CHAVEZ CONCENTRATES MORE POWER AT THE EXPENSE OF

C O N F I D E N T I A L SECTION 01 OF 02 CARACAS 000322

SIPDIS

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

E.O. 12958: DECL: 03/15/2029
TAGS: PGOV PHUM KDEM SNAR VE
SUBJECT: CHAVEZ CONCENTRATES MORE POWER AT THE EXPENSE OF
OPPOSITION STATE AND LOCAL GOVERNMENTS

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Classified By: A/POLITICAL COUNSELOR DANIEL LAWTON,
FOR REASONS 1.4 (B) AND (D)


1. (C) Summary: The Chavista-dominated National Assembly
(AN) approved an amended Organic Law of Decentralization
March 12 which enables President Chavez to take control over
state infrastructure, goods, and services that are "in the
general public's interest." Chavez ordered the military on
March 15 to take over key ports in three
opposition-controlled states and threatened to send their
governors to jail if they interfered. The AN is also poised
to pass a law creating a new Vice President for Caracas,
which would marginalize the opposition mayor of Caracas.
Although these steps run contrary to the decentralization
articles in the 1999 Constitution, Venezuela's highly
politicized judiciary is not likely to provide any relief.
With virtually no institutional checks on his power, Chavez
is actively undermining the authority and cutting the revenue
streams of the opposition state and local governments elected
in November 2008. End Summary.

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AN DISMANTLES STATES' RIGHTS
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2. (SBU) The National Assembly (AN) approved March 12 a
partial reform of the Organic Law of Decentralization which
enables Chavez to take control over state infrastructure,
goods, and services that are considered "of general public
interest." Podemos party leader Ismael Garcia March 13
characterized the legislation as a "blow to the
Constitution." Article 164 of the 1999 Constitution
enumerates states' exclusive rights, including specifically
the administration of its goods, resources, public services,
and public infrastructure. United Socialist Party of
Venezuela (PSUV) Deputy Francisco Ameliach explained March 12
that the legislation was initiated after a ruling by the
Supreme Court's (TSJ's) Constitutional Chamber that called on
the AN to incorporate into legislation the executive's right
to "administrative intervention."


3. (SBU) In his weekly "Alo, Presidente" TV show March 15
in Sucre State, Chavez called on his military to take over
key ports within the week in opposition-governed Carabobo,
Nueva Esparta, and Zulia States to defend them from
"narcotrafficking mafias." Responding to Carabobo Governor
Henrique Salas Feo's pledge to protect Puerto Cabello from
take-over, Chavez said, "well, go look for an army, compadre"
and threatened that both Salas Feo and Zulia Governor Pablo
Perez would go to jail because "no authority here, mayor or
governor or anyone, can oppose the Constitution and the law
of the Republic." He added, "if they act like clowns
(ponerse comicos),capture them." Local media reported March
16 that members of Venezuela's armed forces were entering the
three aforementioned ports (Septel).

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2007 REFORM PACKAGE RETURNS
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4. (C) Podemos Deputy Juan Jose Molina told PolCouns March
13 that Chavez intends to use the rubber stamp AN to
systematically dismantle state institutions and cut off
resources to all opposition mayors and governors. He noted
that the decentralization law is intended to undercut
opposition Governor of Carabobo State Henrique Salas Feo,
specifically to seize control over the state's
revenue-producing Puerto Cabello port. Molina said the AN
would this week pass the draft district law to create a Vice
President of Caracas, appointed by Chavez, and may in the
future create similar executive-named vice presidencies in
each State -- effectively, undermining all gubernatorial
authority. He also anticipated that the draft Law of
International Cooperation, which would allow the central
government to regulate NGOs and their financing, would be
proposed and passed within a few days -- presumably to
prevent international outcry from interfering with the
process. Molina said the Foreign Ministry is redrafting the
law, but has not yet passed it to the legislature.


5. (C) Constitutional lawyer Jose Vicente Haro told Poloff
March 16 that Chavez is systematically restructuring
Venezuela from a federalist system to a more centralized form
of government, with all state resources and decisionmaking
tied directly to Chavez -- bringing to fruition the "National
Project Simon Bolivar" Chavez elucidated in 2006. Haro

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opined that judicial relief should not be expected. He
argued that since 2005, the rulings by the Constitutional
Chamber of the Supreme Court (TSJ) have created a clear legal
precedent to enable Chavez and the AN to commit blatant
constitutional violations. The TSJ uses outlandish legal
arguments to decide cases in favor of the government, no
matter their compliance (or lack thereof) with Venezuelan
law, according to Haro. He pointed out that the TSJ has
announced its pursuit of a "revolutionary" judicial course,
lamenting that "there no is longer rule of law in Venezuela."


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CHAVISTAS HINDER BASIC GOVERNANCE
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6. (SBU) In recent weeks, Chavistas have attacked
opposition efforts to govern using bizzare legal arguments
and physical harassment, undermining policies that would
benefit Venezuelans across the board. The Chavista-dominated
Court of Civil and Administrative Contention recently
declared two initiatives by opposition leaders intended to
ease traffic congestion to be illegal. Miranda State
Governor Henrique Capriles Radonski had created a bus-only
lane running against traffic along the heavily congested
highway from the western suburbs into Caracas, saving bus
commuters up to 50 minutes of travel time. The courts ruled
that his plan violated a "right of free transit" established
in Article 50 of the Constitution because the bus lane
occupied part of the highway with less traffic. Opposition
Caracas Mayor Antonio Ledezma's "pico y placa" plan, which
asked drivers to voluntarily give up driving one day per
week, was thrown out by the courts on the grounds that it
violated Venezuelans' right to "freedom of conscience."


7. (SBU) The first meeting of the Caracas Metropolitan
Council for the Planning of Public Works was disrupted March
11 by Chavez supporters. Their physical attacks on
opposition attendees caused property damage and left several
people wounded. Caracas Mayor Antonio Ledezma had planned to
present several projects to the council, including the
donation of police patrol cars to Sucre and El Hatillo
boroughs of Caracas, when the pro-government attendees
rioted. Caracas councilman Antonio Ecarri called the attacks
"definitely following the policy line of (Chavez's party) the
PSUV to sabotage the administration of Mayor Ledezma." He
added that the community councils from Sucre -- most of which
are dominated by Chavistas -- had come to the meeting to ask
for the approval of the initiative. Former Caracas
municipality contract workers who were hired by former PSUV
Mayor Juan Barreto, and whose contracts Ledezma allowed to
expire on January 1, continue to occupy certain municipal
buildings, including City Hall, with the public blessing of
the central government.

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COMMENT
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8. (C) With virtually no institutional check left on his
power, Chavez is deepening his "Bolivarian revolution" by
undercutting state authority and reducing revenue streams to
three of the opposition's five opposition state governments.
Chavez now has a new "legal" instrument to marginalize any of
the governors and mayors elected in November 2008 by
declaring that he is acting "in the public's interest." The
Venezuelan president is betting -- probably correctly -- that
despite the fact that he is denying opposition governors or
mayors power and resources, their ineffectiveness is more
likely to be blamed on them, not Chavez. At a minimum, these
newly elected officials now have far less opportunity to
build a democratic alternative to Chavismo. Moreover, Chavez
is increasingly demonstrating that he intends to abide by
democratic rules only when he deems it politically expedient.
End Comment.

CAULFIELD