US embassy cable - 04CARACAS2599

C O N F I D E N T I A L  CARACAS 002599 
 
SIPDIS 
 
 
NSC FOR CBARTON 
USCINCSO ALSO FOR POLAD 
STATE PASS TO DCHA/OTI 
 
E.O. 12958: DECL: 08/12/2014 
TAGS: PGOV, ECON, KDEM, VE 
SUBJECT: VENEZUELA: GOV CONTINUES TO ACCUSE CANTV 
 
REF: CARACAS 2563 
 
Classified By: Political Counselor Abelardo A. Arias for reason 1.4 (d) 
 
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Summary 
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1. (C) The GOV continues to accuse CANTV, the 
telecommunications company handling the automated voting 
August 15, of attempting to manipulate the referendum 
results.  Vice President Jose Vincente Rangel warned CANTV 
and its "North American associates" that the GOV would act if 
the company and its opposition-affiliated executives tried to 
steal the vote from Chavez, and Podemos Deputy Ismael Garcia 
said CANTV President Gustavo Roosen's answers at the National 
Assembly were "not sufficient."  CANTV employees fear a GOV 
take-over after the referendum and Verizon President of 
International Operations has expressed concern to the 
Ambassador about Verizon's investment in CANTV.  Still, CANTV 
is ready for the referendum August 15.  End Summary. 
 
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GOV Believes CANTV Could Manipulate the Vote 
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2. (U) VP Jose Vincente Rangel warned CANTV executives and 
their "North American associates" August 10 that the GOV 
would act if the telecommunications company attempted to 
manipulate the results of the referendum.  Rangel told 
reporters there have been signs from the company that have 
led the GOV to believe CANTV might not "honor" its 
obligations to the State and the Venezuelan people.  He said 
CANTV would be taking a "great risk" if it perpetrated 
fraudulent activity during the referendum.  Rangel identified 
CANTV President Gustavo Roosen and CANTV board member Ricardo 
Hausmann as supporters of the opposition to justify his 
claims of potential sabotage by CANTV. 
 
3. (U) Podemos Deputy Ismael Garcia (who is trying to 
resurrect his image after his failing role in leading the 
Chavez effort against the signature appeals) told reporters 
August 10 that the answers given by Roosen to the special 
National Assembly commission August 9 were "not sufficient" 
and that the commission would continue to investigate CANTV's 
handling of the automated voting.  Roosen spent six hours 
testifying before the commission, addressing questions 
related to trumped up accusations of CANTV's bias in favor of 
the "Si" campaign.  Garcia and other pro-government deputies 
grilled Roosen on everything from opposition conspirators in 
CANTV to the possibility of Verizon counterparts in the U.S. 
manipulating the data. (reftel) 
 
4. (U) The Venezuelan military inspected CANTV cables along 
the regional highway in the state of Aragua this week to 
thwart any plans to destabilize the region before the 
referendum.  Aragua state Governor Didalco Bolivar said the 
presence of the military along the highway would help guard 
against any potential acts of sabotage by "terrorists" 
seeking to cut off light, gas, water, or telecommunication 
services.  Chavez opponents saw the action as a hint of the 
government's preparation to act against CANTV. 
 
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CANTV, Verizon Concerned ... 
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5. (SBU) CANTV employees (one working in the operations 
centers for the referendum and another advising Roosen) told 
embassy FSN August 11 that the National Electoral Council 
(CNE) has required that all CANTV operators remain in the 
operations centers August 12-16 without outside 
communication.  They said CANTV operators will be supervised 
by military officers at all times - this despite the fact 
CANTV is merely transmitting the data and will never have 
access to it. 
 
6. (SBU) According to these employees, CANTV is conscious of 
 
the GOV's capacity to intervene in the operations of CANTV. 
While the similarities with PDVSA are not exact, they said 
there could be a move to "clean out" CANTV as was done to 
PDVSA in 2003.  CANTV employees know Chavez sees the 
telecommunications sector as strategic and think he might try 
to take it over if he wins the referendum.  They believe the 
CANTV executives named by Deputy Garcia August 9 as part of 
an "opposition conspiracy," including Roosen and Director 
Jorge Dominguez, would be the first to be fired. 
 
7. (C) Verizon's President of International Operations, Dan 
Petri, called the Ambassador August 11 to discuss his 
concerns for Verizon's investment in CANTV, given the 
government's accusations.  Verizon has 28% share of CANTV, 
while the GOV has 6% share. 
 
-------------------------------- 
... But Ready for the Referendum 
-------------------------------- 
 
8. (SBU) CANTV communications official Amado Fugett told 
poloff August 12 the accusations against his company amounted 
to nothing more than "political noise."  Fugett said CANTV 
had made some adjustments at the CNE's request based on the 
concerns expressed by the GOV and Chavez supporters.  He said 
the company hosted National Assembly deputies, 
telecommunications regulatory officials, and military 
officers to review the setup at CANTV's two operations 
centers that will be used during the referendum.  Tests of 
the system have been successful, he said, and it will be 
ready for the August 15 referendum. 
 
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Comment 
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9. (C) CANTV and Verizon have reason to be concerned by the 
GOV's threats and accusations.  In a television interview 
August 10, VP Rangel said he "never agreed with the 
privatization of the telecommunications sector."  Still, the 
GOV is unlikely to use the referendum as an immediate pretext 
for nationalizing CANTV.  More likely, the GOV is laying the 
groundwork to cry CANTV foul and contest the results if 
Chavez loses the referendum. 
Shapiro 
 
 
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      2004CARACA02599 - CONFIDENTIAL