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Bolivia: President Mesa and two former presidents, Sanchez de Lozada and Jorge Quiroga to be indicted
By Carlos Herrera – Bolivarian Activist
Axis of Logic
Monday, Apr 18, 2005

The gas war has not yet ended in Bolivia as the Senate is considering the new legislation to govern contracts with the multinationals and the level of royalties and taxes to be paid. At the same time another front has been opened up by Evo Morales’s MAS party (Movement to Socialism) by asking the Attorney General to indict President Mesa and his two predecessors Gonzalo Sanchez de Lozada (1993-97 and 2002-03) and Jorge Quiroga (2001 – 2002).

The three are charged with failing to obtain congressional approval to sign oil contracts with the multinationals operating in the country. This is a constitutional obligation under Bolivian law.

The MAS Deputy Santos Ramirez submitted the charges in the southern city of Sucre, Bolivia’s official capital, asking for Mesa, Sanchez de Lozada and Quiroga to be tried. In effect, if all three signed contracts unilaterally with the multinationals and the terms of the contracts were never discussed in Congress. Who knows what sorts of advantages the multinationals secured to exploit Bolivia’s natural resources, since all three accused are of neoliberal tint. Moreover, who knows what sorts of "advantages" the 3 under indictment may have secured?

This practice started during Sanchez de Lozada’s first term as President and was declared illegal by the Constitutional Court this month. This effectively cancelled all contracts and their validity, making it impossible for the multinationals to take action against the Bolivian state in the case of royalties and taxes with which they may disagree. From now on, all contracts granted will have to be passed and approved by Congress.

According to the legal adviser of the MAS, Hector Arce, the accusations range from detrimental economic conduct, covert behavior and the publishing of resolutions contrary to the Constitution and dereliction of duties. The Constitution establishes that Congress has attributes to approve "agreements which compromise general state income, as well as contracts relating to the exploitation of national wealth and resources"

Deputy Ramirez was firm in his declaration that the irresponsibility of these presidents should not go unpunished and proceeded to criticize President Mesa for denying any knowledge about an agreement made during his government in October 2003 by the state multinational YFPB without legislative approval.

Mesa had previously denied signing any agreement of this type during his mandate, even though the presidency of YFPB is appointed by the President of the Republic himself. The contracts in existence, unapproved by Congress include thirty nine (39) in Sanchez de Lozada’s first government and five during Quiroga’s brief spell at the top. Another 23 were granted under the government of the late President Hugo Banzer.

Despite the ruling of the Constitutional Tribunal, the Hydrocarbon Chamber which is made up of the multinationals still maintains that the contracts are valid because they were covered by a presidential decree issued during Sanchez de Lozada’s first government. However, the Constitutional Tribunal maintains that all contracts have to be approved by Congress despite the existence of this decree.

Both the Congress and the Attorney general’s office have undertaken to investigate all the documents concerned and are waiting for them to be submitted according to the Minister to the Presidency, Jose Galindo.

If the three accused are tried for these multiple "oversights" and found guilty, the most affected would be Jorge Quiroga. He is the right wing’s leading candidate for the 2007 presidential elections and a conviction could indeed disqualify him from running. It is Quiroga’s brother, Luis, with whom I have been exchanging correspondence over the last month or two.

This would be a huge blow for Quiroga’s personal ambitions and also for the multinationals who share his bed. These multinationals are indeed powerless without malleable leaders like Quiroga, who have allowed them to strip Bolivia’s natural resources without paying for their motherlodes. The state is due to collect 18% royalty and 32% tax under the new hydrocarbon law which is currently being ratified by the Senate.

© Copyright 2005 by AxisofLogic.com


Read Carlos Herrera's bio on Axis of Logic. His reports on the progress of the Bolivarian revolution in Latin America can be found in his:

Series on Ecuador

Series on Bolivia

Series on Latin America

You can contact Carlos Herrera at: carlos@axisoflogic.com

Carlos Herrera is also a regular writer on the Bolivarian Republic of Venezuela at VHeadline