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### Viewing cable 07QUITO1350, VIDEO SCANDAL EXPANDS

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
07QUITO1350 | 2007-06-13 12:12 | 2011-04-29 17:05 | CONFIDENTIAL//NOFORN | Embassy Quito

Appears in these articles:
http://m.elcomercio.com/wikileaks/cable.php?c=d3d9446
http://m.elcomercio.com/wikileaks/cable.php?c=45c48cc
http://m.elcomercio.com/wikileaks/cable.php?c=c9f0f89
http://m.elcomercio.com/wikileaks/cable.php?c=8f14e45

`

    VZCZCXYZ0007
    OO RUEHWEB

    DE RUEHQT #1350/01 1641219
    ZNY CCCCC ZZH
    O 131219Z JUN 07
    FM AMEMBASSY QUITO
    TO RUEHC/SECSTATE WASHDC IMMEDIATE 7196
    INFO RUEHBO/AMEMBASSY BOGOTA PRIORITY 6712
    RUEHCV/AMEMBASSY CARACAS PRIORITY 2581
    RUEHLP/AMEMBASSY LA PAZ JUN 0624
    RUEHPE/AMEMBASSY LIMA PRIORITY 1714
    RUEHGL/AMCONSUL GUAYAQUIL PRIORITY 2438
    RHEFDIA/DIA WASHDC
    RHMFISS/CDR USSOUTHCOM MIAMI FL

` `

    C O N F I D E N T I A L QUITO 001350

    SIPDIS

    SENSITIVE
    SIPDIS

    E.O. 12958: DECL: TEN YEARS
    TAGS: PGOV PREL EC
    SUBJECT: VIDEO SCANDAL EXPANDS

    REF: QUITO 1182

    Classified By: PolChief Erik Hall for reasons 1.4 (b&d).

    ¶1.  (C) Summary:  Another secretly-taped video involving
    Economy Minister Ricardo Patino has become public, extending
    the controversy over an earlier video (reftel).  The new
    video dates to February, and shows President of Congress
    Jorge Cevallos discussing his efforts toward congressional
    approval of the referendum over the national constituent
    assembly.  Media and opposition assert the video reveals
    Correa government manipulation of other branches of
    government, and claim more damaging videos will follow.
    While far short of a "smoking gun," the videos convey
    unseemly back-room dealings that have put the Correa
    government on the defensive and begun to erode public
    support.  More damaging revelations are promised in coming
    weeks.  End Summary.

    Video Content

    ¶2.  (U) The video tape contains footage of a meeting between
    Patino and Cevallos in Patino's hotel room, on the evening of
    February 12, shortly before Congress approved the
    government's controversial assembly referendum proposal.
    (Note: the referendum, strenuously opposed by the opposition,
    was approved by voters on April 15 by more than 81%.)
    Christian Democratic Union (UDC) congressman Jaime Estrada
    (like Cevallos a native of Manabi province) also appears in
    the meeting, as does Patino's political advisor Quinto
    Pazmino.

    ¶3.  (U) Most of the conversation consists of Cevallos (a
    founding member of Noboa's PRIAN) describing that day's
    session of Congress and how he planned to overcome procedural
    restrictions (and his own "problems with my own party") to
    permit a vote once passage of Correa's referendum statute was
    assured.  (Note:  Cevallos followed through and the measure
    was passed in the subsequent session).  Cevallos also
    expressed his concerns about whether Lucio Gutierrez's PSP
    party could be trusted to hold to its pledge to support the
    assembly proposal.  Patino's participation in the
    conversation is limited to asking a few questions.  At one
    point Estrada changed topics and lobbied for Patino's support
    for a $100m infrastructure project in Manabi province.  Once
    the video became public, the PRIAN formally expelled Cevallos
    and the Democratic Left (ID) has joined the PSC and PRIAN in
    calling for his resignation. The UDC is reportedly planning
    to oust Estrada as well.

    Patino's Defense Lame

    ¶4.  (U) In response to blanket press interest, minister
    Patino has counter-attacked the press, claiming it is "no
    coincidence" that the video emerged on TeleAmazonas, the
    media outlet owned by Bank of Pichincha president Fidel Egas.
     Egas' decision to broadcast the video is clearly an attempt
    to thwart the government's proposed banking reform, which he
    and other banking interests vehemently oppose, according to
    Patino.  President Correa's public support for Patino,
    meanwhile, remains solid. Correa's sister Pierina, however,
    has said publicly that Patino has become a distraction to the
    government's agenda and should step down.

    Opposition Seeking "Smoking Gun"

    ¶5.  (C) PSC national president Pascual del Cioppo and PSC
    ex-congressman Luis Fernando Torres told the DCM on June 8
    that the second video would soon be released, and that others
    would follow.  The videos would demonstrate damaging
    collusion between the Correa government and other nominally
    independent branches (judiciary, embodied by Supreme
    Electoral Tribunal president Jorge Acosta; and legislative,
    represented by Cevallos) to clear the path to approving the
    April 15 referendum over a national constituent assembly.
    While this particular video falls short of offering any
    "smoking gun," these opposition members assert that it will
    compound and extend the controversy over clandestine taping
    of sensitive meetings, and could further degrade presidential
    popularity which has dipped recently.

    ¶6.  (C) Another ex-congressman from the PSC, Alfredo Serrano,
    shed some light on the provenance of the tapes.  In a meeting
    on June 12 Serrano claimed that ex-Patino aide Pazmino
    possessed multiple tapes from sensitive sessions, and had
    flogged them with opposition-supporting members of the
    economic elite.  According to Serrano, PRIAN leader Alvaro
    Noboa paid $200K for a copy of the video (originating with
    Pazmino), only to be scooped by the release of a different
    copy by media outlet TeleAmazonas days later.  Serrano
    claimed PSC credit for acquiring and releasing the first
    video.  He said other damaging videos exist and will be
    released in turn, in the hope of damaging government
    credibility in the run-up to the assembly election in
    September.  The PSC has urged other opposition leaders to let
    the press, rather than opposition politicians, lead this
    attack.
    Comment

    ¶7.  (C) Opposition members ousted from Congress are reeling
    from what they perceive to be the Correa government's
    political persecution (although they continue to garner
    little sympathy from the public).  They see Patino as an
    increasingly vulnerable surrogate for Correa.  Impeachment
    proceedings against Patino could gather steam from this, the
    second secret video featuring Patino.  But even if
    successful, impeachment does not automatically remove a
    minister, and thus far Correa has shown no inclination to
    jettison one of his most trusted confidants.

    ¶8.  (C) The ousted opposition deputies have little hope that
    the newly re-constituted Constitutional Court will rule in
    their favor, and instead plan to appeal to the IACHR (Noboa
    is reportedly funding the legal bills for that effort).
    Judging from recent conversations, they are also willing to
    contemplate any and all means to terminate his government
    prematurely.  They justify undemocratic means with the charge
    that Correa's game plan for the upcoming constituent assembly
    is "pre-cooked" and itself undemocratic.  These opposition
    members believe Correa will use his majority to advance the
    timetable for elections in early 2008, and to purge the
    constitution of "neo-liberal bias" and consolidate his
    personal power by extending the presidential period to six
    years, with re-election permitted.  While this video is not
    particularly damaging in itself, it is certainly the case
    that were a "smoking gun" video to emerge, popular support
    for the government's reform agenda could erode.
    JEWELL

`