Venezuelan Daily Brief

Published in association with The DVA Group and The Selinger Group, the Venezuelan Daily Brief provides bi-weekly summaries of key news items affecting bulk commodities and the general business environment in Venezuela.

Showing posts with label CLAP. Show all posts
Showing posts with label CLAP. Show all posts

Thursday, February 28, 2019

February 28, 2019


International Trade

Venezuela blocks off second bridge to Colombia: Venezuelan authorities have blockaded a second bridge to Colombia amid fresh skirmishes between protesters and security forces loyal to Nicolás Maduro. The move came as opposition leader Juan Guaidó travelled to Brazil to shore up international pressure on Maduro following an inconclusive meeting of regional leaders in Colombia earlier this week. Early on Wednesday, two shipping containers were positioned across the Simón Bolívar bridge, a major pedestrian crossing between the two countries, following days of sporadic violence. Footage broadcast on Colombian television on Wednesday showed a burned-out truck bed in front of the shipping containers, which had been positioned overnight across the Simón Bolívar bridge. Colombia closed four crossings from its side on Saturday evening, reopening them on Monday afternoon. (The Guardian: https://www.theguardian.com/world/2019/feb/27/venezuela-bridge-simon-bolivar-colombia-maduro)

 

Over 92% of border business remains shut: Daniel Aguilar, president of the FEDECÁMARAS nationwide business organization for the state of Táchira reports that over 92% of all business near to the border remains closed out of fear of pro-Maduro armed gangs. He held the Maduro regime to be “responsible for the clashed along the border”. More in Spanish: (Noticiero Venevisión, http://www.noticierovenevision.net/noticias/economia/fedecamaras-tachira-mas-del-92-de-los-comercios-en-la-frontera-estan-cerrados)

 

Fire at La Guaira port hits warehouses holding CLAP food kits: A fire at the La Guaira port hit warehouses where CLAP food kits are stored for distribution by the Maduro regime. Maduro immediately orders the food to be replaced and blamed the fire on the “extreme right wing”. The fire had been reported to have been controlled More in Spanish: (Bolipuertos, http://www.noticierovenevision.net/noticias/nacional/reportan-un-incendio-en-el-puerto-de-la-guaira; El Universal, http://www.eluniversal.com/politica/34319/nicolas-maduro-ordeno-reponer-alimentos-quemados-en-galpones-de-los-clap-en-vargas)

 

Oil & Energy

New Venezuela opposition CITGO Board meets, appoints new corporate officers: CITGO Petroleum Corporation has confirmed it’s newly appointed Board of Directors after the opposition-dominated National Assembly. The Board includes Luisa Palacios as Chairwoman, Rick Esser, Edgar Rincón, Angel Olmeta, Luis Urdaneta and Andres Eloy Padilla. "Together with CITGO senior leadership, the Board will work to guarantee the company's financial and operational stability; enhance its corporate governance; and protect its assets," CITGO reported. "CITGO is a historic brand that provides enormous value to the American economy and the communities in which it operates," said Luisa Palacios, newly appointed Chairwoman of the CITGO Board. "With highly complex refineries and, more importantly, best-in-class employees that keep this company running smoothly, CITGO is – and will remain – a major player in the energy industry. This Board will be working hard to provide the stability, leadership and protection that ensures it remains so."  Friday's meeting included an intensive review of the company's business units, which provided ample opportunity for the Board to interact with the internal management team. The meeting included an in-depth discussion of the company's finances, operations and immediate challenges so the Board can quickly develop and implement its vision going forward. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2475446&CategoryId=10717)

 

CITGO loans price in potential regime change in Venezuela: The bank debt of oil refiner CITGO Petroleum Corp, US subsidiary of Petróleos de Venezuela SA (PDVSA), has been volatile in recent days as Venezuela’s political crisis deepens and the market prices in a potential regime change in Venezuela. The company’s US$ 650 million term loan B jumped in secondary trading this week, according to a trader monitoring the debt, after the Houston-headquartered company last Friday installed a new board of directors that is expected to enhance CITGO’s independence from its troubled parent company. CITGO is also understood to be cutting ties with PDVSA in order to distance itself from sanctions on the country recently imposed by the US, Reuters reported on Tuesday. (Reuters, https://www.reuters.com/article/citgo-loans/citgo-loans-price-in-potential-regime-change-in-venezuela-idUSL1N20M0UE)

 

Russian companies in Venezuela safe: Novak. Russian companies in Venezuela are not experiencing any problems resulting from the escalation in the political situation in the country and have not incurred any losses on the oil they produce there, Russia’s Energy Minister Alexander Novak told news outlet Gazeta.ru in an interview. “Our companies present there [in Venezuela] are following the situation very closely. To date, we have no information about any problems or losses. Work is going as usual,” Novak said. ROSNEFT and GAZPROM are among the foreign companies still present in Venezuela. LUKOIL’s trading arm LITASCO, however, exited the country as soon as the United States imposed the latest round of sanctions against the Maduro government, targeting specifically state oil company PDVSA. (Oil Price: https://oilprice.com/Latest-Energy-News/World-News/Russian-Companies-In-Venezuela-Safe-Novak.html)

 

Inside a U.S. businessman's oil deal with Venezuela: In November 2017, Harry Sargeant III, the former finance chairman of the Florida Republican Party, was looking to purchase a New Jersey asphalt plant that needed a steady supply of the heavy crude that Venezuela has in abundance. The trip got off to a worrying start when Sergeant’s plane was directed to a special hangar in Caracas and surrounded by soldiers. But what followed, he says, was privileged treatment, including an unexpected meeting the next day with Nicolas Maduro. Within a year, Sargeant had inked an attractive oilfield agreement to help raise plummeting crude production in Venezuela. A new Delaware company called EREPLA Services LLC, of which Sargeant is a shareholder, would rehabilitate three troubled oilfields in exchange for almost half the revenue. Weeks after news broke of Sargeant's partnership with PDVSA, the U.S. government unleashed tough new sanctions banning Americans from working with Venezuela's state-run oil firm. Sargeant acknowledges sanctions have derailed his deal. With Western oil majors steering clear of new investment there, the country has turned to China and Russia as well as upstart firms like EREPLA.  Sargeant insists it is not his concern who rules Venezuela. "Our business is with PDVSA, the institution," he said. "We are not into the politics of the situation." (NASDAQ: https://www.nasdaq.com/article/meeting-maduro-inside-a-us-businessmans-oil-deal-with-venezuela-20190228-00031)

 

Economy & Finance

Venezuela moves 8 tons of central bank gold: At least eight tons of gold were removed from Venezuela's central bank vaults last week, an opposition legislator and government sources say, in the latest sign of Nicolas Maduro's need to raise currency amid sanctions. The gold was removed in government vehicles between Wednesday and Friday last week when there were no regular security guards present at the bank, Legislator Angel Alvarado and the three government sources said. "They plan to sell it abroad illegally," Alvarado said. Alvarado and the government sources, who spoke on condition of anonymity, did not say where the central bank was sending the gold. They said the operation took place while central bank head Calixto Ortega was abroad. There is reportedly only 140 tons of gold remaining in the vaults. In 2018, 23 tons of mined gold were transported from Venezuela to Istanbul by plane, according to sources and Turkish government data. (Reuters, https://www.reuters.com/article/us-venezuela-gold-exclusive/exclusive-venezuela-removed-8-tons-of-central-bank-gold-last-week-legislator-idUSKCN1QG2QG)

 

U.S. studying mysterious bond billionaire's Venezuela deals: The U.S. is considering sanctions against Wall Street billionaire David Martinez as part of its effort to topple Nicolas Maduro’s regime by cutting off its access to financing, according to three people familiar with the matter. Treasury Department officials have also discussed naming Martinez, the founder of the Delaware-domiciled hedge fund Fintech Advisory Inc., as a specially designated national for his business dealings with sanctioned Venezuelan officials including Finance Minister Simon Zerpa and Economy Vice President Tareck El Aissami, two of the people said, asking not to be identified because the information is private. Martinez visited Caracas as recently as December to pitch deals that would ease the government’s cash squeeze. (Bloomberg, https://www.bloomberg.com/news/articles/2019-02-26/u-s-said-to-study-mysterious-bond-billionaire-s-venezuela-deals)

 

Politics and International Affairs

UN to vote on dueling US, Russia drafts on Venezuela: The UN Security Council will vote Thursday on two rival draft resolutions from the United States and Russia aimed at confronting the crisis in Venezuela, but both are expected to fail, according to diplomats. On Wednesday, the United States put forward a measure that would call for presidential elections to end the political standoff and unimpeded deliveries of aid to ease shortages of food and medicine in Venezuela. A competing Russian text urges a peaceful settlement of the crisis and recalls that aid deliveries to Venezuela require the consent of Maduro’s government. The council is set to vote around 9:30 am (1530 GMT) on both proposed measures. Russia and China, which support Maduro, are likely to veto the US draft resolution that “expresses deep concern about the actions of a regime that have caused an economic collapse,” diplomats said. But the Russian measure, which expresses “concern over the threats to use force” against Venezuela, is unlikely to garner the nine votes for adoption, according to diplomats. Resolutions at the Security Council, which are legally binding, must garner nine votes to be adopted, with no vetoes from the five permanent members — Britain, China, France, Russia and the United States. The US-drafted text calls for “free, fair and credible presidential elections,” with the presence of international observers, describing the May vote in which Maduro was declared the winner as “neither free nor fair.” It expresses support for “the peaceful restoration of democracy and rule of law in Venezuela” and requests that UN Secretary-General Antonio Guterres broker a deal on holding fresh elections. Russia’s draft resolution urges a settlement “through peaceful means” and welcomes calls by Guterres for dialogue. Russian Permanent Representative to the United Nations Vassily Nebenzia said the attempted aid delivery over the weekend was like an "illegal state border crossing" that amounted to a "forced feeding." US envoy Elliott Abrams, clearly angered, shot back saying: “I reject from start to finish, I reject from top to bottom, accusations of military interventions from a country that is occupying the territory of Georgia and Ukraine.” He said that the world should back Guaidó and “address the destabilizing results of Maduro’s corrupt, fraudulent and incompetent reign, which just this weekend brought instability and violence” to the borders of Brazil and Colombia. UN expert Richard Gowan said the United States is hoping to pile pressure on Caracas by showing that most council members back its stance, even if Russia and China block the measure. “The problem is what the US does next after this resolution fails. Does it keep trying to pile moral pressure on Maduro, or does it conclude the UN diplomatic route is dead?” At a council meeting on Tuesday, Abrams said his government was “deeply concerned” about Guaidó’s safety after Maduro said in an interview that the opposition leader would have to face justice when he returns from Colombia. (Arab News: http://www.arabnews.com/node/1459261/world; CNN: https://edition.cnn.com/2019/02/27/us/venezuela-Guaidó-presidential-duties/index.html; Daily Times: https://dailytimes.com.pk/359399/us-seeks-vote-on-un-resolution-to-allow-aid-into-venezuela/; Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2475443&CategoryId=10717; Bloomberg, https://www.bloomberg.com/news/articles/2019-02-27/u-s-seeks-un-security-council-vote-on-new-venezuela-resolution)

 

'Worthless' UN blasted for weak Venezuela response, playing into Maduro's hands: As the Venezuelan government burns aid convoys, represses its people and forces them to eat out of garbage trucks, critics say the United Nations is struggling to find its voice as it issues weak statements of condemnations, while a pro-Maduro coalition digs in at U.N. headquarters.  “[Secretary General Antonio Guterres] is playing right into #Maduro plans,” Florida Sen. Marco Rubio tweeted this month. “Fake @UN 'negotiations' to divide opposition & buy time for protests to die down. Maduro will also want UN “experts” to blame #Venezuela crisis on sanctions.”  When it comes to democracy & human rights UN increasingly worthless,” he said. Rubio’s remarks represent part of a broader concern by conservatives that left-wing governments and institutions like the U.N. are downplaying the humanitarian crisis engulfing Venezuela due to its socialist ideology. In the U.S., politicians such as 2020 presidential hopeful Bernie Sanders have come under fire for their alleged failure to call out the Maduro regime. Secretary-General Antonio Guterres was criticized by Rubio specifically for repeated meetings with the Maduro regime’s Foreign Minister Jorge Arreaza, offering to help conduct a “serious negotiation to help the country out of the present standoff for the benefit of the people of Venezuela.” Guterres’ statements since then have been weaker than what many hope the international body would issue given such dire circumstances, a statement in which his office said he was following “with increasing concern the escalation of tensions in Venezuela.” On Sunday, Human Rights Chief Michelle Bachelet was somewhat stronger as she decried “disgraceful scenes.” “The Venezuelan government must stop its forces from using excessive force against unarmed protesters and ordinary citizens,” she said. While appeals to “both sides” are typical of U.N. officials -- who regularly seek neutrality as much as possible to be a neutral space for negotiation -- to those looking for a tougher line on the Maduro regime, the statement from Guterres is likely only to fuel their disappointment. Furthermore, far from being a neutral space for dialogue and negotiation, the U.N.’s New York headquarters is becoming something of a rallying point for pro-Maduro countries to give support to the failing regime. Arreaza, this month, announced the formation of a group that he said would defend the U.N. Charter, flanked by more than a dozen ambassadors and diplomats from countries including Iran, North Korea, Cuba, Syria, China and Russia. (Fox News: https://www.foxnews.com/world/worthless-un-blasted-for-weak-venezuela-response-playing-into-maduros-hands)

 

Guaidó meets with Brazil’s Bolsonaro, will re-enter Venezuela to his 'duties as president': Venezuelan leader Juan Guaidó is now facing the challenge of finding a way back into the country. "I will announce the day of our return, so that you can be with us," Guaidó said in a tweet to supporters Wednesday. He asked for demonstrations to continue. "We will decide. Due to security concerns we are not ruling out options," he'd said a day earlier in an interview. He declined to detail his return other than saying it would be a matter of days. Guaidó said he's aware of a possible attack against him from Nicolas Maduro's regime, but said "that won't stop us." The opposition leader said efforts to collect more aid will continue "because the humanitarian crisis" persists. Guaidó met Friday with Colombian President Ivan Duque and colleagues from Chile and Paraguay, and participated Monday in a Group of Lima nations meeting in Colombia, Guaidó was due to arrive in Brazil on Wednesday night to meet with Brazilian President Jair Bolsonaro as part of a tour of several nations to ratchet up international pressure on President Nicolas Maduro to step down. Guaidó will travel to Brasilia for a two-day visit from Bogota. “The interim president of Venezuela will meet on Thursday afternoon with Brazilian President Jair Bolsonaro at the Planalto Palace,” said Maria Teresa Belandria, appointed by Guaidó as his ambassador to Brazil and recognized as such by the Bolsonaro government. After the meeting on 2 p.m. (1700 GMT) on Thursday, Guaidó will hold a news conference, the envoy said. While in the Brazilian capital, Guaidó will also meet with diplomats of other countries that have recognized him as Venezuela’s interim leader, pending new presidential elections, Belandria said. Guaidó said leaving Venezuela took many hours and included a walking stretch. The regime´s Supreme Court, which is aligned with Maduro, has ordered Guaidó not to travel internationally. Guaidó said his interim leadership intends to call new elections about nine months after the usurpation of power by Maduro ends. Guaidó told CNN he believes there's a chance he could be arrested upon his return. But an attack on him, Guaidó said, could backfire for the current administration. "Venezuela is mobilized towards change and arresting someone (does) not calm the protest. On the contrary, it speeds it up and makes it grow." The National Assembly met this week in Caracas and authorized Cuaidó to travel for over 5 days, as required by the Venezuelan Constitution. (UPI: https://www.upi.com/Guaidó-planning-to-re-enter-Venezuela-after-attempt-to-pick-up-aid/8321551291066/; CNN: https://edition.cnn.com/2019/02/27/us/venezuela-Guaidó-presidential-duties/index.html; Reuters: https://www.reuters.com/article/us-venezuela-politics-rights-Guaidó/venezuelas-Guaidó-to-visit-brazil-in-bid-to-keep-pressure-on-maduro-idUSKCN1QG34U; Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2475444&CategoryId=10718; http://www.laht.com/article.asp?ArticleId=2475434&CategoryId=10717; Reuters, https://www.reuters.com/article/venezuela-politics/rpt-Guaidós-return-to-venezuela-to-mark-brazen-defiance-of-maduro-idUSL1N20M012; Bloomberg, https://www.bloomberg.com/news/articles/2019-02-26/Guaidó-s-safety-at-risk-in-return-to-venezuela-u-s-envoy-warns); and more in Spanish: El Universal, http://www.eluniversal.com/politica/34279/diputados-de-la-an-exigen-ponderaciones-de-proteccion-a-entidades-internacionales)

 

Nicolas Maduro's says said he'd be open to a summit with Donald Trump: In his first interview with an American television network in years, Maduro said interim president Juan Guaidó: “can come and go. He will have to face justice, and justice prohibited him from leaving the country. I will respect the laws … No one can be above the law. In this case, Mr. Guaidó must answer before the Justice, not before Nicolas Maduro”. He also said: “The extremist government of the Ku Klux Klan that that directs Donald Trump wants a wants a war for oil.” But added “I think that at one point, President Trump will have to say "stop, stop, we must see what happens with Venezuela," and change his policy” … and “I, as President of Venezuela, am prepared for a direct dialogue with your government and with you to look for … 21st-century solutions, not Cold War solutions.” Adding; “I would be willing to go where ever I would have to go. To shake President Trump's hand”, making an open comparison with ongoing talks with North Korea’s Kim Jong Un in Vietnam. (ABC News: https://abcnews.go.com/International/venezuelan-president-nicolas-maduros-defiant-interview-tom-llamas/story)

 

Maduro and Trump should meet to 'find common ground': Venezuela minister: Maduro’s foreign minister said on Wednesday that the United States was trying to overthrow the government of Nicolas Maduro and suggested talks with U.S. President Donald Trump - an idea the Trump administration immediately rejected. Jorge Arreaza, addressing the U.N. Human Rights Council, suggested that Maduro and Trump meet to “try to find common ground and explain their differences.” He also said his country had lost $30 billion in assets “confiscated” since November 2017 under sanctions. U.S. Vice President Mike Pence ruled out prospects of talks. “The only thing to discuss with Maduro at this point is the time and date for his departure,” Pence said on Twitter. “For democracy to return and for Venezuela to rebuild - Maduro must go,” Pence said. (Reuters, https://www.reuters.com/article/us-venezuela-politics-rights/maduro-and-trump-should-meet-to-find-common-ground-venezuela-minister-idUSKCN1QG1P0; Bloomberg, https://www.bloomberg.com/news/articles/2019-02-27/un-delegates-walk-out-as-maduro-s-foreign-minister-gives-speech; AVN, http://www.avn.info.ve/contenido/chancellor-arreaza-demands-reject-use-military-force-against-venezuela)

 

Diplomats storm out of UN meeting as Maduro's foreign minister: Dozens of European and Latin American diplomats abruptly walked out of the U.N.'s top human rights body on Wednesday to protest an address by Nicolas Maduro's foreign minister. Jorge Arreaza used his speech to float the idea of talks between President Nicolas Maduro and U.S. President Donald Trump - even as he blasted alleged U.S. 'aggression' against his country. He told the U.N. Human Rights Council in Geneva that the two leaders could seek 'common ground' over Venezuela's escalating crisis. More than 50 other countries have recognized opposition leader Juan Guaidó as the country's interim president, including Canada, the UK and Venezuela's neighbors Colombia and Brazil. Many of their diplomats stormed out of the room just as Arreaza arrived to speak to the 47-member council. Arreaza also said in his address that Venezuela had lost US$ 30 billion in assets 'confiscated' since Nov. 2017, including from the state oil company Citgo.  He then renewed an invitation to the UN High Commissioner for Human Rights, Michelle Bachelet, to visit Venezuela to evaluate the impact of what he described as a US-led 'blockade'.  (Mail Online: https://www.dailymail.co.uk/news/article-6751901/Diplomats-storm-meeting-Venezuelas-foreign-minister-condemned-aggression.html)

 

Venezuela's Guaidó says Russia not propping up Nicolas Maduro: Don’t blame the Russians for Nicolas Maduro’s perseverance in Venezuela. National Assembly president and opposition leader Juan Guaidó said he did not see any signs of “broad support” from Russia in propping up strongman Maduro, he told Russian daily Novaya Gazeta on Tuesday. “There have been no new loans, no major investments. Just public statements,” he said. “I do not see broad support for Maduro. I believe that there is respectful participation of Russia in regards to watching the fate of our country, but the same goes for other countries that are paying attention here,” he told the paper. Guaidó has gone on the record in the past saying that an eventual new government would honor its obligations to Russians. (FORBES: https://www.forbes.com/sites/kenrapoza/2019/02/27/venezuelas-Guaidó-says-russia-not-propping-up-nicolas-maduro/#61b942156b91; The Guardian: https://www.theguardian.com/world/2019/feb/27/venezuela-bridge-simon-bolivar-colombia-maduro)

 

Maduro regime’s vice president to fly into Moscow for talks on Friday: The Maduro regime’s Executive Vice President Delcy Rodriguez will hold talks with Russian Foreign Minister Sergei Lavrov in Moscow on Friday, the RIA news agency reported, the latest in a flurry of visits by Venezuelan politicians to staunch ally Russia. Rodriguez will talk to Lavrov about cooperating with Russia to prevent military action against Venezuela, RIA news agency said, citing the head of Venezuela’s foreign ministry Jorge Arreaza. “Our cooperation and the situation in Venezuela will be discussed, as well as coordination of actions to prevent any kind of war against Venezuela,” Arreaza was cited as saying. (Reuters, https://www.reuters.com/article/us-venezuela-politics-russia/venezuelan-vice-president-to-fly-into-moscow-for-talks-on-friday-ria-idUSKCN1QG1XV)

 

Mexico’s President calls for dialogue to resolve Venezuelan crisis: Mexican President Andres Manuel Lopez Obrador called on Tuesday for dialogue to find a “peaceful solution” to the crisis in Venezuela and defended freedom of speech after a crew from the Univision network was briefly detained in the South American country while interviewing embattled leftist incumbent Nicolas Maduro. “I respectfully call on the parties to the conflict to sit down, dialogue and seek a peaceful solution,” the founder and leader of the leftist National Regeneration Movement (Morena) said in a press conference at the National Palace. If the parties request it, Lopez Obrador, popularly known as AMLO, offered to host talks in Mexico, allowing the two sides in the Venezuelan political crisis to find a solution, with the idea of having both Pope Francis and world-renowned diplomats as mediators. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2475433&CategoryId=10717)

 

Colombia calls at U.N. for action on Venezuela crisis: Colombia called on Wednesday for action to end Venezuela’s humanitarian crisis and bring about a political transition leading to free elections. Francisco Barbosa Delgado, human rights counselor to Colombian President Ivan Duque, was addressing the U.N. Human Rights Council hours in Geneva before Venezuelan Foreign Minister Jorge Arreaza was due to take the floor. “Action and solidarity should be based on full rejection of dictatorship of Nicolas Maduro in Venezuela,” Barbosa told the meeting. (Reuters, https://www.reuters.com/article/us-venezuela-politics-colombia-un/colombia-calls-at-u-n-for-action-on-venezuela-crisis-idUSKCN1QG1FU)

 

Chile’s Piñera invites Guaidó to presidential Summit: Chilean President Sebastián Piñera confirmed he has invited Venezuela’s interim president Juan Guaidó to a presidential Summit scheduled for March, to establish a South American organization to replace UNASUR. Piñera had previously explicitly excluded the Maduro regime from the planned meeting. More in Spanish: (El Universal, http://www.eluniversal.com/politica/34300/pinera-invita-a-Guaidó-a-cumbre-presidencial-de-nuevo-bloque-regional)

 

Hundreds of Venezuela's military defect in four days as country spirals into further chaos: More than 450 Venezuelan soldiers have defected in just four days as the country plunges deeper into chaos. Soldiers who have sought refuge in Colombia since the weekend told the Associated Press that the catalyst for defection was the command from above to keep desperately needed humanitarian aid from their compatriots. Troops found themselves engaged in violent confrontations with their fellow Venezuelans. Many abandoned their posts and ran for their lives across the border into Colombia, which has become a refuge for the newly homeless, mostly low-ranking soldiers. Colombian immigration officials said on Tuesday that so far, more than 320 Venezuelan soldiers have defected since the weekend. The defections come as the Venezuelan opposition puts pressure on the military to recognize National Assembly leader Juan Guaidó as the nation's rightful president. (Fox News: https://foxnews.club/world/hundreds-of-venezuelas-military-defect-in-four-days-as-country-spirals-into-further-chaos)

 

'Venezuelan blood is being spilled': tension flares near border with Brazil: Meanwhile, unrest continued near Venezuela’s eastern border with Brazil after violence that left at least three people dead and dozens injured over the weekend. On Tuesday morning, soldiers took control of an airport in the town of Santa Elena de Uairén, which was the focus of clashes between Venezuelan soldiers and indigenous protesters. Witnesses say they were attempting to travel to Maurak, where members of the Pémon indigenous community had captured 30 soldiers on Saturday. (The Guardian: https://www.theguardian.com/world/2019/feb/27/venezuela-bridge-simon-bolivar-colombia-maduro)

 

TELEMUNDO Reporter Daniel Garrido was abducted in Venezuela: TELEMUNDO’s Venezuela correspondent Daniel Garrido was abducted Tuesday at 6 a.m. local time on the streets near Hotel Cayena in Caracas, while he was reporting on Maduro’s government detaining and deporting the UNIVISION crew. “A group of unidentified armed men forced [Garrido] into a vehicle and covered his head with a hood,” according to a Telemundo statement. “After questioning him for six hours and seizing his equipment, the kidnappers freed him without explanation and without returning his equipment”, the U.S. Spanish language network reported. (Adweek: https://www.adweek.com/tvnewser/telemundo-reporter-daniel-garrido-was-abducted-yesterday-in-venezuela/395281)

 

Maduro regime's colectivos continue arbitrary armed robberies, journalist says: While embattled President Nicolas Maduro's administration claimed at the United Nations that colectivos, the government's armed paramilitary allies, are not the ones fomenting violence in Venezuela, a 37-year-old Swedish journalist testified to a different reality Wednesday at the National Assembly in Caracas. Annika H. Rothstein was forced to hide under the podium at the opposition's National Assembly after a group of Maduro supporters got through security and interrupted the meeting at the Venezuelan legislative palace. Rothstein was eventually able to stand up again to speak. Rothstein, who has written about anti-Semitism and is a contributor to Israel Hayom, The Jerusalem Post, Ricochet and the Washington Examiner, talked about how she has joined the long list of reporters who are working to cover the crisis in Venezuela under the constant threat of the colectivos. "I know the look of them," Rothstein told a Swedish colleague. "They show up in motorcycles. They cover their faces and they are armed." Her colleague published the video of their conversation on YouTube. She also said that over the years, colectivos have gone "from intimidation to robbery and kidnapping to death squad." Rothstein traveled from Caracas to Venezuela's border state of Táchira to cover the crisis this week and saw the armed colectivos. She said the drive is one of the most dangerous in the world -- especially at night. "It's no-man's land and there are kidnappings and random murders across this road," Rothstein said. She added that the colectivos stopped her driver and dragged her out of the car. She told her Swedish colleague she lied to the colectivos and told them she was a socialist and showed them press credentials from Iran and yet they still took her bulletproof vest and some still wanted to kill her.  "Two guys were crazier than the others and were obviously high on cocaine," Rothstein said. The colectivos kicked the drivers in the stomach and one slapped her in the face and hit her in the chest. She said they left bruises on her face and torso. They were all carrying semi-automatic rifles and 9 mm pistols on their hip, she said. She said she heard about a dozen colectivos arguing among themselves about whether to kill them. Although the group's leader told them that was a bad idea, the infighting continued, she said. The colectivos finally told them they could leave and fired their weapons as they ran back in the car, she said. They weren't wounded. Rothstein, who wrote about her experience for the Daily Beast, also reported she lost her equipment and about US$ 900 in cash. (Local10: https://www.local10.com/news/venezuela/venezuela-s-colectivos-continue-arbitrary-armed-robberies-journalist-says)

 

One witness, conflicting evidence: How Venezuelan justice targets the opposition: Local opposition leader Jose Rengel has spent almost five weeks in a cramped detention cell on the outskirts of Caracas, after a single witness accused him of leading a riot that burned down a public building. Rengel was arrested together with eight other men on January 24 after the witness - a member of the ruling Socialist Party - told soldiers that the 59-year-old had sacked shops and “completely destroyed” a public transport office using Molotov cocktails, according to a National Guard report filed one day later. The detained men, who are described by their families as opposition sympathizers, now face charges of arson, theft, and illegally carrying weapons, which could lead to 10-year jail sentences. The men all deny taking part in the protest, according to statements they gave to a court and their lawyers. (Reuters, https://www.reuters.com/article/us-venezuela-politics-evidence/one-witness-conflicting-evidence-how-venezuelan-justice-targets-the-opposition-idUSKCN1QG1FC)

 

United States denies Russian accusations of planning military intervention in Venezuela: The United States has denied Russian accusations of planning military intervention in Venezuela, despite President Trump saying: "all options are on the table." The two countries exchanged opposing views at a UN Security Council meeting. Russia claimed the US was reinforcing its military and logistical muscle in Puerto Rico and neighboring Colombia. Nicolas Maduro’s Foreign Affairs minister, Jorge Arreaza, challenged the US and urged the UN to approve a resolution against the "use of force" in Venezuela. He was also defiant. (EURO News: https://www.euronews.com/2019/02/27/united-states-denies-russian-accusations-of-planning-military-intervention-in-venezuela)

 

US is getting closer to military intervention in Venezuela: Gen. Anthony Tata: Brigadier Gen. Anthony Tata (Ret.) discussed the report that a top military official in Venezuela sent his family to China amid all the protests and why he believes that the U.S. may use military force in Venezuela.  I think in the next two weeks we are going to see this thing bubble up and foment,” he told FOX on Tuesday.  The aid has to get in there and importantly President Trump has made this sort of a line in the sand so he needs to do something that will affect, or he needs to set the conditions that will affect the transition to [Juan] Guaidó for power.” Tata added, “If [Nicolás Maduro's regime] choses to inject the Cuban-trained folks and others from Russia and Iran and Hezbollah, then I think that's a good call for the United States to get militarily involved." (Fox Business: https://www.foxbusiness.com/politics/us-military-intervention-in-venezuela-could-come-in-the-next-two-weeks-gen-tata)

 

Trump says Venezuela aid 'getting through' despite Maduro refusal: President Trump said Thursday that U.S. aid supplies had gotten into Venezuela, despite the country's authoritarian leader publicly refusing to allow shipments. "We're sending supplies, supplies are getting through a little bit more. It's not easy," Trump said during a press conference in Vietnam after nuclear summit talks failed with North Korean leader Kim Jong Un. It's unclear to what degree supplies have reached Venezuela. Although Trump claimed supplies had reached the country, he acknowledged the conflict and condemned Maduro. "Hard to believe somebody would say, 'Let's not do it.' What difference would it make, except it's great for his people to let it get through," Trump said. "But we're sending a lot of supplies down. People are starving to death. You would think the man in charge currently would let those get through. We're getting them into some of the cities and some of the areas that need them the most. It's very difficult, not an easy job." (The Washington Examiner: https://www.washingtonexaminer.com/news/white-house/trump-says-venezuela-aid-getting-through-despite-maduro-refusal)

 

Venezuela crisis: How much aid is getting in? The Venezuelan government has denied entry at its borders to hundreds of tons of humanitarian aid. But despite the recent stand-off, not all international assistance has been rejected. The Venezuelan government has praised Russia, an ally of president Nicolás Maduro, for sending aid and said 300 tons of it had been transported to Venezuela. But in response to questions from BBC News, the Venezuelan government provided no further details about the contents of the aid shipment and said there were currently no opportunities to film it. Kremlin spokesman Dmitry Peskov was asked about the shipment in a daily press call on 21 February and replied that he didn't have any information but would make inquiries. However, the Pan-American Health Organization, which works with the World Health Organization (WHO) did release information about medical supplies sent by Russia. A shipment of 7.5 tons arrived on 21 February. A similar delivery was made in April 2018. The WHO oversaw the delivery of a total of 50 tons of medicines and supplies last year from foreign countries. The UN's Financial Tracking Service (FTS), which collates global data on humanitarian funding, recorded US$ 24 million for Venezuela in 2018. The agencies to have received the most money earmarked for Venezuela include the WHO, the United Nations Children's Fund and the Norwegian Refugee Council. And this includes about US$9 million raised through the UN's central emergency response fund for projects to improve nutrition, overseen by international agencies including UNHCR, the UN refugee agency, and the WHO. So far this year, another US$ 15 million has been donated, according to the UN database. The European Commission (EC) was the largest donor to organizations working inside Venezuela in 2018. It has been sending humanitarian aid to Venezuela since 2016. (https://www.bbc.com/news/world-latin-america-47369768)

 

Democrats strain for a unified message on Venezuela: The Trump administration’s push to oust Nicolás Maduro as the president of Venezuela has split Democrats in Congress, rekindling a long running debate in the party about how aggressively the U.S. should intervene in other countries. Most Democrats, including Speaker of the House Nancy Pelosi and Senate Minority Leader Chuck Schumer, have supported President Trump’s decision to recognize Juan Guaidó as Venezuela’s interim leader. But a small group of lawmakers are skeptical of American efforts to remove Mr. Maduro. (The Wall Street Journal: https://www.wsj.com/articles/u-s-democrats-strain-for-a-unified-message-on-venezuela-11551355550)

 

The following brief is a synthesis of the news as reported by a variety of media sources. As such, the views and opinions expressed do not necessarily reflect those of Duarte Vivas & Asociados and The Selinger Group.

 

Tuesday, October 23, 2018

October 23, 2018


International Trade

Mexico prosecutors find fraud in Venezuela food aid program

Mexican Prosecutors say that people linked to the Venezuelan government and Mexican companies conspired to overcharge Venezuela for basic food aid packages. Known as "CLAP" packages, the food is supposedly subsidized by Venezuela's socialist administration to provide a bare level of subsistence to many families facing hunger amid the country's hyperinflation and economic breakdown. But Mexican prosecutors said an investigation found that the Venezuelan officials and Mexican businessmen bought poor quality items in bulk and exported them to Venezuela at more than double their real price. Mexico's top organized crime prosecutor, Israel Lira, said the suspects have agreed to pay US$ 3 million in reparations to the U.N. refugee agency, to be used for its Latin America operations. The agency is focused overwhelmingly now on helping Colombia resettle hundreds of thousands of Venezuelans fleeing the humanitarian crisis. Lira said prosecutors located 1,300 shipping containers with 1.8 million packages but allowed them to continue to Venezuela to avoid affecting recipients. U.S. Treasury Department officials previously compiled a list of suspected shell companies that they believe senior Venezuelan officials have used around the globe to siphon off millions of dollars from food import contracts. Financial forensic investigators from the U.S. and three Latin American allies — Mexico, Panama and Colombia — traced transactions by companies believed to be controlled by a government-connected businessman. Much of the food comes from Mexico, and there have been complaints about its quality. On May 17, three days before Maduro was re-elected, Colombia announced the seizure of 15 shipping containers filled with more than 25,000 CLAP boxes containing beetle-infested rice and other spoiled food. A story published by The Associated Press in 2016 revealed how senior Venezuelan officials and members of the military were enriching themselves by diverting money from food contracts. Alex Saab, from the Colombian city of Barranquilla, has been identified by U.S. officials as a major focus of the investigation. Saab gained some prominence in 2011 after signing an agreement to build social housing for the Venezuelan government on behalf of a Colombia-based construction company. Investigators have said Saab entered the food business through a Hong Kong-based company, Group Grand Ltd., which they said bears the hallmarks of a shell company, including no known track record in the food business, a rudimentary website that is now inaccessible and an address in Caracas shared with Saab's construction company. Group Grand has been awarded contracts to provide at least 11.5 million CLAP boxes, according to a Venezuelan Food Ministry spreadsheet. Among the transactions that have raised red flags is a September 2017 invoice presented to Venezuela's food ministry by Group Grand for US$ 41 million worth of powdered milk at a price of US$ 6,950 per metric ton, or more than double the market price at the time. A copy of the invoice was provided to the AP. (The Miami Herald: https://www.miamiherald.com/news/business/article220266500.html)

 

Oil & Energy

Caracas to divert oil shipments away from Beijing

Venezuelan state-run oil company Petroleos de Venezuela (PDVSA) may begin cutting shipments to China that are used to pay for previous loans in favor of prioritizing shipments to the United States or India, which pay in cash. PDVSA will not receive any further Chinese loans to raise production from joint ventures if the company defaults further on Beijing's loans. Redirecting oil shipments would be a short-term strategy to free up more cash for pressing necessities such as debt and arbitration payments. (Stratfor: https://worldview.stratfor.com/situation-report/china-venezuela-caracas-divert-oil-shipments-away-beijing)

 

Blackouts force Venezuelans to live and work — even perform surgery — in darkness

Blackouts in Zulia state, an area of northwestern Venezuela that includes the country’s second-largest city of Maracaibo, have become commonplace in the last year. Food and medicine were already increasingly scarce in Venezuela, but the power cuts that come without warning — sometimes more than once a day — are a new form of misery. And though some widespread outages have reached the capital of Caracas, Zulia — the heart of Venezuela’s energy industry — has turned out to be particularly vulnerable to the rolling blackouts. The government has blamed the outages on a variety of things — including pesky animals. In an Oct. 20 tweet, Energy Minister Luis Motta Dominguez named “rats, mice, snakes, cats, squirrels” as possible culprits in shorting out lines. He added: “In the list of animals mentioned above, of course iguanas are included.” Critics, however, say insufficient investment by the government is the cause, following the 2007 nationalization of the electricity sector. Zulia has experienced 11,131 power failures between January and September this year, according to a civil association called the Blackouts Committee, which receives daily reports of power cuts from citizens. Public transportation, already diminished by the economic crisis, becomes even more dysfunctional when the power flickers and goes out. Communications work erratically. People’s routines are on hold. Lines of cars are two blocks long at gas stations. Commerce and education are paralyzed. Omar Prieto, Zulia’s governor and a support of President Nicolás Maduro, declared in early October that the electric crisis in Zulia was over. But then a massive power failure in a substation in Carabobo left 11 Venezuelan states, Zulia included, without electricity for 12 to 18 hours on Oct. 15. José Aguilar, a Venezuelan power generation and risk consultant, says the power system has been in trouble since 2009, prompting the late President Hugo Chávez to announce new investment and more emphasis on the power system. He said that more than 80% of power generation in Zulia isn’t working due to lack of maintenance and corruption. “The government is overloading power lines, old equipment, and generation and distribution substations,” he said. And he thinks the crisis is far from over in Zulia and especially Maracaibo, once known for being the third Latin American city to have regular electricity in its streets. He thinks Zulia will experience more blackouts between January and February next year, when the general power demand traditionally grows. One of the most affected districts in Zulia is Guajira, a town next to the Colombian border whose population is mostly indigenous. Recently, the residents have been living without electricity for two or three days at a time until the service comes back up, usually for only four uninterrupted hours. (The Miami Herald: https://www.miamiherald.com/latest-news/article220464510.html)

 

Commodities

RUSORO Mining has received a settlement proposal from Venezuela

RUSORO Mining Ltd. announces that it has agreed on the terms of a settlement proposal with Venezuela by which Venezuela agrees to pay RUSORO over US$ 1.28 billion to acquire the Company's mining data and for full release of the arbitral award issued in favor of the Company in August 2016 by a tribunal constituted pursuant to the Additional Facility of the International Centre for Settlement of Investment Disputes. In addition, it is contemplated that the parties will constitute a Mixed Commission to assess the status of RUSORO's Choco 10 and San Rafael - El Placer former projects and based on such assessments may by the end of January 2019 partner to exploit those projects. RUSORO expects to sign the formal settlement agreement shortly after completion of the schedules to the Settlement Agreement. (RUSORO: www.rusoro.com)

 

Economy & Finance

FEMSA to lay off 2,000 Venezuela workers amid crisis: union

COCA COLA FEMSA is preparing to lay off 2,000 of the 4,800 total workers at its Venezuela soft drink operations due to falling demand in the crisis-stricken country, a union leader said, while the company acknowledged it was “revising” output. The move makes FEMSA, one of the largest soft drink bottlers in the world, the latest multinational to downsize in this country. “The company has said that it needs to reduce headcount and suspend some benefits,” said Daniel Montilla, secretary of the union representing workers at the FEMSA plant in the industrial city of Valencia, where Femsa plans to lay off 300 workers. (Reuters, https://www.reuters.com/article/us-venezuela-femsa/femsa-to-lay-off-2000-venezuela-workers-amid-crisis-union-idUSKCN1MW2G9)

 

Out of cardboard, another COLGATE plant shuts down in Venezuela

COLGATE-PALMOLIVE plant in Valencia, Venezuela, stopped operating this week due to a shortage of cardboard needed for packaging, said Carlos Rodriguez, an employee union leader. The plant, which produced liquid detergent, fabric softener and dishwasher soap, required cardboard to transport company products to stores, supermarkets and pharmacies. The shortage worsened after the government took over control of paper and packaging manufacturer SMURFIT KAPPA’s Venezuelan operations there earlier this year. This is the second out of five production plants to close in the country, Rodriguez said. (Bloomberg, https://www.bloomberg.com/news/articles/2018-10-18/out-of-cardboard-another-colgate-plant-shuts-down-in-venezuela)

 

Politics and International Affairs

Pompeo: Venezuela's Maduro has to go

Secretary of State Mike Pompeo says Socialist Venezuelan President Nicolas Maduro must go and is urging the people of Venezuela to "restore democracy to the country" during an interview with Greta Van Susteren. "We are searching for a solution which will deliver democracy to Venezuela. It's the Maduro regime that has inflicted this set of horrible living conditions on the people of Venezuela and it will ultimately be on the people of Venezuela to fix it," Pompeo said. On whether the U.S. would issue additional sanctions, Pompeo said he was "confident we can find other places where we think we can exert pressure in a way that will convince Maduro that this isn’t going to work, he’s not going to be able to retain power forever." (Newsmax: https://www.newsmax.com/newsfront/mikepompeo-maduro-venezuela/2018/10/21/id/887293/)

 

Mike Pence: Honduran President told me Venezuela funding migrant caravan

Vice President Mike Pence on Tuesday said Honduran President Juan Orlando Hernández told him that the migrant caravan marching toward the U.S.-Mexico border is “financed by Venezuela.” Pence made the allegation while defending President Donald Trump’s assertion that Middle Easterners make up a part of the 7,000-strong. The Vice President then revealed that Hernández told him that “leftist groups” from the Central American country organized the caravan, “financed by Venezuela” to “challenge our sovereignty, challenge our border.” (Breitbart: https://www.breitbart.com/politics/2018/10/23/mike-pence-honduran-president-told-me-venezuela-funding-migrant-caravan/)

 

Venezuela declares its military ‘fully prepared’ for war with U.S.

Venezuelan soldiers march during a military ceremony to honor President Nicolas Maduro on May

Senior Venezuelan socialist official Diosdado Cabello has claimed his country is “fully prepared” for a war with the United States. Cabello, the leader of the regime’s illegal lawmaking body and a close ally of dictator Nicolás Maduro, claimed that the country’s Bolivarian National Armed Forces would remain loyal to Hugo Chávez’s socialist revolution should the U.S. or any other power try to topple the regime. There is little evidence to support Cabello’s claims. Instead, countless reports detail the growing disaffection and dropout rates among troops, many whose salaries fail to cover basic living resources such as food and medicine. Some soldiers have tried to launch low-level coups and rebellions, although such efforts have so far proved unsuccessful. Cabello’s comments come amid growing international pressure for more action to be taken against the Maduro regime, currently presiding over the worst economic crisis in the country’s history. Cabello’s warning is unlikely to instill fear among leaders in Washington. Trump previously mocked the Venezuelan military for their seemingly cowardly response to a failed assassination attempt on Maduro. (Breitbart: https://www.breitbart.com/latin-america/2018/10/22/venezuela-declares-military-fully-prepared-war-u-s/)

 

Ecuador breaks diplomatic relations with Venezuela

Ecuador has broken formal relations with Venezuela after that country’s communication minister called President Lenin Moreno a “liar.” On Thursday, Ecuador expelled Venezuela’s ambassador. The action followed comments by Jorge Rodríguez, Venezuela’s communication minister, who said that Moreno’s claim that 6,000 Venezuelans a day were entering Ecuador was false. Moreno Tweeted the number in August, at the height of the influx of Venezuelan refugees into Ecuador. In its official statement on the break in relations, Ecuador’s foreign affairs ministry said, “The Republic of Ecuador will not tolerate such disrespect for its authorities.” The statement continued: “Faithful to its democratic and humanitarian principles, Ecuador will continue to provide assistance to Venezuelan citizens entering the country, assisting through economic and social efforts to protect their human rights.” Ecuador secretary of communication was more direct in his response to Rodriguez. “His statements show that this corrupt socialism, murderer and liar of the 21st century, still lives in Venezuela.” In response to the expulsion of its ambassador, Venezuela ordered Ecuador’s chargé d’affaires to leave Caracas. (St. Lucia Times: https://stluciatimes.com/2018/10/22/ecuador-breaks-diplomatic-relations-with-venezuela/)

 

OAS chief urges ICC to open formal probe into Venezuela crimes

Luis Almagro, Secretary General of the Organization of American States, spoke to FRANCE 24 about the current issues facing the Americas, from the caravan of Central American migrants heading to the US to the crisis in Venezuela and the situation in Nicaragua. Almagro called for the ICC to open a formal investigation into alleged crimes against humanity committed in Venezuela. (France24: https://www.france24.com/en/20181023-interview-luis-almagro-oas-americas-migrants-caravan-us-venezuela-icc-probe-nicaragua)

 

How Venezuela complicates peace talks in Colombia

After 52 years of conflict, Colombia’s government and the leftist guerrillas of the Revolutionary Armed Forces of Colombia (FARC) signed a peace deal in 2016. But not all the country’s guerrilla groups demobilized. The National Liberation Army (ELN) remains a formidable presence. It began peace talks with the government of Juan Manuel Santos in 2017 but failed to reach a deal before Iván Duque, a conservative, became president in 2018. President Duque, who had criticized the agreement with the FARC as too lenient, is adopting a tougher stance towards the ELN. He refuses to renew negotiations until the ELN has freed all hostages. And he has also raised an objection to Venezuela’s role as one of five guarantors of the talks, claiming it is a “protector of armed groups”. The ELN’s links with Venezuela date from the 1980s. Its standing in Venezuela improved in the late 1990s with the rise to power of Hugo Chávez, who regarded it as an ideological ally. Venezuela has been a haven ever since, a place where the ELN gathers to plan attacks on Colombia, and where in recent times it has started recruiting new members. Its activity within Venezuela often seems to be ignored—even endorsed—by the authorities. As Nicolás Maduro, Chávez’s successor, turns Venezuela into a mafia state in which drug-traffickers run rife, the ELN is rumored to be colluding with the Cartel of the Suns, a drugs gang, in establishing trafficking routes through the country. If the ELN should demobilize, its role in cross-border drug-trafficking is likely to weaken. In such circumstances, it is not surprising that Colombia should call into question Venezuela’s role as an honest arbiter of the peace talks. For the ELN, the price of a peace deal with President Duque’s government is likely to be the severing of its ties to the Venezuelan dictatorship. It has not yet shown itself to be willing to break that link. (The Economist: https://www.economist.com/the-economist-explains/2018/10/22/how-venezuela-complicates-peace-talks-in-colombia)

 

U.N. special envoy Jolie voices support for Venezuelan refugees

U.N. refugee agency special envoy Angelina Jolie voiced support on Tuesday for Venezuelans forced to leave their crisis-stricken homeland and thanked the South American countries hosting them. Hollywood actress Jolie met with Venezuelan refugees in Lima, Peru this week to draw attention to their plight. “After having spoken to so many people it’s clear to me, very clear, that this is not a movement by choice,” Jolie told reporters in a presentation with Peru’s foreign minister. “I heard stories of people dying because of a lack of medical care and medicine... people starving, and tragic accounts of violence and persecution,” she said. Jolie’s visit comes amid a backlash against Venezuelans in some South American countries where they have settled. Jolie met with Peruvian President Martin Vizcarra and said they discussed ways the international community can help host countries like Peru accommodate Venezuelans. “As in nearly every displacement crisis, the countries that have fewer resources are being asked to do the most,” Jolie said, thanking Peru and other “very generous” countries like Ecuador and Colombia for hosting displaced Venezuelans. (Reuters: https://www.reuters.com/article/us-venezuela-migration-peru-jolie/u-n-special-envoy-jolie-voices-support-for-venezuelan-refugees-idUSKCN1MX2LP)

 

Violent deaths of Venezuelans in Colombia more than triple in 2018

Violent deaths of Venezuelans in Colombia rose more than threefold in the first nine months of the year compared with the same period in 2017, as more desperate migrants flooded across the border to escape an economic crisis back home, a report released on Monday showed. Between January and September there were 310 violent deaths of Venezuelans in Colombia, 244.4% more than the 90 in the last year, the National Institute of Forensic Sciences said in a report. Of the total, 254 were men and 56 were women and 56% were murdered. Most of the violent deaths occurred in border regions such as the departments of Norte de Santander and La Guajira. Some died in car crashes or other accidents, and others committed suicide. Annual violent deaths in Colombia total about 25,000, according to the government. (Reuters, https://www.reuters.com/article/us-venezuela-migration-colombia/violent-deaths-of-venezuelans-in-colombia-more-than-triple-in-2018-idUSKCN1MW28H)

 

Two Venezuelans die attempting to reach Aruba by boat

Two Venezuelans attempting to reach the Caribbean island of Aruba died, authorities said over the weekend, highlighting the increasingly perilous routes migrants take to escape this nation's economic meltdown. Venezuelans routinely travel to the more prosperous Aruba in search of work or staple products that have become unavailable under the socialist government of President Nicolas Maduro. Those who are not allowed to enter Aruba often travel in rickety boats under the cover of darkness. Aruba's government said the pair were undocumented and that three Venezuelans had been detained in relation to the case. In a similar incident in January, four Venezuelans attempting to reach the Dutch Antilles island of Curacao died when their boat broke apart. (The New York Times: https://www.nytimes.com/reuters/2018/10/21/world/americas/21reuters-venezuela-migration-aruba.html)

 

Venezuela is the second most corrupt country, according to the World Economic Forum's index

Venezuela is the second most corrupt country in the world, overtaken only by Yemen, a nation in civil war that, according to the United Nations, can suffer the most lethal famine of the last 100 years. The World Economic Forum (WEF) released its annual index of global corruption, as part of its report on international competitiveness, which ranks Venezuela 127th out of 140 countries surveyed. Venezuela appears in the group of the most conflictual countries of the planet, without its population being subjected to a war or a natural disaster, which makes of this country a particularly important case, because its situation is attributable its institutional situation and political conditions. Venezuela ranks last – 140 – in terms of institutional quality and macroeconomic stability. The country ranks below the top 100 Index countries as markets for quality goods and services (137); business dynamism (139); labor market situation (131); and quality of infrastructure (131). Venezuela ranks after the top 50 countries on issues such as capacity for innovation (95); health system (59); size of the market (56); ICT adoption capacity (97) and quality of the financial system (91). When the indicators presented by the World Economic Forum on Venezuela are examined in more detail, the country ranks last in the world in specific areas. like the quality of police services, the efficiency of the judicial system in the enforcement of regulations, property rights, the effectiveness of dispute resolution systems and the protection of property rights intellectual. Under aspects such as innovation and the application of technology, the country has significantly regressed. Consider an indicator as an example of a button: the assessment of mobile penetration has dropped 64 points in one year and a market representing more than 100% of the penetration of the service is 123rd in the world. Controls, skewed subsidies, the tax burden, and other factors make Venezuela's economy a complex case, but the worst of all is the poor quality of institutions, because it is a key element to correct other imbalances. (NAAJU: https://naaju.com/chile/venezuela-is-the-second-most-corrupt-country-according-to-the-world-economic-forums-index/)

 

Russians detained over 'Gucci' cocaine shipment from Venezuela

Three Russian citizens have been charged in Venezuela over a cocaine smuggling plot aboard a tanker headed to Belgium, local media reported, citing prosecutors. Venezuela’s National Guard reportedly seized 147 kilograms of cocaine in a raid on the Jose Progress tanker earlier this month. Twenty people were detained in connection to the plot, including Russian, Ukrainian, Filipino and Venezuelan nationals, according to media reports. Russian nationals were implicated in a cocaine-smuggling plot earlier this year after over 350 kilograms of cocaine were discovered on the grounds of the Russian Embassy in Argentina. Venezuela’s Justice Minister General Nestor Reverol posted a picture on his Twitter account earlier this month which appears to show that the seized cocaine had been hidden in bags labeled with famous fashion brands, including Gucci and Chanel. The ship, which is currently being held by local authorities, sailed under a Panamanian flag and was headed for the Belgian port of Ghent. (The Moscow Times: https://themoscowtimes.com/news/russians-detained-over-gucci-cocaine-shipment-from-venezuela-media-report-63260)

 

These Venezuelan musicians were struggling on the streets. Then their talent saved them.

The young men hunched over their violins, a piano and a traditional cuatro guitar in a quiet Peruvian suburb never imagined their hard-won musical training might be the secret to surviving so far from home. Brought up under Venezuela’s famed El Sistema classical musical education program, they dreamed of scholarships at conservatories, or being poached by international orchestras — like their colleague Gustavo Dudamel, the kinetic and charismatic director of the Los Angeles Philharmonic. Instead, they’ve joined the millions of Venezuelans fleeing hunger and political chaos. It’s a journey that has stymied their musical careers as they were entering their prime — but also reaffirmed how valuable the determination they developed in the free musical program is to survive in the hard-scrabble world of migrant life. (The Miami Herald: https://www.miamiherald.com/news/nation-world/world/americas/venezuela/article220293305.html)

 

OP-ED: Whitewashing the record of Hugo Chávez, by Christian Alejandro Gonzalez

It is depressing but not altogether surprising that Hugo Chávez still retains some support in Western intellectual life. The ongoing destruction of Venezuelan society should have been enough to discredit his apologists, but unfortunately it has not been so. Did he have authoritarian tendencies? His military background left him with a firm belief in hierarchy. The longer he remained in power, the more entrenched he became, which is why term limits and checks and balances are essential to a healthy democracy. Term limits are indeed important elements of democratic societies — elements which in 2009 Chávez abolished. Dislodging incumbents is difficult enough in advanced democracies; it is even more difficult in countries with little institutional accountability, where the government can fund massive clientelist programs to shore up support whenever it needs to. As Chávez well knew, removing term limits would have allowed him to become president for life. Only his premature death from cancer at age 58 prevented him from taking full advantage of this institutional change.  It is hard to overstate the extent to which Chávez obliterated checks on presidential power during his tenure. Shortly after coming into office in 1998, Chávez began implementing steps to take control of PDVSA, the national oil company, which was then autonomously run. Apart from ruining PDVSA, these policies massively expanded the president’s power by giving him an endless source of funds to use for narrow political goals. Chávez expanded the political power of the presidency as well. He packed the Venezuelan supreme court, took over the CNE (the body that is supposed to oversee elections and ensure their fairness), undermined press freedom by shutting down the opposition’s television stations, politicized the military by promoting officers based on loyalty rather than competence, and through a long sequence of constitutional changes transferred most decision-making power from the legislature to the presidency. Nicolás Maduro’s autocracy, then, did not merely come into existence ex nihilo. Chávez bequeathed him an obsequious legislature, a loyal judiciary, and a personal oil company with which he (Maduro) could exert dictatorial power. Indeed, Maduro’s transgressions against liberal-democratic principles occur only under a specific institutional context that Chávez largely created. (National Review: https://www.nationalreview.com/corner/venezuela-hugo-chavez-new-york-times-whitewashes-history/)