VZCZCXYZ0013
OO RUEHWEB
DE RUEHQT #3075/01 3550726
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O 210726Z DEC 06
FM AMEMBASSY QUITO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5934
INFO RUEHBO/AMEMBASSY BOGOTA PRIORITY 6277
RUEHCV/AMEMBASSY CARACAS PRIORITY 2243
RUEHLP/AMEMBASSY LA PAZ DEC 0292
RUEHPE/AMEMBASSY LIMA PRIORITY 1242
RUEHGL/AMCONSUL GUAYAQUIL PRIORITY 1604
RHEFDIA/DIA WASHDC
RHMFISS/CDR USSOUTHCOM MIAMI FL
UNCLAS QUITO 003075
SIPDIS
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: PGOV PINR EC
SUBJECT: CORREA NAMES NEW CABINET MEMBERS, INCLUDING LABOR
REF: QUITO 3033
1. (SBU) Summary: On December 19 President-Elect Rafael
Correa announced two new cabinet level ministers and four
lower level positions. The new officials named were: Antonio
Gagliardo Valarezo, Minister of Labor; Raul Carrion Fiallos
as Sports Minister; Monica Chuji Gualinga will be the
Communication Secretary; Leonardo Vicuna Izquierdo will head
the State Bank; Jorge Glas Espinel, will lead the Solidarity
Fund; and, Carlos Marx Carrasco will be the Internal Revenue
Director. Correa also confirmed plans to re-invent
government by re-arranging parts of the executive branch.
Information is scarce on most of Correa's newly announced
appointees, but many of them appear to conform to Correa's
preference for leftist academics without much government
experience. End Summary.
2. (U) The announcements took place at a press conference
prior to receiving his official credentials as
president-elect from the Supreme Electoral Tribunal. During
the event, Correa delivered a fiery speech to supporters
reaffirming his agenda for radical change, including his
intention to convoke a referendum on a constituent assembly.
Antonio Gagliardo Valarezo to Labor
-----------------------------------
3. (SBU) Gagliardo hails from Guayaquil, is considered a
labor law expert and was the former Minister of Welfare under
the PSC Rodrigo Borja administration. He has also been an ID
congressman and served as congressional vice president of the
Labor Commission. Correa said Gagliardo would focus on
workplace quality, and increasing subcontracting law controls
while putting an end to its abuses, and conduct a thorough
review of the new draft labor code.
Raul Carrion Fiallos, Minister of Sports
-----------------------------------------
4. (SBU) Correa announced that Raul Carrion will head the
new Ministry of Sports, which will replace the current Sports
Subsecretariat. Carrion is a cardiologist specializing in
sports medicine. Carrion hails from Guayaquil but lives in
Esmeraldas and has worked for the Ecuadorian Soccer
Federation and the Emelec and Esmeraldas Petrolero soccer
teams.
Monica Chuji Gualinga as Communication Secretary
--------------------------------------------- ---
5. (SBU) The announcement of Monica Chuji surprised many
analysts since she is a virtual unknown. She is from the
Amazon region, and has degrees in communication and
Sociology. She was a director of Warmi Wanguringa, a
Sarayacu indigenous women's organization. Sarayacu is an
Amazon community of 2,000 Quichua Indians that have conducted
a successful campaign to prevent oil exploration on their
ancestral lands in the southern Amazon region of Ecuador.
During his campaign Correa visited Sarayacu and expressed
solidarity with the indigenous community by publicly stating
that there would be no exploration or exploitation of
indigenous lands unless the communities consented. In naming
Chuji as his spokeswoman, Correa told the press her fluency
in both the Spanish and Kichwa languages would allow for
better contact with the indigenous communities in the country.
Leonardo Vicuna Izquierdo to the State Bank
-------------------------------------------
6. (SBU) Vicuna, an economist, served in Abdala Bucaram's
ill-fated administration and was named by President Palacio
to the Special Investigative Commission on Foreign Debt. He
was a dean and rector at the University of Guayaquil and is a
leftist writer known for his attacks against the Occidental
petroleum company and foreign debt payments. The State Bank
will be a development bank directed at the most needy
segments of society. Vicuna will focus on raising capital
which will then be used to fund sewage , and potable water
projects in those municipalities deemed lacking in economic
development.
Jorge Glas Espinel will head the Solidarity Fund
--------------------------------------------- ---
7. (SBU) Glas is from Guayaquil and an electrical engineer
by training. He is reportedly also a television personality
on cable TV (Television Satelital) and a telecommunications
system specialist. The Solidarity Fund oversees Ecuador's
two main telecommunications companies and the electricity
sector, using proceeds for social projects. Correa tapped
him to handle the restructuring of Andinatel and Pacifictel,
Ecuador's main telecommunications companies. Correa has
announced his intention to eliminate the Fund in the future
in favor of the possible creation of a Technology and
Communications ministry. Correa also announced he plans to
transfer management of the electrical companies to the Energy
Ministry.
Karl Marx Carrasco Collecting Taxes
-----------------------------------
8. (SBU) Carlos Marx Carrasco is from the province of Canar
in southern Ecuador and is an economics professor at the
University of Cuenca. He has authored several books and
holds two master's degrees in finance and planning and
development. Correa said Marx's top priority will be
increasing tax revenues.
Government Reinvention
----------------------
9. (SBU) Rafael Correa announced that he plans to eliminate
at least half of the 28 executive offices that report to the
President. He is also reportedly in favor of eliminating the
Central Bank (note: but lacks constitutional authority to do
so without the support of Congress) and the National
Committee on Modernization (CONAM). Correa intends to
preside directly over the National Council on Competitiveness
and will restructure the Deposit Guaranty Agency (AGD). The
Ministry of Agriculture and Livestock will assume
responsibility for fisheries, a function formerly handled by
the Ministry of Commerce, which will be eliminated. The
Ministry of Foreign Affairs will assume most trade functions
formerly handled by Commerce. Correa will also create new
ministries for migrants, sports (see above), and transport.
The former ministry of public works will be folded into the
new transportation ministry.
Comment
-------
10. (SBU) Many of his choices continue to surprise many
political analysts for their political anonymity. Several of
Correa's latest choices are relatively inexperienced in
government and politics. However, Correa's choices are
consistent with his trend of selecting academic and
ideological individuals. The announcement of an indigenous
women's activist advances his pledge to fill his cabinet
positions with at least 40% women and recognizes the
electoral support he received from indigenous communities.
Correa's nod for Defense Minister is also expected to go to a
woman civilian.
JEWELL