US embassy cable - 05LIMA3974

C O N F I D E N T I A L SECTION 01 OF 02 LIMA 003974 
 
SIPDIS 
 
DEPT FOR WHA/AND, EB/TRA/AN 
TREASURY FOR OFAC 
FAA MAIMI FOR JAY RODRIGUEZ 
EMBASSY YAOUNDE FOR MALABO OFFICE 
 
E.O. 12958: DECL: 09/13/2015 
TAGS: EAIR, SNAR, CASC, PGOV, PE 
SUBJECT: ZEVALLOS ADVISOR HAS CLOSE TIES TO PERUVIAN 
CONGRESSMAN 
 
REF: A. LIMA 2796 
 
     B. LIMA 2053 
 
Classified By: AMBASSADOR J. CURTIS STRUBLE FOR REASONS 1.4 (B) AND (D) 
. 
 
1. (C) Summary.  OFAC-listed Narcotics Kingpin Fernando 
Zevallos, who sold two planes to cargo carrier Air Guinea in 
January, has enlisted Ricardo Hernandez as a front man in the 
transaction.  Hernandez is a close advisor of Peruvian 
Congressman Victor Valdez, Chairman of the Congressional 
Transportation Committee and member of President Toledo's 
Peru Posible party.  Valdez is also related to the mayor of 
Pucallpa, a nacrotrafficker.  Valdez's staff, which is 
investigating the recent TANS crash and alleged corruption 
within the DGAC, has requested technical assistance from the 
Embassy, FAA and NTSB.  When asked about the direct 
relationship between Congressman Valdez and Zevallos, 
Valdez's staff acknowledge that the two run in the same 
circles and that Zevallos may have contributed to Valdez' 
congressional campaign.  End Summary. 
 
No Payment for Planes 
--------------------- 
 
2.  (C) In late December 2004, Zevallos sold and shipped two 
AeroContinente planes, one Boeing 727, Registration Number 
OB-1752-P and one Boeing 737, Registration Number BO 1759-P, 
to Air Guinea Cargo, located in Equatorial Guinea (Ref A). 
According to DGAC documents, these planes left Peru this past 
January.  According to signed DGAC documents, American 
citizen Hector Gerardo Valentin, who owns Holiday Airways in 
Miami, helped broker the deal between Zevallos and Spanish 
citizen Francisco Martin Sierra, owner of Air Guinea Cargo. 
(Note:  Post passed information about Hector Valentin to the 
Department of the Treasury's Office of Foreign Assets Control 
for future investigation.  End Note.) 
 
3. (U) Peruvian daily "El Comercio" reported on September 4 
that Zevallos claims that he has not yet received payment for 
his planes.  The paper continued that Zevallos' 
representatives have attempted on several occasions to obtain 
payment to no avail.  Zevallos' front man for this 
transaction, Ricardo Hernandez San Martin, traveled to 
Equatorial Guinea several times to meet with Air Guinea owner 
Francisco Martin Sierra, demanding payment and threatening a 
lawsuit.  Hernandez gained access to Equatorial Guinean 
Congressman and business officials with the help of a 
document from Peruvian Congressman Victor Valdez (who is 
President of the Congressional Transport Committee).  The 
Congressman's letter introduced Hernandez as one of his key 
advisors and an expert on aviation matters. 
 
Congressman Linked to Zevallos? 
------------------------------- 
 
4.  (C) The bizarre Zevallos saga further highlighted for 
Post a close link between Congressman Victor Valdez and 
Zevallos.  DGAC sources noted several months ago that Valdez, 
whose Congressional Committee is investigating corruption 
within the DGAC, requested all DGAC personnel files, 
including salary and family information.  According to former 
DGAC Wilson Benzaquen, Valdez passed that information to 
Zevallos, who may use it to manipulate DGAC officials. 
Valdez has in recent months regularly defended Zevallos and 
called for the development of new airlines, including 
AeroContinente EIRL. 
 
5.  (C) We met with two of Valdez's advisors on September 7 
to discuss Valdez's role in the Transport Committee and the 
ongoing TANS investigation.  (Note:  these advisors visited 
the FAA Miami office on August 30 to request assistance and 
discuss corruption within the DGAC.  End Note.)  After 
listening to their request for technical assistance from the 
FAA and NTSB for the ongoing investigation, EconCouns 
inquired about the "El Comercio" article and the relationship 
between Zevallos and Valdez.  The advisors emphasized that 
Valdez sent the letter to the Government of Equatorial Guinea 
in an effort to protect Peruvian companies, not to help 
Zevallos per se.  They acknowledged a clear relationship 
between Valdez and Hernandez, who also advises Zevallos on 
aviation issues.  They also noted that Zevallos, who is from 
the same region as Congressman Valdez, has mutual 
acquaintances and contacts.  They did not deny a direct 
relationship between the two, but insinuated that Zevallos, 
as a donor to many political campaigns, may have contributed 
to Valdez's campaign.  The advisors also noted that Zevallos 
had infiltrated the Transport Committee, exerting influence 
over some of its members. 
 
Comment 
------- 
 
6.  (C)  We suspect that there is a strong relationship 
between Zevallos and Congressman Valdez, despite the feeble 
response from the Congressman's office.  Valdez, who is the 
nephew of Pucallpa Mayor Luis Valdez (an alleged 
narcotrafficker with ties to Zevallos), has been seen in 
public with Zevallos in recent months and continues to 
pressure the DGAC on Zevallos' behalf.  Zevallos has shown 
that he is well connected in Peru; it appears that Valdez is 
one more person in Zevallos' pocketbook. 
STRUBLE