PCC KILLS PRISON GUARDS AT HOME, POLICE NAB DOZENS

UNCLAS SECTION 01 OF 05 SAO PAULO 000742

SIPDIS

DEPARTMENT FOR DS/IP/WHA, DS/ICI/PII, DS/DSS/OSAC, WHA/BSC
NSC FOR FEARS
DEA FOR OEL/DESANTIS AND NIRL/LEHRER
DEPT ALSO FOR WHA/PDA, DRL/PHD, INL, DS/IP/WHA, DS/DSS/ITA
BRASILIA FOR RSO AND LEGAT; RIO DE JANEIRO FOR RSO
SOUTHCOM ALSO FOR POLAD

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: PGOV PHUM KCRM CASC SOCI SNAR ASEC BR
SUBJECT: PCC KILLS PRISON GUARDS AT HOME, POLICE NAB DOZENS

REF: (A) SAO PAULO 708; (B) SAO PAULO 526; (C) BRASILIA 496; (D) SAO

PAULO 215; (E) SAO PAULO 319

SENSITIVE BUT UNCLASSIFIED - PLEASE PROTECT ACCORDINGLY.


1. (SBU) SUMMARY: Ten days after a raid that left 13 of their
compatriots dead and five apprehended, the PCC has carried out
almost daily, precise assassinations and attempts on prison guards
at their homes around Sao Paulo. Five guards have been killed and
several other law enforcement personnel and civilians have been
injured or killed in the attacks that began on June 28. At the same
time, Sao Paulo police, perhaps chastened by accusations of human
rights abuses when they killed 13 suspects in a preemptive raid on
June 26 (ref A),successfully quelled at least one major prison riot
and conducted two large-scale, multi-faceted raids with no shots
fired, resulting in the arrests of some two dozen suspected PCC
members, at least one of significance. One AMCIT is currently
housed in a maximum security prison involved in one of several
recent prison riots, but we were informed by officials that he was
NOT/NOT in an area of the facilities affected by violence, but
rather, in a separate part of the complex 500 meters from the
affected prison. The Brazilian Federal Police stand poised to
authorize prison guards to carry weapons off-duty, while human
rights groups are reaching out to the prison guard community in a
show of solidarity against the violence they face every day both at
work, and now at home. But low salaries and dangerous work
conditions continue to be the bane of prison guards, and lack of
resources and failing infrastructure in general will test the
sustainability of the recent push against the PCC by Sao Paulo
public security forces. END SUMMARY.

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SIX SAO PAULO PRISON GUARDS KILLED IN 10 DAYS
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2. (U) Six prison guards have been killed in separate incidents
around Sao Paulo in the 10 days following a pre-emptive raid by
state security forces that left 13 suspected members of the
organized crime ring First Capital Command (PCC) dead and five in
custody (ref A). The police raid of June 26, which is being
portrayed by some as an affront to human rights, was carried out
against a group said to be plotting an assassination attempt on
prison guards as they changed shifts. It is reported that the PCC
leadership ordered affiliates in certain neighborhoods to kill
between five and fifteen guards over a period of ten days. While
the police action was successful in thwarting an attack on June 26,
PCC elements have murdered five guards and a police officer, and
have made attempts on the lives of at least three others in the 10
days that have followed. The sixth guard killed this week was shot
during the escape of eight inmates from a prison within the city of
Sao Paulo on Wednesday, July 5.

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NOT SAFE AT WORK, NOT SAFE AT HOME
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3. (SBU) On Wednesday, June 28, a prison guard was killed on the
doorstep of his home in Itapecerica da Serra, a municipality
southwest of the Sao Paulo metropolis. A 21-year old male was
immediately apprehended in the murder of Nilton Celestino, and one
of two additional suspects has also been arrested. Police said that
the suspects were ordered by the PCC to kill the guard. (NOTE:
Judging by newspaper photos of the Celestino's home, it appears he
lived in "favela" conditions (shanty slums) similar to many PCC
members and their drug clients. END NOTE). The next day, another
guard, Gilmar Francisco da Silva, was killed at the entry to his
home in Sao Paulo's western zone.


4. (U) Meanwhile, police intercepted telephone communications that
exposed a plot to kill five guards at the Presidente Venceslau 2
prison in the interior of Sao Paulo state, where 400 PCC leaders are
being held in relative isolation. Police reported that the

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assassinations were to have taken place on a public bus transporting
the guards to work -- the same modus operandi used in the foiled
plot of June 26. Instead, police escorted the bus on its route
without incident.


5. (SBU) On Saturday, July 1, Eduardo Rodrigues, a guard at the
women's prison in Sant'Ana on Sao Paulo's near-north side, was shot
and killed near his home on the west side of Sao Paulo. Two men
approached the off-duty guard as he entered a television repair shop
to pick up his surround-sound system. The men shot Rodrigues twice
in the head and twice more in the body before disappearing. The
women's prison where Rodrigues worked is located near the site of
the now-dismantled Carandiru prison, the infamous site of a police
massacre of 111 rioting prisoners in 1992 (refs C and D). The state
Secretariat of Penitentiary Administration (SAP) was moved to the

SIPDIS
grounds of the women's prison at Sant'Ana late last year (ref E),
and recent reports indicate that security has been tightened
considerably around the offices of the Secretary of Prisons.


6. (U) The night before Rodrigues was killed, a man was shot in
the head three times by three assailants as he returned home with
his wife in the municipality of Barueri, just outside the northwest
corner of Sao Paulo proper. The murdered man lived near a jail
worker, who police believe was the intended target of the
assassination.


7. (U) On Sunday, July 2, Otacilio do Couto, an off-duty prison
guard was killed in a drive-by shooting in the city's northern zone,
and another guard survived an attempt on his life in the
municipality of Guarulhos, near the international airport on Sao
Paulo's far-north side. An officer with the Military Police (PM)
was also gunned-down that day on the east side of the city. In the
early morning hours of Thursday, July 6, an off-duty prison guard
was shot eight times while in the Liberdade neighborhood of central
Sao Paulo; amazingly he was not killed and remains hospitalized.
But, on Friday morning July 7, a guard was shot and killed by
assailants in a car outside of his home in the Casa Verde
neighborhood of northern Sao Paulo.

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PRISON GUARDS BEGIN "PARALYSIS" ACTIONS
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8. (SBU) In the jailbreak of July 5, eight prisoners overpowered a
cook and obtained at least one firearm, shooting to death both a
guard and another prison worker. Two of the six escapees were
captured. The day before the incident, the prison guard union
Sifuspesp issued a proclamation stating that in the event of the
killing of any guard, union members would cause a "paralysis"
throughout the prison system for 24 hours. The union said that
guards on post would refuse entry to lawyers and visitors, and would
prevent the delivery to prisoners of sacks of clothing and food from
their families known as "jumbos." Such work-actions took place at
some 25 prisons beginning on Thursday, July 6. Twenty-five of the
state's 144 prisons had already been suffering from a prison guard
strike, and an earlier strike was cancelled over the weekend for
fear that inmates would have rebelled if their weekend visitations
were to have been cut off.


9. (SBU) Sao Paulo's two prison employee unions are reeling from
the recent attacks and from an onslaught of death threats in the
wake of the May crime wave, often made directly to prison guards via
telephone. Twelve prison guards have been killed so far in 2006,
including two killed during the prison riots associated with the
PCC's crime wave of May. By comparison, only two guards were killed
during the entirety of 2005.


10. (SBU) Unions are also reeling from a new investigation
launched by the special anti-organized crime unit (DEIC) of the
Military Police against five prison guards accused of aiding and
abetting the PCC and helping plan escapes from prison. DEIC
investigators used wiretaps to uncover the plot, and an unidentified

SAO PAULO 00000742 003 OF 005


officer told one local newspaper that the investigation is expanding
in an effort to determine who was at the head of the scheme.

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HUMAN RIGHTS GROUPS CRITICAL, BUT RALLY WITH GUARDS
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11. (SBU) In the days immediately following the killing of 13 PCC
suspects by Sao Paulo police, concern was raised regarding possible
human rights violations given the number of suspects killed and the
manner in which they were killed: the suspects were shot in a
preemptive raid, apparently while sitting or standing in small
groups in parking lots and in cars (ref A). Perhaps more troubling
for Brazilian media outlets was a surprise judicial decree from the
municipality where the killings occurred, in which the judge ordered
complete secrecy regarding the investigation into the deaths,
including police records and autopsy reports. Leading opposition
presidential candidate and former governor of Sao Paulo State
Geraldo Alckmin squarely endorsed the police's anticipatory strike
against the PCC, saying that Sao Paulo is in a climate of war, and
"we have to win the battle every day with a prepared police force."
But the judicial gag order fueled the fires of conspiracy theory
with whispers (and sometimes shouts) of executions and retribution,
especially among federal officials in the capital, some of whom may
also have political motivation to paint the state of Alckmin's State
in a negative light. For example, Luiz Greenhalgh, head of the
Congressional Human Rights Commission, went so far as to claim that
the Sao Paulo police had carried out executions according to a
predetermined list, which has yet not been determined to be true or
false.


12. (SBU) However, local criticism softened as prison guards
started turning up murdered on their own doorsteps, and new stories
surfaced about the further nefarious intent and the apparent reach
of the PCC. The daily newspaper Estado de Sao Paulo reported that
the PCC leadership is building up the organization's cash reserves
by requiring each member out on the street to bump up his monthly
"contribution" to the gang from 600 Reals (approximately $300 US) to
1000 Reals (approximately $500 US). With the extra cash, the PCC
leadership is reportedly prepared to pay out a stipend to the
families of gang members killed by police. Estado also reported
over the weekend that the PCC maintains a veritable banking system,
even giving out loans to its members to finance drug trafficking.
Further, the daily paper Folha reported that the PCC is giving milk,
gas and foodstuffs to 200 families living in the favelas in which
the gang deals drugs.


13. (SBU) Stories also surfaced about bold plans of the PCC to
destroy the state's prisons. It was widely reported that the PCC is
now using lawyers as "courier pigeons" to deliver messages and keep
its lines of communications open as prison authorities have managed
to limit PCC leaders' access to cellular telephones at the toughest
of the state's prisons. It was also reported that a
non-governmental organization (NGO) known as the New Order is, in
fact, an arm of the PCC, and has been used by the gang, through its
lawyers, as an intermediary to negotiate with authorities during
prison riots and to provide assistance to inmates. The Military
Police, meanwhile, was forced to put down a riot on Friday, June 30,
in the maximum security prison Presidente Bernardes, where the PCC's
titular leader known as Marcola is housed, but not until prisoners
broke the windows of 136 cells, using the glass as makeshift knives,
and caused other major damage. Seventy members of the Military
Police (PM) "shock troops" were able to quell the violence and
restore order. One AMCIT is currently housed in Presidente
Bernardes Prison, but we were informed by officials that he was
NOT/NOT in an area of the facilities affected by violence, but
rather, in a separate part of the complex 500 meters from the
affected prison. See also septel regarding the ongoing situation at
Araraquara prison in Northern Sao Paulo state, where 1400 inmates
are being housed in a prison yard designed for 160.


14. (SBU) But it is the assassinations of prison guards not

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accused of any wrong-doing but simply coming and going to work and
home that has prompted an unusual expression of common good will;
several leading human rights NGOs held a rally side-by-side with
prison guards on Thursday, July 6, to denounce the violence in the
prisons and the attacks on prison employees by the PCC. According
to organizers, the goal of the rally was to stand in solidarity with
the families of the murdered prison guards, and to help the unions
find a way for their employees to work in relative security. The
rally was organized by the National Movement for Human Rights
(MNDH),with the participation of the Commission for Human Rights of
the state Assembly, the Bar Association of Brazil (OAB),and various
church groups.


15. (SBU) COMMENT: The possibility of human rights abuses at the
hands of Sao Paulo state law enforcement personnel on June 26 cannot
be overlooked. In fact, the secrecy surrounding the investigation
parallels that which surrounds the follow-up to the medical
examiner's investigations of the May shootings, where the details of
between 250 and 400 deaths by police are still in question. We are
attempting to gain clearer insight into the process of investigating
the deaths, and what determinations, if any, have been made. In the
meantime, we are meeting with leading human rights representatives
of the state to discuss the matter and their work in general, as we
have already met with the Secretary for Public Security to discuss
the possibility of offering USG technical assistance for law
enforcement training. We will report our findings and
recommendations in septels. Further, it is worth noting that Ariel
de Castro Alves, the director of the National Movement for Human
Rights (MNDH) and coordinator for the solidarity rally mentioned
above, is one of our International Visitor Program (IVP)
participants for 2006/07. END COMMENT.

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THANKS FOR YOUR SUPPORT, AND PASS THE AMUNITION
-------------- --


16. (SBU) While prison guards and their unions are finding new
allies in the form of sympathetic human rights activists, the
federal police seem on the verge of giving them a tool for which
they have been asking for some time: the authority to carry weapons
off-duty. The director of the Federal Police (PF) is said to be
close to finalizing rules to authorize all prison guards in Brazil
to carry weapons, and the Minister of Justice said yesterday that
the current Statute of Disarmament, while strict in limitations,
does allow for the adoption of such rules. Minister Marcio Bastos
said "In this difficult situation in Sao Paulo, prison guards have
the right, and now the necessity, to keep weapons." Reports
indicate that guards over the age of 25 will be able to register for
such a license upon proving mental fitness and a lack of criminal
record. The licenses would need to be renewed periodically. The
move to give prison guards the authority to carry a weapon has been
vocally supported both by Sao Paulo Governor Claudio Lembo, and one
of the state's Senators Aloizio Mercadante, who are of opposing
parties. It has been reported that some guards have been carrying
private weapons illegally, in an attempt to gain some sense of
personal security when off-duty.

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ANOTHER BIG RAID: BUT THIS TIME THE COPS MAKE ARRESTS
-------------- --------------


17. (SBU) On Sunday morning, July 2, 230 police officers under the
command of the state's Shock Troops (CPChoq) descended on the
municipality of Peruibe after intercepting telephone calls that
seemed to indicate a major PCC meeting was to take place there to
plan for future hostile actions against security forces. Police
could not, however, determine the exact location of the expected
meeting, which they estimated was to have involved up to seventy
leaders of the PCC. The CPChoq decided to move in on the area, and
with the help of local Military Police (PM) and highway patrol,
cordoned off a 12-block area and conducted vehicle searches for
weapons. Police commanders proudly displayed 14 suspected PCC

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members arrested in the sweep, along with weapons and cell phones.
Highlighting the most obvious difference between this raid and the
one which took place the week before, the commander of the CPChoq
stated definitively, "The arrests occurred without the need to fire
one single shot."

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MUZZLED SCREAMS: TOP PCC TAX COLLECTOR ARRESTED
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18. On an interesting and related note, a top tax collector -- and
perhaps pamphleteer -- of the PCC was arrested Wednesday, July 5, in
the city of Campinas, approximately 60 miles north of Sao Paulo.
Valdeci Francisco Costa, age 43, is thought by police to be in the
upper ranks of the PCC criminal organization, and the chief accounts
manager for the gang's activities outside of the Sao Paulo
metropolitan area. Known as "Ci" ("Chee") and also "Notebook,"
Costa is said to have collected "contributions" from members both
inside and outside of the state's outlying prisons, primarily in
Riberao Preto, Sorocaba and Campinas. Police report that Costa was
arrested with 13 others, including his 32 year old wife Elisandra
Alves Verdelho Costa. A police captain in Campinas reported that
while four accounts in Costa's name have been seized by police, the
amount of money he was ultimately responsible for moving has yet to
be determined. The police also say Costa is responsible for
ordering several murders and controlling drug trafficking in his
region, and they found over 60 cell phones and various accounting
documents related to PCC activities among his possessions. Police
also found thousands of pamphlets entitled "The Screams of the
Oppressed," which assert that Brazilian prisoners have been
forgotten by the courts, the press, and the PSDB -- the political
party of former governor and current presidential candidate Geraldo
Alckmin.

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CAN LAW ENFORCEMENT SUSTAIN THE PRESSURE ON THE PCC?
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19. (SBU) COMMENT: We continue to wonder how long this war between
the PCC and the Sao Paulo Police can go on, and will the skirmishes
of the past two weeks escalate again into full blown street warfare
as was seen in May. Sao Paulo Police seem to have gained real
ground in their ability to isolate the PCC leadership, disrupt the
gang's lines of communication, and penetrate the PCC communications
network for the effective use of intelligence, the possible human
rights violation of June 26 notwithstanding. But even with that
event taken into consideration in the worst light, every police
action since May seems better planned, better coordinated, and
better executed than the last, with fewer shots fired (or none, as
in the last two raids) and more arrests of top PCC personnel. But
at the same time, we have been told that the PCC may have obtained
records of a great number of prison guards, thus making it that much
easier to find them at home and assassinate them at will. Giving
the prison guards guns may help these embattled foot soldiers feel a
little more in control, but it will not ease the frustration of
being paid about $600 US per month, or of being forced to work in
stiflingly overcrowded and inherently dangerous spaces. Sustained
capacity to keep up the current pace of intelligence gathering and
raids, as well as to keep the PCC leaders well in hand, is
questionable, given budget constraints and faulty existing
infrastructure. And if prison discipline falters, the entire law
enforcement effort will weaken; the PCC knows that and is obviously
trying to exploit this weakness quickly. Meanwhile, the residents
of Sao Paulo go on with their lives largely unaffected other than to
marvel at the daily news reports of prison riots and prison breaks,
and deadly attacks both on and by officers of the law. They will
have to wait, and watch, to see which side has the greatest stamina
in the end. END COMMENT.

MCMULLEN