US embassy cable - 05QUITO2288

UNCLAS SECTION 01 OF 02 QUITO 002288 
 
SIPDIS 
 
DEPT PASS TO USAID 
 
E.O. 12958: N/A 
TAGS: SENV, EAID, ECON, PGOV, EC, Environment 
SUBJECT:  ENVIRONMENT MINISTER CONFRONTS ILLEGAL LOGGERS 
AMID RUMORS OF HER OUSTER 
 
REF: QUITO 1828 
 
1. Summary:  Minister of Environment Anita Alban took to the 
forest on October 1st to investigate illegal logging.  The 
inspection, which revealed criminal activities, has yet to 
generate any concrete judicial response.  Alban's decision 
to confront loggers takes place amid rumors that she will be 
removed from office.  MOE workers on strike over forestry 
management in the Ministry have further complicated the 
political landscape for Alban.  End Summary. 
 
UNFAMILIAR TERRITORY 
-------------------- 
 
2.  Responding to complaints of illegal logging from the 
Indigenous Awa Federation (FCAE), Minister Alban traveled to 
Awa territory in northern Ecuador on October 1 to conduct an 
inspection.  Alban was accompanied by a USAID specialist, 
ministry personnel, and a journalist.  Consistent with FCAE 
claims, Alban's team discovered what appeared to be several 
illegal logging operations.  While some of the operations 
were run by independent groups, others were associated with 
known timber companies.  Although no one was arrested at 
that time, National Forestry Director German Espinoza 
ordered the loggers to stop operations.  Although they claim 
to have no affiliation with the logging operations 
discovered by the Minister's group, the timber company 
SETRAFOR has agreed to conduct follow-up meetings with FCAE 
on October 11 to establish more concrete agreements between 
the two and to clarify land title disputes. 
 
3.  Alban's inspection took many by surprise.  Although 
Alban said deforestation was one of her main concerns when 
she became Minister in April 2005, she had heretofore done 
nothing to address what is the second highest rate of 
deforestation among South American countries.  Alban's 
inaction is not restricted to forestry issues.  She has been 
absent and weak on a number of high-profile environmental 
issues, most notably with respect to the Galapagos (reftel). 
 
4.  Inattention to deforestation preceded Alban.  Indeed, 
this type of active engagement against illegal logging has 
not been seen in the Ministry since 2003.  Prior to 2003, 
the Swiss company SGS provided independent and effective 
monitoring of logging activities under a contract with the 
Ministry of Environment.  Logging interests managed to have 
SGS's contract ruled unconstitutional by courts in 2003. 
Without SGS monitoring, illegal logging is rampant and the 
Ministry of Environment has been unable (and apparently 
unwilling) to stop it.  That Alban's team did not follow up 
the October 1st investigation with any immediate legal 
action may suggest more of the same. 
 
MOE STRIKE CONTINUES 
-------------------- 
 
5.  An ongoing strike at the Ministry of Environment no 
doubt has motivated Minister Alban.  Ministry staff, who 
initiated the strike on September 22nd, have been voicing 
their displeasure over the Ministry's forest management. 
Publicly, they claim that they want greater control over 
forestry programs.  However, Ministry staff acknowledged to 
Econoff that a segment of striking employees also are 
interested in keeping tax money and jobs.  As the strike has 
progressed, calls for Alban to resign have grown.  Not all 
MOE staff are on board with the strikers' demands, and many 
continue to do their work.  Nonetheless, the employees 
association has been successful in garnering press and 
pressuring Minister Alban to act. 
 
6.  To address the strikers' concerns, Minister Alban also 
has developed a proposal on forestry management that 
striking employees are reviewing.  The proposal, known as 
the National System of Forestry Control and Wildlife 
Trafficking, allocates $350,000 to be utilized by both 
existing staff and contractors.  Unfortunately, program 
funds will last only 6 months.  Together with the illegal 
logging inspection, the new forest management proposal 
represents Alban's effort to satisfy the demands of striking 
staff and portray herself as an active and effective 
Minister. 
 
ALBAN'S DAYS NUMBERED? 
---------------------- 
 
7.  Minister Alban's recent actions suggest she is worried 
about keeping her job.  Indeed, the calls for her to resign 
are resonating outside of the MOE and continue to grow. 
More worrisome for Alban, politicians within the PSC also 
have an eye on her Ministry.  Congressman Alfredo Serrano, 
who represents the Galapagos and has business interests 
there, reportedly wants Alban replaced with someone more to 
his liking.  MOE Sub-minister Alfredo Carrasco's name has 
been mentioned as a possible replacement.  Carrasco's 
evasive responses to questions surrounding the strike and 
calls for Alban's removal suggest he is mulling over his 
options.  Nothing specific appears in the works as of yet. 
 
COMMENT 
------- 
 
8.  The arrival of a new Minister could lead to changes in 
the Governorship of the Galapagos and the Directorship of 
the Galapagos National Park (GNP).  Politicization of the 
GNP during the last 2-plus years triggered violent 
demonstrations in the islands and had damaging effects on 
the GNP's monitoring and enforcement abilities.  Whether 
driven by striking MOE staff or Ecuadorian political 
interests, the removal of Minister Alban may well cause more 
institutional and social instability. 
 
JEWELL