People Profile - 29 March 2005

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  • Oscar Ayerve

    29 March 2005 Hits: 196

    Who is Oscar Ayerve?

    He is Ecuador's new interior minister, the sixth since President Lucio Gutiérrez took office in January 2003. Ayerve's predecessor (and friend), Xavier Ledesma, was only appointed on 23 February. Ledesma resigned because of problems with his eyes.

    Why watch him?
    Ayerve's appointment coincides with a change of tack by the government. On 27 March, Gutiérrez announced that he would negotiate over the reform of the supreme court and allow congress a say in the reform. On 8 December Gutiérrez had triggered a major political crisis by sacking all but four members of the 31 judges on the supreme court. This switch to consulting congress marks a major change from the government's tactics of only a week ago. On 22 March the government used tear gas to clear its opponents from congress. The opponents were trying to stop the government imposing its choice of attorney general on the country.

    Born: 1949

    Educated: He has an MBA from the University of California in Los Angeles.

    Public Life:
    Ayerve made his reputation as the head of the creditors' committee when one of the country's biggest banks, Filanbanco, went bust. He has given up the chairmanship of the committee, though he says he still intends to sit on the committee. He has a feud with Filanbanco's liquidator, Xavier Izurieta, whom Ayerve has accused of putting his own interests above those of other creditors. Ayerve worked on Gutiérrez's election campaign where he ran the candidate's political diary. He then fell out with the Gutiérrez government before falling back in with it. He was number two in the interior ministry until his appointment to the top job on 27 March.

    Timeline
    1983 to 1996: prominent in Izquierda Democrática (ID)
    1994: Quito councillor for the ID, but opposed to the mayor (and later president), Jamil Mahuad
    1994: investigated corruption around Luz Endara
    1994 to 2001: developed his printing and publishing business, Taski, until Filanbanco failed, costing him US$500,000.
    2001: forms the Filanbanco creditors' committee
    2001 to 2005: chairs Filanbanco's creditor committee, representing 64,748 creditors who are owed US$138m.
    2002: worked on Gutiérrez's campaign
    2003: petitions Amnesty International, calling on the Gutiérrez government to pay Filanbanco's creditors, as it had promised.

    Strengths
    He is a tough negotiator and his high profile over Filanbanco, where he has forced out three of the four liquidators, who he said were not acting in the creditors' best interest, has made him a force to be reckoned with. He is not afraid of criticising people: he once labelled the current agriculture minister, Leonardo Escobar, as a puppet of Filanbanco's former controlling shareholders. Ayerve is loyal to old friends, notably Gerardo Zapata, a former police captain in the mid-1980s who is now deputy director of police intelligence. Another close link is with Fausto Cobo, a retired colonel who gave up his promising military career to overthrow President Jamil Mahuad in January 2000. Ayerve has brought Cobo into the interior ministry as his number two. Cobo is close to the indigenous movement, Pachakutik, and despite joining the anti-Mahuad coup led by Gutiérrez, has also been a critic of the government. Ayerve has been strongly critical of Roberto and William Isaí­as Dassum, the former owners of Filanbanco.

    Weaknesses
    Ayerve has a range of enemies. He had a major falling out, over Filanbanco, with Patricio Acosta, one of Gutiérrez's chief advisers. Ayerve forced Acosta out of office and Acosta accused Ayerve of spying on him. The leader of the ID, Jorge Sánchez, admits that Ayerve left the party on bad terms after taking legal action against the party. One ID deputy accused Ayerve of being a bag-man. Ayerve retorted that he was one of the few people who had gone into, rather than come out of, politics as a wealthy man. Pachakutik dislikes him. Ayerve has also been accused of corruption, first over the purchase of intelligence equipment which has been used to spy on opposition politicians and secondly over a contract awarded to his publishing firm, Taski, to produce tax declaration forms and military identity cards.

    Prospects
    Ayerve's tough reputation should mean that he will serve longer than Ledesma. If the judicial reform deal is accepted by congress, Ayerve will be in a powerful position to reshape the country's constitution. Gutiérrez has ambitious plans to overhaul congress and make the country's traditionally weak governments stronger and more effective.