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.

May 03, 2016

International Trade

Venezuelan imports heading for 60% slide

Venezuela’s imports have plunged 40% in the past year, according to estimates by Bank of America Merrill Lynch. The country is on course for a 60% slump in imports over a four-year period, close to being biggest contraction seen in Latin America since comparable records began in 1970, the bank says. The crash in imports is the latest indignity to strike a country that this week was forced to implement a two-day working week in the public sector to combat a critical shortage of power. “The contraction is of a much higher order of magnitude than what had been observed until 2015. It is hard to find precedents for it in contemporary Venezuelan or Latin American economic history,” says Francisco Rodriguez, an economist at BofA. Their numbers suggest imports fell 50.1% year-on-year in the fourth quarter of 2015 and by an average of 41% in January and February this year, as the first chart shows. If this is sustained for the rest of the year, the resulting rate of import contraction of 60% since 2012 “will be the highest observed in Venezuelan history since the start of our data set in 1943”, says Mr. Rodriguez, who argues that the slide in public spending, allied to the collapse in imports, potentially points to a way in which Venezuela can rebalance its economy. If current trends were to continue, Mr. Rodriguez says Venezuela’s current account and budget deficits would fall to “the low single digits” as a share of gross domestic product this year. As a result, he says, “the data suggest a significant ongoing adjustment that is bringing fiscal and external accounts into equilibrium at the cost of a large recession and decline in living standards.” Russ Dallen, who heads LATINVEST, a boutique investment bank, is less sanguine however. Among the potential endgames he foresees is a “Somalia-type breakdown of civil order, where you just have gangs”. (Financial Times: http://www.ft.com/cms/s/3/4ccbeb90-0e11-11e6-b41f-0beb7e589515.html#axzz47FrjFpuy)

 

 

Oil & Energy

 

How does Venezuela spell relief? oil prices above US$ 45

The oil rally that has lifted U.S. crude prices above US$ 45 a barrel is providing some relief to the cash-strapped Venezuelan government. But analysts say oil prices at this level are probably not high enough to turn around its struggling economy. Venezuela’s benchmark bonds due in 2027 gained 6% to 43.5 cents on the dollar on Thursday, as WTI crude prices rose 1.5% to settle at US$ 46.03 a barrel. These bonds traded around 33 cents in mid-February. Forty-five dollars may be a functioning oil price for some of the more efficient oil producers like Saudi Arabia, “but not for Venezuela,” said Russ Dallen, managing partner at LATINVEST. “The country is on the abyss of chaos; the worst is not over.” (The Wall Street Journal: http://blogs.wsj.com/moneybeat/2016/04/29/how-does-venezuela-spell-relief-oil-prices-above-45/)

 

Venezuela oil price up 6%

The price Venezuela receives for its mix of medium and heavy oil rose for a third consecutive week as oil prices around the world continued strengthening.  According to figures released by the Ministry of Petroleum and Mining, the average price of Venezuelan crude sold by Petroleos de Venezuela S.A. (PDVSA) during the week ending April 29 was US$ 34.43, up US$ 2.04 from the previous week's US$ 32.39. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2411118&CategoryId=10717)

 

ENI sees Venezuela payment delays amid country's economic crisis

ENI warned it expects payment delays from Venezuela as the Italian energy explorer faces the same challenges that forced SCHLUMBERGER Ltd. to cut back activity in the country with the world’s largest oil reserves.

The affected payments shouldn’t be “huge numbers,” Chief Financial Officer Massimo Mondazzi says, adding that current outstanding receivables are below US$ 100 million. (Bloomberg, http://www.bloomberg.com/news/articles/2016-04-29/eni-sees-venezuela-payment-delays-amid-country-s-economic-crisis)

 

Water level of Venezuela's major dam stops dropping

Recent rainfall on the headwaters of the Caroní River in southeastern Bolívar state has stopped the drop in water levels of Venezuela’s major Guri dam. According to unofficial sources, the dam’s water level has stopped decreasing for the first time in months. Guri increased to 241.42 meters above sea level, a 7-centimeter surge from the previous day when it hit 241.35 meters above sea level. (El Universal, http://www.eluniversal.com/noticias/daily-news/water-level-venezuelas-major-dam-stops-dropping_307647)

 

 

Commodities

 

Venezuela's top beer maker halts output in dispute with government

Venezuela's largest beer maker halted the last of its four production plants on Friday in a spat with the government over access to foreign currency, threatening a shortage in a nation already hit by severe scarcities of food and other products. Empresas POLAR, the largest private company in Venezuela, had warned it would end production on Friday because President Nicolas Maduro's socialist government was refusing to release it dollars to import malted barley under strict exchange controls. Operations at POLAR's plant in San Joaquin, which had been its last still in production, were stopped on Friday morning, a company spokeswoman said. "With this, activities at the four plants of Polar Brewery are halted," she added. (Reuters, http://www.reuters.com/article/venezuela-empresaspolar-idUSL2N17W0W3; Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2411107&CategoryId=10717)

 

Maduro again threatens to take over inactive plants

In an inflamed speech, President Nicolas Maduro has ordered his followers to “take over” inactive industries. “He who paralyzes a plant, industry or factory will be punished by law. And any inactive plant will be taken over by the working class…Rebel against the open conspiracy, rebel, revolution!”, he exclaimed amid chants against POLAR enterprises. More in Spanish: (El Nacional, http://www.el-nacional.com/politica/Maduro-reitero-tomara-plantas-paralizadas_0_839916103.html)

 

 

Economy & Finance

 

Venezuela’s woes are mounting as it turns the lights off

Venezuela's economic problems hit a new peak this week as rolling blackouts and a two-day working week were introduced to alleviate an energy crisis.  The government here announced earlier in the week that it was cutting public sector employees' working hours down to two days a week for at least two weeks in order to reduce electricity consumption.  The country's president, Nicolas Maduro, had already decided Venezuela's 2.8 million state workers would have Fridays off through April and May. Daily four-hour power cuts around the country were also planned to further save energy. The plans are a response to a drought that has left the country's largest hydroelectric dam near its minimum operating level. But according to Michael Henderson, lead economist at risk consultancy VERISK MAPLECROFT, the plans indicate just how poorly the country is doing as a whole. "Venezuela is in the final throes of a downward social and economic spiral borne out of a legacy of terribly misguided policymaking," he says. "The announcement of a two-day working week for public sector employees lays bare just how ill-equipped the economy is to deal with temporary supply shocks." Most of the blame for Venezuela's problems has been pinned to the government and its mishandling of the economy, and that's unlikely to change any time soon.  "There's very little chance of a change of policy direction under Maduro," explained Henderson. "The opposition's new legislative powers have been systematically undermined by the executive, resulting in a stalemate which has stymied the prospects of meaningful reforms to get economy back on track." (CNBC: http://www.cnbc.com/2016/04/28/venezuelas-woes-are-mounting-as-it-turns-the-lights-off.html)

 

Maduro hikes minimum wage 30% amid raging inflation

President Nicolas Maduro has increased the country's minimum wage 30%, amid rampant inflation that has destroyed purchasing power in the crisis-hit country. As of May 1, the minimum wage will jump to 15,051 bolivars per month - US$ 1,505 at the strongest official exchange rate but just US$ 13.50 at the black market rate. Maduro also increased a monthly food ticket to 18,585 bolivars - around US$ 17 at the black market rate. The president celebrated that the rise would be the twelfth since he was elected president in April 2013. (Reuters, http://www.reuters.com/article/us-venezuela-economy-idUSKCN0XS0RD; El Universal, http://www.eluniversal.com/noticias/daily-news/salary-rise-venezuela-benefits-military-govt-employees_307660)

 

Venezuela sets clocks up 30 minutes

The Venezuelan government on Sunday moved local time up 30 minutes, to four hours behind UTC, with an eye toward dealing with the emergency caused by the ongoing severe drought. The time change will enter into effect as of May 1 and brings Venezuela back to the time schedule that prevailed until 2007, when the government shifted the nation’s clocks back by half an hour. The measure is part of a government plan to attend to the electrical and water emergency caused by the drought, aggravated by this year’s El Niño weather phenomenon. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2411200&CategoryId=10717)

 

 

Politics and International Affairs

 

Opposition delivers almost 10 times the number of signatures needed to launch a recall to oust Maduro

Venezuela’s DEMOCRATIC UNITY (MUD) opposition coalition has delivered 1.850 million signatures to the National Elections Board (CNE) here, to initiate proceedings for a recall referendum to end President Nicolas Maduro’s term of office this year. Although Venezuelan law requires that such a petition needs the signature of 1% of all registered voters (close to 200,000 signatures), signatures collected and delivered to the CNE number almost 10 times that amount were collected in barely 4 days. According to MUD Secretary General Jesús Torrealba, the opposition delivered “80 boxes, each containing 2,500 forms, for a total 200,00 forms bearing 1.850 million signatures”, that must now be validated by the CNE, which has previously delayed approving the requisite official signature form for over one and a half months. According to the Venezuelan Constitution, after the signatures are validated by the CNE, the opposition must the collect close to 4 million signatures – 20% of all registered voters – for the recall vote to be actually implemented. Following a statement by Tania D’Amelio, one of four pro-regime members in the 5 person Elections Board, intended to create additional delays, opposition leader Henrique Capriles warned: “We will not accept CNE efforts to block a democratic way out…we do not want short cuts, we do not want a social explosion, we seek the constitutional route for the people to decide whether Maduro remains as president or not”. Capriles has insisted: “if there is no recall vote this year it will make no sense. We are not interested in keeping the same regime. It will take place this year or there will be no referendum”. (Bloomberg, http://www.bloomberg.com/news/articles/2016-05-02/venezuela-s-lawmakers-gather-2-million-signatures-to-oust-maduro; Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2411119&CategoryId=10717; El Universal, http://www.eluniversal.com/noticias/daily-news/opposition-hands-over-signatures-for-recall-vote-venezuela_307746; and more in Spanish: INFOLATAM: http://www.infolatam.com/2016/05/02/oposicion-venezolana-consigna-mas-18-millones-de-firmas-para-pedir-referendo/)

 

Maduro advocates “popular revolt” against the “oligarchy”

President Nicolas Maduro has called upon nationals to stage a “popular rebellion” and decree an “indefinite general strike” should the opposition manage to make an attempt against his life or remove him from office. “In the name of peace, if someday the oligarchy plotted against me and managed to take over the (Miraflores Presidential) Palace in one way or another, I instruct you, workers, to spark off an uprising and go on indefinite general strike until defeating the oligarchy,” he said during an event to celebrate Labor Day. (El Universal, http://www.eluniversal.com/noticias/daily-news/maduro-advocates-peoples-revolt-against-the-oligarchy_307699)

 

Legislators ask OAS to oversee recall vote here, dismiss Maduro’s threats

Luis Florido, Chairman of the National Assembly’s Foreign Affairs Committee, and a group of opposition legislators have asked OAS Secretary General Luis Almagro for this institution’s oversight in the recall referendum process against President Nicolas Maduro. “The government has delayed the timing of the recall and could eventually carry it into 2017, when it would be useless”, he said. Florido dismissed President Maduro’s threats of charging them with “treason” due to their visit to Washington, and said that “the only thing that Maduro does well is to threaten.” More in Spanish: (El Universal, http://www.eluniversal.com/noticias/politica/oposicion-solicita-que-oea-observe-proceso-referendo-revocatorio_307157; http://www.eluniversal.com/noticias/politica/diputados-desestiman-acusacion-maduro-sobre-traicion-patria_307783)

 

Ramos Allup reports that the military brass told Maduro they will not engage in suppression

Henry Ramos Allup, President of Venezuela’s Parliament, reports that the generals and admirals that make up the high command here have told President Nicolas Maduro that they will not suppress the opposition of there are popular outbursts. At an “emergency meeting” held last week, they warned him “they would not bear the cost of suppressing the people if there are outbursts or disturbances due to looting, and much less political demonstrations, because that is what the goon squads and paramilitary groups, trained and equipped by Cubans, are there for”. Ramos reported the meeting was held to evaluate “the effect and impact” of the massive turnout to sign in favor of a recall election. More in Spanish: (Infolatam: http://www.infolatam.com/2016/05/02/presidente-del-parlamento-revela-militares-dijeron-a-maduro-que-no-reprimiran/)

 

Opposition leader attacked by goon squad at demonstration in Caracas

Jesus “Chuo” Torrealba, the executive secretary of Venezuela’s opposition alliance known as Democratic Unity (MUD), says he was unhurt after being attacked during a protest against government power cuts on Friday in Caracas. “I accompanied neighbors who were protesting and I was attacked by a violent group,” Torrealba said in a statement published on the MUD’s website. A video published on MUD’s website shows Torrealba throwing punches in self-defense after he was attacked by a group of men who later threw rocks in the direction of the camera. (Bloomberg, http://www.bloomberg.com/news/articles/2016-04-29/venezuela-opposition-leader-attacked-at-demonstration-in-caracas)

 

Pope Francis sends President Maduro a letter on the Venezuelan case

Pope Francis has forwarded a letter “of a personal character” to President Nicolas Maduro tackling some interesting matters on the state of affairs in Venezuela, disclosed spokesperson Federico Lombardi, who gave a group of journalists accredited to the Vatican details about the letter. The letter deals with the “country situation,” in a context where the Holy See “acknowledged the seriousness” of the events in Venezuela, the daily noted. “In this context, I can affirm that the Pope wrote a personal letter to President Maduro in reference to the country situation,” Lombardi said. (El Universal, http://www.eluniversal.com/noticias/daily-news/pope-francis-sends-president-maduro-letter-the-venezuelan-case_307670)

 

Maduro again defies legislature over censure of Nutrition Minister

After the National Assembly voted to censure Nutrition Minister General Rodolfo Marco Torres, ignoring a Supreme Court order against such its constitutionally mandated authority to censure and remove cabinet members, President Nicolas Maduro has defiantly responded that “no one removes Nutrition Minister General Rodolfo Marco Torres”, rejecting a letter he received from National Assembly President Henry Ramos Allup. The Constitution here provides that Cabinet members must be removed if censured by the legislature. More in Spanish: (Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/politica/maduro-al-ministro-de-alimentacion-no-lo-remueve-n.aspx#ixzz47DIU6b4O)

 

The Washington Post: “We ignore Venezuela’s imminent implosion at our peril”

Venezuela has descended into a dystopia where food, medicine, water and electric power are critically scarce. Riots and looting broke out in several blacked-out cities last week, forcing the deployment of troops. A nation that 35 years ago was the richest in Latin America is now appealing to its neighbors for humanitarian deliveries to prevent epidemics and hunger. The regime that fostered this nightmare, headed by Hugo Chávez until his death in 2013, is on the way out: It cannot survive the economic crisis and mass discontent it has created. Yet rather than concede or negotiate with a coalition of opposition parties that won two-thirds of the seats in the National Assembly, the Chavista government has dug in. At its direction, a constitutional tribunal stacked with party hacks has issued annulments of every act by the new assembly. Gangs of regime thugs now roam the streets on motorcycles and attack opposition gatherings. Meanwhile, the government is essentially shutting itself down: Last week Maduro ordered that state employees, who make up more than 30% of the workforce, would henceforth labor only two days a week, supposedly in order to save energy. The question is whether the change will come relatively peacefully or through an upheaval that could turn Venezuela into a failed state and destabilize much of the region around it. Most of the Western hemisphere is studiously ignoring this meltdown, but Carlos Vecchio, an exiled leader of the Voluntad Popular party, says “The moment has arrived when you can no longer ignore this. Because what happens in Venezuela is going to affect the whole region.” (The Washington Post, https://www.washingtonpost.com/opinions/we-ignore-venezuelas-imminent-implosion-at-our-peril/2016/05/01/f8e33d96-0d50-11e6-a6b6-2e6de3695b0e_story.html)

 

 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.