PUBLIC ADMIN DECREE ALLOWS CHAVEZ TO APPOINT

C O N F I D E N T I A L SECTION 01 OF 02 CARACAS 001143

SIPDIS

HQSOUTHCOM ALSO FOR POLAD
DEPARTMENT PASS TO AID/OTI (RPORTER)

E.O. 12958: DECL: 08/15/2028
TAGS: PGOV PREL KDEM VE
SUBJECT: PUBLIC ADMIN DECREE ALLOWS CHAVEZ TO APPOINT
REGIONAL AUTHORITIES

REF: A. 07 CARACAS 01635

B. 07 CARACAS 01280

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Classified By: POLITICAL COUNSELOR FRANCISCO FERNANDEZ
FOR REASON 1.4 (D)


1. (C) SUMMARY. The Organic Decree on Public Administration,
one of the 26 laws promulgated by President Chavez on the
last day of the now-expired Enabling Law, allows him to
appoint like-minded regional leaders. It is widely believed
the decree will be used selectively to neutralize opposition
governors and mayors following the November state and local
elections. The measure closely resembles one that was
rejected by Venezuelan voters in the failed December 2007
constitutional referendum. The decree also names the Central
Planning Commission as the government's main coordinating
body; gives community councils (consejos comunales) a greater
role in public matters; and provides Chavez's social missions
with legal standing. END SUMMARY.

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Public Admin Sector Revamped
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2. (SBU) The text of the Public Administration Decree was
released in an "extraordinary" edition of the Official
Gazette several days after Chavez's special legislative
powers expired on July 31. The law formally gives the
Venezuelan president, followed by the Vice President,
ministers, and local authorities, the lead on managing public
policy issues. The 173-article decree covers a wide range of
administrative matters and amends the Public Administration
Law of 2001.

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Regional Authorities Revisited
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3. (C) The decree also revisits aspects of Chavez's "new
geometry of power" concept, one of the five "motors" of his
socialist revolution, and a key element enshrined in the
defeated constitutional reform package (Ref. A). Several
articles outline the possible creation of "decentralized
functional and territorial" entities if and when the
"interests of the state would be better served." Under the
decree's principle of decentralization, for instance, public
administration officials (read the central government) can
decentralize authority and public services in states and
municipalities, in the name of increasing efficiency and
efficacy. These officials also have the authority to
transfer certain powers from superior entities to inferior
ones as necessary. Depending on their implementation, these
measures could allow the central government to arbitrarily
transfer authority and resources to persons other than the
elected officials (read: appointees) or marginalize local
opposition leaders in elected positions.


4. (C) Article 70 gives the Venezuelan president the
authority to appoint regional authorities. According to the
law, the designated figures would be charged with planning,
executing public policy, and overseeing development. They
would also be entitled to federally-funded monies in order to
carry out their functions. The concept of appointed regional
leaders was included in Chavez's failed referendum. Article
70 has revived fears within opposition circles that Chavez
intends to use the measure to counter opposition wins in
important states and municipalities in upcoming regional
elections. It remains unclear whether Bolivarian Republic of
Venezuela (BRV) officials will divert
constitutionally-mandated federal resources away from elected
officials to the appointed authorities or whether the latter
will receive financial support via other means. If the
central government were to divert or stop the flow of federal
funding, the position of elected governors could become
largely symbolic.

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Central Planning Commission
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5. (C) Separately, the decree formally names the Central
Planning Commission (Commission) as the government's primary
body for coordinating public policy. Using authority derived
from the Enabling Law, Chavez decreed the creation of the
Commission on June 23 (Ref. B). In that instance, Chavez
said its purpose was to move away from decentralization

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toward a system of unified planning and strategic execution.
The Commission was intended to help centralize the
administration and control of all state entities and
enterprises, including those at the national, regional,
state, and municipal levels. Chavez likely intends to
further limit the autonomy of local leaders in regional and
local planning via the Commission.

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Of Popular Participation and Missions
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6. (SBU) The role of community councils, which are
constituted and funded directly by the Presidency, is also
strengthened in the Public Administration decree. The law
notes that councils, rather than public officials, can take
the lead on implementing public projects in those cases where
it is more cost effective and efficient to do so. The
opposition has long claimed that poor government oversight of
the councils coupled with a lack of transparency has led to
mismanagement of funds on behalf of the councils. Lastly,
Article 131 bestows upon the Venezuelan president the right
to create social programs (misiones) to attend to the
public's "urgent" needs as necessary. Chavez previously
wanted to give his social programs constitutional standing.
The decree helps make legal Chavez's long-standing policy of
creating parallel government institutions.

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Comment
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7. (C) The Public Administration Decree, particularly
Chavez's reintroduction of his vaguely-defined "new geometry
of power" scheme, gives Chavez new authority to control state
resources at the expense of state and local governments.
While it remains unclear to what extent and how fast these
policies will be implemented, it appears Chavez has
positioned himself to debilitate and isolate political
opponents and dissidents via this decree law and others.
Local analysts are seizing on the fact that this new law
resuscitates ideas rejected in the 2007 Constitutional
referendum as evidence of a renewed drive to implement
Chavez's Bolivarian Revolution.

DUDDY