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Viewing cable 07LIMA1413, APPOINTMENT OF FUJIMORISTA ROILS GOP, HURTS PRIME

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Reference ID Created Released Classification Origin
07LIMA1413 2007-04-16 20:51 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Lima
VZCZCXYZ0002
RR RUEHWEB

DE RUEHPE #1413/01 1062051
ZNR UUUUU ZZH
R 162051Z APR 07
FM AMEMBASSY LIMA
TO RUEHC/SECSTATE WASHDC 5077
INFO RUEHBO/AMEMBASSY BOGOTA 4548
RUEHBR/AMEMBASSY BRASILIA 7292
RUEHCV/AMEMBASSY CARACAS 0299
RUEHGT/AMEMBASSY GUATEMALA 1004
RUEHLP/AMEMBASSY LA PAZ APR QUITO 1146
RUEHSG/AMEMBASSY SANTIAGO 1220
RHEFDIA/DIA WASHINGTON DC
RUEAIIA/CIA WASHDC
UNCLAS LIMA 001413 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV PINR PE
SUBJECT: APPOINTMENT OF FUJIMORISTA ROILS GOP, HURTS PRIME 
MINISTER 
 
 
1.  (SBU) Summary: The short-lived appointment of ex-Fujimori 
Prime Minister Alberto Pandolfi to a government position has 
embroiled the APRA Administration in a debilitating scandal. 
Pandolfi faces criminal charges relating to Vladimiro 
Montesinos corruption scandals and in 2003 was legally 
prohibited from holding office for ten years.  The Pandolfi 
affair has raised questions about alleged connections between 
the APRA Government and ex-President Fujimori's network and 
appears to have engergized a divided opposition.  It has also 
revealed fissures and power plays among the top players 
within APRA.  Prime Minister Jorge del Castillo proved 
effective in defending Pandolfi's appointment before Congress 
April 12 as an honest mistake.  Most observers expect del 
Castillo will weather the storm but believe the opposition 
will redirect its wrath at Housing Minister Hernan Garrido 
Lecca, who is at the center of an unrelated press 
manipulation scandal that broke several days ago.  End 
Summary. 
 
Naming the Ineligible 
--------------------- 
2.  (U) The Garcia Administration named ex-Fujimori Prime 
Minister Alberto Pandolfi to be Director of the Office of 
Vulnerability Reduction in Case of an El Nino (PREVEN) on 
April 1, at the recommendation of Vice President Luis 
Giampietri.  According to insiders, Pandolfi was working 
informally in the position for several months before his 
appointment was made official.  On April 2 press reports 
broke the story that Congress had voted in 2003 to bar 
Pandolfi from holding public office for ten years for his 
alleged involvement in a number of abuse of power and 
corruption scandals in association with former Fujimori 
Intelligence Director Vladimiro Montesinos.  On April 3, 
Pandolfi was removed from the position.  One contact pointed 
out that Pandolfi appears in a number of the infamous 
Montesinos video tapes, which triggered the downfall of the 
Fujimori government.  He still faces at least two criminal 
court cases. 
 
Political Consequences 
---------------------- 
3.  (SBU) Pandolfi-gate has had a series of immediate 
consequences.  To the administration's harshest critics, it 
has put a spotlight on what they see as a de facto Garcia 
administration-Fujimorista alliance, with Vice President Luis 
Giampietri accused of operating as the go-between.  These 
critics allege that the two groups have sought to sabotage 
former President Fujimori's extradition from Chile and 
generally to impede investigations into human rights abuses 
in Peru's recent past.  Some also believe that the APRA 
Government, impressed with some of Fujimori's more effective 
political techniques, sought to learn them by hiring the 
acknowledged masters.  Less cynical observers emphasize 
Giampetri's lack of political judgement in appointing 
Pandolfi strictly for his "technical" qualifications while 
failing to consider the pivotal political dimension and the 
way it was bound to play out in public. 
 
4.  (SBU) Potentially the most important result of the 
appointment has been the apparent reuniting (for the time 
being) of Humala's Nationalist Party (PNP) and the Union Por 
el Peru (UPP) opposition.  The two parties united under the 
presidential candidacy of Ollanta Humala in 2006, but split 
soon after the election and have been operating independently 
and often at odds in Congress since that time.  Now, these 
opposition elements have been re-energized by the Pandolfi 
Affair.  Working parallel, the PNP and the UPP launched the 
campaign to summon Prime Minister del Castillo to answer 
written questions ("interpelacion") on the Pandolfi matter. 
While they are cooperating on this issue, the PNP and UPP 
remain separate, however. 
 
5.  (SBU) The Pandolfi affair has also revealed rifts and 
intense political jockeying among the top dogs in the APRA. 
Unidad Nacional Congressman Martin Perez told Poloff on 4/13 
that "the strongest opposition to the Garcia administration 
comes from APRA representatives in Congress."  Perez noted 
that Congressional President and APRA congresswoman Mercedes 
Cabanillas appeared to treat del Castillo's "interpelacion" 
as a foregone conclusion, openly suggesting that 
congressional representatives keep their difficult questions 
for later (when Del Castillo would have been compelled by 
Congress to come instead of now when he had appeared 
voluntarily).  Other observers suggest that many APRA 
insiders resent the high-profile role in the government of VP 
Giampietri, a Johnny-come-lately to the party, and are 
particularly riled when Giampietri's contacts make trouble 
for the government at a time when President Garcia continues 
to hold the line on patronage for APRA loyalists. 
 
Del Castillo Addresses Congress 
------------------------------- 
6.  (U) To preempt further damage, Del Castillo agreed 
voluntarily to appear before Congress and answer any question 
on the matter.  On April 12, he spoke for several hours in a 
session that featured some raucous exchanges.  Del Castillo 
stated that the decision to hire Pandolfi resulted from a 
combination of human error and exhaustion.  He also cited the 
opinions of ten jurists who argued that the appointment was 
neither an administrative nor a criminal act, but rather a 
political error that was quickly corrected.  Del Castillo 
represented himself ably, while by some accounts both his 
allies and his critics came off less well.  According to news 
reports, sparks flared when Vice President Giampietri and 
Accion Popular leader Victor Andres Garcia Belaunde exchanged 
insults.  The contretemps reinforced the impression that Del 
Castillo represented an island of serenity in a sea of loud 
and chaotic voices. 
 
Housing Minister to the Rescue 
------------------------------ 
7.  (SBU) Most observers expect del Castillo will weather the 
storm, in part because the opposition will redirect its wrath 
at Housing Minister Hernan Garrido Lecca, who suddenly finds 
himself at the center of an unrelated press manipulation 
scandal that broke several days ago.  On April 9, television 
journalist Cecilia Valenzuela reported that the Housing 
Minister had been paying three pro-Fujimori tabloids for 
favorable news coverage on himself and for attacks against 
his predecessor in the Toledo government.  Calls within 
Congress to interpellate the Housing Minister are growing, 
and many see attacking Lecca as politically effective but 
less politically damaging than an attempt to censure or 
remove Del Castillo. 
STRUBLE