ECUADOR ELECTION: VITERI PICKS RUNNING-MATE

C O N F I D E N T I A L QUITO 001909

SIPDIS

SIPDIS

E.O. 12958: DECL: 05/24/2016
TAGS: PGOV PREL EC
SUBJECT: ECUADOR ELECTION: VITERI PICKS RUNNING-MATE


Classified By: PolIntern Ned Kelly for reasons 1.4 (b&d).


1. (C) Summary: Presidential candidate Cynthia Viteri
(Social Christian Party-PSC) announced on August 1 that
Ernesto Davalos Salazar would be her vice presidential
running-mate in the October elections. The choice of
Davalos, a businessman from Quito with experience in the
finance and petroleum sectors, as well as social
philanthropy, is clearly intended to boost the
Guayaquil-based Viteri's appeal in the populous highlands,
while also shoring up her perceived weakness on financial
issues. Davalos has a close affiliation with financier Fidel
Egas, a bitter rival of PSC party president Leon Febres
Cordero, and distanced himself in an August 2 interview from
Febres Cordero's controversial banking bill. It is unclear
whether the choice had Febres Cordero's blessing, is intended
to signal Viteri's independence, or both. Egas' likely
financial support may be the prime motivator. End Summary.

Viteri Announces Running Mate
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2. (U) Presidential hopeful Cynthia Viteri on August 1
announced Quito businessman, Ernesto DAVALOS Salazar, as her
running-mate. Viteri had been privately or publicly spurned
by several of the people she asked to be her vice
presidential candidate, and maladroitly claimed that of the
20 hopefuls she had interviewed for the VP slot, Davalos took
her offer most seriously. At his coming-out press
conference, Davalos said as VP he hoped to offer his
expertise in economy and finance, hydrocarbons reform, and
social projects.

Davalos Biographic Information
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3. (C) According to our sources, the 59-year-old Davalos, a
former race car driver, known as "Netucho," is said to be
intelligent, gracious, and a bon vivant. He has been married
three times. Although the Riobamba-based Davalos family is
extremely wealthy, Davalos' branch is not. Viteri reportedly
approached Egas for help in finding a running mate, and Egas
recommended Davalos. Egas may expect political protection
and influence from a Viteri government, presumably in
exchange for his financial support to the campaign.


4. (U) Davalos studied at the Catholic University of Quito,
and has worked as managing director of the Banco de Pichincha
(1996-2006, under Egas),and earlier with Banco Popular,
Cofiec, and Pichincha Mutual. At the Banco de Pichincha,
Davalos headed Credife, the bank's very successful
micro-credit program.


5. (U) Davalos also worked in the petroleum sector for Gulf,
Repetrol, Cepco City, and City Investing. In his roll-out,
Viteri emphasized his social engagement: he has been a
managing director for several years of the Cruz Solidaria
Foundation, which is affiliated with national daily "el
Comercio" and collects and distributes disaster relief
including in the wake of the recent Tungurahua volcano
eruption. Although Davalos has no overt political
affiliation and declares himself an independent, he has
long-standing ties to the PSC and campaigned for Guayaquil
mayor Jaime Nebot during the last election.

PRE Follows Suit
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6. (U) Viteri was only the second major candidate to
announce a running-mate (the deadline is August 15),but she
was followed the same day by the announcement by the PRE of
Suzy Mendoza as running-mate to presidential candidate
Fernando Rosero. Mendoza, a former Miss Ecuador hopeful from
Manabi Province, served as U/S for Trade during the Gutierrez
Administration, and founded Alvaro Noboa's PRIAN branch in
Manabi, but later disaffiliated. After the announcement, she
flew to Panama to meet with party leader and exiled
ex-president, Abdala Bucaram. Her selection is in keeping
with PRE's time-tested practice of picking former beauty
queens, athletes and sports broadcasters as candidates.

Comment
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8. (C) Although Davalos nominally provides regional balance
to a ticket hitherto weak in the populous highlands region,
some doubt the motives behind his selection. Former Trade
Minister Ivonne Baki told the Charge on August 2 that she
doubted the low-profile Davalos would boost Viteri's appeal
to Sierra voters. She and other insiders are buzzing with the
question of whether this signals some kind of a strategic
rapprochement between LFC and Egas, or a bold show of
independence by Viteri. Either way, Egas' support will
clearly benefit a campaign that has been rumored to be badly
strapped financially.
BROWN