September 01, 2016

Oil & Energy

Venezuela says it beat Phillips 66 suit at ICSID

State oil company PDVSA says it has won in a US$ 244.3 million lawsuit brought by Phillips 66 at the World Bank ICSID arbitration center, over PDVSA’s failure to supply crude oil to the Phillips Sweeny refinery in Texas under a 1999 contract. Phillips 66 is a subsidiary of ConocoPhillips. More in Spanish: (El Nacional, http://www.el-nacional.com/economia/Venezuela-demanda-filial-estadounidense-ConocoPhillips_0_913108856.html)

 

Commodities

Food production down 24.6%

The Venezuelan National Food Industry Chamber (CAVIDEA) reports that local food production has contracted 24.6% year to date compared to 2015, particularly in oatmeal, ketchup, margarine and powdered milk. Production continues to drop leading to more scarcity and further inflation. More in Spanish: (El Universal, http://www.eluniversal.com/noticias/economia/cavidea-cae-246-produccion-alimentos_468307)

 

Economy & Finance

FOREX supply to the private sector shrank 66.5% during the first semester this year.

According to the ECOANALÍTICA think tank, FOREX officially allocated by the government to the private sector here dropped by 66.5% January-July this year, as compared to the same time period in 2015. FOREX allocations this year were an average US$ 16.8 million daily, compared to US$ 50.1 million daily last year, and an average US$ 129.5 million daily in 2014. More in Spanish: (El Nacional, http://www.el-nacional.com/economia/Gobierno-liquido-divisas-enero-julio_0_913109008.html)

 

FEDECAMARAS reports over 7,000 companies closed here in a decade

Francisco Martínez, head of the Federation of Chambers of Commerce (FEDECÁMARAS) reports that 7,000 out of 12,000 companies in Venezuela have been shut down over the past decade. Martínez says this situation can worsen with a recent compulsory minimum wage raise announced by the Maduro regime. “There are many companies that today could pay (their employees), yet within two or three months, which is more or less the range of the salary raise, many enterprises will fall by the wayside”, he added. (El Universal, http://www.eluniversal.com/noticias/daily-news/fedecamaras-over-7000-companies-closed-decade-venezuela_477571)

 

Minister claims poverty in Venezuela was down to 18.3% during first half of 2016

Planning Minister Ricardo Menéndez claimed that overall poverty in Venezuela was 18.3% during the first half of 2016, a 1.3% drop from the previous semester in 2015, when he said it hit 19.6%.  (El Universal, http://www.eluniversal.com/noticias/daily-news/minister-poverty-venezuela-down-183-during-first-half-2016_468250)

 

Politics and International Affairs

Venezuelan opposition floods Caracas in vast anti-Maduro protest

Dressed in white and chanting "this government will fall," hundreds of thousands of opposition supporters flooded Venezuela's capital on Thursday to press for an end to President Nicolas Maduro's rule. Led by two-time presidential candidate Henrique Capriles, in probably the biggest mass demonstration against the ruling socialists in more than a decade, protesters streamed into Caracas from the Amazon jungle to the western Andes. The opposition Democratic Unity coalition estimated at least 1 million people took part in the rallies to demand a recall referendum against Maduro and decry the deep economic crisis. The opposition hoped the protests would prove they are the majority and heap pressure on Maduro and the national election board to allow a plebiscite on his rule as allowed by the constitution half-way through a presidential term. But with the election board dragging its feet over the process and the government swearing the referendum will not happen this year, the opposition has no way to force it no matter how many people it brings onto the streets.  The timing is all-important because should there be a plebiscite in 2017 and Maduro loses, his handpicked vice president would take over for the ruling Socialist Party, rather than triggering a new presidential election. Maduro claimed the opposition-dubbed "Takeover of Caracas" today was a front for coup plans, akin to a short-lived 2002 putsch against his mentor Chavez, who died of cancer three years ago. Maduro has failed to replicate his charismatic predecessor's popular appeal, and his ratings in opinion polls have halved to just over 20%. "I'm ready for everything ... we will not allow a coup," Maduro told supporters late on Wednesday. Lieutenant Diosdado Cabello, Vice President of the PSUV pro government party, said government supporters would prevent anyone from entering or leaving Caracas and threatened the opposition saying “do not provoke us”.  Swearing loyalty to Chavez's legacy and calling opposition leaders a wealthy elite intent on controlling Venezuela's oil, thousands of red-shirted government supporters gathered for counter-rallies. Maduro joined his supporters in the afternoon, singing on stage and pumping his fist in the air. (Reuters: http://www.reuters.com/article/us-venezuela-politics-idUSKCN1173LS; Bloomberg, http://www.bloomberg.com/news/articles/2016-08-31/venezuelan-opposition-s-anti-maduro-march-banks-on-big-turnout; and more in Spanish: El Universal, http://www.eluniversal.com/noticias/politica/chavismo-oposicion-concentraran-hoy-caracas_47761; http://www.eluniversal.com/noticias/politica/chavismo-mantiene-calle-defensa-paz_477640; http://www.eluniversal.com/noticias/politica/personas-todo-pais-asisten-toma-caracas_477639; El Nacional, http://www.el-nacional.com/politica/Cabello-Trancaremos-Caracas-entra-nadie_0_913108999.html)

 

Maduro ratchets up repression ahead of opposition march

Embattled President Nicolas Maduro prepared for the nationwide opposition demonstration today by arresting opposition leaders, blocking accesses to Caracas and grounding all private aircraft (including drones) for nine days. Interior Minister Major General Nestor Reverol -- who was indicted by the U.S. for drug trafficking earlier this month -- said during a televised press conference that “we are taking every action so that peace reigns in the country.” Venezuela's beleaguered opposition sees the government efforts differently. Maduro announced that his regime has arrested several opposition activists accused of plotting violence during the anti-government rally, and opposition leaders slammed the arrests as intimidation. Yon Goicoechea, a former student leader who helped the opposition mount one of the most significant challenges to the late Hugo Chavez, was arrested on charges of possessing detonating cords for explosive devices, the ruling socialist party said Monday. Freddy Guevara, a leader of the opposition Popular Will party, said the charges against Goicoechea were baseless. Goicoechea, who helped organize a wave of protests in 2007, returned to Venezuela in July after completing graduate studies in the U.S. and Spain. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2419739&CategoryId=10717; El Universal, http://www.eluniversal.com/noticias/daily-news/minister-reverol-security-rules-should-observed-rally-sept_468261; Reuters, http://www.reuters.com/article/us-venezuela-politics-idUSKCN1152TG; Bloomberg, http://www.bloomberg.com/news/articles/2016-08-30/venezuela-arrests-activist-ahead-of-national-opposition-protest)

 

Maduro threatens to abolish legislative immunity

President Nicolas Maduro has threatened to ask the nation’s Supreme Tribunal to authorize taking away immunity that protects Venezuela’s legislators “if it were necessary”. He also accused National Assembly President Henry Ramos Allup of inciting political violence here, and said he was consulting experts whether to try him. “I have asked the State Attorney to prepare a decree under the economic emergency and state of siege powers, to consult with the Supreme Tribunal about taking away immunity from all public offices, starting with parliamentary immunity in Venezuela, if necessary.” More in Spanish: Reuters: http://lta.reuters.com/article/domesticNews/idLTAKCN11739W)

 

Foreign correspondents detained and expelled from Venezuela in advance of protest rally

Jim Wyss, Miami Herald Andean bureau chief, was detained last night in Venezuela where he had gone to report on today’s massive protest rally.  Wyss was detained by Venezuelan immigration authorities as he entered the country with a journalist visa valid through October. After not hearing from him for four hours, his editor received an email from him Wednesday night saying he was well and being put on a plane to Panama. He said he had been detained because he wasn’t registered to be a journalist in Venezuela. He said he had filed all the required paperwork, but he was being expelled from the country. Two journalists from Al Jazeera and other news organizations had been turned away when they tried to enter the country. The Committee to Protect Journalists said Wednesday that Venezuela has denied entry to at least six journalists who wanted to cover today´s protest to demand a recall referendum on President Nicolas Maduro. The CPJ has called for the Venezuelan government to allow foreign journalists to freely work in the country. CPJ said that among the journalists who were denied entry were its own Andes correspondent, John Otis, and reporters from Le Monde, Caracol Radio in Colombia, Caracol TV and the two journalists from Al Jazeera. (The Miami Herald: http://www.miamiherald.com/news/nation-world/world/americas/venezuela/article99168072.html#storylink=cpy)

 

OAS warned Venezuelan government against violence during rally on Sept 1

The Organization of American States General Secretariat (OAS) denounced what it terms the “worsening of repression and human rights violations” here ahead of the rally convened by the Democratic Unity (MUD) opposition coalition today. The regional organization warned that any abuse on the part of the government would be “unacceptable.” In a communiqué, the OAS General Secretariat, led by Uruguayan diplomat Luis Almagro, voiced concern over events taking place days before a rally, and warned that the Maduro regime would be responsible for casualties today. (El Universal, http://www.eluniversal.com/noticias/daily-news/oas-warns-venezuelan-govt-against-violence-during-rally-sept_477580)

 

UNASUR and former presidents called for peaceful demonstration today

Ernesto Samper, Secretary General of the Union of South American Nations (UNASUR), along with former Presidents José Luis Rodríguez Zapatero of Spain, Leonel Fernandez of the Dominican Republic, and Martín Torrijos of Panama, called for a peaceful demonstration today. In a communiqué, they made “a strong call so that the different political and social actors are allowed to exercise peacefully their right to demonstrate during rallies convened.” (El Universal, http://www.eluniversal.com/noticias/daily-news/unasur-ex-presidents-advocate-peaceful-demonstration-sept_477593)

 

Rodríguez Zapatero in Venezuela

Spain’s former President José Luis Rodríguez Zapatero visited here two days ahead of the rally called by the country’s opposition political forces to put pressure on the government to accept a recall vote against the mandate of President Nicolas Maduro. Jesús Torrealba, Secretary General of the Democratic Unity opposition coalition, says the visit may be due to concerns on the part of the international community over today’s march in Caracas. (El Universal, http://www.eluniversal.com/noticias/daily-news/rodriguez-zapatero-venezuela_477544)

 

National Labor Federation (CTV) charges regime is trying to fire 19,000 government workers

Venezuela’s Labor Federation has charged that the regime is trying to fire 19,000 public servants because of their support for the recall referendum against President Nicolas Maduro. Elias Torres, a member of the CTV board, says the government has lists of government employees culled from voter signature lists turned over by the National Elections Council (CNE) to the pro-regime PSUV party. More in Spanish: (El Nacional, http://www.el-nacional.com/economia/CTV-oficialismo-pretende-despedir-empleados_0_912508996.html)

 

Venezuela withdraws its ambassador and freezes relations with Brazil due to Rousseff removal

Venezuela's leftist government said it was removing its ambassador from Brazil and freezing relations with the neighboring country after the removal of President Dilma Rousseff, which it condemned as a "coup." Brazil called its own representative in Caracas back for consultation and demanded respect from “bolivarian” countries that have questioned the political transition there.  Bolivia, Ecuador and Cuba also called the impeachment of Rousseff a “parliamentary coup d’etat”. (Reuters, http://www.reuters.com/article/us-brazil-impeachment-venezuela-idUSKCN1162Q2, and more in Spanish: El Universal, http://www.eluniversal.com/noticias/internacional/venezuela-retira-embajador-brasil-respaldo-rousseff_477589; http://www.eluniversal.com/noticias/internacional/brasil-llama-consultas-embajador-caracas-pide-respeto_477642; El Mundo, http://www.elmundo.com.ve/noticias/actualidad/internacional/venezuela-retira-embajador--y-congela-relaciones-c.aspx)

 

Ultra-violent gangs thrive in chaotic Venezuela despite crackdown

Venezuela's socialist economy is suffering triple-digit inflation, severe shortages and a third year of recession, but gangs like this have found strength and profit in the chaos. They are teaming up with former rivals and buying heavier weapons to control ever-larger territory in the capital and beyond, the criminals, the government and criminologists say. "The majority of the other slums are our friends. It's not only us anymore, now we do business with each other," said the leader, sat at a desk with his face hidden by a black ski mask. He said rampant inflation is forcing the gang to be even more active as it seeks to cover sky-rocketing costs for weapons, drugs and even food. (Reuters, http://www.reuters.com/article/us-venezuela-gangs-idUSKCN1162AJ)

 

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.

August 30, 2016

International Trade

Customs agents report 98% drop in private imports

Rusvel Gutiérrez, President of the Vargas State Chamber of Merchants and Customs Brokers (CADUAINCO) reports a 98% drop in private imports. He adds that “the government is the only importer in the last four years”. He adds that the situation is hurting some 4,500 customs agents nationwide that have had to cut payrolls, and that out of 1200 agents in Vargas state only 50 are working sporadically; and that approximately only 100 out of 3000 cargo vehicles in state are have work. Eduardo Quintana, President of the Vargas State Chamber of Commerce, says the drop is due to difficulties in obtaining FOREX, and that imports into all the major ports in Venezuela “are very limited, there are very few ships arriving” He adds that there are barely any exports, saying “there are no exports going from here anywhere. Just go to the ports and check the situation, not even agricultural products to Caribbean islands, we are exporting nothing”. More in Spanish: (El Mundo: http://www.elmundo.com.ve/noticias/economia/gremios/aduaneros-reportan-caida-en-las-importaciones-priv.aspx#ixzz4IQpW4NLx)

 

Bilateral trade with Colombia is down 34%

The Venezuela-Colombia Economic Integration Chamber (CAVECOL) reports that bilateral trade shrank 34% in the first half of 2016, for a total US$ 510 million, down from US$ 770 million last year. The information is based on data published by Colombia’s National Statistics Department (DANE). Trade has averaged US$ 85 million per month. More in Spanish: (Notitarde, http://www.notitarde.com/El-comercio-entre-Venezuela-y-Colombia-se-redujo-34-/Economia/2016/08/30/1019802/; El Universal, http://www.eluniversal.com/noticias/economia/comercio-entre-colombia-venezuela-contrajo_459320)

 

National port authority reports 3-fold increase in monthly average 5-6 ships arriving in Venezuela

General Efrain Velasco, President of Venezuela’s Port Authority, reports 210 tons of food are being offloaded at several ports throughout the nation. He says 18 ships from different countries have arrived this month, and added “there is a monthly average of 5-6 ships entering the nation, which means this we have tripled the number this month, bearing basic products” imported by the government. More in Spanish: (Agencia Venezolana de Noticias; http://www.avn.info.ve/contenido/210-mil-toneladas-alimentos-proceso-descarga-puertos-ser%C3%A1n-distribuidas-pa%C3%ADs)

 

14,900 tons of corn and soy were offloaded at Maracaibo port, according to regional port authority head General José Noguera, who reports the cargo is aboard the SKAWA, and consigned to Alimentos Balaceados del Zulia, Agropecuaria Nivar, Balanceados Lamar, Procesadora Industrial C.A, and others. More in Spanish: (Bolipuertos, http://www.bolipuertos.gob.ve/noticia.aspx?id=34498; El Mundo, http://www.elmundo.com.ve/noticias/economia/empresas/arribaron-al-puerto-de-maracaibo-14-900-toneladas.aspx)

 

Three ships bearing food, medicine and personal care products arrived at La Guaira port in 193 containers, according to local port authority head Admiral Carlos Martin. More in Spanish: (Bolipuertos, http://www.bolipuertos.gob.ve/noticia.aspx?id=34496)

 

Logistics & Transport

Government bans private aircraft and drones from flying through September 5^th

Venezuela’s National Civil Aeronautics Institute (INAC) has issued a communiqué barring private aircraft, helicopters and even drones¿ from flying nationwide through September 5^th. Transportation and Public Works Minister says the order is intended to “safeguard our population”. More in Spanish: (Noticiero Venevision: http://www.noticierovenevision.net/nacionales/2016/agosto/27/167185=inac-prohibe-el-vuelo-de-aviones-privados-desde-este-sabado-hasta-el-5-de-septiembre; Agencia Venezolana de Noticias; http://www.avn.info.ve/contenido/emiten-resoluci%C3%B3n-para-garantizar-seguridad-del-espacio-a%C3%A9reo)

 

Oil & Energy

Venezuela renews drilling tender after earlier collapse

Venezuela's state oil company, PDVSA, has relaunched a large tender for the drilling of 600 oil wells in the world's largest crude reserves, sources with knowledge of the tender said this week, after a similar project collapsed last year amid concerns about transparency and political favoritism. Reuters reported last month that tiny Colombian trucking firm TRENACO, whose management was close to Venezuelan President Nicolas Maduro, won a multibillion-dollar contract to carry out similar work despite having no relevant experience. In a rare rebellion, foreign oil companies protested to PDVSA that TRENACO was vastly underqualified, leading to the cancellation of the US$ 4.5 billion deal. (Reuters, http://www.reuters.com/article/us-venezuela-pdvsa-contract-exclusive-idUSKCN1112D7)

 

Venezuela oil price rises above US$ 40

The price Venezuela receives for its mix of medium and heavy oil continued rising off of its early August low of US$ 33.36 for a third straight week, making it over the US$ 40 a barrel threshold. 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 August 26 was US$ 40.44, up US$ 1.04 from the previous week's US$ 39.40.
According to Venezuelan government figures, the average price in 2016 for Venezuela's mix of heavy and medium crude is now US$ 32.61 for the year to date. Venezuela's average oil price for 2015 was US$ 44.65, down from 2014's US$ 88.42, below 2013's US$ 98.08, 2012's US$ 103.42. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2419682&CategoryId=10717)

 

Commodities

Maduro claims Barrick signs on to Venezuela gold push as oil sinks economy

President Nicolas Maduro says Barrick Gold Corp. has agreed to form a joint venture in Venezuela, in the hope that mining can boost one of the fastest-shrinking economies in the world. He said the world’s biggest producer of the precious metal was among several companies to sign letters of commitment for gold-mining ventures in Caracas last Friday. The government would take a 55% stake in the proposed Barrick venture, Maduro said. Andy Lloyd, a spokesman for Toronto-based Barrick, simply says “at the invitation of the government, we intend to review information pertaining to mining opportunities in the country”. Maduro claims Venezuela has signed over US$ 5.5 billion in mining deals with companies including Canada's Barrick Gold Corp and China's Shandong Gold. "Today we are signing investments and letters of commitment for projects for over $5.5 billion," said Maduro in a televised meeting with foreign mining executives. (Bloomberg, http://www.bloomberg.com/news/articles/2016-08-26/barrick-signs-on-to-venezuela-mining-push-as-oil-pummels-economy; Reuters, http://www.reuters.com/article/us-venezuela-mining-idUSKCN1112BR)

 

Minister says it was a mistake to increase personnel at the SIDOR steel complex

Basic Industries Minister Juan Arias says the country needs to replace the policy of exporting raw material with finished product exports, including industrial components so that Venezuela can obtain “added value” from those transactions. He noted that “the rent-seeking model has to be uprooted”, and added that Venezuela should replace bauxite or alumina exports with exports of finished products such as aluminum and iron-derived products. He admitted that increasing personnel – currently some 17,400 workers – at state-run Orinoco Iron and the SIDOR steel complex— was mistaken, since less than half of the staff actually works. “There is an erroneous view of what workers control really means; management by workers,” he pointed out. (El Universal, http://www.eluniversal.com/noticias/daily-news/minister-increasing-staff-steel-company-sidor-was-wrong-policy_450025)

 

FAO forecasts reduced cereal production in Venezuela this year

Cereal production will fall to 2.8 million tons this year in Venezuela, below the average of 3.2 million in the previous four years due to drought associated with El Niño and economic crisis, says to the Food and Agriculture organization (FAO). Sources at the FAO Global Information and Early Warning System say that El Niño has affected the country from February 2015 to June this year, causing a prolonged drought and less rainfall, thus significantly reducing the availability of irrigation water. "This has had an adverse impact on crops during the harvest of 2015 and reduced yields. El Niño also decreased crop harvest in the first season of 2016 in Venezuela, mainly rice, which was sown until late last year,” the sources said. (El Universal, http://www.eluniversal.com/noticias/daily-news/fao-forecasts-reduced-cereal-production-venezuela-this-year_450005)

 

Economy & Finance

CITIBANK serves notice that it will no longer process payment of PDVSA bonds

CITIBANK has sent notice to PDVSA bond holders that it will no longer process that company’s bond payments, and says the state oil company must “name a new main agent as soon as possible”, at which time CITIBANK’s says its obligation will have ended. More in Spanish: (El Nacional, http://www.el-nacional.com/economia/Citibank-agente-pagador-bonos-Pdvsa_0_911909112.html)

 

Politics and International Affairs

Venezuelans mobilize for vote to recall President Nicolas Maduro

A wave of thousands of Venezuelans is descending on Caracas as part of a last-gasp effort by the country’s opposition to try to force President Nicolas Maduro to hold a referendum on his rule—a vote he is fiercely resisting, with polls saying it would lead to his removal. The mobilization will culminate on Thursday in a mass rally the opposition hopes will draw hundreds of thousands of Venezuelans to the streets of the capital, making a show of strength against a government overseeing the country’s worst economic collapse since its independence in 1811. This week’s protest may be the last, best chance to force a referendum that would almost certainly end a deeply unpopular government. The opposition has been trying to hold the plebiscite, as set out in the country’s constitution, since March, but election officials have delayed giving the green light. “This is a huge event. It’s the biggest test of the opposition’s strength and the government’s tolerance of dissent in years,” said Javier Corrales, professor of Latin American studies at Amherst College in Massachusetts. “The opposition is really running out of time to achieve their goal of the referendum this year.” The government wants to put off the vote until next year. If the vote takes place after Jan. 10 and Maduro is ousted, a vice president of his choosing would serve out the term ending in 2019. A referendum held before that date wouldn’t only remove the president but also trigger new elections, which polls show would end 17 years of Socialist government. The national electoral council earlier this month gave a preliminary schedule for the referendum that suggested the vote might take place in February. Maduro’s control of courts, prosecutors and electoral officials has left street protests as the only means to pressure the government to comply with the laws, said Jesus Torrealba, head of the Democratic Unity opposition alliance.  Maduro, who has Venezuela’s lowest presidential approval ratings in almost two decades, isn't taking any chances. He has called supporters to hold a separate march in downtown Caracas on the same day and has banned all private planes and drones this week, a move the opposition says is meant to prevent images of antigovernment crowds from circulating around the world. Meanwhile, Caracas has taken on the feel of a city bracing for war. In recent weeks, the military built sandbag emplacements with armored vehicles outside key tunnels connecting parts of the capital. The opposition says the soldiers will try to prevent busloads of supporters from reaching the capital on Thursday, a strategy the government has employed in provincial rallies in the past. In the town of Villa de Cura, shop assistant Eloy Durán vowed not to let authorities prevent him from joining the rally. “If the soldiers stop us, we will get out of the buses and start walking,” he said, and added that he has lost 44 pounds this year because of food shortages, in what he and other Venezuelans jokingly call “the Nicolás Maduro Diet.” “The recall referendum is the only peaceful exit from this government,” he said. (The Wall Street Journal: http://www.wsj.com/articles/venezuelans-mobilize-for-vote-to-recall-president-nicolas-maduro-1472504412)

 

Venezuela on the brink, large protest seeks to pressure President recall

The stakes are high for the September 1 protests, says Siobhan Morden, a managing director for Latin America at NOMURA Securities in New York. She says the S1 protest could influence intervention for a recall vote this year. If the protest fails, then it’s an uncertain path towards political transition in a post-Maduro world. “The worsening economic and social crisis should eventually force military intervention with (PSUV) probably more receptive for a transition next year that forces the departure of President Maduro without the risk of new elections,” Morden says. New elections would oust PSUV from Venezuela’s government. But a handover to others in Maduro’s coalition may be able to stop some of the bloodletting in the party of Hugo Chavez. Any political transition depends not only on the moderate turnover from the current radical leadership (who all equally poll low approval ratings similar to Maduro) but also the inclusion of the opposition. According to pollsters at DATANALISIS, Maduro’s approval rating is 21.2%. Some 50% of those polled want anyone but PSUV. And another 75% want elections this year. Another survey, this one by VENEBAROMETRO in July, shows that 34.4% support Maduro’s immediate resignation, but 27.9% support waiting for the general election in 2018. The September 1 “taking of Caracas” is yet another chapter in the final act of Venezuela’s socialist experiment. It also serves as a potential leverage from the opposition to pressure the government for a recall referendum this year or resignation of Maduro. “The premise is that hardcore supporters from the countryside converge on Caracas to reach much higher participation than previous protest marches with higher visibility ... that encourages intervention from the international diplomatic community,” Morden says. “The stakes are now much higher with growing frustration that voters cannot express their discontent at the polls. The streets are the next — and possibly only — recourse.” (Forbes: http://www.forbes.com/sites/kenrapoza/2016/08/19/venezuela-on-the-brink-large-protest-seeks-to-pressure-president-to-resign/#2a70e386f4c1)

 

Maduro charges that the opposition and the US government are plotting destabilization on Sep. 1^st.

President Nicolas Maduro has again claimed that the United States government is trying to stage a coup d’etat here. He said “we are taking to the streets to tell the world that there is a fascist coup underway that is directed by the United States in order to plague Venezuela with violence”, and added that the opposition Democratic Unity (MUD) coalition “has decided to break the rules of the game”, and that starting September 1^st and through the end of the year the government will engage in a “revolutionary counter offensive”. Executive Vice President Aristobulo Istúriz also called the scheduled September 1^st opposition demonstration “a destabilizing, coup plan to overthrow President Maduro.” Daniel Aponte, the government-appointed governor of Caracas, says the opposition march scheduled for September 1st will not enter Caracas. And Venezuela’s Interior Minister General Nestor Reverol claims to have uncovered an alleged opposition destabilization plan scheduled for September 1^st and says he will provide more details in the next few days.  (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2419600&CategoryId=10717); and more in Spanish: (Noticiero Venevision: http://www.noticierovenevision.net/politica/2016/agosto/27/167188=maduro-aseguro-que-la-oposicion-junto-al-gobierno-de-eeuu-intentan-dar-un-golpe-de-estado-; http://www.noticierovenevision.net/politica/2016/agosto/28/167263=aristobulo-isturiz-denuncio-que-la-oposicion-intenta-derrocar-al-presidente-nicolas-maduro-;  http://www.noticierovenevision.net/nacionales/2016/agosto/29/167322=ministro-reverol-alerta-sobre-supuesto-plan-desestabilizador-de-la-oposicion-para-el-1-s)

 

Former mayor Ceballos sent back to prison from house arrest; US slams move, seeks his release

Intelligence agents on Saturday took Daniel Ceballos, a former opposition mayor accused of fomenting opposition protests, to prison from house arrest in the capital of Caracas, according to his wife and the country's interior ministry. Ceballos had been released from prison last year and placed under house arrest for health reasons.  In a statement, the interior ministry said he was planning to escape this month.  It said Ceballos had planned to coordinate acts of violence at an opposition demonstration planned for 1 September. Ceballos was arrested in 2014 on accusations he helped lead violent unrest in the tumultuous western city of San Cristobal, where he was mayor. He denies the accusations. Opposition leaders called his arrest an effort to quash dissent and describe Ceballos as a political prisoner. President Nicolas Maduro calls him a criminal who sought to destabilize the country, and denies Venezuela holds political prisoners. Patricia de Ceballos said agents from the SEBIN intelligence service arrived at their residence at around 3 a.m. saying they were going to conduct a medical exam for her husband, who was granted house arrest in 2015 for health reasons. The US State Department said “this transfer is an attempt to intimidate and block the Venezuelan people’s right to peacefully express their opinion on September 1^st. We condemn it and ask for his immediate release”. Department spokesman John Kirby added that “the most basic underpinnings of the rule of law in Venezuela have been degraded to an alarming level”. (Reuters, http://www.reuters.com/article/us-venezuela-politics-idUSKCN1120MJ; BBC News: http://www.bbc.com/news/world-latin-america-37206563; Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2419673&CategoryId=10717); and more in Spanish: (El Nacional, http://www.el-nacional.com/politica/EE-UU-Venezuela-Daniel-Ceballos_0_911308941.html

 

Another opposition leader detained

The Voluntad Popular party’s national coordinator, Congressman Freddy Guevara, has confirmed that one of its leaders, Yon Goicoechea, has been taken without a warrant by a group of armed officials and is in the custody of the SEBIN intelligence agency. He called the detention “illegal and arbitrary” and called the move a ruse to scare the opposition in advance of demonstrations scheduled in Caracas on September 1^st. More in Spanish: (El Nacional, http://www.el-nacional.com/politica/Yon-Goicoechea-llevado-Sebin_0_911909064.html)

 

Public officials to be reprimanded they do not attend pro-government demonstration

Marlene Sifontes, a leader in the National Parks Institute Union says an order is out to dock one day’s pay and reprimand any government employee that does not attend a pro-government demonstration scheduled for September 1^st. Servando Carbone, a leader in the National Public Sector Workers Federation says the government is also trying to bribe its employees, but says they are too irate over abuse”. More in Spanish:  (El Nacional, http://www.el-nacional.com/economia/Denuncian-amonestaran-funcionarios-marcha-oficialista_0_910109259.html)

 

Ecuador asks Venezuela to explain expelling Ecuadorian legislators

Ecuador’s government has asked the regime here to provide more information on an incident that took place last week in Caracas. Ecuadorian legislators Cynthia Viteri – who is a presidential candidate - and Henry Cucalón were forced to leave the country when they tried to visit imprisoned opposition leader Leopoldo Lopez. Ecuador’s Foreign Ministry expressed “concern over the incident” and asked Venezuela to “guarantee the constitutional rights” of Ecuadorian citizens. Viteri reports their experience in Venezuela was “terrifying”. The Venezuelan Embassy in Quito retorted that what was applied was the cancellation of their authorization to remain in Venezuela territory, saying they “engaged in proselytism and destabilizing activities” and “flagrantly interfered in the domestic affairs of Venezuela”. More in Spanish: (Noticiero Venevision: http://www.noticierovenevision.net/internacionales/2016/agosto/27/167159=ecuador-pide-a-venezuela-ampliar-informacion-sobre-incidente-con-legisladores

 

Venezuela names new Ambassador to Iran, announces fresh dynamism in relations

President Nicolas Maduro named General Jesus Gonzalez as the country’s new ambassador to Iran on Saturday, while announcing the beginning of a new dynamic era in Caracas-Tehran bilateral relations. Maduro made these announcements at a Caracas meeting with Iranian Foreign Minister Mohammad Javad Zarif, who arrived in the country sooner than expected on the final leg of his South American tour, after having visited Cuba, Nicaragua, Ecuador, Chile and Bolivia. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2419683&CategoryId=10717)

 

Colombians living in Venezuela flock home to escape crisis

At least 700 people from Venezuela exhausted by shortages of food, medicines and more in that country, have descended on the small Colombian village of Bayunca north of Cartagena looking for a better life. “Natives and non-natives who left many years ago and, due to everything they have to put up with (in Venezuela), are coming to Bayunca, but empty-handed,” the head of the village’s Afro-Colombian community council, Juana Frasual Matute, told EFE. (Latin American Herald Tribune,  http://www.laht.com/article.asp?ArticleId=2419637&CategoryId=10717)

 

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.