Andinatel executives threaten resignation

Several key executives at Ecuadorian state-run fixed line operator Andinatel have threatened to resign in support of chief executive Richard Jaramillo, who resigned last week over political interference in company operations, an Andinatel source confirmed for BNamericas. Jaramillo was under pressure from senator Gilmar Gutierrez, brother of President Lucio Gutierrez, to reinstate Andinatel's director of branches Javier Alban, who was sacked on September 1 for abusing his position of trust. Employees' representative Giovanni Cabrera said Gutierrez had asked Alban to employ 240 members of the Patriotic Society (SP) political party. Jaramillo remains as the chief executive of Andinatel's mobile venture Telecsa, and the new head of Andinatel will be Luis Recalde, an army major, the source said. The state holding company Fondo de Solidaridad (FS) began negotiations on Monday to prevent further resignations threatened by Andinatel chair Rocio Bohorquez and board secretary Jaime Galvez, as well as the vice presidents of business, legal affairs, operations and finances.