DOMINICAN POLITICS III #6: GOVERNMENT THROWS THE

C O N F I D E N T I A L SANTO DOMINGO 003105 SIPDIS SIPDIS STATE FOR WHA, WHA/CAR, WHA/EPSC, INR/IAA, EB, EB/IFD/OMA, ; USSOUTHCOM ALSO FOR POLAD; TREASURY FOR OASIA-J LEVINE; DEPT PASS USTR; USDOC FOR 4322/ITA/MAC/WH/CARIBBEAN BASIN DIVISION; USDOC FOR 3134/ITA/USFCS/RD/WH; DHS FOR CIS-CARLOS ITURREGUI E.O. 12958: DECL: 09/29/2016 TAGS: PGOV DR SUBJECT: DOMINICAN POLITICS III #6: GOVERNMENT THROWS THE BOOK AT FORMER EDUCATION MINISTER Classified By: Economic-Political Counselor Michael A. Meigs ¶1. (U) This is the sixth cable in our series on Dominican politics in the third year of the administration of President Leonel Fernandez. (U) On September 28, Education Minister Alejandrina German made corruption allegations against Milagros Ortiz Bosch, a presidential candidate and senior leader of the opposition Dominican Revolutionary Party (PRD). Ortiz, who served concurrently as Vice President and Education Minister from 2000 to 2004, is accused of absconding with $20 million that was allocated for school meals for the underprivileged. (U) German, a member of the ruling Dominican Liberation Party (PLD),invited the press to witness her presentation of a dossier to Santo Domingo district attorney Jose Hernandez Peguero. The file allegedly includes the evidence on malfeasance regarding school meals as well as other irregularities. Hernandez said he would initiate an investigation and would assign three prosecutors to the case. (U) Ortiz has been meeting with her lawyers and, for the most part, has not yet responded the allegations. She did note, however, that "it is inexplicable that these charges have been made more than two years after we turned over management (of the Education Ministry)." (SBU) While Dominican institutions are weak and are permeated by corruption at nearly all levels, we have seen promising moral leadership by President Fernandez and other senior Dominican officials. Indeed, efforts to challenge impunity appear to be accelerating, with the recent prosecution of several well-connected figures for banking fraud and associated crimes. (C) We do not have information on the validity of the allegations against Ortiz; however, the charges do not/not appear to be part of the recent positive trend in anti-corruption efforts. In fact, several aspects of Tuesday's events cause concern. First, the presentation of allegations by a non-law enforcement official (German) and the appearance of the district attorney at what amounted to a staged political event. Second, the timing of the charges is suspect, not just because Ortiz left office two years ago, but also because she engaged in a public war of words over education policy with German just last month. Third, on September 20 Ortiz was named as the candidate for the PRD's 2008 presidential nomination by an important party faction. (C) The questions we will be asking as the allegations against Ortiz play out include: whether the charges are a cynical attempt to tarnish Ortiz's previously clean public image; and, whether the ruling PLD -- with an eye on the 2008 presidential race and Ortiz's candidacy -- is taking pre-emptive action against a perceived vulnerability on corruption in the Fernandez Administration. ¶2. (U) Drafted by Peter Hemsch. ¶3. (U) This report and extensive other material can be consulted on our SIPRNET site, http://www.state.sgov.gov/p/wha/santodomingo/ HERTELL