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Viewing cable 08RIODEJANEIRO239, Rio de Janeiro Pol/Econ Round-Up, July/August 2008

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Reference ID Created Released Classification Origin
08RIODEJANEIRO239 2008-09-09 18:59 2011-07-11 00:00 UNCLASSIFIED Consulate Rio De Janeiro
VZCZCXRO8864
RR RUEHRG
DE RUEHRI #0239/01 2531859
ZNR UUUUU ZZH
R 091859Z SEP 08
FM AMCONSUL RIO DE JANEIRO
TO RUEHC/SECSTATE WASHDC 4607
INFO RUEHBR/AMEMBASSY BRASILIA 0944
RUEHSO/AMCONSUL SAO PAULO 5178
RUEHRG/AMCONSUL RECIFE 3449
UNCLAS SECTION 01 OF 02 RIO DE JANEIRO 000239 
 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ENRG EPET EAIR PGOV PHUM KCRM KCOR KPLS SNAR SOCI BR
SUBJECT: Rio de Janeiro Pol/Econ Round-Up, July/August 2008 
 
Summary 
------- 
 
1.  The following are highlights of Political/Economic activity in 
Rio de Janeiro's reporting district during the months of July-August 
2008. 
 
- GOB Considers Privatizing Rio International Airport 
- Armed Forces Deployed to Rio for Municipal Elections 
- Former Rio Governors Indicted for Corruption 
- Rio de Janeiro Police Most Lethal in World 
- Militia Violence on the Rise 
- New Synthetic Drug Seized in Rio de Janeiro 
 
 
GOB Considers Privatizing Rio International Airport 
--------------------------------------------- ------ 
 
2. In a move aimed at making Rio's bid to host the 2016 Olympics 
more attractive, Governor Cabral's office released a statement 
saying that President Lula approved a proposal for the privatization 
of Rio's international airport, which should be finalized in the 
next few weeks.  According to Brazilian Government Airport 
Administration (INFAERO) President Srgio Gaudenzi, the Brazilian 
National Development Bank (BNDES) is already preparing a study on 
the most viable way to do this.  Some envision a model similar to 
that adopted by Petrobras, which has shares in the market, but is 
still controlled by the GOB.  The estimated GOB 2009 budget for 
Rio's airport is approximately USD 29.6 million. 
 
Armed Forces Deployed to Rio for Municipal Elections 
--------------------------------------------- ------- 
 
3. On September 4, Defense Minister Nelson Jobim announced the 
deployment of the Brazilian military to Rio de Janeiro state in 
advance of municipal elections to supplement local security forces. 
Jobim announced that the Army and Navy would, in coordination with 
state and federal police, be stationed in 24 at-risk communities 
which have been identified by the Regional Electoral Court (TRE). 
The TRE is worried that local criminal organizations are 
intimidating voters to support certain candidates.  TRE President 
Roberto Wider has stated that military and law enforcement officers 
will be armed and will defend themselves if needed to ensure the 
democratic process. 
 
Former Rio Governors Indicted for Corruption 
-------------------------------------------- 
 
4. After two years of investigation, the Rio de Janeiro State Public 
Attorney indicted former Governors of Rio de Janeiro Rosinha 
Garotinho, and her husband, Anthony Garotinho, along with 21 other 
associates on charges of corruption and embezzlement. The Garotinhos 
are accused of misappropriating an estimated USD 40 million in 
government funds from the State Health Secretariat during their 
mandates through NGOs and evangelical churches. The money was 
transferred into personal bank accounts.  The matter has been moved 
to the Federal Supreme Court (STF), which has not yet set a date for 
trial. 
 
Rio de Janeiro Police Most Lethal in World 
------------------------------------------ 
 
5. A recent report by the Institute for Public Security of the state 
of Rio de Janeiro (ISP) shows that Rio de Janeiro police on average 
kill four people per day.  This rate is a 12 percent increase over 
2007, making Rio's police force the most lethal in the world.  In 
response, Rio de Janeiro State Public Secretary Jos Beltrame 
announced that he is replacing the current automatic weapons used by 
the police with less lethal weapons. 
 
Militia Violence on the Rise 
---------------------------- 
 
6. A militia group called the "Justice League" is charged with 
murdering seven residents in the Barbante favela, a poor community 
on Rio's west side, on August 19.  According to the Rio State 
Secretariat for Public Security, 17 members of the militia posing as 
drug traffickers entered the community and shot people at random. 
The attack, believed to be orchestrated by former Military Police 
officer Luciano Guinancio, was aimed at generating community support 
for the militia to protect against violent drug traffickers. 
Besides Guinncio, three other current Military Police officers are 
suspected of involvement.  Guinancio is the son of current Rio de 
Janeiro City Council member Jeronimo Guimaraes (PMDB Party), who has 
been in jail since December 2007 for organizing illegal militia 
activity in the same area.  (Note:  Militia groups often start as 
off-duty and former law enforcement officers taking community 
policing into their own hands.  However, many militias become as bad 
as the drug traffickers in terms of intimidating residents and 
conducting illegal activity.) 
 
RIO DE JAN 00000239  002 OF 002 
 
 
 
New Synthetic Drug Seized in Rio de Janeiro 
------------------------------------------- 
 
7. Law enforcement authorities announced that locally-produced 
liquid ecstasy (GHB) has recently been seized in Rio de Janeiro's 
slums, marking the first known incidence of the drug being 
manufactured locally in Rio.  The criminal gang "Red Command" is 
believed to be behind production and distribution of GHB in Rio de 
Janeiro, with average street prices reported at around USD 20 per 20 
mL individual dose.  Synthetic drugs are highly popular among middle 
and lower class residents in Rio de Janeiro, but to date such drugs 
have largely been brought in illegally from Europe. 
 
MARTINEZ