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Who The Devil Should One Vote For In The Venezuela Opposition Primary?

February 10, 2012

I have always believed in the concept of primaries. Political parties in Venezuela have been for too long vehicles for the man in charge to promote himself. If there was something that did not work in the Fourth Republic, it was that part of the democratic process. In fact, it was tried a few times, once, with Luis Beltran Prieto in 1968 winning, the result was not liked because Prieto represented the left wing of Accion Democratica. The result was not respected, the party divided and Gonzalo Barrios became AD’s  candidate. The second time in 1993, Oswaldo Alvarez Paz surprisingly beat Eduardo Fernandez, who had set up the primary to be anointed, only to see the people reject him. Alvarez Paz thought he was unbeatable, not understanding Fernandez had lost, he had not really won.  Because he did not agree with Carlos Andres Perez’ impeachment, Alvarez Paz left the country to rest, he was out of sight and Caldera came back to Venezuela, grabbed the limelight and won the Presidential election against Paz, one of the two politicians he had groomed to succeed him. The other was Fernandez.

After this, the primary process at any political level was seldom used, leading to political parties where all decisions are made at the top,which stops new and young faces from rising. Remarkably, the 2000 Constitution says that anyone running for political office has to be elected by the rank and file, but like so many things in Venezuela, this has been ignored by the Courts and the politicians.

But primaries are good, because they force candidates to define themselves, allow anyone that can find some funding to run and have your ideas exposed to everyone and candidates have to work hard to meet the people,walk the streets and campaign. In time, some rise, some drop in popularity, forcing decisions on the candidates that define the race. It is a natural selection process which also allows unknowns to be recognized, setting themselves up for a future race.

While I certainly hope the primary process has helped the opposition, there is still a long way to go for it to be considered a success, but I think it has worked rather well, even if the candidates have avoided strong confrontations with each other. Diego Arria had his voice heard, once, in that wants to see Chavez pay for his human rights violations and the second time in placing the focus on the difficulties that an opposition Government is going to have. Maria Corina Machado managed to get some respect with her direct confrontations with Chavez and showing she knows the numbers. Pablo Medina had his pro-union stance heard and fought to the end, gaining a visibility and respect from the opposition that he had never had. Finally, Leopoldo Lopez was allowed to register, but his campaign never gained the traction required. He withdrew and took the risky option of backing one of the other candidates, redefining the race.

I liked Lopez the most. I liked how he went and set up a national network, I like his intuition, his long term thinking, his broader economic vision, his knowledge, his experience and his direct questions. But still, I have more radical economic views than him, in terms of proposing change. And, of course, he is not a candidate any more.

I liked Diego Arria’s decision to run on principles and stay that course. That is how you build political ideas in a country. Remarkably, Arria seems to understand that “other” Venezuela, the rural one that votes for Chavez, better than the other candidates. That came through a couple of times in the debates, but Arria did not define things beyond his main goal, otherwise I could have said I would vote for him. (I actually can’t vote, still registered in Venezuela, where I plan to be next October 7th. for the presidential election)

Then there is Maria Corina Machado. Great race, great words, truly shook up Chavez with her words and managed to shine in the debates. However, she has little managerial experience (Please don’t bring up Sumate), little national structure and to me, she did not try to create much beyond herself.

Which leaves the two Governors, Henrique Capriles and Pablo Perez. In both cases, I disliked the fact that they ran as if they were running for reelection. They talked about satisfying the needs of the population, solving problems and providing services, but neither of them ever gave even much of a hint of the vision they had for the country and the few words devoted to it were not exactly aligned with my thinking. You can promise jobs, but please tell me how you will go about it, Venezuela is complex and requires many types of new jobs.

Pablo Perez was to me a disappointment. He is not only stiff, but he is not that articulate and even his delivery is faulty. In the debate I watched live, I scored him almost at the same level as Pablo Medina, which tells you he did not excite me at all.

Henrique Capriles was also stiff, but was more articulate, more precise. Still concentrated too much on the solving problems for the people without telling me much about his vision for the country. He made statements about the economy that I did not like. But he has experience managing a difficult municipality and a difficult state. The tempo and strategy of his campaign has been exquisite. And while I don’t agree with his less confrontational style with Chavez, it seems to work rather well. I wish it did not, but it certainly does and his political intuition has worked rather well.

And here, I will insert a personal note. I have many friends who are involved in Capriles’ campaign. They are all competent, devoted, hard working and I am sure many of them will occupy positions in a Capriles administration. That alone gives me some comfort in the future of a possible Capriles presidency. BTW, they all tell me Capriles is much, much better in person. Never met him.

But more importantly, at least to me, is that it is time for a new generation to take control and run the country in a more modern way. Capriles and Lopez backing him represent that. The old political parties, the cogollos and those that trapped the country in the Cuarta into an impossible path, should move aside.

And even more critically, we need a strong mandate on Sunday and I will vote to try to give it to Capriles. I think he will win, win big too. Pablo Perez could have beaten Capriles two months ago using his voting structure to get out the vote, but Leopoldo’s own structure tipped the balance strongly on Capriles side. Pablo Perez will not be close, Maria Corina will not do well. Those are my predictions.

Then comes the harder part, the winner has to beat Chavez. And I also believe that Capriles is the better prepared candidate to defeat the Autocrat. The soft style seems to work, even if I don’t understand why. If I was interested in politics, that would not be my style at all. Maybe that is why I am not, nor could be a politician.  It is  a long campaign between now in February and then in October, but the stage seems to be set.

So, now you know how the Devil would vote, even if you don’t have any idea who the Devil you would vote for. Whatever your choice is, go do it, in the end that may be the most important thing. If the opposition gets 1.5 million plus voters, it will scare the daylights out of Chavez, forcing him to change strategies and by now we all know he is better at setting the debate than reacting to it.

Please, go and vote!

Illarramendi’s Funds Receiver Beats Record, Sues Now For “About” US$ 171 Million in Fraudulent Transfers

February 7, 2012
View this document on Scribd

Well, when I said last night to stay tuned because something more was coming from the Receiver of Illaramendi’s funds,  I really did not think it would be so soon, but via the same source as yesterday, as well as Setty’s publishing of the suits against Venezuelan Moris Beracha and an even smaller one for “only” US$ 7.6 million, the receiver for Illarramendi’s funds, topped his own record in less than 24 hours, claiming Beracha and affiliated companies received US$ 171 million in illegal payments and transfers.

That is 4.8 times the amount of the suit against Juan Montes I wrote about last night.

Pretty soon, the Receiver will not be able to top himself, the funds had, after all, only US$ 540 million, hard to fraudulently take more than that.

But you never known with these clever Venezuelans. Stay tuned, just in case.

But there is no mincing of words in the accusation:

“For nearly five years, Moris Beracha (“Beracha”) and his affiliated entities, described below, (the “Defendants”) participated in numerous, suspect transactions with Francisco Illarramendi (“Illarramendi”) and the Receivership Entities. Beracha and these affiliates received exorbitant fees, excessive and outlandish rates of interest, kickbacks and other improper payments. Beracha and his entities received this money as Beracha knowingly served as Illarramendi’s source of liquidity to perpetuate Illarramendi’s Ponzi scheme and pay debts and redemptions as they came due. Beracha’s funding came in various forms, including the loaning of money for short periods of time at annual interest rates often exceeding 80%, and the introduction to Illarramendi of investors and important Venezuelan government officials, bankers and financiers who could engage in transactions with Illarramendi. Beracha provided the money or access to money that kept Illarramendi and his scheme afloat.”

and I particularly liked this one:

“Finally, upon information and belief, Beracha assisted Illarramendi with the payment of millions of dollars in bribes to at least one Venezuelan government official. The totality of Beracha’s involvement clearly shows that he was someone who knew about the massive fraud in which Illarramendi was engaged.”

as well as the conclusion:

“The Receiver’s investigation is ongoing. To date, in total, the Receiver has identified approximately $171,675,738 in fraudulent transfers to the Defendants, comprising investor proceeds and other monies that must be recovered for distribution to Illarramendi’s victims and creditors”

Jeez, US$ 171,675,738

These Venezuelans really know how to think big, no?

The rest of the document, I will not bore you with it, the small number of comments shows you are not as interested as I am, show each of the steps taken by Beracha and his companies, 4A Star Corp, Frctal Management, Fractal Factoring Fund, Fractal Holding, Hermitage Coinsultants, La Signoria, etc. etc. to, according to the Receiver, fraudulently transfer assets from Illarramendi’s funds.

Last nights’ brief was more fun, more picturesque, this one is more dense, more legalese. But the result is the same, the Receiver accuses a Venezuelan and in this case, some of his companies, of fraud.

And in Venezuela, little is being said, PDVSA is fine, The National Assembly thinks this has nothing to do with them and the silence in the press, so far, is quite total.

It’s called self-censorship…

Note added: From Setty, more suits:

Against Illarramendi, for “Only” US$ 300 million.

Against Francisco Lopez and relatives: US$ 29 million

Against Odo and Nacy Habeck: US$ 7.6 million

 

Receiver of Illarramendi Funds Sues A Former PDVSA Executive For Receving US$ 35.7 Million In Bribes

February 6, 2012
View this document on Scribd

I wrote a few posts last year about the Ponzi scheme set up by Francisco Illarramendi and his MK funds, which involved money invested from PDVSA’s pension plans (One, Two, Three). Our friend Setty has also devoted a few posts to it, here is one, there are many others. The jist of this case, was that Illarramendi, a former PDVSA adviser and  consultant, set up some investment funds that  did not work out well and then were involved in a series of complex transactions to hide the losses, which included using PDVSA funds as investments, but also using PDVSA to make transactions. PDVSA pension funds/Savings Plans lost US$ 475 million or so, if my memory serves me right, in the process, but somehow nobody in Venezuela was responsible, as both The Board of PDVSA and the Venezuelan National Assembly found that there was no responsibility for the loss within the company, exonerating every one.

Only in Venezuela and the revolution can there be so much irresponsibility, US$ 475 million missing and it was nobody’s fault.

But today, the receiver for the MK Funds, the funds that were involved in the Ponzi scheme, the man who is in charge of trying to recover the investors money, brought suit in US Court in Connecticut against “Juan Montes, corporate manager of finance, investments and property insurance at PDVSA and its pension funds” for receiving bribes and other fraudulent transfers in the amount of…drum roll…US$ 35,744,561. Yeap, you read it right thirty five million dollars…in bribes…in only five transactions.

Only in Venezuela…

Just to make it clear and put it in black and white: The PDVSA funds lost almost half a billion dollars and just one PDVSA official, functionary, whatever, received bribes in the process for US$ 35.7 million dollars. Pocket change, no? No wonder investigators found nobody responsible.

Such are the ways of the Chavez revolution.

I will not go into all the details of the accusation, you can read the document above, it reads like a detective  story, but essentially, Illarramendi is accused of using fake emails and ID’s to have Montes help him in investing the money and setting up the transactions, so that the funds could make money and hide or try to hide the huge losses in his investment funds. Montes took the fifth amendment on all the charges. The case may go to a jury trial.

Other people are mentioned, but not accused, of helping Illarramendi funnel the bribes to Montes through their banks/companies/structures. It does not sound like the case or the story ends here. Stay tuned.

At this point, let me clarify something. In the above document, the receiver, not an expert on Venezuelan financial affairs, mentions the “permutas” made by IIlarramendi’s funds with PDVSA to make money to cover its losses. But these were not “permutas” in the traditional sense, from what I have been able to gather. In the now forbidden “permuta” market, you would swap a bolivar denominated  security for a dollar denominated security. But in the defunct “permuta” market, the difference between the “buy” and the “sell” prices was typically small Bs. 0.05 or Bs. 0.1 at most.

But what the receiver seems to be saying is that PDVSA sold dollar securities for Bolivars to Illarramendi’s funds at the official rate of exchange and Illarramendi’s funds resold those dollars at the parallel rate of exchange, essentially arbitraging the Government via PDVSA. The difference was as much as Bs. 4, 5 or even Bs. 6 per dollar depending on when these transactions took place. Just recall that when the Government banned the permuta market, the “official rate” was at Bs. 2.6 per dollar , while the parallel rate was near Bs. 8 per dollar.

And this is where these bribes apparently came from, from the huge difference between the two. Buy a million dollars with Bs. 2.6 million, sell the dollars for say, Bs. 8 per dollar, the difference (8-2.6)=Bs. 5.4 million was pure profit. 207% profit to be more precise.

And we are to believe nobody else knew about this at PDVSA? Only Montes knew? He could have access to “official dollars” with nobody knowing?

Yeah, sure…

A Horrifying Scene From The Caracas I Don’t Miss

February 5, 2012

 

The horrifying scene above is no different from what a person very close to me went through in October 2010. Innocently go into a Farmatodo(A CVS, Walgreen look alike)o this one in Los Palos Grandes  you are intercepted in the parking  lot and a shootout ensues. The difference in this case is that the guy was shot dead by the hoodlums, which included a woman.

My good friend survived…

February 4th. 1992: A Day Of Shame For Venezuelans

February 4, 2012

As Chavez and his cohorts celebrate the 20th. anniversary of this shameful day, there is simply nothing to celebrate of that coup against democracy, on the contrary, this is the anniversary of a day of shame for Venezuelans. The histrionics are there for all to.  see, what “Bolivarians” and “Chavistas” are celebrating is the cult of Hugo Chavez. He has said it many times over the last few days: The Armed Forces are “Chavistas”, not “Bolivarian”, not “Revolutionary”, but his own, the serve only him, not Venezuela. It is all about the cult of Chavez. And today, drunk in his own power, Hugo Chavez talked about “Fidelismo” and “Chavismo” on the same footing, another sign that all that matters is the cult, the rest, is just simply irrelevant.

And while “Chavismo” has left a trail of death and victims, from the Tascon list, to 120,000 murders with total indeffirence, to those fired from PDVSA, to those murdered in opposition marches, the real forgotten victims are those of 20 years ago. More than one hundred people murdered for a project that led nowhere. They were mostly civilians, caught in the cross fire of soldiers who were defending the democratically elected Government, including the President, his wife and his daughters, and soldiers who were led to the coup under false pretenses. Very few of the latter knew even why they were there. The page of a newspaper above tells the forgotten and very shameful story that Chavez claims to celebrate today, as if it was an epic battle. He did not even fight. He failed at his military objective of killing the President, he was pardoned and this allowed him to embark in his very personal project of “Chavismo”

And don’t believe for a minute that he is improvising, as documents captured that fateful day twenty years ago show, among the tactics was “to stimulate hate between classes”, “establish links to the FARC” and as this other document shows, the goal was to establish a Marxist Leninist domination, a socialist society, without “any rush”.

But the cult has left a country in shambles, full of corruption and dysfunctional institutions, a decimated infrastructure and the penetration of the country’s armed forces by Cubans and the oil industry by foreign Governments, whose only objective is to take over much needed hydrocarbon resources, when PDVSA can no longer expand production because Chavez destroyed it.

It is a day of shame, as well as the anniversary of a day of shame, with the Autocrat/Dictator inviting others like him to this so called celebration. The democrats of the region stayed away, while Hugo Chavez tries to instill fear in his own citizens.

There is still hope that things may change this year, either by vote or by fate, Chavismo may simply wither away in Venezuela some time soon. Hopefully, its trail of shame and blood will not be forgotten.

You Know Crime Is A Problem In Venezuela when You Can Buy An Anti-Kalashnikov Door For Your Home

January 23, 2012

I was a little shocked by this ad in yesterday’s El Universal of a company touting a door for your home that is claimed to be “Anti-Kalashnikov”. When companies play with peoples’ fears this way, you know we have a very serious crime problem. (I mean, can’t they open a hole through the wall next to the door with the same rifle?). I understand most armored cars in Caracas can not stop the bullets of an AK-47 Kalashnikov rifle, but if you are worried, you can shield your home from them now.

Another sign of progress brought to you by the Bolivarian revolution.

Thanks Hugo, we really needed that factory!

Maria Corina Machado Sticks Her Finger Into Hugo’s Eye…Again

January 18, 2012

Well, Maria Corina Machado was not content with her good performance on Friday and comes back to stick her finger in Hugo Chavez’ eyes with this wonderful, clear and succinct statement of why it is a “grave political error, a show of the lack of respect for Venezuela’s Armed Forces and a provocation” on Chavez’ part to name General Rangel Silva Minister of Defense.

Maria Corina then lists her very clear objections:

-General Rangel Silva’s administrative performance in previous positions has been put into question.

-There have been accusations and indications internationally about presumed links between irregular groups, this has to be cleared up.

-As a Venezuelan it is unacceptable, it is a mockery to the people of Venezuela for a General to say that he does not plan to recognize the will of the majority by their votes in the most important elections of the country’s history.

What will Hugo say this time: You have called me a provocateur!

To which she could answer, No Mr. President in this case, I am the provocateur!

Chavez’s Non-Endorsement of Diosdado Cabello

January 17, 2012

During Chavez’ last State of the Union address, I heard him say that he was not in favor of Diosdado Cabello becoming Head of the National Assembly, that he favored Soto Rojas for a second year in the Assembly’s Presidency, but that “discussions” led to Diosdado being named.

Say what?

Is that a Freudian slip, a parapraxis, a manifestation that Hugo is no longer Hugo?

Isn’t he the all powerful, all-mighty, who decides even whether there will be a devaluation? (Yes, there wasn’t one, but it was recommended)

So, Hugo, can you tell us who supported Diosdado? Was it the same people that supported Rangel Silva? Clearly you and the Cubans lost, but can you tell us something more? What is going in Chavismo when the anti-Cuban, pro-business, pro-shady deals faction wins?

Pleeeeeeease!!!

Minister For Women Offers Herself To Be Stoned by Ahmadineyad by Chigüire Bipolar

January 9, 2012

I wanted to write something about the grotesque visit to Venezuela by the the small man from Iran, but felt that I had little to add to the sad spectacle of Chavez calling the Iranian Dictator someone Venezuelans are supposed to have common ground with. But then I read this satire by the always hilarious and poignant Chigüire Bipolar and figured translating that post to English would tell very simply how absurd and incongruous the whole spectacle of the sick-fat man from Caracas hugging and praising the tiny-intolerant man from Teheran. Thanks to the Chigüire for the permission to do so.

Minister for Women Offers Herself to be lapidated by Ahmadineyad by Chigüire Bipolar

Yesterday, President Hugo Chavez gathered his ministers to request from them that they make feel at home his Iranian counterpart Mahmoud Ahmadinejad. The occasion was used by the Minister for the People’s Power for Women, Nancy Perez, to volunteer to be stoned by the distinguished visitor.

“Good afternoon, colleagues, my name is Nancy Perez and I am Minister for Women. Yes, just what you are hearing, I am not pulling your leg. You mean, you did not know there was a Ministry of Women! You never received the Official Gazette? ” said Minister Perez, as a way to break the ice. “Well, seriously, as a representative of Venezuelan women, for me personally it would be an honor to offer myself so that such a distinguished visitor may bury me in the ground up to my neck and stone me to his full pleasure. He can throw acid in my face, he can order me  to wear a veil if he likes it, you know what they say:Eyes that can’t see, heart that stops beating because they beat the shit out of it” commented the Minister while she pointed out the parts of her face where it hurts the least to be hit with sharp stones.

“The Iranian president can also whip me if I bend down and he can see my thong, he can have all my skirts destroyed, as well as my low cut blouses and my open sandals.  If gentleman Mahmud is Chavez’ distinguished visitor, then Venezuelan women become obedient and submissive, the way President Ahmadinejad likes it” said Perez, moments before calling the CH store in Sambil to ask if by any chance they had any red burkas.

After convincing his 55 colleagues that her ministry was not a joke, Minister Pérez ended her speech: “Our ministry, responsible for ensuring the dignity of women and gender equality, is pleased to receive this champion of the struggle for the rights of the macho, the male, the man and the boy. We declare our joy throughout the country, and therefore encourage women of our country not to leave their homes during the visit of the Iranian President, to remain silent in front of their husbands and boyfriends and indulge them in everything. Yes, everything. Even if it is degrading, disgusting and violates their rights. And please, do not come out with your revealing clothes, lest they awaken the libido of some representative from Iran and we may have to cut your little hands. The occasion demands it”

Venezuela: A Country Without Government

January 8, 2012

I was reading Carlos Blanco’s Tiempo de Palabra in El Universal this morning and agreed with his concept that Venezuela has no Government by now. For those that don’t speak Spanish, here is the main paragraph:

“There is not even a Government. If you look carefully, Venezuela is a country without government. There are several reasons for this curious event. One reason is that Chavez stripped the act of governing of its administrative connotation. This dimension means setting goals and objectives, budget, compliance assessment and other nuisances which have little to do with being heroic, in which there are no Chimborazos or Negro Primeros, but that shape key aspects of the act of governing. Instead of administration, there is a televised speech, and that is the main instrument of government: the government is what Chavez says, in a decade we have seen that it is a deceitful rhetoric,  but capable of shaping a story, and in recent months it has added the paroxysm, which is a product of the visceral ailments that afflict them.”

No sooner had I read this, which has a lot to do with Daniel video posts (One and Two) on how Chavez has turned the country  into one of beggars, when confirmation of Carlos Blanco’s accurate description became quite pertinent. And reamarkably, this conformation came from none other than Hugo Chavez himself.

Chavez had not held his Sunday program Alo Presidente since April of last year and only eight programs were held at all year in 2011, a reflection that his ailments began much earlier than we have been told. But worried about his popularity, Chavez decided to start them again and hold them as long as his illness allows him. Except that it did not start well today. Despite millions spent in Telesur and VTV, in buying equipment, training personnel to promote the revolution, the program had technical difficulties and the images and the voice were intermittent at the beginning and  and Hugo Chavez was not happy and his own voice came through quite clearly in his criticism of his Government, with Chavez thinking he was off the air:

Chavez: “A begining with lots of accidents for Alo Presidente. They don’t plan their “vaina” (shit?) well. Andres goes one way, Felicia is going another way, I don’t have a General Staff..”

If something as simple as TV broadcast has problems, imagine a complex project.

And when the program got off the ground, it was exactly what Blanco described: Chavez claiming the Oil Belt would create 300,000 jobs this year alone, that production will go to 3.5 million barrels a day, saying he will create a Mision “Knowledge” and “Work” that will create three million jobs in seven years and asking why should he be responsible for the crime problem”

None of this will come to fruition. In six months, if he is around, Chavez will not mention oil production or jobs, or will simply say the goals were met, even if he and everyone knows that it is all lies. After all, not one additional barrel of oil has yet to be produced from any of the dozens of announcements made by Chavez since he became President thirteen years ago. And you would think that with the money generated by the increase in oil prices since then, that would have been the easiest accomplishment.

But Chavez has destroyed the structure of Government. And any time someone has shown ability he has either moved it to another position, either thinking that the person was becoming powerful or popular or in his belief that an expert in one area will easily transfer his abilities to any other one.

So we live in an anarchists’ dream, a State with no structure. A State led by media appearances, empty words of goals and accomplishments. However, it is also an insatiable State, and here the anarchists dream ends, fed by ever rising oil prices. In 2011, the Venezuelan oil basket was up by 39.5%, postponing any serious adjustment of the economy and together with the irresponsible fiscal spending, allowing the Government to cover up and hide, the terrible effect of a dysfunctional and essentially non-exiting Government.

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