MIAMI, Florida (June 4, 2007)- The Inter American Press Association (IAPA)
said today that it will keep a close watch on the legal battle between private
and official shareholders of the Ecuadorean newspaper El Telégrafo in the
hope that the dispute will be conducted transparently and according to due process.
Carlos Navarette Castillo, the paper's editor since 2002 and a descendant
of the founders of the 123-year-old newspaper, complained that the government
invalidated capital infusions made in 2002, 2004 and earlier this year in an
attempt to strip the private shareholders of their subsequent majority ownership
position.
The official regulatory body, the Office of Superintendent of Corporations,
issued an edict reversing the capital increases and restored a majority shareholding
to the national Deposits Guarantee Agency (AGD). Through this agency the Ecuadorean
government, began managing the newspaper a decade ago after freezing the assets
of banker Fernando Aspiazu " the largest single shareholder of the newspaper
at the time and currently in jail on charges of fraud in connection with the
now defunct Banco del Progreso.
The two parties dispute the validity of the government?s action. Navarrete
argues that the increase in capital was made to save the newspaper from bankruptcy
and accuses the government of abuse of power and wanting to take control of
a news outlet. The Office of Superintendent claims the capital infusion "
the equivalent of $700,000 " was unlawful and if upheld would have raised
the private shareholder from 20% to more than 80% of outstanding stock.
The IAPA, through its president, Rafael Molina, and chairman of the Committee
on Freedom of the Press and Information, Gonzalo Marroquín, declared
that while respecting the role of the judiciary it hoped the legal conflict
would be conducted with complete openness and observance of due process.
IAPA officers, in response to statements by local officials that the intent
is for the government to end up without right ownership of the newspaper, added
that the government should call for public bids as dictated by law in order
to avoid contradicting international principles that govern freedom of expression
and press freedom.
