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RR RUEHAG RUEHAO RUEHROV RUEHRS RUEHSL RUEHSR
DE RUEHCV #0203/01 0492300
ZNY CCCCC ZZH
R 182300Z FEB 10
FM AMEMBASSY CARACAS
TO RUEHC/SECSTATE WASHDC 0480
INFO EU MEMBER STATES COLLECTIVE
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RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
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C O N F I D E N T I A L SECTION 01 OF 02 CARACAS 000203 
 
SIPDIS 
AMEMBASSY BRIDGETOWN PASS TO AMEMBASSY GRENADA 
AMEMBASSY OTTAWA PASS TO AMCONSUL QUEBEC 
AMEMBASSY BRASILIA PASS TO AMCONSUL RECIFE 
AMEMBASSY BERLIN PASS TO AMCONSUL DUSSELDORF 
AMEMBASSY BERLIN PASS TO AMCONSUL LEIPZIG 
AMEMBASSY ATHENS PASS TO AMCONSUL THESSALONIKI 
 
E.O. 12958: DECL: 2035/02/18 
TAGS: PGOV VE ECON
SUBJECT: EIGHT GBRV CABINET CHANGES IN LAST MONTH 
 
REF: 10 CARACAS 91; 09 CARACAS 1232 
 
CLASSIFIED BY: Rolf Olson, Acting Political Counselor; REASON: 1.4(D) 
 
¶1.       (C) Summary: On February 13, President Chavez announced 
that Minister of Commerce Eduardo Saman had been replaced, bringing 
to eight the number of Venezuelan government (GBRV) ministers since 
mid-January who have either resigned or been relieved of their 
duties. Theories abound regarding the reasons for the apparent 
exodus, ranging from the estimation that a politically weakened 
Chavez seeks to fortify the Bolivarian revolution with hardliners, 
to the belief that the revolving door reflects a power struggle 
among high-level supporters of the President. In the last month 
Chavez appears to have shrunk his circle of advisers by also 
assigning multiple Cabinet portfolios to three of his ministers. 
Against the backdrop of the ongoing electricity crisis and eroding 
poll numbers, the changes suggest that Chavez is trying to assemble 
a Cabinet that he can rely on to move his priorities forward during 
a critical period. End Summary. 
 
 
 
¶2.       (SBU) At the inauguration of the new government-owned 
supermarket chain Hipermercado Bicentenario on February 13, 
President Chavez announced that Minister of Commerce Eduardo Saman 
was being replaced by Vice Minister of Agriculture Richard Canan. 
Chavez - who made only brief reference to the change and without 
any rhetorical flourish - provided no reason for Saman's departure, 
but noted that the "good man and compatriot" would be assigned 
"other duties to defend the consumer and public."  Chavez did not 
address whether this meant that Saman would remain in his position 
as head of INDEPABIS, the GBRV's consumer protection agency, 
although local media analysis suggests that he will. 
 
 
 
¶3.       (C) Saman's departure from the position is the eighth 
change in Chavez's Cabinet in a month. The firing of Electricity 
Minister Angel Rodriguez on January 13 was followed by the January 
25 resignation of Vice President and Minister of Defense Ramon 
Carrizalez and his wife, Environment and Natural Resources Minister 
Yubiri Ortega; the same day Minister of Public Banking and 
President of Banco de Venezuela Eugenio Vasquez also announced his 
resignation (ref A). On February 2, Minister of Culture Hector Soto 
and Minister of Tourism Pedro Morejon both announced their 
resignations, followed by that of Health Minister Carlos Rotondaro 
on February 10. (Note: Rotondaro maintained his position as head of 
Venezuela's Social Security Institute (IVSS). End Note.) Most of 
those resigning have asserted they did so for personal reasons, in 
some cases for unspecified "health" issues. 
 
 
 
¶4.       (C) Speculation abounds regarding the sudden flurry of 
high-level departures: that Chavez is fortifying the Bolivarian 
revolution with hardliners; that he seeks to improve the GBRV's 
ability to respond to multiple evolving challenges, including the 
electricity emergency; that the revolving door reflects a power 
struggle between high-level supporters of the President; that the 
departed ministers were fed up with the heavy involvement of Cuban 
officials in GBRV decision-making; or that new Vice President Elias 
Jaua is largely responsible for the changes due to a desire to 
place his imprimatur on the Cabinet. Electricity Minister 
Rodriguez's dismissal was widely viewed as a tried-and-true Chavez 
defensive tactic: castigation of a senior GBRV official for a 
particular crisis in order to insulate the President from blame 
(even if, in this case, the Minister had been on the job for less 
than three months). Motives for the other changes may have 
differed; while four of the eight ministers departed prior to the 
announcement of Elias Jaua's assumption of the Vice Presidency, the 
naming of one of Jaua's closest allies, Richard Canan, to the 
Minister of Commerce post appears to confirm that Jaua is making 
his presence in the Cabinet felt. 
 
 
 
¶5.       (C) At the same time, Chavez has effectively reduced the 
size of his Cabinet by encumbering several ministers with more than 
one portfolio. On January 15, Chavez announced that Minister of 
Planning Jorge Giordani would serve concurrently as Minister of 
 
CARACAS 00000203  002 OF 002 
 
 
Economy and Finance, taking over for Ali Rodriguez, who himself was 
slotted to take over the Ministry of Electricity. Vice President 
Jaua maintained his duties as Minister of Agriculture and Lands 
after his February 2 elevation. And following his announcement of 
Rotondaro's  departure, Chavez named current Minister of the 
Presidential Secretariat ("Despacho de la Presidencia") Luis Reyes 
to simultaneously serve as Health Minister. Two other ministerial 
appointees added their new duties to existing government titles: 
Environment and Natural Resources Minister Alejandro Hitcher 
continues to serve as head of Hidrocapital, the GBRV-owned water 
authority, while new Defense Minister Carlos Mata concurrently 
serves as Director of the Armed Forces' Strategic Operational 
Command (CEO). In addition, the new Minister of Culture is not 
"new": Farruco Sesto served in the same position from 2005 to 2008, 
working since then in the Presidential Office of Special Projects. 
 
 
 
¶6.       (C) Comment: Unlike the government restructuring plan that 
he rolled out in September 2009 (Ref B), Chavez has not stated that 
a comprehensive review or overhaul of GBRV leadership is underway. 
While disparate factors may have contributed to the various Cabinet 
changes, their quick succession and Chavez's heavy reliance on 
existing allies to fill the vacated positions suggest that he is 
experiencing some measure of desperation. With the electricity 
crisis sure to dominate the news for the foreseeable future, 
disturbing poll numbers, and parliamentary elections seven months 
away, Chavez seems eager to assemble a trusted cadre of ministers 
who can move his agenda forward at a critical moment for his 
government. End Comment. 
DUDDY