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### Viewing cable 07QUITO1607, CONGRESS VOTES "NO CONFIDENCE" IN FINANCE MINISTER

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
07QUITO1607 | 2007-07-17 21:35 | 2011-04-29 17:30 | 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

`

    VZCZCXYZ0001
    OO RUEHWEB

    DE RUEHQT #1607 1982135
    ZNY CCCCC ZZH
    O 172135Z JUL 07
    FM AMEMBASSY QUITO
    TO RUEHC/SECSTATE WASHDC IMMEDIATE 7406
    INFO RUEHBO/AMEMBASSY BOGOTA PRIORITY 6763
    RUEHCV/AMEMBASSY CARACAS PRIORITY 2610
    RUEHLP/AMEMBASSY LA PAZ JUL 0654
    RUEHPE/AMEMBASSY LIMA PRIORITY 1780

` `

    C O N F I D E N T I A L QUITO 001607

    SIPDIS

    SENSITIVE
    SIPDIS

    E.O. 12958: DECL: TEN YEARS
    TAGS: PGOV PREL EC
    SUBJECT: CONGRESS VOTES "NO CONFIDENCE" IN FINANCE MINISTER

    REF: QUITO 1182

    Classified By: PolOff James Cohen for reasons 1.4 (b) and (d)

    ¶1.   (SBU)  Summary:  Continuing the standoff between
    Congress and the Correa administration, Congress passed a
    vote of no confidence July 13 against Minister of Finance
    Ricardo Patino.  Citing allegations of embezzlement, illicit
    association, collusion and treason, Congress passed the
    measure after Patino failed to appear before a Congressional
    hearing into the allegations, declaring the Minister "in
    rebellion" (in contempt of Congress).  Since the vote of no
    confidence is non-binding, and President Correa has
    reiterated his confidence in Patino, the vote will have no
    immediate practical effect.  But President of the Congress
    Jorge Cevallos announced his intention to transfer the
    charges to the Office of the Attorney General for
    investigation, keeping the matter in the spotlight.  End
    Summary.

    NO SHOW, NO CONFIDENCE
    ----------------------

    ¶2.  (SBU)  By a margin of 66 to 34, Congress passed a vote of
    no confidence against Minister of Finance Ricardo Patino July
    ¶13.  The proceedings began with a vote to declare Patino in
    "rebellion," since he did not appear before Congress as
    requested.  With that procedure out of the way, the no
    confidence debate was led by Luis Almeida (PSP - Partido
    Sociedad Patriotica) and Diego Ordonez (UDC - Union of
    Christian Democrats).  Both deputies highlighted Patino's
    perceived complicity in the recent scandal involving possible
    manipulation of the international bond market (reftel).
    Additionally, they accused Patino of mishandling foreign
    debt, misappropriating public funds, violating two articles
    of the Law on Fiscal Transparency and lying about his
    economic expertise and qualifications.  They produced
    documents to suggest that he did not graduate with an
    economics degree as cited on his curriculum vitae. Most
    center-right deputies voted in favor of the no confidence
    measure.  While Pachakutik, small leftist parties and some
    members of the National Dignity Bloc voted against the
    measure, no deputies came to Patino's defense rhetorically.

    EXECUTIVE BRANCH STANDS FIRM AS FIGHT CONTINUES
    --------------------------------------------- --

    ¶3.  (SBU) Patino refused to appear before Congress to defend
    himself, telling supporters outside the Congress building
    that Congress was corrupt and out for blood, then retreating
    to his office.  President Correa vowed to stand by his
    Finance Minister and expressed total confidence in him.
    Speaking from Italy, Correa noted in his weekly radio address
    in regards to the Patino matter, "Today, more than ever,
    Congress is corrupt and has no credibility."

    ¶4.  (SBU) Under the 1998 Constitution, the no confidence vote
    is non-binding and has no force of law.  In order to continue
    the case against Patino, President of Congress Cevallos
    announced July 14 that he intends to request that the charges
    against Patino be investigated by the Attorney General.  Many
    deputies in the Congress, led by John Argudo (ID), support
    the notion of criminal proceedings against Patino, not only
    because a conviction would force him from office, but also
    because, in their view, Patino committed felonies.

    COMMENT
    -------

    ¶5. (C)  As the Constituent Assembly election campaign
    approaches, Correa's opponents will not let go of the Patino
    issue.  Knowing that Congress has the lowest approval rating
    of any government institution, Cevallos is banking on an
    independent investigation to keep the issue alive in the
    media.  Embassy contacts at the Supreme Electoral Tribunal
    have privately told us that they fear there is more dirt on
    Patino and that his opponents will dole it out piecemeal to
    embarrass Correa closer to the September 30 Constituent
    Assembly election.  The fact that deputies included in their
    attack accusations that Patino lied on his resume indicates
    that they will dig up whatever they can to turn this into a
    political advantage.

    JEWELL

`