VZCZCXRO9211
PP RUEHDBU RUEHFL RUEHKW RUEHLA RUEHNP RUEHROV RUEHSL RUEHSR
DE RUEHRA #0026/01 0151158
ZNY CCCCC ZZH
P 151158Z JAN 10
FM AMEMBASSY RIGA
TO RUEHC/SECSTATE WASHDC PRIORITY 6235
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE

C O N F I D E N T I A L SECTION 01 OF 02 RIGA 000026 
 
SIPDIS 
 
E.O. 12958: DECL: 01/14/2020 
TAGS: PGOV LG
SUBJECT: POLITICAL AMBITION FUELS AUDITOR GENERAL'S ATTACKS 
 
Classified By: Bruce D. Rogers, Deputy Chief of Mission, for reasons 1. 
4 (b) and (d). 
 
¶1. (C) Summary: The Latvian Auditor General, Ms. Inguna 
Sudraba, has launched a series of pointed public attacks on 
the government's handling of the economic crisis.  These 
attacks, while levied in her role as Auditor General, are 
driven by political ambition.  In a confidential meeting with 
the Embassy, Sudraba revealed her plans to launch a new 
political party and possibly challenge for the position of 
prime minister in the October 2010 elections.  While she 
described her ongoing effort to develop a campaign platform 
Sudraba was unable to provide any concrete details of her 
economic plan in the meeting and was most comfortable in 
criticizing the current government's handling of the crisis. 
So far, Sudraba's political ambition has remained a well 
guarded secret. Despite her well-deserved public reputation 
for probity her prospects for success are doubtful at best. 
End Summary. 
 
Sudraba Attacks 
--------------- 
 
¶2. (SBU) After coming out of a meeting with President 
Zatlers, Sudraba told the media on January 13 that the 
"government still has no plan for economic recovery."  She 
accused the government of treating the budget like a 
"mathematical" exercise lacking "a vision of how to revive 
the economy," and she described the current economic and 
budget situation as "absurd."  Sudraba also sent a formal 
letter to PM Dombrovskis, President Zatlers and Parliamentary 
Speaker Daudze on January 13, in which she criticized the 
government's management of the budget and its inappropriate 
internal reallocation of funding between and within 
ministries. 
 
¶3. (SBU) Sudraba has been an outspoken critic of the Latvian 
government's handling of the economic crisis for some time. 
In September 2009 she attacked the government's structural 
reform efforts, saying, "I do not see closing down schools 
and reducing the number of teachers as a reform.  Reform 
means understanding what education content we plan to 
provide, what education quality we can ensure and what steps 
should be taken to ensure quality."  Despite the sharpness of 
some of her attacks, government officials and members of 
parliament generally welcome her voice as an independent and 
well respected public advocate.  Even the PM's office told us 
that they appreciate her role as a public watchdog. 
 
A New Party? 
------------ 
 
¶4. (C) Sudraba and Mr. Ivars Markods, a former foreign policy 
advisor to Latvia's first post-Soviet PM, Karlis Ulmanis, 
requested a meeting with the Embassy on November 29 to lay 
out their plans for forming a new political party.  Markods 
appears to be the driving force behind the formation of this 
new party, which Sudraba would officially lead.  Markods 
expressed the belief that the political parties now 
campaigning on anti-corruption platforms (New Era, Civic 
Union and the Society for Alternative Politics) were actually 
financed and controlled by Olegs Stepanovs, a long-time rival 
of Ventspils Mayor Aivars Lembergs (the power behind the 
Greens and Farmers Party). 
 
¶5. (C) Although Sudraba and Markods outlined some general 
themes for their party's platform, such as improved relations 
between ethnic-Russians and ethnic-Latvians, the continuation 
of a pro Euro-Atlantic foreign policy, and an economic policy 
rooted in anti-corruption, they were able to provide very few 
details.  Markods said they have received private support 
from a large group of government officials and are planning 
to hold a congress of ideas as early as March as a the 
launching pad for their new party later in 2010.  Sudraba 
said she is considering running in the October 2010 
parliamentary elections as the prime ministerial candidate 
for this new party, if they can garner enough enthusiasm, and 
presumably enough financial backing, to run nation-wide. 
 
¶6. (C) Comment:  The fact that Sudraba's attacks are 
politically motivated doesn't mean she is not often right on 
the merits of her challenges.  Her statements mimic the 
private complaints expressed by IMF team members and other 
independent analysts of the failure of the government to 
approach the current crisis strategically.  Yet we question 
her ability to translate her respect as a public watchdog 
into political success.  Latvian political history is rife 
with examples of new personalities forming niche political 
parties in the vain hope of tapping into public discontent 
with the existing political structures. If Sudraba isn't able 
to provide the vision she so aptly criticizes the government 
of lacking, her own political ambitions are likely to end in 
failure.  While the challenge of organizing, financing, and 
 
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campaigning with a brand-new political party are 
considerable, Sudraba could conceivably emerge as a 
'technocratic' compromise Prime Minister should the current 
government fall before elections are due in October.  End 
Comment. 
GARBER