US embassy cable - 04CARACAS2197

C O N F I D E N T I A L SECTION 01 OF 02 CARACAS 002197 
 
SIPDIS 
 
 
NSC FOR TSHANNON AND CBARTON 
ENERGY FOR DPUMPHREY AND ALOCKWOOD 
 
E.O. 12958: DECL: 07/06/2014 
TAGS: PGOV, ENRG, VE 
SUBJECT: MAVERICK DEPUTY MAKES CORRUPTION ALLEGATIONS 
 
 
CLASSIFIED BY: CHARGE D'AFFAIRES STEPHEN MCFARLAND; FOR REASONS 1.4(B) 
AND (D) 
 
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SUMMARY 
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1. (C) NATIONAL ASSEMBLY DEPUTY ROGER RONDON (PODEMOS) 
ATTACKED THE RULING FIFTH REPUBLIC MOVEMENT (MVR) AND HAD HIS 
HANDS SLAPPED AS A CONSEQUENCE AFTER A WEEK-LONG MID-JUNE 
CAMPAIGN TO BRING A VOTE OF CENSURE AGAINST MINISTER OF 
ENERGY AND MINES RAFAEL RAMIREZ_.  RONDON FAILED TO BRING THE 
VOTE TO THE FLOOR OF THE NATIONAL ASSEMBLY AND WAS STRIPPED 
OF THE ENERGY COMMISSION PRESIDENCY AS WELL AS HIS MEMBERSHIP 
IN HIS PRO-GOV PARTY.   SINCE THEN, THE MAVERICK RONDON HAS 
CRITICIZED OTHER CHAVEZ LOYALISTS, ALLEGING MOST RECENTLY 
THAT THE GOV HAD STAGED THE INCIDENT OF THE COLOMBIAN 
"PARAMILITARIES" TO DISTRACT ATTENTION FROM THE RUN-UP TO THE 
AUGUST RECALL REFERENDUM.  END SUMMARY. 
 
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ALLEGATIONS AGAINST ENERGY MINISTER RAMIREZ_ 
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2. (U) ON JUNE 10, NATIONAL ASSEMBLY DEPUTY ROGER RONDON, 
THEN PRESIDENT OF THE PERMANENT ENERGY COMMISSION OF THE 
NATIONAL ASSEMBLY, REQUESTED THAT THE ASSEMBLY'S PLENARY 
CENSURE MINISTER OF ENERGY AND MINES RAFAEL RAMIREZ_.  RONDON 
    REPORTEDLY REQUESTED THE CENSURE VOTE BECAUSE RAMIREZ_ HAD 
FAILED ON FOUR OCCASIONS TO RESPOND TO SUMMONSES FROM THE 
COMMISSION TO TESTIFY ON ISSUES SUCH AS GAS PRICING AND 
DOMESTIC FUEL DISTRIBUTION PROBLEMS.  AFTER A WEEK-LONG 
CAMPAIGN, HOWEVER, RONDON WAS UNABLE TO BRING THE VOTE TO THE 
FLOOR.  HE WAS SUBSEQUENTLY STRIPPED OF THE PRESIDENCY OF THE 
ENERGY AND MINES COMMISSION AND OF HIS MEMBERSHIP IN THE 
PODEMOS PARTY. 
 
3. (C) DURING HIS CAMPAIGN AGAINST RAMIREZ_, RONDON MADE A 
NUMBER OF OTHER ALLEGATIONS, CHARGING RAMIREZ_ (AND HIS WIFE 
AND MOTHER-IN-LAW) WITH CORRUPTION AND MISMANAGEMENT. 
ATTORNEY IVAN LARA, STAFF DIRECTOR OF THE ENERGY AND MINES 
COMMISSION, TOLD ECONOFF JUNE 28 THAT CERTAIN OF RONDON'S 
ALLEGATIONS, SUCH AS HIS CHARGE THAT THE MINSTER HAD 
ILLEGALLY SIGNED A DEAL WITH FREE MARKET PETROLEUM IN 2003, 
WERE ACCURATE.  (NOTE:  THE HYDROCARBONS LAW RESERVES THE 
MARKETING OF VENEZUELAN OIL TO PDVSA.  IN EARLY 2003, RAMIREZ_ 
SIGNED A CONTROVERSIAL CONTRACT WITH FREE MARKET WHICH WAS 
INTENDED TO COVER THE SALE OF VENEZUELAN OIL TO THE U.S. 
PETROLEUM RESERVE.  MANY QUESTIONS WERE RAISED ABOUT THE 
CONTRACT AND THE DEAL, TO OUR KNOWLEDGE, HAS NEVER BEEN 
FINALIZED.)  WHEN ASKED ABOUT THE CORRUPTION ALLEGATIONS, 
HOWEVER, LARA SIMPLY SHRUGGED AND SAID THAT CORRUPTION IS 
RAMPANT IN BOTH THE MINISTRY AND PETROLEOS DE VENEZUELA 
(PDVSA).  (NOTE:  FOR THAT MATTER, LARA REPORTED THAT RONDON 
HIMSELF HAS AN OIL SERVICES COMPANY THAT IS RECEIVING 
PREFERENTIAL CONTRACTS FROM PDVSA IN EASTERN VENEZUELA.) 
RAMIREZ_, WITH HIS ACCESS TO THE VAST ASSETS OF PDVSA 
(INCLUDING COMPANY PLANES), IS PLAYING AN IMPORTANT ROLE IN 
CHAVEZ'S REFERENDUM STRATEGY AND IS UNTOUCHABLE, SAID LARA. 
    RONDON HAD SOUGHT TO DISTANCE HIMSELF FROM THE GOV AND HAD 
ULTIMATELY PLAYED AN EXTREMELY INEPT HAND WITHIN THE 
COMMISSION AND THE PLENARY, ACCORDING TO LARA. 
 
4. (C) LARA ASSERTED THAT RONDON WAS "CARRYING THE WATER" 
AGAINST RAMIREZ_ FOR A MOVEMENT CALLED THE "CATEDRA JUAN PABLO 
PEREZ ALFONSO" OR JPPA, WHOSE MEMBERS INCLUDE FORMER 
VENEZUELAN AMBASSADOR TO SAUDI ARABIA CARLOS MENDOZA 
POTTELLA, AND VICTOR POLEO, FORMERLY IN THE MINISTRY OF 
ENERGY AND MINES.  THE JPPA, NAMED FOR THE VENEZUELAN OIL 
MINISTER WHO PLAYED A LEADING ROLE IN THE CONCEPTION OF OPEC, 
ADVOCATES A HIGHLY NATIONALISTIC ENERGY POLICY THAT WOULD 
ELIMINATE THE PARTICIPATION OF FOREIGN OIL COMPANIES IN 
VENEZUELA.  MUCH OF THE FODDER FOR RONDON'S ALLEGATIONS, SAID 
LARA, CAME FROM "INSTITUTIONALISTS" WITHIN PDVSA. 
 
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RONDON'S ASPIRATIONS 
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5. (C) PATRIA PARA TODOS (PPT) SECRETARY GENERAL JOSE 
ALBORNOZ TOLD POLOFF JUNE 25 THAT THE FIGHT BETWEEN RONDON 
AND MINISTER RAMIREZ_ IS LARGELY REGIONAL, STEMMING FROM THE 
 
CARACAS 00002197  002 OF 002 
 
TE IN ITALY (MARKETING 
VENEZUELA'S PATENTED HEAVY OIL PRODUCT "ORIMULSION" TO 
ITALIAN POWER PLANTS) IS AT THE CENTER OF RONDON'S 
ACCUSATIONS.  ALBORNOZ ALLEGED RONDON IS GETTING HIS 
INFORMATION ABOUT BITOR FROM ITS GENERAL MANAGER, WHO IS THE 
BROTHER OF DEPUTY LUIGI D'ANGELO, A FORMER MVR DEPUTY WHO 
BROKE WITH THE PARTY EARLIER THIS YEAR.  D'ANGELO JOINED THE 
"FEDERAL BLOC," SIX DEPUTIES ALLIED WITH RADICAL ACTIVIST 
LINA RON, WHO HEADS THE PRO-CHAVEZ "UNIDAD POPULAR 
VENEZOLANA" (UPV).  ALBORNOZ PREDICTED THAT RONDON WOULD 
EVENTUALLY JOIN RON'S UPV FACTION, WHICH HE DISMISSED AS A 
"SCRAP HEAP" FOR DISAFFECTED CHAVISTAS.  (NOTE:  RONDON HAS 
NOT INDICATED WHETHER HE WILL JOIN RON'S FACTION, JOIN THE 
OPPOSITION, OR SIMPLY PLAY FREE AGENT.) 
 
6. (C) OTHER OBSERVERS ALLEGE THAT ROGER RONDON HAD HOPED TO 
BECOME THE PRO-CHAVEZ CANDIDATE FOR THE GOVERNORSHIP OF DELTA 
AMACURO STATE WHERE HE WOULD LIKELY HAVE HAD ACCESS TO 
WINDFALL BENEFITS WHEN THE WORK ON THE OFF-SHORE DELTANA 
PLATFORM NATURAL GAS BLOCKS BEGINS LATER THIS YEAR.  BUT 
RONDON WAS PASSED OVER FOR THE MVR'S YELITZA SANTAELLA, WHICH 
REPORTEDLY LEFT HIM ANGRY AND DISSATISFIED. 
 
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AND RONDON ROLLS ON... 
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    7. (C) SINCE HIS DEMOTION, RONDON HAS CRITICIZED OTHER CHAVEZ 
LOYALISTS, ALLEGING MOST RECENTLY THAT THE GOV HAD STAGED THE 
INCIDENT OF THE COLOMBIAN "PARAMILITARIES" TO DISTRACT 
ATTENTION FROM THE RUN-UP TO THE AUGUST RECALL REFERENDUM. 
IN REACTION, MVR DEPUTIES PROPOSED STRIPPING RONDON OF HIS 
CONGRESSIONAL IMMUNITY SO AS TO SUBJECT HIM TO POSSIBLE 
CORRUPTION CHARGES.  MVR NICOLAS MADURO CLAIMED THAT "DARK 
INTERESTS" WERE BEHIND RONDON"S ACCUSATIONS THAT WOULD SOON 
BE MADE PUBLIC. 
 
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COMMENT 
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8. (C) RONDON'S MOTIVES AND PERSONAL INTERESTS ASIDE, IT IS 
POSSIBLE HE DOES HAVE INCRIMINATING PROOF OF CORRUPTION 
WITHIN THE MINISTRY AND PDVSA.  THE THREAT BY HIS FELLOW 
CHAVISTAS TO STRIP HIM OF HIS CONGRESSIONAL IMMUNITY IS A 
WARNING TO OTHER WOULD-BE DEFECTORS.  THE PRO-CHAVEZ DEPUTIES 
HAVE MAINTAINED THEIR SLIM MAJORITY, AND HAVE USED IT TO 
MUSCLE THROUGH LEGISLATION IMPORTANT TO THE REVOLUTION. 
PLAYING HARD BALL WITH RONDON EMPHASIZES THE IMPORTANCE THEY 
ATTACH TO MAINTAINING THEIR HOLD ON THE LEGISLATURE AND TO 
ALLEGATIONS OF CORRUPTION. 
MCFARLAND 
 
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      2004CARACA02197 - CONFIDENTIAL