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UNCLAS QUITO 000795 
 
SENSITIVE, SIPDIS 
 
FOR WHA/AND 
 
E.O. 12958:  N/A 
TAGS: ECON EPET PREL EINV EC
SUBJECT: GOE RESPONSE TO CHEVRON TAPES 
 
¶1. (SBU) SUMMARY: The GOE has responded in a fractured way to 
Chevron's release on August 31 of tapes alleging a $3 million 
bribery scheme involving the presiding judge in its pending 
environmental case in Ecuador.  The only official GOE response so 
far has been a statement released by the President's Legal Secretary 
General, Alexis Mera, who was himself mentioned in the tapes. 
Local press has reported that Ecuador's Prosecutor General and 
Attorney General are looking into the matter. END SUMMARY. 
 
¶2. (U) On August 31, Chevron released video recordings which it 
claims implicate in a $3 million bribery scheme the judge who is 
presiding over a lawsuit it has pending in Ecuadorian courts. 
Plaintiffs in the case, which has been pending since 1993, represent 
a number of Ecuadorian indigenous tribes and communities in 
Ecuador's Amazon region, who claim environmental mismanagement of a 
GOE/Texaco petroleum consortium from 1964-1992. 
 
¶3. (U) The tapes were recorded clandestinely by Diego Borja, an 
Ecuadorian who had performed work for Chevron as a logistics 
contractor, and Wayne Hansen, a U.S. citizen with no ties to 
Chevron.  The tapes were recorded at four meetings that were 
conducted between May 11 and June 22 of this year.  Participants in 
the meetings included the contractors, who were seeking 
environmental remediation work, several people claiming to represent 
the GOE or ruling party Alianza PAIS political party, and Judge Juan 
Nunez.  The meetings purportedly took place at Alianza PAIS offices 
in Quito, the Holiday Inn Quito, and in the judge's chambers in Lago 
Agrio.  The $3 million was supposedly to be split between Judge 
Nunez, representatives of the Ecuadorian Presidency, the plaintiffs, 
and allegedly the President's sister Pierina.  The tapes and 
transcripts are available for viewing on Chevron's website 
www.chevron.com. 
 
¶4. (SBU) Chevron Managing Counsel Jaime Varela and Ricarda Veiga 
called Ambassador August 31 to provide Embassy with a heads up and 
background on release of the videos.  Chevron confirmed that it had 
not sought the tapes nor had it provided remuneration to the 
contractors for the tapes.  Veiga also said Chevron had not verified 
the identity or government affiliation of those persons purporting 
to represent the GOE in the meetings.  According to Veiga, in 
addition to Ecuador's Prosecutor General, Chevron sent letters and 
tapes to Ecuador's Attorney General, DR. Diego Garcia Carrion; 
Ecuador's Ambassador to the U.S.; Ambassador Hodges; and to the U.S. 
DOJ.  According to Veiga, Chevron plans to files motions to remove 
the judge from the case and annul any of his previous rulings, as 
well as renew its motion to dismiss the case. 
 
¶5. (SBU) The early GOE response to Chevron's disclosure has been 
fractured.  The only official response was a statement released by 
the President's Legal Secretary General, Alexis Mera, who was 
himself mentioned in the tapes.  Mera pointed out that Chevron's 
disclosure was based on illicitly obtained recordings and called it 
a disgraceful attempt to influence the outcome of the judicial 
proceeding.  However, most of his statement was devoted to rejecting 
involvement by the GOE.  Mera emphasized that the GOE was not a 
party to the lawsuit and claimed that it has not interjected itself 
in any way into the legal process.  On the other hand, news reports 
indicate that Ecuador's Prosecutor General, Washington Pesantez, 
would be calling those alleged to be involved to explain. 
 
 
HODGES