, which Vice-President Alvaro Garcia Linera
intercepted and rejected. Mesa told Gareca that he doesn't
recognize his authority, but then testified anyway, thereby
undermining his own defense. Quiroga says the opposition
will summon Gareca to Congress next week to review his
resignation/legal status as Attorney General, as well as to
account for some money he may have been improperly paid by a
university while on the government payroll.
4. (C) Quiroga worried that the Morales administration fails
to understand the far-reaching consequences of its
politically-motivated charges. Gareca has expressed his
intent to charge all presidents, government (mostly
ministerial and vice-ministerial level) officials and private
sector players who had anything to do with hydrocarbons
contracts since 1996-- a total of 33 companies and 46
individual defendants from Bolivia, France, Great Britain,
Spain, Brazil and the United States. Because many of the
original contracts have been transferred between companies
over the years, over 200 people could be implicated
eventually, including, according to Quiroga, the current MAS
LA PAZ 00000831 002 OF 003
administration. Quiroga contends that if all contracts for
exploitation of natural resources must be approved by
Congress, then the Morales government is liable for the
exploitation that has taken place since January 23, as the
contracts and operations pursuant to those contracts have
continued in force.
--------------
PODEMOS PUTS SANTOS RAMIREZ ON THE DEFENSIVE
--------------
5. (C) Quiroga proudly recounted Podemos' recent public
attacks against Senate President and Morales insider Santos
Ramirez. Podemos' leader in Congress, Deputy Jose Messmer,
went toe-to-toe with Ramirez on March 21 after Ramirez
publicly accused previous non-MAS senators of corruption. In
response, Messmer exposed Ramirez's recent trip to Washington
to participate in a Microsoft-sponsored leaders conference
(NOTE: Ramirez had reportedly "disappeared," having kept his
destination a secret) using Senate resources to fund his
trip. On March 22, Podemos further challenged Ramirez's
credibility based on a scandal involving misappropriation of
resources of the town of Tinguipaya in Potosi and Ramirez's
construction company when he was a deputy last term. Podemos
brought Tinguipaya's mayor to La Paz to publicly denounce the
incident, but the news story was overshadowed by the hotel
bombings in La Paz (see septel). Finally, Podemos plans to
bring to light Ramirez's drunk driving accident during
Carnaval, for which he charged a $600 car repair bill to
Congress.
--------------
QUIROGA'S PLANS TO GO AFTER MORALES
--------------
6. (C) Quiroga appears to be focusing his efforts on
discrediting President Morales and forcing the GOB's hand on
the hydrocarbons issue. Podemos will attempt to damage
Morales by exposing a USD $130 million contract for paving
the road between Potosi and Uyuni that the GOB awarded to a
Brazilian company, and for which the GOB did not perform any
studies or solicit any bids. Quiroga speculated that money
skimmed from the Brazilian government-financed project could
be used to reimburse Brazil's PT party for their support of
MAS during the election. Additionally, Quiroga said that the
GOB's limited intervention in the February Lloyd Aero
Boliviano (LAB) strike will soon become full-blown to avoid
confiscation of LAB's airplanes (see reftel B). Quiroga
believes that the GOB moved too late in intervening, and that
the fallout from the loss of 3,000 LAB jobs (mostly in
Cochabamba) will deal a huge blow to Morales on the economic
front.
7. (C) Quiroga also plans to force the GOB to deal with the
hydrocarbons contracts within the next three weeks by raising
the issue in Congress. He believes that nationalization will
be MAS's trump card for the CA, and wants to force his hand
well in advance of the election of CA representatives.
Quiroga thinks the MAS will vote to annul the contracts and
that then "all hell will break loose" when the contracts go
to arbitration. He says the opposition cannot allow the MAS
to delay the issue until mid-July.
--------------
TUTO ON GONI CASE
--------------
8. (C) The Ambassador raised the issue of the pending
criminal charges against former President Gonzalo "Goni"
Sanchez de Lozada, as well as the case's impact on the
charges against Quiroga. Quiroga stated clearly that if the
United States refuses cooperation outright or criticizes the
Bolivian judicial system, it will look like Bolivian
presidents can do whatever they want and then hide behind the
United States. Quiroga believes the best course is continued
non-action, so that the Goni case doesn't negatively affect
Quiroga and his counterparts, or contribute to anti-American
LA PAZ 00000831 003 OF 003
sentiment.
--------------
COMMENT
--------------
8. (C) Quiroga displayed his trademark overconfidence with
respect to the lawsuit against him. Even if unsuccessful,
the lawsuit may have some of its intended effect. The GOB's
intent to file formal charges has tainted the political
opposition, including Quiroga, and might stick in voters'
minds throughout the CA campaign, particularly since the
charges involve the sensitive subject of Bolivia's natural
resources. While he is mounting attacks against Morales and
other MAS leaders, Quiroga does not appear to be focused on
developing a concrete plan for the CA. Like many former
political elites in this country, Quiroga appears to
overestimate his ability to affect the political changes
already underway and his understanding of what is driving
those changes. End comment.
GREENLEE
SIPDIS
SIPDIS
E.O. 12958: DECL: 03/23/2016
TAGS: ECON PGOV PREL EPET ENRG BL
SUBJECT: TUTO QUIROGA TRYING TO ACTIVATE OPPOSITION
REF: A. LA PAZ 732
B. LA PAZ 351
Classified By: Amb. David N. Greenlee for reasons 1.4 (b) and (d).
1. (C) Summary: In a meeting with the Ambassador on March
22, former president Jorge "Tuto" Quiroga was nonchalant
about the possible criminal case against him for signing
hydrocarbons contracts without congressional approval, but
worried about the far-reaching consequences of the
politically-motivated charges. Quiroga proudly recounted
Podemos' recent public attacks against Senate President
Santos Ramirez on corruption; he also laid out plans to
attack President Morales on GOB mismanagement of contracts
and the recent Lloyd Airlines strike, and to force the GOB's
hand on hydrocarbons in advance of the Constituent Assembly
(CA). Regarding the GOB's case against former President
Gonzalo Sanchez de Lozada, Quiroga asked us to stay our
course and delay a response to the GOB's diplomatic note,
both for his interest and ours. While Quiroga's party is
mounting attacks against prominent MAS leaders, he does not
appear to be focused on developing a concrete plan for the
CA. Like many former political elites in this country,
Quiroga appears to overestimate both his ability to affect
the political changes already underway and his understanding
of what is driving those changes. End summary.
--------------
LAWSUITS AGAINST EX-PRESIDENTS
--------------
2. (C) In a meeting with the Ambassador on March 22, former
president Jorge "Tuto" Quiroga was nonchalant about the
possible criminal case against him for signing hydrocarbons
contracts without congressional approval. (see reftel A).
Quiroga said that during his administration, he signed only
four hydrocarbons contracts, all of which were for
exploration, not exploitation. (NOTE: The Constitution
provides that Congress must approve all contracts for
exploitation of natural resources). Of the four, Quiroga
reported that one company failed to discover any reserves,
another halted exploration for environmental reasons, and the
remaining two companies are still in the exploration phase.
Quiroga believes his case is "straight-forward," and he plans
to invite media representatives to the sites of the
hydrocarbons concessions so the public can see that there has
been no exploitation of hydrocarbons resources.
3. (C) Quiroga commented that the GOB's case against former
president Carlos Mesa could be more problematic for Mesa.
According to Quiroga, by sending hydrocarbons contracts
(including one signed by him) to Congress, Mesa acknowledged
they were for exploitation. Attorney General Pedro Gareca
gave Mesa immunity from any legal suit while he was in
office; Quiroga says that defense no longer applies. Mesa
argues that Gareca is not qualified to pursue the case
because he presented an irrevocable resignation letter to
Congress, which Vice-President Alvaro Garcia Linera
intercepted and rejected. Mesa told Gareca that he doesn't
recognize his authority, but then testified anyway, thereby
undermining his own defense. Quiroga says the opposition
will summon Gareca to Congress next week to review his
resignation/legal status as Attorney General, as well as to
account for some money he may have been improperly paid by a
university while on the government payroll.
4. (C) Quiroga worried that the Morales administration fails
to understand the far-reaching consequences of its
politically-motivated charges. Gareca has expressed his
intent to charge all presidents, government (mostly
ministerial and vice-ministerial level) officials and private
sector players who had anything to do with hydrocarbons
contracts since 1996-- a total of 33 companies and 46
individual defendants from Bolivia, France, Great Britain,
Spain, Brazil and the United States. Because many of the
original contracts have been transferred between companies
over the years, over 200 people could be implicated
eventually, including, according to Quiroga, the current MAS
LA PAZ 00000831 002 OF 003
administration. Quiroga contends that if all contracts for
exploitation of natural resources must be approved by
Congress, then the Morales government is liable for the
exploitation that has taken place since January 23, as the
contracts and operations pursuant to those contracts have
continued in force.
--------------
PODEMOS PUTS SANTOS RAMIREZ ON THE DEFENSIVE
--------------
5. (C) Quiroga proudly recounted Podemos' recent public
attacks against Senate President and Morales insider Santos
Ramirez. Podemos' leader in Congress, Deputy Jose Messmer,
went toe-to-toe with Ramirez on March 21 after Ramirez
publicly accused previous non-MAS senators of corruption. In
response, Messmer exposed Ramirez's recent trip to Washington
to participate in a Microsoft-sponsored leaders conference
(NOTE: Ramirez had reportedly "disappeared," having kept his
destination a secret) using Senate resources to fund his
trip. On March 22, Podemos further challenged Ramirez's
credibility based on a scandal involving misappropriation of
resources of the town of Tinguipaya in Potosi and Ramirez's
construction company when he was a deputy last term. Podemos
brought Tinguipaya's mayor to La Paz to publicly denounce the
incident, but the news story was overshadowed by the hotel
bombings in La Paz (see septel). Finally, Podemos plans to
bring to light Ramirez's drunk driving accident during
Carnaval, for which he charged a $600 car repair bill to
Congress.
--------------
QUIROGA'S PLANS TO GO AFTER MORALES
--------------
6. (C) Quiroga appears to be focusing his efforts on
discrediting President Morales and forcing the GOB's hand on
the hydrocarbons issue. Podemos will attempt to damage
Morales by exposing a USD $130 million contract for paving
the road between Potosi and Uyuni that the GOB awarded to a
Brazilian company, and for which the GOB did not perform any
studies or solicit any bids. Quiroga speculated that money
skimmed from the Brazilian government-financed project could
be used to reimburse Brazil's PT party for their support of
MAS during the election. Additionally, Quiroga said that the
GOB's limited intervention in the February Lloyd Aero
Boliviano (LAB) strike will soon become full-blown to avoid
confiscation of LAB's airplanes (see reftel B). Quiroga
believes that the GOB moved too late in intervening, and that
the fallout from the loss of 3,000 LAB jobs (mostly in
Cochabamba) will deal a huge blow to Morales on the economic
front.
7. (C) Quiroga also plans to force the GOB to deal with the
hydrocarbons contracts within the next three weeks by raising
the issue in Congress. He believes that nationalization will
be MAS's trump card for the CA, and wants to force his hand
well in advance of the election of CA representatives.
Quiroga thinks the MAS will vote to annul the contracts and
that then "all hell will break loose" when the contracts go
to arbitration. He says the opposition cannot allow the MAS
to delay the issue until mid-July.
--------------
TUTO ON GONI CASE
--------------
8. (C) The Ambassador raised the issue of the pending
criminal charges against former President Gonzalo "Goni"
Sanchez de Lozada, as well as the case's impact on the
charges against Quiroga. Quiroga stated clearly that if the
United States refuses cooperation outright or criticizes the
Bolivian judicial system, it will look like Bolivian
presidents can do whatever they want and then hide behind the
United States. Quiroga believes the best course is continued
non-action, so that the Goni case doesn't negatively affect
Quiroga and his counterparts, or contribute to anti-American
LA PAZ 00000831 003 OF 003
sentiment.
--------------
COMMENT
--------------
8. (C) Quiroga displayed his trademark overconfidence with
respect to the lawsuit against him. Even if unsuccessful,
the lawsuit may have some of its intended effect. The GOB's
intent to file formal charges has tainted the political
opposition, including Quiroga, and might stick in voters'
minds throughout the CA campaign, particularly since the
charges involve the sensitive subject of Bolivia's natural
resources. While he is mounting attacks against Morales and
other MAS leaders, Quiroga does not appear to be focused on
developing a concrete plan for the CA. Like many former
political elites in this country, Quiroga appears to
overestimate his ability to affect the political changes
already underway and his understanding of what is driving
those changes. End comment.
GREENLEE