VZCZCXYZ0000
OO RUEHWEB

DE RUEHQT #1573 1922056
ZNR UUUUU ZZH
O 112056Z JUL 07
FM AMEMBASSY QUITO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7383
INFO RUEHBO/AMEMBASSY BOGOTA PRIORITY 6762
RUEHCV/AMEMBASSY CARACAS PRIORITY 2609
RUEHLP/AMEMBASSY LA PAZ JUL 0653
RUEHPE/AMEMBASSY LIMA PRIORITY 1778
RUEHGL/AMCONSUL GUAYAQUIL PRIORITY 2547
RHEFDIA/DIA WASHDC
RHMFISS/CDR USSOUTHCOM MIAMI FL

UNCLAS QUITO 001573 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL EC
SUBJECT: CORREA STRIKES BACK AT OPPOSITION WITH ALLEGATIONS 
OF CONGRESSIONAL VOTE-SELLING 
 
REF: A. QUITO 1488 
 
     ¶B. QUITO 1423 
     ¶C. QUITO 1422 
     ¶D. QUITO 554 
 
¶1.  (SBU) SUMMARY: On July 7, President Correa accused 18 
congressmen of offering to support the government,s 
controversial banking reform law in exchange for political 
favors such as appointments to high posts in state-owned 
companies.  The president also implicated Guayas prefect 
Nicolas Lapentti and former president Lucio Gutierrez in 
payoffs that tanked the Province 23 bill (Reftel C). 
Correa,s accusations against the congressmen come as his 
popularity declines and congressional support for his pet 
projects is becoming harder to secure (Reftel A).  By 
attacking his opponents on ethical issues, he is hoping to 
deflect attention from the corruption clouds that are 
tarnishing his own administration's image.  As the elections 
for the Constituent Assembly draw near, all sides appear 
ready to do whatever it takes to win control.  END SUMMARY. 
 
UNDERCOVER POLICE STING EXPOSES SUPPOSED VOTE SELLING 
--------------------------------------------- -------- 
 
¶2.   (SBU) According to Correa, Congressman Cesar Alonzo Mora 
(National Dignity Bloc) requested a private meeting with him 
to discuss Congressional support for pending Correa-backed 
legislation.  In his place, the president sent an undercover 
police captain, Ronny Vallejo, posing as a presidential 
advisor.  In his DATE meeting with Vallejo, Mora reportedly 
offered 18 congressional votes in favor of the president,s 
banking reform law in exchange for key appointments in 
state-owned companies like Petroecuador and Andinatel.  The 
meeting was recorded, and the tape was submitted as part of a 
formal complaint to the Fiscalia General (Attorney General 
equivalent)  filed on July 9. 
 
LAPENTTI AND GUTIERREZ ALSO CAUGHT WITH THEIR PANTS DOWN 
--------------------------------------------- ----------- 
 
¶3.   (SBU) The taped conversations also reportedly 
incriminate Guayas prefect Nicolas Lapentti (PSC), who 
allegedly paid selected Congressmen $100,000 dollars to vote 
against a bill that would have created a new province in 
Santa Elena carved out of Guayas (Reftel C), and former 
president Lucio Gutierrez (PSP) who allegedly received 
$500,000 dollars as part of the same deal. 
 
CHARGES COME AS CORREA,S SUPPORT IN CONGRESS WANING 
--------------------------------------------- ------ 
 
¶4.   (SBU) The accusations come as Correa,s popularity, 
while still fairly high, continues to slip and his leverage 
fades over a Congress filled with opposition parties and a 
motley assortment of opportunistic replacement deputies. 
Sensing gaps in the president,s armor, previously loyal 
congressmen like those in the National Dignity Bloc are 
becoming less reliable.  As a result, Correa has failed to 
garner enough votes to push through two recent measures 
relating to the banking sector: removing Alfredo Vergara, 
Superintendent of Banks, from office and approving his 
changes to the controversial banking reform law. 
 
COMMENT 
------- 
 
¶5.  (SBU) The timing of the charges seems calculated, but 
given the crassly opportunistic nature of Ecuadorian 
politics, it would not be surprising if the allegations are 
true.  More importantly, it appears that the Patinovideo 
scandal, the squabbles with the press and stalled efforts on 
key initiatives have the president worried about an 
opposition resurgence.  As a result, he is resorting to the 
same take-no-prisoners tactics that helped him decimate the 
opposition following last year,s elections.  This presages a 
very bitter battle over Constituent Assembly seats as the 
race heats up in the next few months. 
 
JEWELL