Álvaro Noboa

Infobox Person
name = Álvaro Noboa Pontón


caption = Alvaro Noboa Pontón
birth_date = November 21, 1950
birth_place = Guayaquil, Ecuador
death_date =
death_place =
other_names =
education = San Jose La Salle Catholic School in Guayaquil, Institut Le Rosey in Switzerland, Guayaquil State University, American Management Association in New York
website = http://www.alvaronoboa.com/indexEng.htm
known_for =
occupation = Businessman and politician
nationality = Ecuadorian

Álvaro Fernando Noboa Pontón (born November 1, 1950 in Guayaquil) is an Ecuadorian businessman and politician.

Noboa has been actively involved in politics, running for president in 1998, 2002 and 2006. In 2007 he was elected national assemblyman.

In 1997 with the 25.1% of the banana business company, he purchased another 25% of the shares, assuming control of the Fruit Shippers Ltd., the holding company for the family business. After that there was a lengthy legal battle with his siblings for the control of the company. [ [http://www.forbes.com/billionaires/free_forbes/2003/0317/108.html Slippery Situation - Forbes.com ] ] . Noboa won the trial. [ [http://www.accessmylibrary.com/coms2/summary_0286-26729651_ITM Cadwalader, Wickersham & Taft ] Law firm web site - LONDON--(BUSINESS WIRE)--Nov. 21, 2002 ]

Actually as a business man he controls the Noboa Group of Companies and Noboa Corporation, with more than 110 companies in Ecuador and around the world which include branch offices in United States, Antwerp, Rome, Japan, Argentina and New Zealand.

Some of his Ecuadorian companies have faced lawsuits and IRS claims. The banana exporting company also has been audited by international organisations due to child labor issues and strike conflicts.

His foundation "Crusade for a New Humanity" [ [http://www.prian.org.ec/Paginas/Titulos.php?Med=41 ::Prian :: ] ] (Spanish: "Cruzada Nueva Humanidad") draws on his personal fortune to fund social projects. While running for presidency some have criticized the foundation social work mostly for political reasons.

Education

His biography portrayed him as the best student in high school, both at the San Jose La Salle Catholic School in Guayaquil as well as the Institut Le Rosey in Switzerland. He entered the Guayaquil State University and he graduated as a lawyer. He also took Business Administration courses at the American Management Association in New York. He is trilingual. Alvaro decided to pursue his professional career in the business field as a successful entrepreneur. [ [http://www.redtube.com] Alvaro Noboa Biography]

Business life

Family business, inheritance and litigation

Alvaro Noboa is a self-made billionaire, and although his father was also a billionaire, Alvaro pursued his own business path. On the television programme ‘Quiero ser Presidente’ (‘I want to be President’) Noboa said: "I was already a multi-millionaire by the age of 27. When I turned forty-three, my father passed away, leaving me 7 million dollars out of a fortune of 1.2 billion dollars. I'm grateful."

The estate of Álvaro Noboa’s late father, Luis Noboa, the founder of the family’s banana business, was the subject of protracted litigation.

According to "Forbes" magazine, [Freedman, Michael. [http://www.forbes.com/billionaires/free_forbes/2003/0317/108.html Slippery Situation] , Forbes, March 17, 2003.] Luis Noboa’s heirs spent $20 million in legal fees culminating in a ruling by a British court: “In November 2002 a London judge found that Álvaro rightfully owned a 50.1% stake in Fruit Shippers Ltd., the holding company for the family business. That stake is worth $300 million, we estimate. Noboa, who has made our billionaire's list previously, claims his assets are worth at least $1 billion. ‘It was a full victory,’ Noboa said.”

From the court’s ruling: [De Molestina and others v. Ponton and others. Queens Bench Division [2002] EWHC 2413.]

“The principal business of [Luis Noboa] was the export of bananas. But at the time of his death his interests also included coffee, sugar refining, flour milling, shipping, banking, insurance and soft drinks. The principal Ecuadorian company engaged in the banana business was Exportadora [sic.] Bananera Noboa S.A. (EBN). The ultimate holding company and the company owning most of the overseas business was [Fruit Shippers Ltd.] a company incorporated in the Bahamas.”

According to "Cadwalader, Wickersham & Taft" Law firm [ [http://www.accessmylibrary.com/coms2/summary_0286-26729651_ITM Cadwalader, Wickersham & Taft ] Law firm web site - LONDON--(BUSINESS WIRE)--Nov. 21, 2002 ] the Judge, The Hon. Mr. Justice Langley, rejected the evidence of the sisters and he held that their evidence was untruthful and "had been starkly exposed as inconsistent, lacking coherence and wholly unreliable".

Business

In 1973, Noboa established [Promandato Global S.A.] , a firm that unites several real estate companies considered to be one of the largest firms in Ecuador.

In 1988, he established [‘Revista La Verdad’] , a monthly magazine. [ [http://www.revista-laverdad.com/Paginas/Historia.php Revista La Verdad] La Verdad Magazine History]

On April 22, 1988, he founded [Banco del Litoral] , one of Ecuador’s most reliable banks. [ [http://www.bancodellitoral.com/html/historia.htm Banco del Litoral] Banco del Litoral History]

On July 22, 1988, he established the [Global Financing Company] [ [http://www.financieraglobal.com/webpages/pagina.php?cod_opcion=6 Global Sociedad Financiera] Global Financing Company - History] and other investment companies on an international scale. All these companies and businesses together became known as [Grupo de Empresas Ab. Alvaro Noboa P.]

His exporting company, Exportadora Bananera Noboa, had sales of $220 million in 2004 and $219 million in 2005 [Las 25 que más vendieron, Revista Vistazo No. 938, September 14, 2006.] .

Latin American meeting

Since 2003 Alvaro Noboa has attended the annual Entrepeneurial Meeting for Latinamerican businessmen. The summit was born in the 2003 by initiative of the Mexican Carlos Slim personal friend of Mr. Noboa.

The meeting was not meant to discuss their business concerns but rather to broach social issues in the region. It has been held at Mexico 2003 [ [http://archivo.eluniverso.com/2003/05/27/0001/8/1A1038289A6A45BA9EEB05CD3D3CD4B0.aspx El Universo newspaper] Alvaro Noboa attending Businessmen meeting] , Dominican Republic 2004, Brazil 2005 [< [http://www.alvaronoboa.com/Paginas/EncuentroEmpresarialSaoPaulo2005.htm Encuentro Empresrial Brasil 2005] Alvaro Noboa en Cumbre Brasil 2005] , Argentina 2006 [ [http://www.fortuna.uolsinectis.com.ar/edicion_0148/negocios/nota_01.htmRevista Fortuna ] Cumbre de los más ricos del mundo - Argentina 2006] , Chile 2007 [ [http://www.elcomercio.com/noticiaEC.asp?id_noticia=113064&id_seccion=3 El Comercio newspaper] V Fathers and sons summit - Chile 2007] and Panamá 2008 [ [http://www.prian.org.ec/Paginas/Titulos.php?Med=134 Panamá 2008] Alvaro Noboa among Latinamerican businessmen Meeting] .

Labour practices

Usleap once affirmed Noboa has opposed campaigns for workers' rights within his own companies, and Noboa Group workers have been illegally dismissed for joining trade unions. [http://www.usleap.org/Banana/Noboa%20Company%20Page.htm] [http://www.usleap.org/Banana/Noboa/NoboaBlockNegUpdate7-7-02.html] .

In one 2002 incident striking workers at a Noboa subsidiary were attacked and&ndash;according to a Human Rights Watch report&ndash;several were shot by organized assailants. [ [http://hrw.org/english/docs/2002/05/22/ecuado3997.htm Ecuador: Escalating Violence Against Banana Workers (Human Rights Watch, 22-5-2002) ] ] [ [http://www.commondreams.org/headlines02/0616-04.htm Workers Pay Brutal Price for Cheap Fruit ] ]

In 2002 the "New York Times" reported on working conditions in Álvaro Noboa’s banana plantations in Ecuador. The article specifically mentioned the 3,000-acre plantation known as Los Álamos that employed about 1,300 people. [Forero, Juan. In Ecuador's Banana Fields, Child Labor Is Key to Profits, The New York Times, July 13, 2002.]

The workers of Los Álamos unionized in March 2002. Noboa’s company responded by firing more than 120 of them. The article read: “When the workers occupied part of the hacienda, guards armed with shotguns, some wearing hoods, arrived at 2 a.m. on May 16, according to workers, and fired on some who had refused to move from the entrance gate, wounding two.”

Noboa's Company, on the other hand, claims that the conflict was illegally initiated since the number of workers’ with which the special committees were assembled never reached the number required by law, that is, a majority. They tried to fool authorities by having participants who were not workers. Both the workers’ committee and the strike declaration were illegal.

It was said to the public and press that workers involved in this conflict were guilty of outrageous conduct at the farm, which motivated accusations brought forth before the authorities whereby the police had to intervene in order to safeguard company assets. The company told that conflict arose causing substantial losses due to unlawful stoppage of agricultural activity. [ [http://www.alvaronoboa.com/Eng/AlvaroNoboa-ConflictoAlamos.htm The Alamos Conflict - The Truth of the matter] , The Truth of the matter]

Child labor

Noboa Group was also criticized in a HRW investigation into child labor practices in the banana industry. [ [http://hrw.org/english/docs/2002/04/25/ecuado3876.htm Ecuador: Widespread Labor Abuse on Banana Plantations (Human Rights Watch, 25-4-2002) ] ]

In April 2002 Human Rights Watch released a report [ [http://hrw.org/english/docs/2002/04/25/ecuado3876.htm Ecuador: Widespread Labor Abuse on Banana Plantations] , Human Rights Watch, April 25, 2002.] that “found that Ecuadorian children as young as eight work on banana plantations in hazardous conditions, while adult workers fear firing if they try to exercise their right to organize.” Chiquita, Del Monte, Dole, Favorita and Noboa’s company were all accused of being supplied by plantations on which children worked.

Noboa's company claims that to be untrue since child labor in the agricultural sphere is part of the existing countryside culture which not only asked but demanded the performance of some type of agricultural labor from its siblings during vacations, in order to make ends meet, and to avoid vagrancy and therefore the possibility of delinquent behavior.

It was pointed out that the work performed by these minors, and which fulfilled social and family-oriented needs, was always adequate for their age group and received all guarantees and conditions contemplated in social and labor legislation.

It was said to the public: "Ever since abolishment of child- labor became a reality in agricultural concerns, Noboa Corporation took corrective measures to the extent that child- labor has been non-existent for many years not even for minors 15-18 years old which is permissible by law, due to consistant political attacks which distort the truth of the matter" . [ [http://www.alvaronoboa.com/Eng/AlvaroNoboa-TrabajoInfantil.htm Child Labor] ]

Business practices

hell companies

An 2005 investigation [ [http://elcomercio.terra.com.ec/solo_texto_search.asp?id_noticia=9427&anio=2005&mes=12&dia=9 Unas 360 tercerizadoras solo son empresas de papel en Guayaquil] , El Comercio, December 9, 2005.] uncovered 99 companies in Ecuador registered to fictitious addresses. All were associated with Noboa’s business.

The companies, with names like Dalioca, Domintini, Abacus and Carani, were listed in the archives of Ecuador’s Ministry of Labor as being third-party labor-placement businesses, which served other, larger companies by hiring workers on their behalf. The same telephone number was found in all companies’ files and it connected to a recording that said that Corporacion Noboa had been reached. Then a person got on the phone and said that no companies with those names functioned at that location.

The shell companies were also traced to an address that corresponded to an abandoned warehouse in the city of Guayaquil. One company’s file, Empacadora Tropical, had written the warehouse as the address of Corporacion Noboa. The company’s shareholders were Fruit Shippers and New York Commodities, two companies based in Canada and the Bahamas respectively.

The shell companies were used to dodge labor obligations on the part of the employer. Victoria Oliveira, Communications Director of Grupo Noboa, said to a newspaper that Noboa’s company knew nothing about these links. [ [http://elcomercio.terra.com.ec/solo_texto_search.asp?id_noticia=9525&anio=2005&mes=12&dia=10 El camino de las tercerizadoras de papel lleva al Grupo Noboa] , El Comercio, December 12, 2005.]

Tax evasion

In March 2005, Ecuador’s government closed one of Noboa’s companies, Elaborados de Café, a coffee-processing business, for failing to file a tax return. [ [http://elcomercio.terra.com.ec/solo_texto_search.asp?id_noticia=122255&anio=2005&mes=3&dia=19 Una firma de Alvaro Noboa fue cerrada] , El Comercio, March 19, 2005.]

Also, the government determined that another Noboa company, Frutería Jambelí Frujasa, owed almost $20 million in back taxes, including about $7 million due to interest accrued. The amount was calculated as part of an audit of Noboa’s 114 firms. A newspaper contacted the firm and was told by employees that it no longer existed. The number was that of Corporacion Noboa. [ [http://elcomercio.terra.com.ec/solo_texto_search.asp?id_noticia=122548&anio=2005&mes=3&dia=22 Jambelí debe 20 milllones a Rentas] , El Comercio, March 22, 2005.]

Other Noboa enterprises were notified that they owed taxes, including: Industrial Molinera, a flour mill, ($2.4 million), Compañía Nacional de Plásticos, a plastic-manufacturing firm, ($1.1 million) and Manufacturas de Cartón, a cardboard box factory, ($3.1 million). A member of Noboa’s party and member of Ecuador’s congress, Sylka Sanchez, called the audits “blackmail” and said the arrears came to light after Noboa refused to join a legislative coalition headed by then-president of Ecuador Lucio Gutierrez. [ [http://elcomercio.terra.com.ec/solo_texto_search.asp?id_noticia=123439&anio=2005&mes=3&dia=30 Alvaro Noboa suma más deudas con el Servicio de Rentas Internas] , El Comercio, March 30, 2005.]

Ecuador’s internal revenue director, Vicente Saavedra, denied that Noboa was being singled out and said audits were done on a million and a half taxpayers. “If that’s what they call persecution, then there ought to be a law so that politicians don’t have to pay their taxes,” he said to a newspaper. [ [http://elcomercio.terra.com.ec/solo_texto_search.asp?id_noticia=122896&anio=2005&mes=3&dia=25 El SRI aún no puede cobrar a A. Noboa] , El Comercio, March 25, 2005.]

ocial work

In 1977, Noboa established the [Fundación Cruzada Nueva Humanidad (Crusade for a New Humanity Foundation)] , which began with the philosophy of fighting misery, disease, ignorance, spiritual weakness, hatred and other misfortunes that afflict man. The Foundation is based on the Christian beliefs of love, unity and self-improvement. Twenty-seven years later, the foundation continues with its mission.

According to the foundation website, currently, the medical brigades of the "New Humanity Crusade" Foundation are carrying out a plan of nationwide scope for permanent medical service and assistance to marginal aereas of various rural populations and cities, staying always alert for emergency cases. [ [http://www.cruzadanuevahumanidad.org Fundación Cruzada Nueva Humanidad] http://www.cruzadanuevahumanidad.org ]

The Politician

Political experience

In 1996, Álvaro Noboa was named President of Ecuador’s Monetary Board by then-President of the Republic Abdala Bucaram.

According to an account of Bucaram’s last day in office (he was overthrown before his term expired) Noboa was the last person to leave the presidential palace in Quito before Bucaram himself left the building 30 minutes later in the evening of February 7, 1997. [Cevallos, Marcia. [http://www.hoy.com.ec/libro/cap9.htm Que Se Vaya, Chapter 9] . Quito: Diario Hoy]

While in office Bucaram used his presidential powers to sway the dispute between Noboa and his siblings. Early in his short-lived administration, when Exportadora Bananera Noboa was not yet in Noboa’s hands, Bucaram ordered the Superintendent of Companies to intervene in the company citing as a pretext the lowering of the price paid for bananas in bulk. [Freire, Juan Francisco. [http://www.hoy.com.ec/libro/cap11.htm Que Se Vaya, Chapter 11] . Quito: Diario Hoy] Then in January 1997 Bucaram threatened Noboa’s siblings with the possibility of expropriating a large estate. [Ponce, Xavier. [http://www.hoy.com.ec/libro/cap4.htm Que Se Vaya, Chapter 4] . Quito: Diario Hoy]

During his short tenure as head of Ecuador’s Monetary Board (August 1996-February 1997) Noboa owned a small bank, Banco Litoral, and collaborated as part of an economic team that included Domingo Cavallo, the architect of Argentina’s monetary convertibility policy during the 1990s and special foreign advisor to Bucaram,David Goldbaum, head of the National Finance Corporation and owner of Banco Territorial, and Roberto Isaias, then-president of now-defunct Filanbanco, one of Ecuador’s largest banks, who served as economic advisor. [Peagam, Norman. [http://salsa.babson.edu/Pages/Articles/96-12%20Ecuador%20Currency%20Bd-EM Crazy man in power] , Euromoney, December 1996.]

Noboa pledged to stop the privatization program began by the previous administration of Sixto Durán Ballén and replace that with a policy of capitalization of state-owned enterprises, like the program implemented by Gonzalo Sánchez de Lozada in Bolivia. [Latin America Weekly Report, August 1, 1996.] However, Noboa did not outright dismiss the idea of privatizing some state-owned companies. [Latin America Weekly Report, August 8, 1996.]

The administration planned to eliminate gas subsidies, except for the poorest, and to sell off part of EMETEL, the national telephone company, as well as parts of state-owned energy industries. Noboa, faced with a budget shortfall, claimed that Ecuador’s government could have raised hundreds of millions of dollars by going after tax evaders and late-payers of taxes. [Haq, Farhan. Bucaram Woos U.S Bankers After Populist Campaign, Inter Press Service, August 6, 1996.]

Political party

Noboa is the leader of the Institutional Renewal Party of National Action ("Partido Renovador Institucional de Acción Nacional", PRIAN) [ [http://www.prian.org.ec :: PRIAN - Alvaro Noboa :: ] ] , a populist party he founded himself after separating from the populist center-right Ecuadorian Roldosist Party ("Partido Roldosista Ecuatoriano", PRE).

Presidential runs

In 1998 Noboa ran for president for the first time. In the first round of elections, held on May 31, Noboa got 1,022,026 votes, 26.61% of valid ballots. That placed him second behind Jamil Mahuad (1,341,089 votes, 34.92% of valid ballots) and both battled in a runoff held on July 12. Noboa lost the runoff by 102,519 votes. Mahuad won with 2,243,000 votes. [ [http://www.electionguide.org IFES Election Guide.] ]

After the election Noboa claimed that fraud had been committed. He accused Supreme Electoral Tribunal President Patricio Vivanco of refusing to conduct a recount as was his request. He said that some precinct acts had been corrected using whiteout and others showed no blank votes. [Notimex, July 15, 1998.]

He ran for president a second time in 2002, again reaching the runoff, though he received only 17% of the vote in the first round. He lost the November 24, 2002 second round to Lucio Gutiérrez (2,803,243 or 54.79% to 2,312,854 or 45.21%). [ [http://www.electionguide.org IFES Election Guide.] ]

In 2006, he decided to run once again as presidential candidate for his party. With 99.5 percent of votes from the October 15 election officially counted, Noboa won 26.83 percent of the vote, Rafael Correa the closest opponent received 22.84 percent of the vote. The two candidates contested a run-off on November 26. With 98.91% of the votes cast, Correa had an unassailable lead with 56.8% of valid votes cast. Noboa refused to accept defeat, and has suggested that he might challenge the legitimacy of the ballot count.

Campaign spending

Noboa was fined more than $2 million for exceeding campaign spending limits in 2002. Noboa spent $2.3 million in his campaign, 98% above limit. The fine equaled twice the excess. [Big bucks fail to deliver votes, Latin America Weekly Report, October 29, 2002.]

In 2004 Noboa offered to pay not with cash but with financial instruments which would lose up to half their face value when exchanged. [ [http://elcomercio.terra.com.ec/solo_texto_search.asp?id_noticia=84558&anio=2004&mes=1&dia=29 Villaquiran dimite y la coactiva se fue al piso] , El Comercio, January 29, 2004.] Ecuador’s Supreme Electoral Tribunal, the agency responsible for enforcing campaign spending law accepted Noboa’s terms. The Supreme Electoral Tribunal was first headed by Nicanor Moscoso, a member of Noboa’s party and his former campaign treasurer, and then by Wilson Sanchez, co-founder of Noboa’s party and his personal friend. [ [http://elcomercio.terra.com.ec/solo_texto_search.asp?id_noticia=123959&anio=2005&mes=4&dia=4 El clan Sánchez tiene gran influencia en el partido Noboa] , El Comercio, April 4, 2005.]

References

External links

* [http://www.prian.org.ec/ PRIAN campaign official website]
* [http://www.youtube.com/watch?v=MgJAyeMkVlA&search=Rafael%20Correa%20Ecuador%20Presidente%202006%20Alianza%20Pais%20lista%2035%20leon%20roldos%20alvaro%20noboa%20cynthia%20viteri%20cintia Documentary excerpt – Attacks on strikers at Los Alamos plantation]
* [http://www.cepr.net/documents/ecuador_elections_economic_issues.pdf Ecuador's Presidential Election: Background on Economic Issues] , issue brief from the Center for Economic and Policy Research

Persondata
NAME=Noboa, Álvaro
ALTERNATIVE NAMES=
SHORT DESCRIPTION=Ecuadorian businessman and politician
DATE OF BIRTH=November 1, 1950
PLACE OF BIRTH=Guayaquil, Ecuador
DATE OF DEATH=living
PLACE OF DEATH=