From: Reuters
Significant flaws are emerging in Chevron`s version of events surrounding a
purported Ecuador bribery scandal where company officials are trying to taint a
long-running trial involving a potential $27 billion liability, representatives
of the Amazon indigenous communities said today.
On Tuesday, representatives of the Amazon communities said the so-called bribery
scandal - which Chevron claimed implicated the judge overseeing the trial - had
all the telltale signs of a Nixon-style "dirty tricks" operation orchestrated by
persons working on behalf of the oil giant. It now turns out much of what
Chevron claims is not supported by the evidence or has been mischaracterized by
the company, said Steven Donziger, an American legal advisor to the indigenous
communities of Ecuador.
The timing of the videotapes is also suspicious, given that the tapes had been
in Chevron`s possession for several weeks but were released on the eve of a
final judgment at the trial and the theatrical opening in New York on September
9 of an acclaimed documentary film, Crude. The film casts Chevron`s behavior in
Ecuador in a highly unflattering light, said Donziger.
"Major holes are beginning to appear in Chevron`s dazzling story of corruption
and they are evident from a careful look at Chevron`s own materials," said
Donziger, who called on the U.S. Department of Justice to open an investigation
into possible legal violations, including any committed by Chevron officials and
its representatives in Ecuador.
"It is clear from Chevron`s materials that the company has a significant level
of involvement with individuals trying to corrupt a foreign country`s judicial
system and implicate the elected President of Ecuador in a scandal -- all to
avoid paying a legal liability stemming from private litigation," said Pablo
Fajardo, the lead Ecuadorian lawyer on the matter.
"What Chevron has done is a direct attack on the independence of Ecuador`s
judiciary, a direct attack on Ecuador`s elected President by claiming he was
involved in a bribery scheme, and an obvious interference in the sovereign
affairs of a foreign nation with whom the U.S. has diplomatic relations," said
Fajardo.
A further analysis of the videotapes - which were first posted by the company on
YouTube on Monday of this week - reveals the following:
* There appears to be no firm evidence that Judge Nunez said he would rule
against Chevron, contrary to statements by the company in its press materials.
In fact, on 13 separate occasions Nunez rebuffed leading questions posed by
Borja and an American businessman, Wayne Hansen, asking how he would rule on the
case. Chevron chose not to include any of these statements by the judge in the
20-minute summary video it released to the media.
* Judge Nunez himself says the tapes were spliced and manipulated. In fact, the
judge cannot be seen in the video at the moment one can hear "yes sir" in
response to a question about whether Chevron is guilty, suggesting that part of
the tape might have been spliced together. Yet that one comment, at best
ambiguous, is the centerpiece of Chevron`s media campaign on the issue that the
judge already has decided how he would rule.
* The only evidence of bribery in the videos involved a Chevron contractor,
Diego Borja, and an alleged political party official in Ecuador -- not trial
judge Juan Nunez. This fact appears on its face to violate the Foreign Corrupt
Practices Act (FCPA), a U.S. statute which prohibits the bribery of foreign
officials by American businesses and their agents, said Donziger. Chevron
recently paid a $30 million fine for violating the FCPA in a scandal linked to
Iraq.
* Chevron has stonewalled attempts to test the veracity of its claims. The
company has refused to turn over the tapes for independent forensic examination;
it has refused to make Chevron contractor Borja available for questioning by the
media; and it has refused to provide information about the whereabouts of
Hansen, the mysterious American businessman who Chevron says gave the company
some of the secret recordings.
* Chevron also has refused to say how much it paid Borja, who was spirited out
of Ecuador and relocated in the U.S. under Chevron`s direction and provided what
Chevron described as "interim support". The company has refused to turn over the
contract it had with Borja, who worked for the company during the environmental
trial in Ecuador as recently as March of this year.
* Chevron has failed to disclose the role in the scheme of its local counsel in
Ecuador, Adolfo Callejas; its former General Counsel in the U.S. and current
Executive Vice President, Charles James; or that of its chief outside counsel,
Tim Cullen, of Jones Day in Washington, D.C. All of these individuals need to be
questioned under oath, said Fajardo, because there is clear evidence from
Chevron`s own materials and public statements that they were connected to Borja
and Hansen or otherwise involved.
* Cullen sent a letter on behalf of Chevron to Ecuador`s National Prosecutor
demanding a criminal investigation of the so-called bribe. But the letter
contained a significant number of exaggerations not supported by evidence - such
as the charge that government officials planned to craft the judge`s decision in
the case. "Cullen either needs to turn over evidence to support these wild
allegations, or he needs to withdraw them," said Fajardo.
* Chevron has admitted in its materials that it was aware of the secret
recordings prior to the fourth and final meeting that was taped, which Chevron
says took place on June 15 of this year. Yet it was only at the fourth meeting -
where the Judge was not present - that bribes were directly discussed. Chevron
officials need to explain if they or anyone under their direction scripted,
planned, or influenced any aspect of the fourth meeting, said Fajardo.
Chevron should immediately make fully public its witnesses and evidence, not
wait for an official investigation, given that it already had released selected
portions of the evidence on YouTube.
"Since Chevron wants a public trial of its evidence, it needs to make all the
evidence it has available to the public immediately," said Donziger. "You can`t
release selective portions and hide the embarrassing portions and expect to be
taken seriously."
"The full facts regarding Chevron`s role and that of the judge must become
known," added Fajardo. "One thing the world cannot afford is to take Chevron`s
word at face value."
About the Amazon Defense Coalition
The Amazon Defense Coalition represents dozens of rainforest communities and
five indigenous groups that inhabit Ecuador`s Northern Amazon region. The
mission of the Coalition is to protect the environment and secure social justice
through grass roots organizing, political advocacy, and litigation.