US embassy cable - 05GUAYAQUIL1225

UNCLAS SECTION 01 OF 02 GUAYAQUIL 001225 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: PGOV, KDEM, PINR, EC 
SUBJECT: EX-PRESIDENT NOBOA FORCIBLY RETURNED TO GUAYAQUIL 
 
REF: GUAYAQUIL 567 
 
1.  (U) Tactical police stormed the beachfront home of former 
President Gustavo Noboa on October 11 and loaded him on to a 
helicopter under orders from the provincial police chief that 
he be returned to Guayaquil.  Noboa has been under house 
arrest for more than five months, after he returned to 
Ecuador on April 3 from his brief self-exile in the Dominican 
Republic. (reftel)  He had originally left the country in 
August 2004, when his arch nemesis and PSC stalwart Leon 
Febres Cordero (LFC) charged him with supposed irregular 
restructuring of Ecuador's external debt while Noboa was 
president. 
 
2.  (U) In this latest move, Noboa left Guayaquil without any 
type of escort (police were no longer guarding his home).  As 
his defense, he claimed that a local judge had recognized his 
right to change the location of his house arrest to his true 
residence in the retreat town of Punta Blanca (offering as 
proof that he only rents the house in Guayaquil).  He also 
argued that he had discussed this plan many times with 
authorities, both within the police force and the Ministry of 
Government.  LFC was quick to admonish Noboa in the press, 
stating "he has no right to be given any privileges."  Noboa 
quickly retorted that LFC was behind the questionable police 
action.  He went on to note that even Guayaquil mayor Jaime 
Nebot (PSC) believes the law enforcement authorities went 
overboard in their zealousness to bring Noboa back to 
Guayaquil (Nebot's second such public spat with LFC in just 
one week). 
 
3.  (SBU) While Noboa's lawyer prepares a formal lawsuit for 
the Interamerican Commission for Human Rights seeking his 
release from house arrest until there is a Supreme Court that 
can hear his case, Noboa announced that he is seriously 
considering a return to politics.  However, Noboa's close 
confidant and former Minister of Government Rodolfo Barniol 
later told PolOff that Noboa cannot afford to re-enter 
politics right now.  Between the outstanding house arrest 
order and the threat of further charges being brought against 
him by the acting comptroller general, it would be very 
difficult.  "To say nothing of the strong-arm tactics LFC 
would take to oppose it," maintained Barniol. 
 
4.  (SBU) Barniol commented that Noboa is "a victim of the 
(in)justice system" here in Ecuador, and added that the 
situation the former president finds himself in can all be 
traced back to the maneuverings of LFC.  When asked what he 
believes LFC's motivation to be, Barniol replied that it 
stems from two things: Noboa's close relationship with LFC's 
father (Agustin Febres Cordero Tyler), which LFC came to 
resent, and the fact that while president, Noboa refused to 
do the bidding of LFC's party. 
 
5.  (SBU) Noboa's close friend also believes that things are 
going to get worse for the former president.  Specifically, 
in addition to the charges settled against him by LFC, Noboa 
faces the possibility of additional charges from the acting 
comptroller general, who is close to LFC.  These latest 
charges would be against Noboa and his two Ministers of 
Economy and Finance (Luis Iturralde and Jorge Gallardo) for 
supposedly arranging for the transfer of $48 million to 
Salomon Smith Barney for their role in Ecuador's debt 
restructuring negotiations.  The American company was the 
official advisor to the GOE during these negotiations. 
However, the comptroller general is portraying this $48 
million as above their fee and more along the lines of making 
some backroom deal with the banks.  While Barniol admitted 
that he could not provide any evidence of this intended 
action, he stated the announcement is to be made in the next 
week or two. 
 
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COMMENT 
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6.  (SBU) This latest political drama is another illustration 
of the debilitating predicament facing Ecuador's democratic 
institutions.  The current lack of a Supreme Court in Ecuador 
means that Noboa's case is literally in limbo (under 
Ecuadorian law only the president of the Supreme Court can 
rule on Noboa's appeal).  The last Supreme Court president 
annulled the charges against Noboa and the person who 
reinstated them was a district attorney, not a judge.  The 
fact that LFC came out early and very vocally against Noboa's 
right to shift residences seems to confirm his personal 
motives.  It is also interesting that Nebot continues to 
distance himself from LFC publicly. 
 
JOHNSON