The legal acion against Chevron in Ecuador takes a not so unexpected turn.

Ecuadorian President Correa examines an oil spill generated by the Ecuadorian state
oil company but blames it on Texaco, that left the country almost 20 years ago.


For some years now a legal action has been in progress in Ecuador against Chevron Oil Corporation in connection with environmental damages presumably caused by TEXACO, later acquired by Chevron, by oil production activities in the Amazon region. The size of the damages estimated by the Court’s designated expert amounts to some $26 billion.
Last Monday, August 31, Chevron issued a news release containing videos and transcripts that provide startling but not entirely unexpected evidence of possible legal and government corruption in connection with this ongoing legal action against the company. These videos show the judge of the cause, Mr. Juan Nuñez, meeting with individuals claiming to be members of the Ecuadorian ruling political party, ALIANZA PAIS, and the government, to discuss a scheme by which the judge would rule in favor of the plaintiffs and would obtain one million dollars for his decision, while another million dollars would go to the “presidency” and one million dollars would remain with the party. The money would be obtained, according the videos, from a couple of businessmen to whom the government officials would arrange to award “environmental remediation contracts” after the verdict, which is expected to be delivered sometime in October or November of this year.
The tapings took place in May and June of this year in Quito. Two of the meetings were held in the Quito offices of the political party ALIANZA PAIS, one meeting was held in the Judge’s chambers in Lago Agrio and a fourth meeting, with the judge also present, was held in a Quito hotel.
The plot was revealed by an Ecuadorian businessman, Diego Borja, who had been working with a U.S. businessman, Wayne Hansen, in the search for business opportunities in Ecuador. According the Chevron’s news release, “Borja and Hansen recorded their meetings [with the government and party officials] in Ecuador without Chevron’s knowledge, and neither man was paid to provide the recordings to Chevron. Because of concern for Borja’s safety, Chevron has assisted him and his family with relocation expenses and other interim support”.
The news release provided details on how the meetings proceeded:
“On May 11, Borja and Hansen attended a meeting at the Quito offices of Alianza PAIS where
they were introduced to Patricio Garcia, who represented himself as an official with the party. Later, Garcia arranged for Borja and Hansen to fly to Lago Agrio for a May 15 meeting with Judge Núñez. During the meeting, held in the judge’s chambers and recorded by Borja and Hansen, Judge Núñez stated that the government of Ecuador, not the plaintiffs, would receive the funds earmarked for remediation produced by the judgment against Chevron.
Subsequently, Borja and Hansen met with Judge Núñez at a Quito hotel on June 5. Attending the
meeting was Juan Pablo Novoa, who represented himself as legal counsel for government officials. During the meeting, Judge Núñez answered a series of questions about the case from the
businessmen, who were seeking assurances the court proceedings, would generate business. Novoa stated that “we have the political power” to direct remediation contracts and stressed the judge “is generating the work through the ruling.” Novoa added, “The offer from the people in the government that I represent, I’m a delegate of them, so I’m accompanying the judge so that you can be serious about the case.” Judge Núñez confirmed that he would be issuing a ruling, the appeal would be a formality and the government would be handling the funds associated with remediation contracts”.
The videos also provided detailed information on how the bribe money would be distributed:
“Borja: “OK. Of the three million … one million is for the judge?”
Garcia: “Yes.”
Borja: “One million for the presidency…?”
Garcia: “Yes.”
Borja: “And one million for the plaintiffs?”
Garcia: “Yes, that’s right.”
Borja: “But for the plaintiffs, who gets the money, man? Fajardo?”
Garcia: “No. On this matter, we’re going to handle it here.”
Borja: “You mean Alianza PAIS would receive the payment here?”
Garcia: “Right.”
For the complete transcripts and video recordings, go to www.chevron.com/ecuador.
Chevron has asked the Ecuadorian authorities to investigate this in full and will seek the disqualification of the judge and annulment of all prior rulings.
In a detailed paper that awaits publication I have discussed the qualifications of both the judge and the expert named by the court and have expressed doubts about their impartiality. I have also discussed the clear intervention in the case by Ecuadorian President Rafael Correa.
In any county with effective separation of powers and a transparent judicial system this new development would be enough to declare the legal action against Chevron null and void. In today’s Ecuador one never knows.