NotiSur, 09/28/01-Argentina, Brazil, Ecuador Via NY Transfer News * All the News That Doesn't Fit [Reminder: this is a reading copy for your personal use only. Our subscription with LADB does not permit redistribution.] ------------------------------------------------------------ L A T I N A M E R I C A D A T A B A S E NotiSur - South American Political & Economic Affairs ISSN 1060-4189 Volume 11, Number 36 September 28, 2001 ------------------------------------------------------------ Copyright 2001, Latin America Data Base (LADB), Latin American Institute, University of New Mexico Director: Rebecca Reynolds Bannister Editor: Patricia Hynds Staff writers: Carlos Navarro, Robert Sandels LADB ARCHIVES: Back issues are referenced to provide historical background relevant to the articles in this newsletter. These can be accessed with a subscription to the LADB searchable on-line archives at http://ladb.unm.edu/ by clicking on Search Archive. 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In This Issue: ARGENTINA: TRIAL BEGINS IN ATTACK ON JEWISH CENTER * Argentina's worst terrorist attack * Trial puts Argentine judicial system in spotlight * Families of victims skeptical of process BRAZIL: SENATE PRESIDENT ABDICATES AMID AVALANCHE OF CORRUPTION CHARGES * The rise and fall of Jader Barbalho * Turbulence in the Senate has yet to subside * Corruption investigations close in on Paulo Maluf ECUADOR: PRESIDENT GUSTAVO NOBOA NAMES NEW MINISTERS * New interior minister * Noboa names Indian minister of social welfare * Political upheaval in former president's party ____________________________________________________________ ********************* ARGENTINA ********************* ARGENTINA: TRIAL BEGINS IN ATTACK ON JEWISH CENTER More than seven years after the Asociacion Mutual Israelita Argentina (AMIA) headquarters in Buenos Aires was destroyed by a car bomb, killing 85 people, the trial of 20 defendants accused of being the "local connection" has begun. The trial is expected to last between seven and 10 months. The three-judge panel hearing this phase of the trial, taking place under fortified security, are Miguel Pons, Gerardo Larrambebere, and Guillermo Gordo. While the 20 defendants, who include five former police officers and a car thief, are accused of involvement in the case, no one has yet been charged with the actual bombing. The five principal defendants, considered "necessary participants," are Carlos Alberto Telleldin, a civilian, and Juan Jose Ribelli, Raul Ibarra, Anastasio Lean, and Mario Bareiro, former members of the Buenos Aires provincial police. They are accused of turning a van into a car bomb and giving it to the person who drove it to the building. The other 15 defendants are accused of less direct involvement in the attack. Argentina's worst terrorist attack On the morning of July 18, 1994, the car bomb destroyed in seconds the entire AMIA building, a social and cultural center founded in 1894 by the Argentine Jewish community. With about 300,000 members, it is the second-largest Jewish community in the Americas after the US. Besides the 85 deaths, 300 people were injured in the attack. Federal Judge Juan Jose Galeano, in charge of the case, said 300 kg of explosives had been placed in a Renault van used in the attack. Sifting through the rubble, investigators found the van's engine outside the center. The identification of the motor led the police to mechanic Carlos Telleldin. After his detention, he said that he had installed the engine at the request of Buenos Aires police agents. The AMIA bombing was not the first against Argentina's Jewish population. In 1992, another car bomb destroyed the Israeli Embassy, killing 22 people and injuring 350. That case has never been solved. Last July 18, about 5,000 people observed the seventh anniversary of the AMIA bombing, and community leaders denounced what they called a lack of justice in Argentina's deadliest terror attack in history. The families of AMIA victims as well as Argentine Jewish leaders have criticized the administrations of former President Carlos Saul Menem (1989-1999) and President Fernando de la Rua for what they consider a lack of political will to push the investigation to find those behind the bombing. "Seven years have passed without justice, without answers, and death will continue to triumph over our lives as long as the criminals remain free," said Hugo Ostrower, AMIA president. Trial puts Argentine judicial system in spotlight Law enforcement authorities say the trial is a key step in finding out who planned the attack. Public prosecutor Jose Barbaccia said that during the trial they will attempt "to end the structures of silence and complicity erected among the accused." While the trial of those providing the "local connection" to the bombing proceeds, Judge Galeano will continue his investigation to find the material and intellectual authors. Investigators allege the attack was planned and financed by extremist groups in Syria or Iran. Tehran has emphatically denied any involvement in the bombing. Judge Galeano recently formally requested assistance from Chilean authorities to determine whether anyone from the Iranian Embassy in Santiago was involved in the bombing. On Sept. 12, Carlos Meneses, prosecutor for the Corte Suprema in Santiago, recommended that the court accept the Argentine petition, and on Sept. 26, the court approved Galeano's request. Galeano asked for the names of diplomats who worked in the Iranian Embassy between 1992 and 1994. He also requested any information that Chilean intelligence services have about the actions of those diplomats in Chile or outside the country and a listing of all telephone calls made from the embassy, especially any to Argentina, between 1992 and 1994. Galeano also wants Chile to provide any information it has about a trip to Buenos Aires by Hamed Reza Hosseini, then Iran's ambassador in Chile. The Iranian ambassador was in Buenos Aires three days before the attack on AMIA, which Galeano said was "at least suspicious." Families of victims skeptical of process The Sept. 11 terrorist attacks in the US have increased international interest in the AMIA trial. The trial has also raised legal, political, and social expectations in Argentina. For the government and the judicial system, it offers an opportunity to counter accusations that the state has been indifferent to anti-Semitic attacks and show that it has the ability to investigate and punish perpetrators of such crimes. "The trial's importance in Argentine history is second only to the 1985 trials of military officers" convicted of human rights violations committed during the 1976-1983 military dictatorship, said Fernando Cazon, a Justice Ministry spokesman. But Diana Malamud, widow of an architect who died in the AMIA tragedy, is skeptical that justice will be served. A member of Memoria Activa, a group of victims' families, she said the trial is an attempt to close the book on a matter that was covered up by politicians, lawmakers, and legal authorities. "For many, this trial should have been an epilogue, but for the families it is barely the beginning of an investigation in which there were serious incidents of concealment by politicians and by judicial and police officials," Malamud said. More than a year ago, Memoria Activa took the case to the Inter-American Court on Human Rights (IACHR), accusing the Argentine government of failing to prevent the attack, of ineffectiveness in its judicial investigations, and of failing to mete out justice in the seven years since the attack. IACHR president Claudio Grossman of Chile was present for the opening of the trial and said he would return periodically to follow progress in the proceedings. [Sources: Reuters, 07/17/01; El Nuevo Herald (Miami), 09/22/01; CNN, 09/23/01; Notimex, 09/13/01, 09/23/01; Associated Press, 07/18/01, 09/24/01; Clarin (Argentina), Inter Press Service, La Opinion (Los Angeles), 09/24/01; Spanish news service EFE, 09/12/01, 09/23/01, 09/26/01; El Mercurio (Chile), 09/26/01] ********************* BRAZIL ********************* BRAZIL: SENATE PRESIDENT ABDICATES AMID AVALANCHE OF CORRUPTION CHARGES By Matthew Flynn [The author writes for the International Weekly Edition of the Gazeta Mercantil, a Sao Paulo-based financial newspaper] Jader Barbalho left the presidency of the Senate on Sept. 18 after the numerous charges of corruption that spanned his entire political career left him isolated even from his political party--the Partido do Movimento Democratico Brasileiro (PMDB). This is the first time in the Senate's history that the chamber's president has abandoned the post. Despite a strong behind-the-scenes fight in the Senate, Barbalho could not stem the tide of allegations that included misuse of funds of the state bank in Para, the senator's home state, involvement in fraud at the now defunct national office for Amazon development (Superintendencia de Desenvolvimento da Amazonia, Sudam), and links to irregularities in the emission of agrarian debt certificates. "In respect for the institution over which I preside by the free choice of my fellow senators, who recognized my qualities for the position..., and in return for their trust in me, today I leave the presidency of the Federal Senate," said Barbalho in his resignation speech. The senator refrained from attacking another party allied to the governing base, the Partido da Frente Liberal (PFL), whose participation in the corruption investigation was pivotal. An attack on the PFL would have created greater political turmoil. But significant ruptures are evident in the ruling coalition and are likely to increase as preparations for presidential elections scheduled for next year gain momentum. The rise and fall of Jader Barbalho Jader Barbalho rose to political prominence after attacking the Senate's former president Antonio Carlos Magalhaes (PFL) last year. The clash of the political giants captured the attention of Brazilians across the country and caused significant damage to the upper house. In his resignation speech, Barbalho admitted that he had proposed a truce with his archrival when he assumed leadership of the Senate. In return for Barbalho agreeing to remain neutral during Magalhaes' defense against charges of violating the secrecy of a Senate vote, Magalhaes would stop attacking the new Senate president. The condemnation of Magalhaes by the population and his colleagues could not be contained, however, and he was forced to leave the Senate (NotiSur, 2001- 06-08). Barbalho then became the next target. As soon as Barbalho assumed the leadership of the Senate, accusations of fraud and corruption began to circulate. Opposition parties demanded the creation of a legislative investigation (Comissao Parlamentar de Inquerito, CPI) on corruption, but political maneuvering by President Fernando Henrique Cardoso (see NotiSur, 2001-05-11) blocked the creation of a CPI, which has broad, sweeping powers. Nevertheless, allegations against Barbalho kept coming. Besides being accused of using his political influence to extort funds from businesses linked to the defunct Sudam, the Senator was alleged to have benefitted from the emission of agrarian debt certificates in 1988, when he was minister of agrarian reform. In a separate case, strong evidence provided by the Central Bank suggested that, when Barbalho was governor of the state of Para, he embezzled money from the state bank (Banco Estatal de Para, Banpara). In July, opposition parties requested that the Senate Ethics Committee open an investigation. To avoid a Senate inquiry, Barbalho took a 60-day leave of absence from his post so that the investigation would be carried out by the attorney general's office. The tactic did not work, however, and the Senate began an investigation. In his deposition to the Ethics Committee, Barbalho denied all accusations and claimed that he was the victim of a "political hanging." "It was necessary to destroy me and attack the PMDB," said Barbalho. "That was my crime." The Ethics Committee's report said, however, that there was "irrefutable evidence" that Barbalho benefitted from the irregularities at Banpara. The committee condemned the senator for lying about his participation in the scandal and for using his power as Senate president to obstruct investigations. "I have no doubt that Jader benefitted from the embezzlement of resources from Banpara," said Sen. Heloisa Helena of the Partido dos Trabalhadores (PT). By stepping down from the presidency, Barbalho was able to postpone the vote on the Ethics Committee's report for one week. It is likely that he exited the Senate before a vote on impeachment proceedings was taken to avoid having his political rights suspended for eight years. Turbulence in the Senate has yet to subside Finding a replacement for Barbalho has not escaped the political infighting, and as next year's presidential elections come closer, maneuvering within the ruling coalition will continue to disrupt legislative proceedings. When President Cardoso affirmed that the Senate presidency would remain with the PMDB, leaders of the country's largest and most diverse political party had to find a candidate acceptable to the Cardoso administration as well as to the rest of the Senate. The first casualty in the search was former President Jose Sarney (1985-1990), who many thought would be able to return order to the upper house. But, because of his close relations with Magalhaes and members of the PFL, his candidacy was blocked. In the end, the PMDB leadership decided on Ramez Tebet, who was heading the National Integration Ministry. But the vote to elect Tebet has already foreshadowed continued controversy in the Senate. Tebet only received 41 votes from among the 75 senators present; the opposition and members of the PFL together cast 31 blank ballots. "The hostility is going to continue," predicted Sen. Jose Eduardo Dutra of the PT. Tebet said his first priority is "to put the chamber in order and make the Congress function." Since the crisis involving the violation of secrecy in the upper house voting panel, "accusations and internal fighting have practically ground the Congress to a halt," he said, adding that he was "aware that the machine gun is ready and aimed" at him now. PFL leaders said that they made a truce with the new Senate president and would only create problems if Tebet attempted to protect Barbalho. By maintaining pressure on Tebet, viewed as a confident of the dethroned senator, the PFL hopes to put itself in a better position to elect one of its own as the ruling coalition's candidate for next year's presidential elections. The PFL is currently putting all its political capital behind Gov. Roseana Sarney of Maranhao. Corruption investigations close in on Paulo Maluf Meanwhile, an investigation of corruption charges has reached another important political figure. A CPI organized by the Sao Paulo City Council has accused Paulo Salim Maluf, former mayor of Sao Paulo, of having laundered up to US$200 million abroad. The Sao Paulo state board of attorneys is also looking into allegations of overbilling and embezzlement while Maluf and Celso Pitta were mayors of Sao Paulo. Maluf is accused of having an account with US$200 million in a tax haven on Jersey in the Channel Islands. The Sao Paulo Civil Police is also investigating Maluf in connection with a court-ordered debt scheme involving more than US$600 million. In a parallel investigation, a CPI on education has accused Maluf and Pitta of failing to invest 30% of the city's budget in education as mandated by law between 1995 and 2000, and it has requested that their political rights be suspended. The investigation into Maluf's financial activities will not be possible without greater international cooperation. "Without exchanging information [with Switzerland] about irregularities, combating money laundering is impossible," said Adrienne Sena, president of the Conselho de Controle de Atividades Financeiras (Coaf). Motions by Maluf to prevent investigators from looking into his and his family members' bank and telephone records have been rejected by the courts. "We want to know if the money that is in Jersey came from here," said Anna Martins of the Partido Comunista do Brazil (PC do B) and president of the CPI on public debt. The inquiry aims to find out why the city's debt increased 114% while Maluf was mayor. Possible origins of embezzled funds include a slush fund for public works. The state attorney general's office has already confirmed that some US$40 million was misappropriated during the construction of the Ayrton Senna tunnel during his administration. Maluf denies having an account in Jersey and says the recent accusations can be traced to a Swiss-based militant of the PT. Since 1994, Maluf has undergone numerous investigations into his affairs. There has only been one definitive ruling against him. In it, Maluf had to return some US$200,000 to the public treasury. The former mayor of Sao Paulo and leader of the Partido Popular Brasileira (PPB) is being very careful in his defense in the latest scandal, since he has his eye on the race for governor next year. Brazilians, meanwhile, have added a new word to their vocabulary--malufar (to maluf)--to steal. ********************* ECUADOR ********************* ECUADOR: PRESIDENT GUSTAVO NOBOA NAMES NEW MINISTERS Ecuadoran President Gustavo Noboa has recently made several changes to his Cabinet. Most see the changes as an effort to breathe new life into the administration, which faces serious political and economic problems. The most significant changes were in the Interior and Social Welfare Ministries. And, as politicians begin to look ahead to the 2002 presidential race, political infighting is growing. Policies implemented by Noboa's administration have brought improvement in some macroeconomic indicators, the result of his dollarization of the economy and freezing wages. But those indicators are offset by the sharp decline in the social well-being of the population, also in part the result of dollarization. New interior minister Marcelo Merlo Jaramillo was sworn in as Interior Minister on Sept. 6, the fourth person to head the ministry in Noboa's 20-month presidency. At the ceremony, Merlo promised to combat crime, a priority for many Ecuadorans. "The primary concern of Ecuadorans at this time is security and we are going to make security the focus of our actions," said Merlo, who replaced Juan Manrique. He also said he would spearhead a broad national dialogue to develop laws and actions to promote the good of the citizens. Some analysts said Merlo could add to rather than solve administration problems. Although an independent, Merlo is close to the Partido Social Cristiano (PSC) and to Quito business owners, and he strongly supports privatizations. Some political observers say his appointment is an effort by Noboa to win the support of the PSC in Congress. However, the head of the PSC, former President Leon Febres Cordero (1994-1998), whose base of support is on the coast, particularly Guayaquil, has continued his attacks on the government, especially regarding the recent closing of Filanbanco (see NotiSur, 2001-07-27). Noboa names Indian minister of social welfare On Sept. 14, Noboa named Luis Maldonado to head the Ministry of Social Welfare, replacing Raul Patino. Maldonado is only the second Indian to occupy a Cabinet-level post in Ecuador; nevertheless, the nation's major indigenous groups opposed his taking the post. The only other Indian to occupy a Cabinet-level post was Rafael Pandam, who was minister of ethnic affairs during the short presidency of Abdala Bucaram (1996-1997). At Maldonado's swearing-in ceremony, Noboa said the appointment shows the respect his administration has for indigenous people and acknowledges the marginalization that Indians have suffered in the past. After the ceremony, Maldonado said his "historic" appointment would enable him to carry out "true community work...especially on behalf of all of the country's children." A native of Otavalo in northern Ecuador, Maldonado headed the Consejo de Desarrollo de Nacionalidades y Pueblos del Ecuador (CODENPE) and the World Bank's Proyecto de Desarrollo de los Pueblos Indigenas y Negras del Ecuador (PRODEPINE). The Confederacion de Nacionalidades Indigenas de Ecuador (CONAIE) and the Movimiento Pluricultural Pachakutik (MPP) criticized Maldonado's decision to accept the post, saying it would be used to undermine the unity of the movements representing the country's Indians, who account for more than 30% of the population of 12.4 million people. CONAIE president Antonio Vargas publicly questioned Maldonado's appointment. He said it could split the indigenous movement between those who support collaboration with the administration and those who oppose it. Many indigenous organizations oppose backing a government that they say has failed to fulfill the agreements signed in the wake of nationwide protests in January and February (see NotiSur, 2001-02-09). Maldonado, who has been a CONAIE advisor and an alternate congressional deputy for Pachakutik, said his decision to accept the position was a personal one that involved neither CONAIE nor Pachakutik. Maldonado said that Vargas initially accepted the decision. His position "changes, based on expediency," Maldonado said in a radio interview. "But I do accept the position of Blanca Chancoso [another CONAIE leader], who told me from the start that I should not accept because it would be tantamount to supporting the government's conduct." Luis Macas, director of the Instituto Cientifico de Culturas Indigenas, said Maldonado's designation was just another effort to co-opt the movement. "The World Bank, in the face of criticism from environmental activists and indigenous communities, has incorporated sustainable development into its strategy of economic liberalization, giving rise to the new discourse of 'ethnodevelopment,'" said Macas, a former CONAIE president and a Pachakutik congressional deputy from 1996 to 1998. Macas said PRODEPINE was an example of the World Bank's new policy, which is endangering the unity of Latin America's strongest native movement. Since the project began in 1998, it has failed to address the political and social problems that affect indigenous people in Ecuador, said Macas. "These entities use outside funding to thrive on the basis of the organizational strength and mobilization capacity of our peoples," said Macas. Maldonado's appointment, said Macas, came from the same thinking that created PRODEPINE, which was headed by Maldonado. Political upheaval in former president's party The Democracia Popular (DP) said on Sept. 21 that it was considering whether to expel former President Jamil Mahuad, whose government was toppled in January 2000 and who is accused of taking US$3 million from jailed ex-banker Fernando Aspiazu for his political campaign. Aspiazu was jailed on charges of swindling the state and the clients of his bank, El Progreso (see NotiSur, 1999-11-05). The debate came as the DP was hit with its worst crisis ever, following the resignation of the party's founder, former President Osvaldo Hurtado (1981-1984). Hurtado left the party in mid-September because, he said, party leaders had failed to discipline Mahuad. Following Hurtado's lead, at least a dozen important DP leaders left, saying they planned to form another political party based on the DP's principles. On Sept. 24, the Tribunal Constitucional de Ecuador suspended the US$6.2 million fine it had levied against the DP because money from Aspiazu ended up in the campaign. The TCE ruled instead that the fine must be paid by the group set up by Mahuad to finance his campaign, including his brother Eduardo Mahuad and Ramon Yulee. The ruling will allow the DP to run candidates in the next elections. On September 14-16, the MPP held its Second Congress at the Universidad Salesiana in Quito to discuss issues relating to next year's elections. The group decided to maintain its opposition to the Noboa government and to participate independently in the 2002 elections. Pachakutik has a strong base in CONAIE, which has demanded that the government end economic adjustment policies and remain independent regarding Plan Colombia, the US$1.3 billion US-designed effort to combat drug trafficking. [Sources: Notimex, 09/06/01, 09/10/01, 09/20/01; Associated Press, 09/20/01; Spanish news service EFE, 09/06/01, 09/10/01, 09/13/01, 09/15/01, 09/16/01, 09/21/01, 09/24/01; Inter Press Service, 09/24/01] ================================================================= NY Transfer News Collective * A Service of Blythe Systems Since 1985 - Information for the Rest of Us 339 Lafayette St., New York, NY 10012 http://www.blythe.org e-mail: nyt@blythe.org ================================================================= pvtsa-09.28.01-11:53:38-8571