Identifier
Created
Classification
Origin
07BRASILIA872
2007-05-16 15:10:00
CONFIDENTIAL
Embassy Brasilia
Cable title:  

BRAZIL: PMDB PLAYED HARDBALL WITH AIR TRAFFIC

Tags:  EAIR PGOV CASC BR 
pdf how-to read a cable
VZCZCXRO7326
RR RUEHRG
DE RUEHBR #0872/01 1361510
ZNY CCCCC ZZH
R 161510Z MAY 07
FM AMEMBASSY BRASILIA
TO RUEHC/SECSTATE WASHDC 8940
INFO RUEHAC/AMEMBASSY ASUNCION 6083
RUEHBU/AMEMBASSY BUENOS AIRES 4771
RUEHMN/AMEMBASSY MONTEVIDEO 6882
RUEHSG/AMEMBASSY SANTIAGO 6230
RUEHRG/AMCONSUL RECIFE 6648
RUEHRI/AMCONSUL RIO DE JANEIRO 4385
RUEHSO/AMCONSUL SAO PAULO 9872
RULSDMK/DEPT OF TRANSPORTATION WASHDC
RUEAIIA/CIA WASHDC
RHEHNSC/NSC WASHDC
RUEANHA/FAA NATIONAL HQ WASHINGTON DC
RUEAYVF/FAA MIAMI ARTCC MIAMI FL
RUWDQAB/NTSB WASHINGTON DC
RUEKJCS/SECDEF WASHDC
RUEWMFU/TSA HQ WASHINGTON DC
C O N F I D E N T I A L SECTION 01 OF 03 BRASILIA 000872 

SIPDIS

SIPDIS

BUENOS AIRES FOR TSA - OCHOA
STATE FOR EB/TRA: JHORWITZ, JREIFMAN, KGUSTAFSON
TSA FOR VICKI REEDER, SUSAN HASMAN

SIPDIS
FAA FOR C. TERE FRANCESCHI, CECILIA CAPESTANY, MAYTE ASHBY
DOT FOR BRIAN HEDBERG
NTSB FOR BOB MACINTOSH AND BILL ENGLISH

E.O. 12958: DECL: 5/11/2017
TAGS: EAIR PGOV CASC BR
SUBJECT: BRAZIL: PMDB PLAYED HARDBALL WITH AIR TRAFFIC
INQUIRY IN BID FOR SPOILS

REF: A. BRASILIA 485


B. BRASILIA 598

C. BRASILIA 600

Classified By: Political Counselor Dennis W. Hearne, reasons 1.4 b/d

C O N F I D E N T I A L SECTION 01 OF 03 BRASILIA 000872

SIPDIS

SIPDIS

BUENOS AIRES FOR TSA - OCHOA
STATE FOR EB/TRA: JHORWITZ, JREIFMAN, KGUSTAFSON
TSA FOR VICKI REEDER, SUSAN HASMAN

SIPDIS
FAA FOR C. TERE FRANCESCHI, CECILIA CAPESTANY, MAYTE ASHBY
DOT FOR BRIAN HEDBERG
NTSB FOR BOB MACINTOSH AND BILL ENGLISH

E.O. 12958: DECL: 5/11/2017
TAGS: EAIR PGOV CASC BR
SUBJECT: BRAZIL: PMDB PLAYED HARDBALL WITH AIR TRAFFIC
INQUIRY IN BID FOR SPOILS

REF: A. BRASILIA 485


B. BRASILIA 598

C. BRASILIA 600

Classified By: Political Counselor Dennis W. Hearne, reasons 1.4 b/d


1. (SBU) Summary. The Brazilian Democratic Movement Party
(PMDB) leadership used a threat of non-cooperation with the
government in the Chamber of Deputies' just-created
Parliamentary Inquiry Committee (CPI) on the Air Traffic
Crisis to pressure the Lula administration for jobs in the
second tier of government. The PMDB leadership had
threatened to place four deputies on the CPI who could be
counted on to work against the government's position. The
threat did not work, and the party appears to have retreated
from linking its role in the CPI to political spoils. With
the jobs issue still unresolved, about a third of the
ninety-some PMDB Federal Deputies are threatening obstruction
in the Chamber of Deputies in order to pressure the
government for jobs. But the deputies are not going to try
to achieve their goals by manipulating the CPI, group
spokesman Federal Deputy Eduardo Cunha (PMDB, Rio de Janeiro)
said, according to a May 15 Correio Braziliense story. The
PMDB's threat to politicize the CPI had strengthened the
likelihood, still present, that the CPI's conclusions could
be a whitewash that blames American pilots for last
September's midair collision between an Embraer Legacy jet
and Gol flight 1907, resulting in Brazil's worst commercial
air disaster and the loss of 154 lives. That scenario seems
less likely than at the end of last week, but we will not
know for sure for some time. The episode serves as a
reminder that most of the PMDB is a non-ideological,
spoils-oriented organization that places its own interests
first. End summary.


2. (SBU) On May 10 the CPI ordered the American pilots of

the Embraer Legacy jet to provide testimony. Their Brazilian
lawyer already has stated that the pilots are unlikely to
return from the U.S. simply to testify before a CPI; they are
also under indictment here. As it investigates the causes of
the Legacy/Gol crash, the CPI could opt not to delve deeply
into alleged failings in Brazilian air traffic control, and
in its conclusions blame the accident entirely on the
American pilots. This scenario would leave Lula's image
relatively unscathed. In a scenario less favorable to Lula,
the CPI would embarrass the government by revealing
mismanagement of air traffic control and airports. While the
position of other coalition deputies is probably predictably
in line with a government attempt to control damage, the same
cannot yet be said of the PMDB deputies. Opposition deputies
will probably try to reveal as much information as possible
that could damage the Lula administration. Whether the CPI
attributes all blame for the accident to the Americans or
also blames Brazilians could depend in part on what, if any,
instructions the PMDB deputies receive from their party
leadership.

PMDB Wants Top Jobs in Second Tier; Threatened
Non-Cooperation in CPI
--------------
--------------


3. (SBU) According to press reports and an informed
congressman who discussed the issue with poloff, the PMDB
leadership threatened the Lula administration with an
uncooperative stance in the CPI. This could increase the
CPI's damage to the government if it does not meet the PMDB's
demands for second-tier federal jobs. The PMDB recently
parlayed its good showing at the polls last October into a

BRASILIA 00000872 002 OF 003


hefty increase from two seats to five at the Cabinet table,
and is now seeking to increase its control over more posts
and resources. There are dozens of second-tier directorships
at stake, including public utilities, transportation,
financial bodies, public infrastructure, and other government
organizations. In turn, the new directors can create a
cascade of spoils by appointing party cronies as managers
deep down into the organizations, affecting thousands of
jobs. According to the April 16, 2007, edition of Epoca
magazine, there are 24,000 such jobs (cargos comissionados)
in the federal government.

Congressman: PMDB Tried to "Extort" Government
-------------- --------------


4. (C) Federal Deputy Raul Henry (PMDB, Pernambuco)
(protect),one of a handful of PMDB deputies who usually
votes against his party and with the opposition, told poloff
on May 10 that the PMDB leadership attempted "extortion" to
achieve its goals. PMDB President Michel Temer, a Federal
Deputy from Sao Paulo, and PMDB Chamber leader Henrique
Eduardo Alves, from Rio Grande do Norte, offered the
government two slates of deputies for the CPI on the Air
Traffic Crisis, a "hard" one and a "soft" one. The hard
slate was composed of deputies who could be relied upon to
take their investigatory duties seriously and go rough on the
government. The soft slate was composed of yes-men who would
go along with the government's damage control efforts. If
the government did not accede to PMDB demands for second-tier
jobs, Henry said, the PMDB would install its hard slate in
the CPI. As it turned out, though, after a Supreme Court
ruling that ordered the Chamber to establish the CPI, the CPI
started its work before the second-tier jobs issue was
resolved. The PMDB was prematurely forced to decide which
slate it would put forward. Henry said the PMDB leaders
opted for the soft slate, probably in anticipation that it
would increase the party's chances of doing well in the
appointments process. Putting forward the hard slate would
have been counterproductive, effectively punishing the
government in advance when the jobs outcome was still
unknown. With the jobs issue still unresolved but the soft
slate installed, the PMDB was threatening rebellion in the
CPI if its demands were not satisfied, according to press
reports on May 11. (Note: The PMDB was already dissatisfied,
as a Chamber vote this week on federal funds for cities
revealed; this threat raised the ante for the government.)
By May 15 the situation appeared different: Federal Deputy
Eduardo Cunha, a spokesman for PMDB deputies threatening
obstruction, said the party would not force the jobs issue
through the CPI. On May 15 poloff checked this with Nivaldo
Ferreira, a adviser in the PMDB's offices in the Chamber of
Deputies. He said the pressure for federal jobs comes both
from the leadership as well as the backbench deputies, but
the party will not condition its behavior in the CPI on jobs,
adding that the PMDB supports the government and will be
responsive to it.

Government Deputies on CPI Will Try to Divert Attention from
Real Shortcomings
--------------
--------------


5. (SBU) Still, the PMDB's threats could yield fruit
because the government is vulnerable to damage by the CPI's
findings, and PMDB bad behavior would be harmful. One way
for the government to minimize the public and institutional
damage is to blame others. Jornal do Brasil political
columnist Anna Ramalho pointed this out on May 14. She said
government deputies on the CPI are trying to focus the

BRASILIA 00000872 003 OF 003


investigation of the Gol crash on the American pilots in
order to divert attention from shortcomings in the Brazilian
air traffic control system, which falls under the Brazilian
Air Force.


6. (U) Government coalition deputies hold 16 seats on the
CPI, and the opposition holds eight. The PMDB holds the
chairmanship, and three seats on the 24-member committee.
The chairman may vote only to break a tie. The Workers Party
(PT),the party of president Luiz Inacio Lula da Silva, holds
four seats, including the critical role of rapporteur.

Senate to Open Own Air Traffic Investigation
--------------


7. (C) On the other side of Congress, the Senate is
preparing to open its own CPI into the air traffic crisis.
Poloff spoke with Senator Sergio Guerra (Brazilian Social
Democracy Party, Pernambuco) (protect) on May 10. Asked
about his expectations of the Senate's CPI, Guerra said only
that "the CPI should not be an anti-corruption CPI." He felt
it should focus on the specific problems affecting air
traffic, although it may discover corruption in process. He
did not comment on a possible Senate CPI interest in the role
of the American pilots. (Note: Ref B reported a Federal
Deputy's expectation that corruption would be a major focus
of an air traffic CPI.) Another leading opposition figure,
Senator Antonio Carlos Magalhaes (Democrats, Bahia),was
probably alluding to the PMDB's tactics when he said in the
plenary on May 14 that the Senate's CPI will be "serious and
impartial" because the Senators do not want to "trade their
consciences for emoluments from the government." He insisted
that the Senate CPI must not spare from scrutiny the National
Civil Aviation Agency (ANAC),the airports administration
(Infraero),the Air Force, or the airlines.


8. (C) Comment: The PMDB leadership's pressure tactics
reconfirm the party's strong tendency to put its own welfare
above ideology or the national interest. This is business as
usual for the PMDB and a number of other non-ideological
parties. Although Lula arguably had no alternative, in
acceding to PMDB demands for a large role in the cabinet, he
reinforced the spoils system and let the camel's nose into
the tent for his second term. As the largest party in both
houses of Congress, the PMDB will probably offer more such
examples of "extortion," as Deputy Henry put it, trying the
government's patience and reinforcing the system. If it is
true the PMDB has backed away from conditioning its deputies'
behavior in the CPI on spoils at the federal trough, we may
have had a "near miss" that could have been unfair to the
American pilots. Regardless, the PMDB's attempted
politicization of the CPI bodes ill for a dispassionate
rendering of the facts in the Legacy/Gol 1907 crash.

Sobel