Quito – Ecuador ‘s Congress began hearings Wednesday afternoon on a motion to censure Energy Minister Pablo Teran, who has been called to appear before lawmakers.
Independent Deputy Fernando Aguayo and Deputy Rene Mague of the Democratic Left party accuse the minister of violating both the constitution and the Hydrocarbons Law by establishing tariffs and collecting fees on the transport of oil through the Transecuadorean Oil System, or SOTE pipeline.
According to Aguayo, Teran prejudiced the state by favoring the transport of crude belonging to private companies.
The congressmen also argue that Teran unduly increased the cost of the construction of a new pipeline, called the Heavy Crude Pipeline, by favoring the OCP Consortium Ltd, which won the contract in February 2001 with a $1.1 billion bid.
The companies that compose the consortium are Occidental Petroleum Corp. ( OXY); Kerr McGee Corp ; Repsol-YPF SA ; Agip SpA (I.AGI); Alberta Energy Co . (AOG).
In January of last year, Teran was also called to appear before the Congress to answer to the same charges, but those in favor of censuring him couldn’t muster enough votes. To censure a minister, 62 votes are needed.
But even if Teran were censured, only the president could remove him from his post.
Teran’s accusers hope to corral the votes necessary for censure, which would essentially amount to a moral castigation as President Gustavo Noboa has made clear that he won’t sack Teran.
By Maria Elena Verdezoto,Dow Jones Newswires; 5939-9728-653; mercedes.alvaro@
dowjones.com
