May 05, 2016

International Trade

 

Maduro is not interested in opening the border, says Colombia’s Santos

Colombian President Juan Manuel Santos says his Venezuelan counterpart Nicolas Maduro is not interested in reopening the binational border, even when the Colombian government remains well disposed to talks on the matter “when there is a willingness” to do so. He added that “it takes two to dance, but since only one wants to dance, then we have to manage the situation as best possible”. Lieutenant José Vielma Mora, Governor of the Táchira border state in Venezuela had reported that a binational committee will meet this month to evaluate opening up the border again. More in Spanish:  (El Nacional, http://www.el-nacional.com/politica/Santos-Maduro-interesado-reabrir-frontera_0_841716115.html; Agencia Venezolana de Noticias; http://www.avn.info.ve/contenido/venezuela-y-colombia-evaluar%C3%A1n-propuestas-para-reapertura-frontera; El Universal, http://www.eluniversal.com/noticias/politica/vielma-mora-anuncio-que-discutira-reapertura-frontera-con-colombia_308146; Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/regiones/comision-de-venezuela-y-colombia-evaluara-reapertu.aspx)

 

 

Logistics & Transport

 

Venezuela owes Panamanian airlines around US$ 3 billion

Francisco De Sola, President of the Panama-Venezuela Integration Chamber, reports that delays in FOREX allocations to Panamanian airlines is estimated around US$ 3 billion, arrears in the case of COPA Airlines alone are US$ 900 million. More in Spanish: (El Nacional, http://www.el-nacional.com/economia/Deuda-aerolineas-panamenas-calculada-millardos_0_841115904.html)

 

 

Oil & Energy

 

Venezuela undergoes sharp decline in oil production

A report by IPD Latin America, “estimates that Venezuela’s oil output declined 188 mb/d in Q1 2016. Production averaged 2.59 mmb/d for the quarter -- down from the 2.78 mmb/d average of 2015. For the first time since Q3 2008 oil production from all districts fell, including that of the Orinoco Oil Belt (OOB), where production had been on the rise since Q1 2009.” The report indicates the drop in production is due to

• Drilling inefficiency due to hobbled Chinese rigs
• Gas compression plant mismanagement as a result of inadequate well pressurization and increased flaring
• Redistribution of nearly 1.2 bcf/d of natural gas that used to be injected to promote crude recovery
• Lack of well maintenance
• Severely restricted access to barges to support offshore operations
• Rampant theft of electricity cables that impairs electricity supply to many wells.
• Generation units falling into disrepair
• Diluent shortages caused by liquidity issues and falling production from North Monagas fields

IPD also reports restricted cash flow which have further delayed payments to contractors, who have begun to downsize operations – a point which has little to do with the Q1 2016 oil production drop, but it will certainly have a significant impact in the future. The new estimate is a whisker above the 2.53 million bpd Venezuela produced in the first quarter, according to OPEC numbers. But it marks the first time since the third quarter of 2008 that production fell in all districts, including the extra-heavy crude Orinoco Belt. (Reuters, http://www.reuters.com/article/us-venezuela-oil-output-idUSKCN0XU22R; Bloomberg, http://www.bloomberg.com/news/articles/2016-05-03/venezuela-oil-output-slumps-in-first-quarter-as-drilling-slows)

 

Venezuela's PDVSA quietly issues new debt to pay off suppliers

Venezuelan state oil firm PDVSA has issued at least US$ 310 million in debt to companies including General Electric Co as it negotiates private issuances to pay off its suppliers, thus stretching the finances of a company that bondholders already worry is on its way to default. The securities are not bonds but offer rights similar to those enjoyed by bondholders, and at least one issue offers dispute resolution via the Paris-based International Chamber of Commerce, according to one of the three sources, who cited a term sheet. This means that if PDVSA defaults, investors holding their bonds may find that there are more creditors competing for compensation than they had originally anticipated. (Reuters, http://www.reuters.com/article/us-venezuela-economy-exclusive-idUSKCN0XU1HL)

 

Oil minister proposes fund to lift petrochemical sector in Venezuela

Petroleum and Mining Minister Eulogio del Pino has proposed the creation of a fund to boost plastic exports in the country’s petrochemical sector. The fund, intended for exports of plastic, would receive seed capital from state-run petrochemical products manufacturer Petroquímica de Venezuela (PEQUIVEN), including raw materials amounting to US$ 20 million, and money from the private sector, through financial instruments. Del Pino added that such investment could generate US$ 600 million per year. (El Universal, http://www.eluniversal.com/noticias/daily-news/oil-minister-proposes-fund-lift-petrochemical-sector-venezuela_307972)

 

 

Commodities

 

SIDOR has not produced liquid steel since January, according to union leaders at the plant, who report that key spare parts have been requested abroad but there is no FOREX to pay for them, More in Spanish: (El Mundo, http://www.elmundo.com.ve/noticias/economia/politicas-publicas/sidor-continua-sin-producir-acero-liquido-desde-en.aspx#ixzz47m2NFhKK)

 

POLAR's employees ask CENCOEX to allocate FOREX for raw materials

Over 100,000 employees of Venezuela’s major food producer Empresas POLAR rallied around the National Center for Foreign Trade (CENCOEX) in Caracas this week, to deliver a document requesting the government to allocate foreign currency for raw materials such as malted barley and other inputs necessary to continue production. They stressed they would not allow the government to seize the plants that have been halted due to lack of raw materials. (El Universal, http://www.eluniversal.com/noticias/daily-news/empresas-polars-employees-ask-cencoex-foreign-currency-for-raw-materials_308171)

 

Beef and milk consumption plunges dramatically here

Carlos Odoardo Albornoz, President of the National Cattlemen’s Association (FEDENAGA), reports that beef consumption has plunged dramatically here over the past four years: Beef consumption fell from 230,000 tons in 2012 to 90,000 tons currently. “This is the least expensive beef in Latin America, and it is eight times cheaper than in the US, what is serious is that it cannot be bought”, he added. More in Spanish: (El Nacional, http://www.el-nacional.com/sociedad/ultimos-consumo-carne-disminuyo-toneladas_0_841115988.html)

 

 

Economy & Finance

 

Istúriz says indirect subsidies may be replaced by direct subsidies

Executive Vice President Aristobulo Isturiz has indicated the government “progressively replace general subsidies with a direct subsidy” through a card that is being distributed, which the opposition terms a rationing card. More in Spanish: (El Universal, http://www.eluniversal.com/noticias/economia/isturiz-gobierno-tiene-que-sustituir-los-subsidios-indirectos-por-directos_308208; Agencia Venezolana de Noticias; http://www.avn.info.ve/contenido/ist%C3%BAriz-nuevo-modelo-econ%C3%B3mico-requiere-una-transformaci%C3%B3n-estructural-valores-socialistas; http://www.avn.info.ve/contenido/isturiz-debemos-pasar-del-subsidio-tradicional-subsidio-directo)

 

Municipal governments may shut down due to lack of funding

Speaking on behalf of Venezuela’s Mayors Association, Baruta Mayor Gerardo Blyde reported that 80% of all municipalities have not been able to meet salary or food stamp increases due to a shortage in funds, and could be forced to shut down operations. He said that not even municipalities run by pro-government mayors have received funding, adding that funding for municipalities has dropped 43.3% when inflation is factored in. Blyde delivered his report to the Finance Committee of the National Assembly, when summoned to report on the state of local governments. More in Spanish: (NOTIMINUTO: http://www.notiminuto.com/noticia/blyde-alcaldias-del-pais-caeran-en-la-quiebra/#)

 

CONINDUSTRIA calls Maduro statements “irresponsible”

Juan Pablo Olalquiaga, President of the National Industry Confederation (CONINDUSTRIA) has asked the government to stop what he called its “attacks” on private property, ignoring property rights. He said that out of 30,000 companies there should be here, the nation only has “4,000, which are operating at 45% capacity”. He termed President Maduro’s threats of taking over any plant that stops operating, “irresponsible”. More in Spanish: (El Nacional, http://www.el-nacional.com/economia/Gobierno-nacional-continuar-atacando-propiedad_0_841715955.html)

 

US companies remain here despite economic crisis

Carlos Tejera, General Manager of the Venezuelan American Chamber of Commerce and Industry, reports US companies present in Venezuela continue to operate despite current conditions because “they have established brands, plants, and above all they have their personnel”. He said companies here face the same situation as all others, such as access to FOREX, constant inspections and the consequences of such laws as the Fair Cost and Price Law, and labor legislation. More in Spanish: (El Universal, http://www.eluniversal.com/noticias/economia/empresas-estadounidenses-continuan-pais-pese-situacion-economica_308191)

 

Government to adjust product prices

President Nicolas Maduro has announced his government will adjust the prices of different products “below prices set by capitalists and scalpers.”   He added “I have instructed Vice-President for the Economic Area Miguel Pérez Abad, to elaborate, along with the Superintendence of Fair Prices, on the regulation of prices that a provoked inflation has imposed against the people,” Maduro highlighted.  (El Universal, http://www.eluniversal.com/noticias/daily-news/venezuelan-govt-adjust-product-prices_308173)

 

 

Politics and International Affairs

 

Istúriz claims timing is insufficient for a recall referéndum

Executive Vice President Aristobulo Istúriz has said the timing is wrong for the recall referéndum called by the opposition. “They are not clearly estimating the numbers, timing will be insufficient, they are convinced they cannot defeat us democratically”, he said. He called the drive to collect signatures a fraud: “The opposition is trying to fool people, many thought they were signing for the referendum, but no, we must check them one by one since whatever they do, it is not enough…They will not remove Maduro with a referendum or any of that”, he added. (Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/politica/isturiz-sobre-referendum-los-tiempos-no-les-dan-ni.aspx#ixzz47m6B4cgC)

 

Lucena says National Elections Board will “carefully” verify recall petition signatures

National Elections Board President Tibisay Lucena has confirmed receipt of 80 boxes bearing the signed forms required to launch a recall procedure against President Nicolas Maduro, and says they will be verified “carefully”. She said results will be announced early next week. More in Spanish: (Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/politica/lucena-revision-y-verificacion-de-firmas-se-hara-c.aspx#ixzz47m5i541F; Ciudad Ccs., http://ciudadccs.info/cne-inicia-proceso-para-contabilizar-firmas-recolectadas-por-la-oposicion/)

 

…also cancels meeting with opposition leader, and threatens legal action

Lucena refused to attend a scheduled meeting with the Secretary General of the Democratic Unity (MUD) opposition coalition, Jesús Torrealba, who has launched the recall movement; and says she is considering criminal or civil legal injunctions against opposition legislators and leaders who “tried to turn a democratic process into an epic against the National Elections Council. We do not operate through blackmail from anyone, we receive pressure from no one, the Electoral body obeys only the Constitution and the law”, she said. Torrealba replied that “the meeting did not take place because Ms. Tibisay Lucena does not yet have permission from Miraflores (Presidential Palace) to meet with the head of the MUD”. The meeting was programmed to review the recall process, which has not yet begun because it is still at the stage of verifying petition signatures. More in Spanish: (El Universal, http://www.eluniversal.com/noticias/politica/critican-que-lucena-reuniera-con-integrantes-mud_308214; Ultimas Noticias: http://www.ultimasnoticias.com.ve/noticias/actualidad/politica/lucena-ejercera-acciones-ante-nuevos-ataques-al-cn.aspx; Noticias24: http://www.noticias24.com/venezuela/noticia/316062/tibisay-lucena-ofrece-declaraciones-sobre-el-referendo-revocatorio/

 

Democratic Unity charges that Maduro decree violates the Constitution

Venezuela’s Democratic Unity (MUD) opposition coalition has charged that President Nicolas Maduro violated Article 246 of the nation’s Constitution by issuing a decree which “restricts and postpones” the National Assembly’s right to censure and remove Cabinet members by a majority vote.  MUD Secretary General Jesús Torrealba said the legislature censured Nutrition Minister Rodolfo Marco for defying a summons to testify. “This means this man is removed from office, and then Mr. Maduro, openly defying not only the National Assembly, but also the Constitution, refuses to dismiss him”. National Assembly President Henry Ramos Allup charged that Maduro and the Supreme Court flagrantly violate the Constitution. “Maduro says he can change the Constitution by decree”, he said. Maduro claims his decree is based on the so-called Economic Emergency Decree - which was turned down by the National Assembly and validated by the pro-regime Supreme Court - in order to “guarantee continuity in carrying out economic emergency measures” and has said “no one can touch General Marco”. A group of pro-government legislators has asked the Supreme Court to nullify the last three sessions of the National Assembly. More in Spanish: (Infolatam: http://www.infolatam.com/2016/05/04/oposicion-venezolana-asegura-que-maduro-viola-la-constitucion/)

 

DATANÁLISIS reports Maduro’s approval ratings dropped down to 26.8% in March

According to the poll taken during the first half of March, 71% of those polled disapprove Maduro’s administration, and nine out of ten believe the nation’s condition is “negative”. This is his worst rating in five months.  More in Spanish: (Infolatam: http://www.infolatam.com/2016/05/05/aprobacion-de-presidente-venezolano-maduro-cae-a-268-pct-en-marzo/

 

OAS holding special meeting at Venezuela’s request

The Organization of American States (OAS) will hold a special meeting of its Standing Council today at the request of Venezuela. This country’s Foreign Minister, Delcy Rodríguez, will attend. The request came one week after OAS Secretary General Luis Almagro met with a group of Venezuelan opposition legislators who requested that the organization observe a recall referéndum against President Nicolas Maduro and assist an institutional talks here in the light of the current serious crisis in this country. More in Spanish: (El Universal, http://www.eluniversal.com/noticias/politica/oea-convoca-una-reunion-extraordinaria-peticion-venezuela_308120)

 

US denies visas to Venezuelan government officials

Foreign Minister Delcy Rodríguez has denounced a decision made by the US Embassy denying visas to a number of local diplomats who must meet international commitments. She termed the move “serious” and said it violates the public international law and disregards the Vienna Convention agreements on diplomatic and consular relations.

The official explained visas were denied to people comprising a delegation that would attend an event of the Organization of American States (OAS). She added senior government officials were also part of the group. (El Universal, http://www.eluniversal.com/noticias/daily-news/denies-visas-venezuelan-diplomats-govt-officials_308072)

 

Fifty-one violent deaths recorded daily in Q1

Violent deaths in Venezuela averaged 51 per day during the first quarter this year, for a total of 4,696 murders, according to the country’s Prosecutor General Luisa Ortega Díaz. She further says that there are “an exaggerated number of firearms” in the streets, which directly contribute to violence. (El Universal, http://www.eluniversal.com/noticias/daily-news/fifty-one-daily-violent-deaths-recorded-venezuela_308094)

 

 

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.

March 15, 2016

International Trade

 

25,000 tons of baking wheat have arrived at Puerto Cabello, according to Nutrition Minister General Rodolfo Marco Torres, More in Spanish: (Notitarde; http://www.notitarde.com/La-Costa/Llegaron-mas-de-25-mil-toneladas-de-trigo-panadero/2016/03/10/908661/)

 

Oil & Energy

 

Guri – source of 65% of Venezuela’s electricity – 3.56 meters from collapse

Experts say the Guri dam, which is the source of 65% of all of Venezuela’s electricity, is less than four meters from reaching the level where power generation will be impossible. “Venezuela had the money to make this work -- we shouldn’t be at this crisis stage," said Miguel Lara, an engineer that worked for OPSIS, the office that used to interconnect private and government electricity companies in Venezuela before the 2006-2007 nationalizations. "They were just careless with the installed capacity. I will not say that the system will collapse, but we are certainly operating in a dangerous area." Water levels at the hydroelectric dam are 3.56 meters from the start of a "collapse" of the national electric system, say experts. Guri water levels are at their lowest levels since 2003, when a nationwide strike against Hugo Chavez reduced the need for power, masking the problem. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2407640&CategoryId=10717)

 

Power demand in Venezuela falls upon measures adopted

The Venezuelan Electric Power Energy authoritu has confirmed that domestic electric demand has decreased as well as the water level of major local Guri dam in southeastern Bolívar state in the last two days due to, among other things, decisions made to strengthen the country's thermoelectric park and measures to reduce energy consumption. Experts supported a measure announced by President Nicolás Maduro declaring Easter as a non-working week. (El Universal, http://www.eluniversal.com/economia/160314/power-demand-in-venezuela-falls-upon-measures-adopted)

 

 

Commodities

 

Getting sick in Venezuela has become a death sentence

That Venezuela currently faces an acute shortage of medical supplies and medicines is one of the tragic results of the chaos wrought upon the country’s imports sector by the combination of plunging oil prices, economic mismanagement, and draconian currency controls. In particular, the state’s heavy-handed price control policies make importing pharmaceuticals and other medical goods a losing game. The Venezuelan government’s penchant for nationalization as an easy proxy for “decisive action” has led to its taking over key outfits within the domestic pharmaceutical sector over the years, further degrading its capacity to produce such products internally. As a result, everything from Tylenol to life-saving chemotherapy drugs, condoms, and even bug spray — here in the heart of the Zika Virus outbreak — have become unobtainable. Social media like Twitter and Facebook are awash with pleas for help acquiring urgently needed medications, often from anguished parents on behalf of their children. All too often the drugs cannot be found and the children die. Under present conditions only one in two hemophilia sufferers will be able to secure their prescribed medications. The Venezuelan Pharmaceutical Federation estimates that as many as 80% of all medicines are currently scarce or unavailable. With the human costs of the pharmaceutical crisis worsening daily, Venezuela’s National Assembly — which went over to the opposition in the December 2015 elections — has requested emergency assistance from the World Health Organization in a deal that could provide technical aid and much-needed supplies for the suffering population. The Assembly has also received formal unilateral offers of aid from the Spanish government, the Brazilian parliament, and the Panamerican Health Organization. Similar conversations are underway with the Red Cross and the United Nations. Unfortunately, such offers are dependent upon official cooperation, including a formal government request for aid from Maduro — who has ignored public calls to accept outside assistance.  Meanwhile the Venezuelan Association of Medical and Dental Equipment Suppliers, Laboratories and Related Industries has all but given up, complaining that inventories for medical and surgical equipment are effectively depleted. Nearly 70% of surgical wards in public hospitals have been rendered inactive. (Foreign Policy: http://foreignpolicy.com/2016/03/11/getting-sick-in-venezuela-has-become-a-death-sentence/)

 

POLAR warns malt barley supply levels are critical, along with other staples

Lorenzo Mendoza, President of POLAR Enterprises, has warned that malt barley supplies for producing beer and malt are at critical levels, along with oatmeal, tomato paste, wheat and tuna. He said the Margarita Tuna plant in Sucre state remains completely paralyzed for lack of supplies.More in Spanish: (Notitarde; http://www.notitarde.com/Economia/Polar-alerta-que-inventarios-de-cebada-malteada-son-criticos/2016/03/15/912244/; Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/lorenzo-mendoza-celebra-75-anos-de-empresas-polar.aspx; El Nacional, http://www.el-nacional.com/economia/Lorenzo-Mendoza-presente-dificil-trabajar_0_811119109.html;  http://www.el-nacional.com/economia/Lorenzo-Mendoza-Inventarios-tomate-criticos_0_811119028.html)

 

Food production in Venezuela can only recover in 2017

Favorable consequences for domestic food production can arise should specific measures be adopted in this field, sayd Carlos Albornoz, head of National Livestock Federation (FEDENAGA). He notes the food issue here will not be solved in 2016. "It is virtually impossible for us to tackle it this year," due to a lack of supplies, tools, and equipment to overcome the crisis. "There is a catastrophe in primary production sector which translates into lack of goods and services." He says fields are currently facing "uncertainty and unprofitability". (El Universal, http://www.eluniversal.com/economia/160314/food-production-in-venezuela-can-get-recovered-in-2017)

 

 

Economy & Finance

 

Maduro regime seeks to extend economic emergency powers, will seek legislative approval

The Maduro regime has published a decree extending his economic emergency powers through next May, and the National Assembly has announced it will be in full session for the next eight days to decide whether his request is granted or not. Henry Ramos Allup, President of the parliament, says economic affairs ministers will be called in to explain what has been done and what they expect to accomplish. Executive Vice President Aristóbulo Istúriz has been called up before the Assembly to explain why the decree should be extended. Pro regime party leader Diosdado Cabello has confirmed that Istúriz will go before the Assembly; and former Vice President – now legislator – Elías Jaua has said that government officials “are always willing to cooperate, report and abide by the Constitution and laws, but not to be a part of a circus”. More in Spanish: (El Universal, http://www.eluniversal.com/nacional-y-politica/160315/cabello-confirmo-asistencia-de-isturiz-hoy-a-la-asamblea; http://www.eluniversal.com/nacional-y-politica/160314/an-interpelara-a-isturiz-por-decreto-de-emergencia; Infolatam: http://www.infolatam.com/2016/03/13/parlamento-citara-a-ministros-de-maduro-antes-de-decidir-emergencia-economica/;  Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/politica/an-declaro-sesion-permanente-para-estudiar-decreto.aspx; http://www.ultimasnoticias.com.ve/noticias/actualidad/politica/isturiz-no-he-recibido-comunicacion-por-parte-de-l.aspx#ixzz42s7XaVO5; El Nacional, http://www.el-nacional.com/politica/AN-Isturiz-revisar-prorroga-decreto_0_810519027.html;

 

Economic VP claims "DICOM is a floating forex rate and will operate as a market" with up to US$ 7 billion available

Miguel Pérez Abad, Venezuela’s VP for Economic Affairs and Minister for Industry and Trade, says the newly-implemented foreign exchange systems will fluctuate freely, and that the government expects to allocate between US$ 5.5 billion and US$ 7 billion to private business through this system during 2016. He adds that the nation is seeking voluntary debt renegotiations to improve cash flow.  The newly created rate rose to VEB 225.22/US$1, for a jump of VEB 18.44 in less than one week. Perez Abad expects the new policy to bring about a “deflation” this year, and trusts that inflation will slow down. He says he is sure that when the new system is fully operational the black market will start to disappear. (El Universal, http://www.eluniversal.com/economia/160312/dicom-is-a-floating-forex-rate-and-will-operate-as-a-market; Reuters, http://www.reuters.com/article/us-venezuela-economy-idUSKCN0WC2M2; Bloomberg, http://www.bloomberg.com/news/articles/2016-03-10/venezuela-will-retain-right-to-intervene-in-new-forex-market; and more in Spanish: El Mundo, http://www.elmundo.com.ve/noticias/economia/politicas-publicas/simadi-sigue-en-alza-y-cierra-en-bs--225-22-por-do.aspx#ixzz42xzaYoEL; El Nacional, http://www.el-nacional.com/economia/Dolar-flotante-cerro-lunes-BsUSD_0_811119072.html; Infolatam: http://www.infolatam.com/2016/03/10/venezuela-vendera-de-5-500-a-7-000-millones-de-dolares-en-nuevo-sistema-cambiario/; http://www.infolatam.com/2016/03/13/vicepresidente-de-economia-venezolano-augura-deflacion-para-finales-de-2016/)

 

“The black market will continue to rise unstoppably”, says Luis Vicente León

DATANALISIS President Luis Vicente León explains that the growth of Venezuela’s black market is due to an absence of FOREX, exchange controls, and mistrust of monetary authorities by those who hold local currency. “One does not need to be too sharp to understand that the black market will continue on an unstoppable path, where the sky’s the limit”, he says. He says stagnant FOREX allocations are due to the short cash flow which arises from low oil prices. More in Spanish: (El Nacional, http://www.el-nacional.com/economia/Luis-Vicente-Leon-crecimiento-imparable_0_809919071.html)

 

Venezuelan military forces control an industrial empire of 17 companies

Venezuela’s “socialist” and “chavista” military have decided to diversify: they produce goods and services for their own consumption, such as bullets and vests, food, vehicles, water and even import light bulbs from China. They have 17 wholly owned or mixed ventures under their control: in building infrastructure, manufacturing equipment, and providing goods and consumer products. Their latest business venture is CAMIMPEG, to provide services for the oil industry. Rocío San Miguel, of the Citizen Control NGO says: “these companies distort the functions of the armed forces.” Former Defense Minister, retired General Fernando Ochoa Antich, says “they go beyond the Constitutional functions of the Armed Forces …unfair competition is created…that is not more efficient than the private sector, but guarantee a monopoly”. He adds that the ratio and TV concession is absurd, “their ratings must be zero”, and says the beneficiaries are power centers “more or less committed to “chavismo” and “madurismo”. More in Spanish: (El Nacional, http://www.el-nacional.com/politica/FANB-emporio-industrial-empresas-propias_0_810519026.html)

 

 

Politics and International Affairs

 

National Assembly has approved new Referendum Law in first round of voting

A majority of the National Assembly has passed the draft Organic Law on Referendums in its first round of voting (two rounds are required) in a move to cut short President Nicolás Maduro’s term of office, and hold new presidential elections this year. More in Spanish: (El Universal, http://www.eluniversal.com/nacional-y-politica/160311/ley-de-referendos-aprueba-an-en-primera-discusion; El Nacional, http://www.el-nacional.com/politica/Ley-referendos-protegera-identidad-solicitantes_0_808719384.html)

 

Maduro vows not to resign, refutes charges of foreign birth

President Nicolas Maduro has repeated that he will not resign and said the opposition can do “whatever it wants,” but it will fail in its attempt to cut short his time in office. “They can do what they want! I am here to fight and Maduro will be here until the very last day!” of his term, which ends in 2019, the head of state said. To achieve this he counts on “the support of the people, of the armed forces, on history and with the absolute determination that here, nobody will cave in. Let them come for me, because there are plenty of people willing to confront them and conquer them,” he said. Addressing charges that he was born in Colombia or has dual citizenship through his mother, Maduro said he was born in Caracas, and that his mother – who hailed from the Colombian side of the border - travelled to this city to give birth. “Where was I born? I am proudly Caracanean and Bolivarian”. He said his birth certificate is readily available “a public document” and that the Elections authority has shown it, calling the whole issue a “stupidity”. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2407634&CategoryId=10718; Summarium: http://sumarium.com/maduro-reitera-que-nacio-en-caracas/)

 

Regime reproaches National Assembly President for being “rude”

Venezuela’s Executive Vice President Aristóbulo Istúriz has criticized the president of the local Parliament and opposition leader Henry Ramos Allup, saying that he “cannot behave like a rude troublemaker” and must respect the country’s president, Nicolas Maduro. The public recrimination came one day after Ramos Allup called Maduro “a fool” and referred to his government as an “outlaw.” (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2407689&CategoryId=10717; El Universal, http://www.eluniversal.com/nacional-y-politica/160314/congress-to-question-vp-isturiz-over-emergency-decree)

 

Obama concerned about Venezuela's struggling economy

U.S. President Barack Obama has voiced concern about the struggling Venezuelan economy and said he did not want to see the country fail despite the tense relations between Washington and Caracas. "It's not in America's interest to see Venezuela fail, because if Venezuela fails then that could have an impact on the economies of Colombia or Central America or Mexico, and that in turn can affect U.S. economies," Obama told CNN Espanol. "The sooner the Venezuelan people can determine a government that they have confidence in that is legitimate, and that can start instituting economic policies that pull them out of the spiral that they're in, the better off it's going to be for all of us," Obama said. (Reuters: http://www.reuters.com/article/us-usa-venezuela-obama-idUSKCN0WH05H)

 

UNASUR's Samper calls for "institutional dialogue" in Venezuela

Ernesto Samper, Secretary General of the Union of South American Nations (UNASUR), has called for an "institutional dialogue" between the government and the opposition, as he deemed that polarization was not "the best way" for understanding. Samper has stressed the need to adopt economic measures aimed at overcoming the political and economic crisis in Venezuela, Efe reported. (El Universal, http://www.eluniversal.com/nacional-y-politica/160314/unasurs-samper-calls-for-institutional-dialogue-in-venezuela)

 

Newspaper editor receives four years in prison

A court in Venezuela has sentenced a newspaper editor to four years in prison for defamation after the paper investigated alleged corruption at a major company, the newspaper has said.  Critics denounced the sentence by the court yesterday in the southern state of Bolivar against Correo del Caroni chief David Natera as an attack on press freedom and a form of preventive censorship aimed at discouraging investigative reporting.  The newspaper published a series of investigative articles between May and September 2013 accusing several businessmen linked to the iron ore miner CVG FERROMINERA ORINOCO of embezzlement, extortion and conspiracy. Critics jumped on the news of Natera's sentencing.  “Correo del Caroni was found guilty for exercising its editorial independence and contributing to transparency," the paper's editor Oscar Murillo tweeted. This sentence is aimed at intimidating Venezuelan media "to force them to submit to censorship and self-censorship that is unnecessary in a democratic country," Tinedo Guia, president of the National Journalists' Union, told reporters. Natera’s sentence is not yet final, but the judge has imposed a steep tax penalty, prohibited him from leaving the country, and barred him from publishing news about the mining company. Once a final sentence is issued, Natera will have ten days to appeal. Freedom House issued the following statement: “Venezuela’s justice system is criminalizing free and independent journalism by imprisoning a news director and striving to silence criticism of any kind,” said Carlos Ponce, director for Latin America programs. “The court’s ruling highlights the government’s efforts to intimidate journalists and muzzle investigations into corruption within state-run companies.” (Business Standard: http://www.business-standard.com/article/pti-stories/venezuelan-newspaper-editor-receives-four-years-in-prison-116031200085_1.html; Freedom House: https://freedomhouse.org/article/venezuelan-court-sentences-journalist-prison)

 

Missing Venezuela miners' bodies found, regime held responsible for negligence

The bodies of 17 miners have been found in a mass grave in Venezuela, from among 28 missing after an armed attack, officials said Monday. The bodies were found in a pit in the town of Tumeremo, in far southeastern Venezuela near the border with Brazil. Family members say the miners failed to return home from their shifts on 4 March, and reports soon emerged that they had been gunned down by attackers trying to take over their unlicensed small-scale gold mine. Chief prosecutor Luisa Ortega earlier said investigators were still seeking to determine the motive for the crime. Some witnesses say that a gang shot the miners and cut some up with a chain saw on March 4. The government has pointed the finger at foreign paramilitaries, while opponents have accused security forces of being negligent. President Nicolas Maduro last week ordered the army into the remote area in southeastern Venezuela, calling the case "a possible massacre in a war between gangs." Interior Minister Gustavo Gonzalez said authorities suspect the attack on the miners was ordered by an Ecuadoran man with ties to Colombian paramilitaries named Jamilton Andres Ulloa Suarez, alias ‘The Mole’. Carlos Chancellor, the head of Sifontes, the municipality that includes Tumeremo, charges that access to the area where the killings took place is controlled by the Venezuelan military; and human rights NGPO CONFAVIC has blamed the government for the lack of precautions that led the killings. (Reuters: http://uk.reuters.com/article/uk-venezuela-miners-idUKKCN0WG2AJ; Sigmalive: http://www.sigmalive.com/en/news/international/142838/missing-venezuela-miners-bodies-found#sthash.2o1GoteJ.dpuf; and more in Spanish: Globovision: http://globovision.com/article/cofavic-masacres-en-tumeremo-no-han-sido-suficientemente-investigadas)

 

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.