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### Viewing cable 06QUITO1702, NEW MINGOV NAMED

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
06QUITO1702 | 2006-07-13 11:41 | 2011-05-02 00:00 | UNCLASSIFIED | Embassy Quito

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    VZCZCXYZ0001
    OO RUEHWEB

    DE RUEHQT #1702/01 1941141
    ZNR UUUUU ZZH
    O 131141Z JUL 06
    FM AMEMBASSY QUITO
    TO RUEHC/SECSTATE WASHDC IMMEDIATE 4803
    INFO RUEHBO/AMEMBASSY BOGOTA PRIORITY 5785
    RUEHCV/AMEMBASSY CARACAS PRIORITY 1863
    RUEHLP/AMEMBASSY LA PAZ JUL 9945
    RUEHPE/AMEMBASSY LIMA PRIORITY 0762
    RUEHGL/AMCONSUL GUAYAQUIL PRIORITY 0805
    RHMFISS/CDR USSOUTHCOM MIAMI FL

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    UNCLAS QUITO 001702

    SIPDIS

    SIPDIS

    E.O. 12958: N/A
    TAGS: PGOV EC PGOV PINR PREL
    SUBJECT: NEW MINGOV NAMED

    REF: QUITO 1669

    ¶1.  Summary:  As part of an ongoing cabinet reshuffle on July
    11, President Palacio replaced Minister of Government Felipe
    Vega with Antonio Andretta and Minister of Public Works
    Derlis Palacios with Pedro Lopez Torres.  While Vega,
    Palacio's fifth Minister of Government, has been linked to
    charges of corruption, there is no clear explanation for the
    dismissal of the low-profile Palacios, who has been with the
    administration since the beginning.  Secretary of
    Communication Enrique Proano announced that these
    appointments would conclude cabinet restructuring.  Only four
    of Palacio's original fifteen cabinet members remain.  End
    Summary.

    Vega and Palacios Replaced
    --------------------------

    ¶2.  On the evening of July 6, six months before the end of
    his term, President Palacio called for resignation letters
    from his cabinet (reftel Quito 1669).  Minister of Government
    Felipe Vega stated publicly on July 10 that he would resign.
    Palacio accepted the resignations of Vega and Minister of
    Public Works Derlis Palacios, both from the city of Cuenca,
    and on July 11 named Antonio Andretta as Minister of
    Government and Pedro Lopez Torres as Minister of Public
    Works.  Both Andretta and Lopez have held the same posts in
    the past, Andretta under the Noboa presidency (2000-2003) and
    Lopez under the Duran Ballen presidency (1992-1996).  Some
    consider Andretta as part of the "old guard," which suggests
    that he was nominated to avoid political contention.

    ¶3.  Vega told press on July 7 that some wanted him removed
    for trying to address narcotrafficking, organized crime, and
    police corruption.  Insiders claim the real issue was that
    Vega had become a liability after public charges that he was
    demanding kickbacks from the Guayaquil police chief.  Vega
    publicly denied charges of corruption and attributed his
    surprise exit to "political change."  He claimed that his
    resignation was a personal decision that marks the completion
    of "a cycle in this government" and that he himself suggested
    cleaning out the cabinet last week.  Vega was in office for
    four months -- longer than any of the previous four who held
    this thankless job during Palacio's erratic tenure.

    Explanations for Departure
    --------------------------

    ¶4.  Press reports suggest the upheaval of the cabinet was to
    raise public opinion of the President and reflected Palacio's
    discontent with the confused and chaotic application of the
    April Hydrocarbons Law.  Secretary of Communication Enrique
    Proano said that the President "never agreed" with the June
    29 regulatory implementation of the law and that the
    Ministers would be working on creating new regulations.

    ¶5.  Proano insisted that the cabinet reshuffling was
    necessary to intensify government work in "key areas," and
    that the new cabinet will target the "social debt" during
    Palacio's last six months in office.  Oil and budget issues
    are expected to be key in the coming months.  Secretary of
    Communication Enrique Proano claims that oil revenues will be
    used responsibly to address poverty and that social problems
    "could not have been attended to before because of the
    overstretched budget."

    Biographical Information: Andretta
    ----------------------------------

    ¶6.  Antonio Andretta Arizaga, the half-brother of former
    president of Congress Juan Jose Pons, was born in Guayaquil
    on September 11, 1944.  He received an undergraduate degree
    in Political Science and a law degree at Catholic University
    of Santiago in Guayaquil.  His previous positions include
    Minister of the Interior of Guayas and Guayas Police
    Intendant (1972-1975) before he became Director of the
    Guayaquil Chamber of Commerce from 1969-1972 and 1980-1983.
    He served as Governor of Guayas and Head of the
    Administrative Development Secretariat (SENDA) under the
    Duran Ballen presidency.  From 1998-2000 he directed COPEFEN
    (Coordinating Unit of the Emergency Program for El Nino
    Phenomenon) before serving as President of the National
    Transportation Council in 2003.

    Biographical Information: Lopez
    -------------------------------
    ¶7.  Pedro Lopez Torres was born on December 7, 1929, in
    Quito.  He graduated as a civil engineer from Central
    University in Quito and has extensive experience in
    construction and civil engineering.  From 1972-1974 he served
    as a Quito councilman and from 1974-1976 he was president of
    the Commission of Public Works for the municipality of Quito.
     Lopez served as Minister of Public Works from 1992-1996, and
    was active in all three of Duran Ballen's presidential
    campaigns.  He has also been a professor at the engineering
    school at Central University and vice-president of the civil
    engineering high school in Pichincha.

    Comment
    -------

    ¶8.  The resignations of Vega and Palacios appear to mark the
    end of the current cabinet shake up.  The appointments of low
    profile officials Andretta and Lopez reflect Palacio's desire
    for a smooth transition out of office.
    JEWELL

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