This record is a partial extract of the original cable. The full text of the original cable is not available.

131958Z Jul 05

UNCLAS SECTION 01 OF 02 BRASILIA 001867 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ECON PINR BR
SUBJECT: BRAZIL: CABINET SHUFFLE--PART II 
 
REF: A. BRASILIA 1819 
 
     ¶B. BRASILIA 1849 
 
1.(SBU) SUMMARY.  The political crisis besetting the 
Brazilian government is continuing to unfold (reftels). 
President Lula's cabinet shuffle, which began on June 16 with 
Chief of Staff Dirceu's resignation, continued this week. 
Further changes are expected next week.  In addition to the 
four ministers (Communications, Health, Mines and Energy, and 
Labor) named on Friday, Lula's office announced more changes 
on July 12: four other ministers are stepping down; and a new 
Education Minister was named.  The offices of the Secretary 
for Human Rights and Communications Secretary will lose 
cabinet rank, and be folded into the Ministry of Justice and 
the Chief of Staff's Office, respectively.  Aldo Rebelo's 
current position as Political Coordinator will be folded into 
the Economic and Social Development Council in Lula's office, 
led by Jaques Wagner.  Biographical information at paragraph 
¶4. END SUMMARY. 
 
LULA'S NEW CABINET: WHO'S COMING AND WHO'S GOING 
--------------------------------------------- --- 
 
2.(SBU) As previously reported (reftels), President Lula is 
carrying out a cabinet shuffle, driven by corruption scandals 
that have intensified dramatically over the past month and 
have left Congress paralyzed.  Last week, Lula named three 
PMDB party members as ministers: Senator Helio Costa as 
Communications Minister; Federal Deputy Saraiva Felipe as 
Health Minister; and Silas Rondeau as Minister of Mines and 
Energy.  The President of the Sole Worker's Union (CUT), Luiz 
Marinho, was named as the new Labor Minister.  All four took 
office earlier this week.  On July 12, Lula's office 
announced the latest cabinet changes: 
 
- The offices of Political Coordinator, Human Rights, and 
Communications Secretary will lose cabinet rank. 
 
- Aldo Rebelo will step down as Political Coordinator (in 
Lula's office) and return to Congress.  The Office of 
Political Coordinator will be folded into the Economic and 
Social Development Council, headed by Jaques Wagner. 
 
- Nilmario Miranda, Secretary for Human Rights, is resigning 
to run for office in the 2006 elections.  His replacement has 
not yet been announced.  The Office of Human Rights will lose 
its cabinet rank and be folded into the Ministry of Justice. 
 
- Luiz Gushiken, current Communications Secretary in Lula's 
office, loses his rank as cabinet minister but will remain in 
this position.  His office will now be subordinated to Chief 
of Staff Dilma Rousseff. 
 
- Eduardo Campos is stepping down as Minister of Science and 
Technology, and returning to Congress.  His party, the PSB, 
will keep this cabinet slot and has nominated Sergio Rezende, 
president of the Ministry's FINEP (Agency for the Financing 
of Studies and Projects), to fill the vacancy. 
 
- Romero Juca, Social Security Minister, who is facing 
corruption allegations separate from the scandals swirling 
through Brasilia, will return to Congress.  No replacement 
has yet been named.  However, it is likely that the position 
will go to another PMDB member to satisfy the party's quota 
of ministers. 
 
- Fernando Haddad, Education Ministry Executive Secretary, 
will replace Tarso Genro, who resigned as Minister to take 
over as President of the PT party, as Education Minister on 
July 27. 
 
COMMENT: MORE CHANGES TO COME 
----------------------------- 
 
¶3. (SBU) The recent cabinet reforms seem to suggest Lula is 
shrinking and streamlining the cabinet.  Even competent 
ministers, untouched by the scandal (Campos, Costa, Berzoini) 
are resigning early, at Lula's request, in anticipation of 
the 2006 elections.   Lula's selection of technical experts 
as ministers--Haddock (Education), Rezende (Science and 
Technology), Felipe (Health), Rondeau (Mines and Energy), and 
Marinho (Labor)--indicates his inclination for "technocrats" 
rather than politicians.  Further cabinet reforms will be 
announced next week, following President Lula's return from 
Paris.  The PMDB is seeking a fourth cabinet post and the PP 
is seeking their first. 
 
BIOGRAPHIES OF NEW MINISTERS 
---------------------------- 
¶4. (SBU): 
 
- Jaques Wagner, 54, Secretary of the Council on Economic and 
Social Development (a sort of public-private think-tank in 
Lula's office), will keep his position and also take over 
Rebelo's as the Political Coordinator.  Wagner was elected as 
Federal Deputy from Bahia in 1990 and served in congress 
until Lula named him Labor Minister in 2003.  His legislative 
focus while in the Chamber of Deputies was on labor and 
consumer rights issues.  In 2002, he was among the PT 
gubernatorial candidates who failed to ride Lula's coattails 
into office.  Wagner was the founder of the PT branch in 
Bahia and also founded the state's chapter of the labor 
federation CUT.  Because of his involvement in the student 
movement in opposition to the military regime, Wagner was 
forced to withdraw from the Catholic University of Rio de 
Janeiro's engineering program. 
 
- Fernando Haddad, 42, Education Ministry Executive Secretary 
becomes the new Education Minister, replacing Tarso Genro who 
will step down on July 27.  Haddad has a law degree (1985), a 
Master's in Economics (1988), and a doctorate in Philosophy 
(1996).  He served as President of the Academic Center of the 
11th of August (1985) and is a Political Science professor at 
the University of Sao Paulo.  Haddad is also a member of the 
Theory and Debate magazine editorial board and two other 
publishing companies, as well as a member of the executive 
board of Praga magazine.  With a strong leftist background, 
Haddad has supported Lula's stance on reforming the education 
system. 
 
- Luiz Marinho becomes the Minister of Labor, replacing 
Ricardo Berzoini.  Born in Cosmorama, in San Paulo state, 
Marinho spent most of his youth working on a farm.  He then 
became a metal worker and was eventually hired as a machinery 
operator at Volkswagen.  Marinho was president of the Metal 
Worker's Union in Sao Paulo before becoming President of the 
Sole Worker's Union Federation (CUT) in 2003.  In 2004, he 
obtained his undergraduate degree in Law.  He is close to 
President Lula. 
 
- Sergio Rezende, 65, is likely to replace Eduardo Campos as 
Minister of Science and Technology.  Rezende is well known in 
academic and political fields.  He has an undergraduate 
degree in electronic engineering from the Catholic University 
of Rio, a Master's and Doctorate in Physics from MIT, and was 
a Fulbright Fellow.  He was a professor at the Catholic 
University of Rio and the University of Campinas.  Rezende 
helped establish the Foundation of Science and Technology 
Assistance of Pernambuco (1987-90), and served as state 
Secretary for Science and Technology (1995-98) in the state 
 
SIPDIS 
government of Governor Miguel Arrae, Eduardo Campos' 
grandfather, and Secretary of Patrimony of the historic city 
of Olinda (2001-03).  In 2003, he became president of FINEP 
(Agency for the Financing of Studies and Projects) in the 
Science and Technology Ministry. 
CHICOLA