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Viewing cable 07LAPAZ2112, COMRADE CHAVEZ'S CHECKS COVER THE COUNTRY

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Reference ID Created Released Classification Origin
07LAPAZ2112 2007-08-01 22:30 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy La Paz
VZCZCXYZ0011
PP RUEHWEB

DE RUEHLP #2112/01 2132230
ZNR UUUUU ZZH
P 012230Z AUG 07
FM AMEMBASSY LA PAZ
TO RUEHC/SECSTATE WASHDC PRIORITY 4523
INFO RUEHAC/AMEMBASSY ASUNCION 6975
RUEHBO/AMEMBASSY BOGOTA 4330
RUEHBR/AMEMBASSY BRASILIA 8215
RUEHBU/AMEMBASSY BUENOS AIRES 5460
RUEHCV/AMEMBASSY CARACAS 2687
RUEHPE/AMEMBASSY LIMA 2862
RUEHMU/AMEMBASSY MANAGUA 0491
RUEHMN/AMEMBASSY MONTEVIDEO 4764
RUEHPU/AMEMBASSY PORT AU PRINCE 0087
RUEHQT/AMEMBASSY QUITO 5321
RUEHSG/AMEMBASSY SANTIAGO 9927
RUMIAAA/USCINCSO MIAMI FL
RUEHUB/USINT HAVANA 0452
RHEHNSC/NSC WASHINGTON DC
RHMFIUU/HQ USSOUTHCOM MIAMI FL
UNCLAS LA PAZ 002112 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ECON BL
SUBJECT: COMRADE CHAVEZ'S CHECKS COVER THE COUNTRY 
 
REF: A. LA PAZ 859 
     B. LA PAZ 1664 
 
------- 
Summary 
------- 
 
1. (SBU) Over the past week, President Morales has handed out 
Venezuelan checks or goods amounting to over USD 18 million. 
During a July 31 visit to Oruro where he delivered over USD 
two million in Venezuelan aid checks President Morales 
likened Venezuelan President Hugo Chavez to Simon Bolivar. 
On July 30, Venezuela's DCM and President Morales delivered 
USD 10 million in heavy equipment to Bolivia's 
opposition-controlled Beni department.  On July 27, Morales 
announced that he was giving a Venezuelan donation of USD 5.5 
million to the armed forces.  The opposition argues that the 
checks circumvent the GOB's normal budgetary and foreign 
assistance accounting procedures (reftel A), and that 
President Morales is illegally channeling the funds for 
political patronage.  The opposition wants Bolivia's 
controller to audit the GOB's alleged irregularities in 
parsing out Venezuelan assistance.  The GOB argues the 
donations are legal as they comply with its Supreme Decree 
29079.  The opposition may be looking to the controller to 
audit the GOB because they recognize the Constitutional 
Tribunal -- where four of its five magistrates are under 
politically motivated impeachment proceedings (reftel B) -- 
may never get a chance to rule on the legality of SD 29079. 
End Summary. 
 
-------------------- 
Hugo and Evo Deliver 
-------------------- 
 
2. (SBU) President Morales, during a July 31 visit to Oruro 
where he delivered over USD two million in Venezuelan aid 
checks to the Oruro mayor, likened Venezuelan President Hugo 
Chavez to Simon Bolivar.  Morales stated " . . . a 
Venezuelan, Simon Bolivar founded Bolivia, this is the 
fatherland (Patria Grande); they (the United States) have 
divided us, no north American founded Bolivia and now comrade 
Hugo Chavez continues to strive for the fatherland."  The 
checks, according to the GOB, are destined for infrastructure 
projects, such as the construction of a new market, a 
stadium, recreation centers, and classrooms. 
 
3. (SBU) Venezuela's DCM Douglas Perez announced a donation 
of USD 10 million in heavy equipment to Bolivia's 
opposition-controlled Beni department on July 30.  Beni 
suffered extreme flooding earlier this year.  President 
Morales and his ministers of defense and presidency were on 
hand in Trinidad for the donation.  Neither Beni prefect 
Ernesto Suarez nor the Trinidad mayor attended the donation 
ceremony.  Prefecture officials claim the prefect was not 
invited. 
 
4. (SBU) President Morales on July 27 announced that he was 
giving a Venezuelan donation of USD 5.5 million to the armed 
forces.  MILGRP officers confirmed that donations are 
destined for regimental units and below (200 to 300 
soldiers), each unit receiving approximately USD 50,000. 
This Venezuelan donation would amount to close to four 
percent of the military's USD 150 million budget.  In making 
the donation, Morales stated, "this unconditional Venezuelan 
aid cannot simply go to mayors, social sector groups, and a 
few departments, that is why I decided to send some to the 
armed forces and police." 
 
---------------------- 
The Opposition Objects 
---------------------- 
 
5. (SBU) The opposition argues that the checks circumvent the 
GOB's normal budgetary and foreign assistance accounting 
procedures (reftel A).  PODEMOS (opposition) deputy Edwin 
Jiminez announced on July 31 that he would submit a proposal 
before Congress to authorize Bolivia's Controller to 
investigate the GOB's irregularities in parsing out 
Venezuelan assistance.  Jiminez alleges the GOB has violated 
a number of Bolivian laws.  He also accuses that President 
Morales is illegally channeling the funds for political 
patronage. 
 
6. (SBU) In June, Jiminez sent a letter to the Ministry of 
Foreign Affairs (MFA) requesting an explanation of how the 
donations were legally being distributed.  The MFA, according 
to Cochabamba newspaper Los Tiempos, sent Jiminez a note that 
explained that the GOB was executing the donations as 
provided for under the Bolivarian Alternative for the 
Americas (ALBA) and the GOB's March 27 Supreme Decree 29079. 
President Morales, via SD 29079, essentially legalized large 
direct Venezuelan payments to mayors.  Under SD 29079, mayors 
can directly procure more than USD $225,000 in funds for 
municipal projects.  (Note: Under the old law, mayors were 
only authorized to direct donations of up to USD $20,000). 
 
------- 
Comment 
------- 
 
7. (SBU) The opposition may be looking to the controller to 
audit the GOB because they recognize the courts may never get 
a chance to rule on the legality of SD 29079.  With four of 
five Constitutional Tribunal Magistrates under politically 
motivated impeachment proceedings (reftel B), the court may 
essentially be closed by the time a case regarding SD 29079 
could be heard.  While the Controller searches for GOB 
irregularities, President Morales continues to enjoy the 
goodwill he is generating by doling out large sums of 
Venezuelan money.  End Comment. 
GOLDBERG