KEY CABINET RESIGNATION MAY SIGNAL TROUBLE FOR

C O N F I D E N T I A L SAN SALVADOR 001623

SIPDIS

NOFORN
SIPDIS

WHA/CEN FOR JCORNFORTH

E.O. 12958: DECL: 08/17/2017
TAGS: ES PGOV PREL
SUBJECT: KEY CABINET RESIGNATION MAY SIGNAL TROUBLE FOR
SACA ADMINISTRATION

Classified By: Classified by Ambassador Charles L. Glazer for reasons 1
.4(b) and (d).


1. (U) On August 15 Eduardo Zablah, the Technical Secretary
to the Presidency, resigned his position in the Saca
administration effective September 1. During an official
press conference, President Saca announced that Zablah was
leaving his position in order to "dedicate himself to other
professional activities." Zablah will be replaced by Eduardo
Ayala Grimaldi, currently the Vice Minister of the Economy.


2. (C/NF) Zablah's departure is a major blow to the Saca
administration. He is one of the most capable of President
Saca's advisors. Zablah, a former Minister of Economy, came
up with the mechanisms for funding pension legacy costs, and
later education and security funds when the FMLN refused to
approve international loans to finance the programs. He was
also instrumental in establishing Salvadoran eligibility for
Millennium Challenge Corporation funding, one of the
principal economic achievements of the Saca administration so
far.


3. (C/NF) Press speculation and rumors swirling around the
Zablah resignation could hint at potential trouble within the
Saca administration. The most common explanation offered
around town regarding the resignation is that Zablah became
increasingly disenchanted with advisors close to President
Saca, including Elmer Charlaix and Herbert Saca, both of whom
have been mentioned in association with alleged (and to date
unsubstantiated) rumors of corruption and unexplained
enrichment. Further press speculation indicates that Saca
and Charlaix may have been the authors of a recent
bad-mouthing campaign that contributed to Zablah's decision
to leave the Saca administration. Zablah had apparently been
unhappy for some time, and all indications are that at least
two previous resignation attempts were rebuffed by President
Saca.


4. (C/NF) Comment: Zablah's departure is a blow to the GOES.
Honest, professional, and able to deliver on promises,
Zablah's integrity will be sorely missed by the Saca
administration. Zablah was a key player who was able to
resolve some of President Saca's most pressing problems.
Zablah's professionalism and aura of personal honesty
generated credibility with private enterprise and
international financial organizations, and enabled him to
serve as an honest broker with the USG. Moreover, the
ongoing speculation swirling around the motives for the
resignation undermine public confidence in the Saca
administration, as well as the ARENA leadership cadre
surrounding the President. Substantiation of allegations of
financial corruption close to the President would offer the
FMLN an unearned political windfall that could reverberate
well into the coming presidential elections. End comment.
Glazer