Identifier
Created
Classification
Origin
08LIMA1659
2008-10-15 22:43:00
CONFIDENTIAL
Embassy Lima
Cable title:  

PERU CABINET SHUFFLE: LESS THAN A CLEAN BREAK

Tags:  PGOV PREL PINR PE 
pdf how-to read a cable
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OO RUEHWEB

DE RUEHPE #1659/01 2892243
ZNY CCCCC ZZH
O 152243Z OCT 08
FM AMEMBASSY LIMA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9445
INFO RUEHAC/AMEMBASSY ASUNCION PRIORITY 2041
RUEHBO/AMEMBASSY BOGOTA PRIORITY 6057
RUEHBR/AMEMBASSY BRASILIA PRIORITY 7950
RUEHBU/AMEMBASSY BUENOS AIRES PRIORITY 3487
RUEHCV/AMEMBASSY CARACAS PRIORITY 1241
RUEHLP/AMEMBASSY LA PAZ OCT 4997
RUEHMN/AMEMBASSY MONTEVIDEO PRIORITY 9593
RUEHQT/AMEMBASSY QUITO PRIORITY 2114
RUEHSG/AMEMBASSY SANTIAGO PRIORITY 2030
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC PRIORITY
RUMIAAA/USCINCSO MIAMI FL PRIORITY
C O N F I D E N T I A L LIMA 001659 

SIPDIS

E.O. 12958: DECL: 10/14/2018
TAGS: PGOV PREL PINR PE
SUBJECT: PERU CABINET SHUFFLE: LESS THAN A CLEAN BREAK

REF: A. LIMA 1653

B. LIMA 1651

C. LIMA 1646

D. LIMA 1639

Classified By: Ambassador P. Michael McKinley for
reasons 1.4 (b) and (d).

C O N F I D E N T I A L LIMA 001659

SIPDIS

E.O. 12958: DECL: 10/14/2018
TAGS: PGOV PREL PINR PE
SUBJECT: PERU CABINET SHUFFLE: LESS THAN A CLEAN BREAK

REF: A. LIMA 1653

B. LIMA 1651

C. LIMA 1646

D. LIMA 1639

Classified By: Ambassador P. Michael McKinley for
reasons 1.4 (b) and (d).


1. (C) Summary: President Garcia swore in a reconstituted
cabinet on October 14, in which six new cabinet members were
installed while ten Ministers from the old government were
re-appointed, including in Foreign Affairs, Defense, Finance
and Foreign Commerce. Apparently selected to lend an
"apolitical" image to the new administration, the new
ministers are a largely technocratic group with little
political heft. Five cabinet ministers are women, and only
two are APRA party members (Jorge Villasante in Labor, and
Enrique Cornejo in Housing -- both carry-overs). Brief
discussions of the new cabinet ministers appear below. More
detailed biographies will follow septel. End Summary.


2. (C) Following the recent corruption scandal (refs B and
D),President Garcia swore in a reconstituted cabinet on
October 14, headed by the new Premier Yehude Simon (ref A).
The President charged the new cabinet with three overarching
goals: to defend the country against the global financial
crisis, to fight corruption and to eradicate poverty through
better distribution of the nation's mining wealth. Public
reaction to the cabinet shuffle has been cautiously
optimistic, and some commentators speculate it may be better
equipped to address and potentially avert social unrest than
its predecessor. At the same time, the cabinet shuffle was
less sweeping than expected, and the new group is unlikely to
be able to impose a significant change in the GOP's policy
direction. It is too early to gauge whether the changes will
succeed in bolstering Garcia's sagging approval ratings and
blunt charges from the left that he moved too far to the
right.

--------------

3. (C) New Faces in the Cabinet
--------------

-- Carlos LEYTON Munoz, 56, replaces Ismael BENAVIDES
Ferreyros as Minister of Agriculture. A close friend of
Simon and an ally in representing the interests of regions
outside of Lima, Leyton hails from Arequipa, and served as
vice president of that region since December 2006. He is a
sociologist by profession (San Agustin University) and an

expert in agrarian development and decentralization policies
in the Andes. As a representative from the informal capital
of Peru's southern Sierra, Leyton gives the government a
direct connection to the country's most politically sensitive
and economically depressed areas.

-- Pedro SANCHEZ GAMARRA, 49, replaces Juan VALDIVIA Romero
as Minister of Energy and Mines. A former World Bank official
on energy matters for South Asia, Sanchez is an experienced
hand in the energy sector. He holds an undergraduate degree
in Electrical Engineering from Peru's San Antonio University
and a Masters in International Policy and Practice from
George Washington University in the U.S. Sanchez Gamarra has
held a number of senior positions in some of Peru's
electrical companies, including at Electro Peru, Electro
Lima, EDEGEL, and Electro Sur Este. Sanchez was investigated
by the last congress for possible corruption in a Banco
Latino bailout during the Fujimori regime, though none of the
charges stuck.

-- Remegio HERNANI Meloni, 60, replaces Luis ALVA Castro as
Interior Minister. A retired police general, Hernani
(nicknamed "Chalo") hails from the investigative side of the
PNP where he was formerly chief (2001-2002) of the Criminal
Investigation Directorate (DIRINCRI). He was posted to
Ayacucho for five years in the Anti-terrorist Directorate
(Dinacote) during the worst years of the Sendero Luminoso
violence. He achieved national prominence by resolving
several high profile kidnapping cases. His last job after his
retirement in 2002 was head of security for the General
Accounting Office. He is known to be hyperactive and
detail-oriented.
-- Carmen VILDOSO Chirinos, 52, replaces Susana PINILLA
Cisneros as Minister for Women's Issues and Social
Development. She is a sociologist who served as vice minister
of labor under the Toledo administration. She was also a
technical coordinator for the Natioinal Accords.

-- Elena CONTERNO, 38, Martinelli replaces Rafael REY Rey as
Minister of Production. She holds a Masters Degree in Public
Administration from Harvard University. She has worked with
USAID's implementing partner organizations in promoting
decentralization, and was reportedly recommended for her
position by current Minister of Transportation Veronica
Zavala.

-- Oscar UGARTE Ubillus, 63, replaces Hernan GARRIDO-LECCA
Montanez as Minister of Health. A close political ally of PM
Simon, Ugarte briefly occupied the Secretary General position
in Simon's Humanist party (PMHP). He also served as deputy
health minister under former President Toledo, where he was
criticized by some for refusing to distribute birth control
pills in government clinics.


4. (U) Below is the list of cabinet ministers who retained
their previous positions and portfolios.

Foreign Affairs: Jose Antonio GARCIA Belaunde
Defense: Antero FLORES-ARAOZ Esparza
Economy and Finance: Luis VALDIVIESO
Environment: Antonio BRACK Egg
Foreign Commerce and Tourism: Mercedes ARAOZ
Education: Jose Antonio CHANG Escobedo
Justice: Rosario FERNANDEZ
Transportation and Communications: Veronica ZAVALA Lombardi
Housing and Construction: Enrique CORNEJO Ramirez
Labor: Jorge VILLASANTE Aranibar (Note: He replaced Mario
PASCO Cosmopolis on October 4 - reftel C.)

Comment: Challenges Ahead
--------------

5. (C) The new politically independent PM and more
"technocratic" cabinet may provide some respite to the Garcia
administration. (Some observers claimed APRA party leaders
had no say over any of the new cabinet choices.) A snapshot
survey indicated that 51 percent of Peruvians believed the
changes would improve the government's performance. In a
televised post-swearing-in interview, Simon said that he
would launch an anti-corruption plan and that more cabinet
changes could be in the offing after the APEC summit is
concluded. He also said that he considered a recession to be
a greater threat than inflation, and that he would seek to
reverse cuts made to the defense budget. End Comment.
MCKINLEY