Wikileaks, US cable on leading families in Ecuador

VZCZCXYZ0000
RR RUEHWEB

DE RUEHQT #0731/01 2211609
ZNY CCCCC ZZH
R 081609Z AUG 08
FM AMEMBASSY QUITO
TO RUEHC/SECSTATE WASHDC 9235
INFO RUEHBO/AMEMBASSY BOGOTA 7685
RUEHCV/AMEMBASSY CARACAS 3132
RUEHLP/AMEMBASSY LA PAZ AUG LIMA 2745
RUEHGL/AMCONSUL GUAYAQUIL 3730

C O N F I D E N T I A L QUITO 000731

SIPDIS

E.O. 12958: DECL: 08/08/2018
TAGS: ECON EINV EFIN EIND EAGR PGOV EC
SUBJECT: ECUADOR’S LEADING FAMILY BUSINESS GROUPS

Classified By: Classified by Charge Doug Griffiths. Reason: 1.4 B and
¶D.

¶1. (U) Summary: This cable identifies Ecuador’s leading
family business groups, which dominate Ecuador’s formal
economy and own most of the important companies in the
non-petroleum sector. End summary.
Overview and observations
————————-

¶2. (SBU) This cable is a snap shot of the most important
business groups in Ecuador, all of which are dominated by
family members, who usually hold the highest positions at the
different companies. The family corporate structure tends to
limit the innovation, expansion and corporate governance of
the groups. In some instances, the family leader will bring
in strong outside officials to help run the company — Isabel
Noboa’s Nobis group has a reputation for doing so — but in
many instances the family members make most of the decisions.
A number of these groups have remained strong after the
passing of the founding patriarch, although one academic said
that most family groups begin to break down in the third
generation. Most are not very transparent. Read Article