Crisis with Ecuador makes rapporteur hasten the establishment of Unasul

07/12/2008 05h05

 Committee on Foreign Relations and National Defense wants to prevent conflicts among and between countries of South America

The president of the Committee on Foreign Relations and National Defense, Deputy Marcondes Gadelha (PSB-PB), informed that the House should very soon analyze proposals that may prevent conflicts among and between countries of South America, such as the one that involves currently Brazil and Ecuador.

Unasul and the National Defense Plan
Marcondes Gadelha is the rapporteur, at the committee he chairs, of Message 537/08, by the Executive, which creates the Union of South-American Nations (Unasul). The new regional body intends to unite Mercosul to the Andes Community.

“I intend to present my report as soon as possible, but I would now like to aggregate it to the presentation of the National Plan on Strategic Defense – which is being elaborated by the minister Nelson Jobim [of Defense] – because both subjects are related”, adds the deputy.


The crisis with Ecuador
Ecuador has a debt of several million dollars with the Brazilian Development Bank (BNDES) and is challenging the validity of that debt.

The loan from BNDES, for the construction of the Hydroelectric Power Plant of San Francisco, in Ecuador, amounts to 243,000,000 dollars, but the debt, accrued of interests, amounts to 331,000,000. Despite questioning the contract at the international Chamber of Commerce, in Paris, the Ecuadorian government informed that they intend to pay the installments until the decision on the lawsuit. The first payment, of 15,000,000 dollars, is due this month.

Split opinions
The crisis between Brazil and Ecuador splits opinions at the Chamber. Some deputies are against the attitude of the neighbor country’s president, Rafael Correa, which challenges the debt with BNDES, contracted for the construction of the power plant.

Others argue that Correa has the right to challenge the terms of contracts closed by former managements. The construction work, performed by the Brazilian Construction company Odebrecht, presented problems after the end of the works, and underwent a reform.

Embarrass
The deputy Marcondes Gadelha considers the conflict with Ecuador “extremely embarrassing". According to him, there are no reasons for the country to conflict with Brazil, since the responsible company for the construction work admitted to have failed and proposed to correct the problems.

“We will conquer advancements with the approval of the Unasul Treaty, because, if Unasul were fully in place, this would be a good moment to address such a conflict in the presence of all Chiefs of State”, highlighted the congressman.
Gadelha also suggested that Brazil takes provisional measures regarding other loans that may have been granted to Ecuador.

Ecuador’s defense
For the leader of PSOL, deputy Luciana Genro (RS), the president of Ecuador has not only the right, but also the duty to contest contracts closed with foreign companies, that harm the interest of his country.

According to the congresswoman, Brazil’s behavior during crises with neighbors must not be imperialistic, since that could hamper its relationship with the other countries. Luciana Genro highlights that the problem of public debt is common among nations of Latin America.

It could be helpful if the Brazilian Chamber performed that auditing on public debt and if we could make a great debate in Latin America, about the problem of the countries’ debt”, said Luciana Genro.

Inquiry Committee on Public Debt
Luciana Genro highlighted the standpoint of the auditor Maria Lúcia Fatorelli, who went to Ecuador to follow-up on an investigation about the debt being litigated: “She highlighted that, regarding several problems they found in the contracts with Ecuador, they also suspect they exist in Brazil’s contracts.”

The congresswoman reminded that the deputies have already collected enough signatures for the creation of a Parliamentary Inquiry Committee (CPI) on Public Debt, to perform that very auditing in the contracts with multinationals and other countries, but that the committee has not been installed yet.


Report - Cristiane Bernardes/Rádio Câmara
Editing - Newton Araújo Jr.
Translation: Positive