CARACAS, VENEZUELA
{05-08-2012}

Venezuela's Chavez back on the air after silence
Ian James

Venezuelan President Hugo Chavez said on Monday that he expects to return to Venezuela in the coming days after finishing his latest round of cancer treatment, and is looking ahead to this year's election campaign.

Chavez spoke in a telephone call aired on state television for the first time since he traveled to Cuba a week earlier. During the past week, he instead communicated with supporters through messages on Twitter.

"The opposition isn't going to win presidential elections in Venezuela, never, ever again," Chavez said. "We're going to give them a devastating knockout."

"I'm not campaigning still," Chavez said, adding that he is carrying out his duties from Cuba "but in a special situation, from which I will emerge in the coming days and I will soon be there."

Chavez noted that the presidential campaign will last three months ahead of the Oct. 7 vote, when he will go up against rival Henrique Capriles.

"I aim to get close, for us to get close, to 70 percent of the vote," Chavez said. "We're going to work very hard."

He also criticized his political rivals saying they lack organization and a clear political project.

The 57-year-old president has been in Cuba since April 30 undergoing his latest round of radiation therapy treatment. He began the radiation treatments in Cuba in late March after an operation in February that he said removed a second tumor from his pelvic region.

Chavez's longer absences from the public eye and uncertainty surrounding his illness have recently fed rumors in Venezuela that cancer could interfere with his re-election hopes.

But Chavez on Monday expressed optimism saying that in "the next period from 2013 to 2019, with the grace of God, we're going to refine much more the construction of socialism."

"We have to keep strengthening our leadership, and... when I say leadership it's not only the leadership I exercise, but rather collective leadership," Chavez said.

He also stepped into international affairs, saying he hopes the victory of Socialist Francois Hollande in France's presidential election "marks a turn" for the country. Chavez called the outgoing administration of incumbent Nicolas Sarkozy "a terrible government" that had acted in concert with the U.S.

"Look at how the French government ended up, subordinated to the Yankee empire," Chavez said, criticizing the French government's role in last year's conflict in Libya.

caracas, venezuela
{04-27-2012}

Capriles vows to create more than 3 million jobs
El Universal

     "We will not expropriate or seize any company," said the presidential candidate of opposition umbrella group Unified Democratic Panel (MUD), Henrique Capriles Radonski, when he presented his plan "Jobs for Everyone" in the state of Carabobo, central Venezuela

"The government needs to build confidence to attract foreign investments," opposition presidential candidate Henrique Capriles said (Photo: TV screen capture) Related Content

Henrique Capriles Radonski, the presidential candidate of opposition umbrella group Unified Democratic Panel (MUD), on Thursday presented his job creation plan. He was accompanied by Henrique Salas Feo, the governor of the state of Carabobo (central Venezuela.)

Based on data disclosed by the Central Bank of Venezuela (BCV), the opposition presidential hopeful said that there are more than 6 million jobless people in Venezuela, including 400,000 people aged 15-24 and 1 million people who left the country.

The opposition candidate and governor of the state of Miranda promised to create more than 3 million jobs when elected. "We will not expropriate or seize any company," he said. "The government needs to build confidence to attract foreign investments," Capriles added.

Caracas, venezuela
{04-18-2012}

The closing of the Venezuelan consulate in Miami was more about punishing the venezuelan exiles
Antonio Maria Delgado  //  Miami Herald

     The closing of the Venezuelan consulate in Miami was more about punishing the “feverish” opponents of President Hugo Chávez who live in South Florida than a response to Washington’s decision to expel the consul, according to documents obtained by El Nuevo Herald.

The documents obtained in Caracas, which include emails among people who took part in the decision and commented about it, reveal the Chávez administration’s irritation at the expulsion of Consul Livia Acosta, who was declared persona non grata amid an espionage scandal.

Yet Venezuelan diplomats saw the incident as an opportunity to retaliate against Venezuelans living in Miami, most of whom left their country in disagreement with Chávez’s Bolivarian revolution.

“With the elements at hand, it occurs to me that we could respond with measures that would affect the state of Florida and would create chaos among our feverish Miamians,” wrote the Venezuelan ambassador to the Organization of American States (OAS), Roy Chaderton Matos, in an email addressed to Foreign Affairs Minister Nicolás Maduro.

“I think they would lose more than we would while at the same time putting the Cuban-American mafia in a very uncomfortable position,” he added.

Venezuelan officials did not respond to El Nuevo Herald’s repeated efforts to contact them for comment.

The Venezuelan government closed the consulate in January a few days after the U.S. State Department expelled Acosta when a tape implicating her in an alleged Iranian plot against the United States was disclosed.

The closing of the Miami consulate affected nearly 200,000 Venezuelans in Florida, Georgia, North Carolina and South Carolina, many of whom depend on the diplomatic office to obtain money from their country due to the strict currency-exchange control in effect in Venezuela.

It also affected the process of obtaining passports and legalizing documents, as well as the possibility of voting in the October presidential election.

Although National Electoral Council officials have said that South Florida voters will be able to participate in the election, there are no indications so far that preparations are in place to allow the nearly 20,000 registered Venezuelans to vote.

Acosta’s tape, which was broadcast in a documentary of Univision Network, shows the consul asking a Mexican cyber-pirate for the keys that would give access to U.S. nuclear facilities.

“You should also give me that [...] to send it to the president, the defense chief, or rather the chief of presidential security, who is my friend,” says the voice attributed to Acosta.

The recording was apparently made when the consul was the cultural attaché in the Venezuelan embassy in Mexico. Yet documents obtained by El Nuevo Herald indicate that Acosta, in reality, performed other type of functions.

According to the documents, Acosta, as well as vice consul Edgard González Belandria, who was in charge of issuing passports at the Miami consulate, are registered in the savings account of the Venezuelan intelligence service, which confirms that they are on that agency’s payroll.

The automated service of the savings account, which can be accessed by inserting the user’s ID card, shows the accumulated earnings of these two officials as employees of the intelligence service.

Univision’s documentary and the story published by El Nuevo Herald generated concern among Caracas officials who explored a series of damage-control options.

Angelo Rivero Santos, the chargé d’affaires at the embassy in Washington, alerted the minister of information, Andrés Izarra, in an email that the documentary was about to air.

“This is to alert you about the documentary. According to the paragraphs contained in Univision’s press release.... [the recording] indicates that diplomats of Iran and Venezuela would allegedly be preparing a cybernetic attack on the White House, the FBI, the Pentagon and nuclear plants,” wrote Rivero, who currently holds Venezuela’s highest diplomatic post in the United States.
 

CARACAS, VENEZUELA
{04-01-2012}

Chavez's army ally rises to fore in Venezuela
Mario Naranjo //  Reuters

    A military comrade of Hugo Chavez who was once Venezuela's president for a day has become his most powerful ally at a delicate time when the socialist leader is seeking re-election despite cancer.

The rise of Diosdado Cabello, 48, has coincided with Chavez's latest convalescence from surgery and has set tongues wagging that he could be the chosen one as successor should the president's health deteriorate. To the envy of other senior "Chavistas", the burly army lieutenant who is second only to Chavez in the ruling Socialist Party was also named early this year as the head of parliament.

During Chavez's recent three-week absence in Cuba for the removal of a second malignant tumor, Cabello fronted government news conferences and led rallies. Then he stood proudly next to the president on the palace balcony at a weekend homecoming.  "He has taken on a protagonistic role. That was the president's intention," said one former minister and government ally, asking not to be named due to the delicate subject.

Just how protagonistic remains to be seen: Chavez frequently shuffles his top aides and eschews all talk of succession. Yet Cabello's rise has clearly eclipsed two other heavyweights - Vice President Elias Jaua and Foreign Minister Nicolas Maduro - whom Venezuelans had last year been speculating were equally strong-looking contenders to replace Chavez.

Both are being sent to the provinces later this year to campaign for Chavez in the October 7 presidential vote and then contend state governorships. Analysts interpret that as a snub to any presidential ambitions they may have privately harbored. "Elias carries out the day-to-day business, while Diosdado is the mover of the masses," the ex-minister added, describing Chavez's roles for them.

In public, Cabello certainly shows more charisma and more of a popular touch than other top officials, though still a long way from Chavez's own famous "connection" with the masses.  Unusually, the crowd at one recent rally ventured to cheer "Viva Diosdado!" along with "Viva Chavez!"

Though many locals see Cabello as the man-in-waiting if Chavez succumbs to cancer, Cabello is the first to deny that. "The candidate for the Bolivarian Revolution is called Hugo Chavez Frias! The only one who guarantees stability in this country is Hugo Chavez Frias!" he has bellowed over-and-over. Skeptics say that public line belies huge anxiety within the Socialist Party about Chavez's health and future, and a nascent power struggle between the senior figures around him.

Chavez insists he is recovering from the removal of a second tumor in his pelvis, but he still needs radiation treatment. That will leave him weakened during the campaign and there are rumors that his condition is life-threatening. Having joined Chavez's abortive military coup in 1992, served time in jail alongside him as a result, and then helped steer his successful 1998 election campaign, Cabello's star has waxed and waned during his boss's 13-year rule.

In the ministerial merry-go-round that Chavez favors to keep everybody on their toes, Cabello has served as vice president, led five ministries and had a handful of other important posts in government. His brother has also held high offices.

At some points, Chavez has none-too-subtly relegated Cabello when he seemed to be becoming too big for his boots. One of the world's shortest-lived presidents, Cabello even held the top job for a turbulent day in 2002. As a brief coup against Chavez collapsed, Cabello stepped in and his only act as president was to send commandos to bring Chavez back from captivity on an island naval base and restore him to power.

Seen as a pragmatist rather than ideologue, Cabello has sway with the military and lawmakers plus close links to businessmen. "But the grassroots revolutionaries don't trust him," said George Cicciarello-Maher, a U.S. university professor and author of a book on the Chavez government.

Bringing him to the fore now may be Chavez's way of covering his bases before the October 7 vote - the military could be needed if the result is disputed or there is violence on the streets - rather than necessarily positioning Cabello as his dauphin. "They say Diosdado is the president's favorite right now, but I'm not sure. I've also heard some bad things about him, that he's a bit full of himself," said Juan Vazquez, a 26-year-old workman and Chavez supporter in the western town of Cabimas.

The opposition's presidential candidate, Henrique Capriles, humbled Cabello by beating him in a 2008 election for the Miranda state governorship. Capriles' team say they uncovered a mass of irregularities by Cabellos' outgoing administration. "They even took the light bulbs from the office. They didn't leave a thing!" Capriles told Reuters.

Cabello denies corruption accusations and the government has been silent on allegations against him - none of which have resulted in charges being brought. "They call us thieves, dirty, badly-dressed," Cabello told a crowd this month, denouncing the opposition's attitude to him and to "Chavistas" in general. "But they can't do anything against the dignity of the people alongside Comandante Chavez."

The president has a healthy lead over Capriles in recent opinion polls - but the surveys also show Capriles would beat any of the president's allies should they end up running instead of him. In addition to his new high profile, the pugnacious Cabello has delighted in leading the government's attacks on Capriles, calling him "the candidate of the bourgeoisie" and joking that he was as bland as "an egg without salt."

While Chavez was recovering in hospital in Havana, Cabello also settled an old score with a state governor who had long been hostile to him, helping ensure the governor's suspension from the Socialist Party for "disobedience." "Diosdado is on the rise and full steam ahead," said one source close to Cabello. "Although Chavez has clipped his wings in the past, now it's much more difficult."

The consensus among analysts is that Chavez will do everything he can to avoid naming a successor or alternative candidate for the October election, because he knows the government's hold on power relies largely on his own popularity.

Damascus, Syria
{03-26-2012}

Military defectors unite under Free Syrian Army
Saad Abedine //  CNN

    A top defector from the Syrian military said Saturday that armed rebel groups have aligned under the leadership of the Free Syrian Army.

Uniting all efforts will bolster the anti-regime movement and safeguard the nation, Brig. Gen. Mustafa Sheikh said in a video posted on YouTube. The move addressed a key concern for observers of the Syrian crisis both inside and outside the country -- that armed rebel groups were disjointed and divided.

Sheikh was one of the first high ranking officers to announce his defection from President Bashar al-Assad's forces. He was accompanied in the video by Free Syrian Army commander Col. Riad al-Asaad.

Ending violence in Syria "In these critical and difficult times that our beloved country is going through, all the honorable men and women in this nation are required to work on uniting all efforts to overthrow this corrupt regime," Sheikh said. "The soldiers and officers of the Free Syrian Army pledged their allegiance to protect the people and the nation."

Not long after the video was posted, fresh attacks by the regime killed at least 41 people across the country, the opposition Local Coordination Committees of Syria said. Of the dead, 22 were in the war-torn city of Homs, rife with anti-government sentiment.

At least 54 people were killed Friday, including three children. CNN cannot independently confirm reports of casualties or attacks in Syria because the government severely restricts access by international journalists.

The United Nations estimates the Syrian conflict has killed more than 8,000 people; opposition activists put the toll at more than 10,000. "First, we decided to unite all the military councils and battalions and all the armed battalions inside the country under one unified leadership of the Free Syrian Army and to follow the orders of the commander of the FSA, Col. Riad al-Asaad," Sheikh said.

Second, with the FSA serving and protecting Syrians, "any movement to carry out a military operation or do anything outside the framework of the FSA "will be held responsible for any act they carry out," Sheikh warned.

Third, the rebels called for soldiers and officers in the Syrian armed forces "who don't have blood on their hands" to defect and join the ranks of the FSA. Sheikh's appearance with al-Asaad also mended rifts between the two main defectors' groups, the Free Syrian Army and the Higher Military Council.

In February, a spokesman for the Higher Military Council announced Sheikh was the leader of the group, which claimed to lead armed defectors within Syria.

But al-Asaad, who was leading the FSA from the Turkish border with Syria, quickly rejected the claim. "This man represents himself," al-Asaad said of Sheikh last month. "He has nothing to do with the Free Syrian Army. ... Those people are representing themselves and do not represent the revolution and the Free Syrian Army. They don't represent anybody."

"The division is over. All the parties involved in the revolution carried out all the efforts to form one united front to better represent and defend the Syrian people," Free Syrian Army Lt. Riad Ahmed said. "In the past, there were some minor technical disagreements, but this is all behind us from now on," he said.

Al-Asaad will lead all field operations of the FSA, while Sheikh will remain head of the Higher Military Council and will represent the FSA in trying to get weapons and international support, Ahmed said. Some world leaders have been hesitant to send arms to the rebels, saying the opposition movement is fractured and that a political solution is still possible.

The unification also allows rebels to unilaterally deny attacks carried out by other groups. The Syrian government routinely blames the vaguely defined "armed terrorist groups" for violence in the country, while most reports from inside Syria indicate the government is slaughtering civilians in an attempt to wipe out dissidents.

Meanwhile, Kofi Annan, the U.N.-Arab League special envoy to Syria, arrived in Moscow Saturday in an effort to seek Russian help in securing a cease-fire. Annan will also visit Beijing this weekend, his spokesman said.

Russia and China have blocked Security Council attempts to pass resolutions condemning the al-Assad regime. The two countries say they want the violence to stop but argue that previous resolutions were not evenhanded. Russia and China have major trade deals with Syria, and again Friday they refused to condemn al-Assad's regime formally by voting against a U.N. Human Rights Council resolution condemning "appalling human rights violations in Syria." The resolution passed 41-3, with Cuba casting the other negative vote.

The Russian Foreign Ministry called the resolution a "unilateral assessment" of the crisis --blaming solely the regime for the violence.

Human Rights Watch, however, lashed out at the Russian ministry's use of an open letter published by the global monitoring group that described atrocities committed by armed groups affiliated with the Syrian opposition. The organization said it had learned that Russian diplomats used the open letter in informal U.N. Security Council discussions March 22 in an attempt to equate the violence by both sides. "Russia's attention to concerns expressed in the letter to the Syrian opposition is a positive development," Human Rights Watch said. "The selective use of the findings, however, causes serious concern."

It said Russia had ignored detailed documentation of widespread and systematic abuses by the al-Assad regime, including killings of peaceful protesters, shelling of residential neighborhoods, large-scale arbitrary detention and torture, executions, denial of medical assistance, looting, and "disappearances." "None of these findings have been ever acknowledged by Russian officials," the group said.

The U.N. Security Council this week urged immediate implementation of Annan's proposed peace plan. The 15-member body, including China and Russia, expressed full support for Annan's efforts.

Caracas, Venezuela
{03-20-2012}

Polluted water supply to Caracas?
Oscar Medina  //  El Universal

     Subsequent to years of intense warnings on the doubtful quality of drinking water in Carabobo state, an unexpected answer was received: the National Government will increase the volume of water flow that goes from Lake Valencia to the reservoirs that supply the city. Before leaving for Cuba in order to take care of his health, Venezuela's President Hugo Chávez approved funding amounting to USD 316,364,000 for a "structural solution" plan to tackle the problem of the increase of Lake Valencia's water level; which as a result, might lead to irreversible consequences over million of Venezuelans' health.

The project, announced by Vice-President Elías Jaua, does not consist either of evacuating and indemnifying the families that dwell at the lake shores nor of undertaking those pending projects since 1999. The intent of the commission appointed by the National Executive to address the issue is to keep banging on the same topic: rising from 5,600 water liters per second that currently run from Lake Valencia to Pao Cachinche dam to a total volume of 18,000 liters per second in a three-year period.

The most recent decisions on water management do not only affect Valencia. The measures announced by Jaua will have a significant impact on Aragua state. And some other decisions may start leading to consequences in the water reservoirs that supply Caracas and Miranda state highland.

"Since 2007, the residual chlorine and aluminum levels in Valencia's water have hiked enormously," points out Lucio Herrera, a member of Movimiento por la Calidad del Agua (Movement for Quality of Water) and Coordinator of the central region of organization Anauco. "The maximum use of chlorine for water purification is indicative of higher bacterial presence. And aluminum peroxide is used for clarifying water. Both elements are in breach of the established rules. Such comments concerned the water transfer from Lake Valencia to Pao Cachince dam. It makes you wonder the adverse outcome if it is increased to 18,000 liters per second."

Herrera explains the route that links Pao Cachinche dam with the neighboring state: "Pao Cachinche dam is connected with Guataparo and Pao La Balsa reservoirs, which supply water to water treatment plant Lucio Baldó; this last one purifies water destined to Valencia and some areas of Aragua. More than three million people are running the risk of the pollution of those reservoirs. Such act constitutes an offence against humanity and we are going to bring the case to the Supreme Court."

Deputy Germán Benedetti may be the citizen who has researched and denounced the most the existing situation with the water condition in Carabobo. He now has bad news for Caracas citizens. Investigations conducted by Benedetti -among other things- seem to reveal a threatening reality. On one hand, Lake Valencia receives sewage discharge from neighborhoods established nearby. On the other hand, it also receives sewage from Aragua state thorough two routes: Turmero and Aragua Rivers and Caño de Aparo; this last one is an overflow channel whose source is Lake Taiguaiguai (Aragua), which as a matter of fact is polluted by sewage discharges from Maracay, which include -of course- industrial waste.

Is the water that Caracas citizens enjoy contaminated? As for caution, Benedetti prefers not to give many details: "There is concern regarding the interbasin transfer of sewage which may be polluting the reservoirs that supply Caracas."

"As far as we know, the water transfer to Tucutunemo ends up supplying Camatagua," claims Lucio Herrera: "We have already warned civil society organizations from Caracas to make examinations on the water transfer network. At La Mariposa reservoir, the strong presence of the plant called Bora is noticeable and that is indicative of high concentration of nitrogen and phosphorus; which as a result, reveals the bad condition those waters present."

Reservoir Limnology or reservoir ecology is the field of expertise of Ernesto González the Director of the Institute of Experimental Biology, Central University of Venezuela (UCV). What he can see at La mariposa reservoir is a clear example of eutrofization, which is - in brief- enrichment through the presence of nutrients and increase of the biological activity.

That concentration of nutrients provided by much compromised waters results in dense waterweed or aquatic invasive species (AIS) such as Jacinto de Agua, better known as Bora. "Since it covers the whole body of water, it barely allows sunlight to penetrate and decreases oxygen concentration. Additionally, these plants die and decompose at the bottom of the water body releasing more nutrients; as a consequence, this leads to sediment deposition of the reservoir. And the roots of these plants might serve as hosts for many different microorganisms, including some undesirable ones. We have conducted research studies that put in evidence the presence of bacteria resistant to antibiotics and whose source is possibly from human or farm animals waste."

González insists on the fact that the supplied water and the reservoir contents are not the same thing. Actually, he trusts the efficiency which Hidrocapital delivers through its water management processes. His warning is centered on and limited to his area of expertise: "I do not consider the reservoir's condition to be quite appropriate, but I do believe the situation can be handled. The water supply company ensures that the supplied water has transparent aspect, no odor and no sediments. We do see that, but those plants need to be examined."

Regarding the input of water to Camatagua through interbasin transfer from Lake Valencia, claims to have "overheard" something, but "it would not so serious if the water had the previous treatment." And he focuses on other aspects: "If the nutrient supply is not stopped, the issue at the reservoir will remain." The excessive presence of Bora -he adds- has another consequence to consider: every single plant can evaporate up to one liter of water per day. And La Mariposa is filled with it: 90 percent is covered by Bora.

Ricardo Guerrero is a biologist and professor at UCV. Although this is not his area of expertise, he has managed to give his appraisal on the reservoir -that also supplies Miranda state highland- to the National Assembly's Environmental Commission and local authorities from Los Salias Municipality: "It is difficult to determine its current status because there is no reliable data. One expects and trusts that water supply company Hidrocapital is managing the process as it should do, but there are alarming signs." He points out, to start, the uncontrolled presence of Bora which feeds on sewage and fertilizers. "Such situation does no represent risks if and only if water is being adequately treated."

According to him, the most serious concern is the sedimentation of the reservoir: "Plants fix the sediments that drop due to the plant invasion at the top of the basin. And that sedimentation raises the level of bottom, increasing the risk of flooding, and may also close the water treatment plant's filters. When you drink water at your place you notice the chlorine-like taste to it and then you realize it is being treated, but you are unsure whether it is following an adequate treatment."
 

Caracas, Venezuela
{03-02-2012}

Venezuela top brass affirms loyalty to Chavez
Peter Orsi & Vivian Sequera //  Associated Press

       Venezuela's "narco" military high command reaffirmed its loyalty to DICTATOR Hugo Chavez on Saturday in a public show of support a day after Chavez's departure for Cuba to undergo surgery removing a possibly cancerous tumor.

Military leaders said they were praying for Chavez's health and were confident of a full recovery.

"With you, everything; without you, nothing," Navy Adm. Anibal Brito said during a ceremony in the port of La Guaira to inaugurate a naval training vessel named after independence leader Simon Bolivar.

Military officers have used the phrase in the past to signal allegiance to Chavez, who is scheduled to have his third operation since last June, when a baseball-size tumor was removed from his pelvic region.

The leftist president was given a clean bill of health last fall and had declared himself cancer-free, but last week Cuban doctors found a new, smaller growth in the same part of his body. Chavez has said the growth is probably malignant but hasn't revealed what kind of cancer he has.

During 13 years in power, Chavez has sought to shore up support in the military from the rank-and-file up to the high command, mindful of the country's history of coups d'etats.

Chavez himself led a failed coup in 1992 that catapulted him into the public consciousness and paved the way for his election in 1998. He survived an unsuccessful putsch against his own presidency in 2002.

In recent days, he has accused his political rivals of intending to spread rumors of discontent and division within the military during his absence from the country, and trying to stir intrigue about his health in an election year in which he is seeking a fourth term.

On Saturday, the presence of the military high command and Vice President Elias Jaua at the ceremony sent a message of unity.

"Today our commander in chief is here with us," Defense Minister and Gen. Henry Silva told cadets scheduled to sail on the Simon Bolivar. "His spirit as a revolutionary soldier is here."

Chavez, 57, flew to staunch ally Cuba on Friday after traveling by motorcade through the capital of Caracas.

Photos released by the Venezuelan government and brief video aired on state television showed the socialist leader being greeted at the Havana airport by Cuban President Raul Castro.

Chavez said he planned to meet with Cuban doctors for medical tests on Saturday. The surgery is expected to take place early next week.

"I have faith that everything will go well," Chavez told Venezuelan state television by telephone late Friday.

He said he brought with him a box of books to help pass the time, including the Spanish-language version of "TNT: The Power Within You," a self-help book by Claude Bristol and Harold Sherman. The book's subtitle reads: "How to release the forces inside you & get what you want!"

"It's a book about the power of will," Chavez said. "It helped me a lot."
 

caracas, Venezuela
{02-23-2012}

Analysts: Venezuela to devalue bolivar next year
Antonio Maria Delgado

     Venezuela will devalue the bolivar next year regardless of who wins the presidential election in October, according to said analysts who warned of the unsustainable overrated exchange rate kept by President Hugo Chávez’s government.

The Venezuelan currency would have to be devalued at least 50 percent to correct the serious distortions that the present exchange rate is inflicting on the economy, the experts told El Nuevo Herald. “If you were to float the currency, the bolivar would fall into an exchange rate of eight to nine bolivars to a dollar,” said Venezuelan analyst Miguel Octavio.  “They have created so much money that the amount of bolivars circulating is at record level,” he added. ‘It’s about 16 bolivars for each dollar in the reserves. It had never reached such a brutal number.”

The large amount of money in circulation means that the bolivar is excessively overvalued at the current exchange rate of 4.3 bolivars per dollar, and correcting that imbalance will have to be one of the first economic priorities of whoever is elected in October.  Chávez, who this month marked 13 years in power, will face Henrique Capriles, the governor of the state of Miranda who last week was chosen as the sole candidate of the opposition in Oct. 7 elections.

Capriles has said that if he wins the presidency, he will dismantle the present exchange control system, which experts agree has a harmful effect on the country’s economy. Yet, he said that such dismantling would be applied gradually to prevent increasing inflation.

Chávez has not made any announcement on an eventual currency devaluation, but experts said that one would be inevitable. “In fact, they should have already done it,” Octavio said. “They haven’t done it because they know it would cause a strong jump of inflation and they are aware of all the odds.”

Dismantling the exchange control would be one of the many economic measures that an opposition government would have to take, said Alejandro Grisanti, a senior Barclays Capital economist for Venezuela, Ecuador, Peru, Central America and the Caribbean. Grisanti said the measure is necessary because CADIVI, the organization that manages dollar allocations in Venezuela, operates a system that encourages corruption, and because the system discourages national production and job creation.

Grisanti said that dismantling current controls would be easier to implement and would have lower inflationary pressures under a Capriles administration. This is mainly because an opposition government would reactivate foreign investments, which would ease social pressures and strongly lead to economic growth.  “We would think that capital flight would be reversed,” Grisanti said. “Today, nearly $20 billion of private capital moves out of Venezuela every year. An opposition government would prompt a stop to capital flight while welcoming incoming capital for investment in oil as well as other areas.”

Such revenue would help to stimulate the Venezuelan economy, whose average growth in the last 12 years has stalled at about 2 percent due to the Chávez’s economic policies. In contrast, the economies of OPEC member states, including Iraq and Libya under Gaddafi, have grown at an average rate of more than 6.6 percent during the last years of the oil peak.

“One thing that we see in Venezuela is that many entrepreneurs, fearful of the president’s daily rhetoric of expropriations, nationalizations and confiscations, do not invest but rather move their capital out of the country,” Grisanti said. “And, in the event of a change in government, what we would see is that many of these enterprises would seek to increase their production.”

Capriles could face difficulties to fix the economy in the beginning of his administration, said Robert Obuchi, professor of public policies at the Institute of Higher Administration Studies. Obuchi said 2013 would the “first year of many challenges due to the uncertainty about the Venezuelan economy and its dependence on oil prices, as well as not knowing, at this moment, the state of the fiscal situation.”

Caracas, Venezuela
{02-15-2012}

Henrique Capriles: I am not a Messiah, I am a public servant
Ocarina Espinoza  //  El Universal

    Opposition's presidential candidate Henrique Capriles Radonski thinks that the fact the voters' turnout in the primaries exceeded 3 million people is not only a message to the nation but a declaration to the world from a country that wants to strengthen its democracy.

"For the first time, we could choose our candidates and this is a victory of the country and its democracy. This was an amazing experience for all of us. As soon as (the Electoral Committee of the opposition Unified Democratic Panel) announced the winners, the other candidates joined us. The country woke up with a different political reality. The future has won on Sunday: There is a new leadership, a new way of doing politics, a break with the past and the present," Capriles Radonski said in an interview with private TV channel Venevisión.

He made clear that he has a progressive profile and seeks to promote Venezuela's progress. "I am a child of God as we all are. I am not a Messiah, and I do not pretend to be. I am a public servant with an absolute commitment to the country. I am a progressive; I believe in progress," he added.

The governor of the state of Miranda said that much remains to be done. He wants to disseminate his ideas all over the country. "We have a long journey ahead of us. We must take our proposal to all the corners of Venezuela, to all of those who support the current administration. I want them to know my ideas in areas such as health, housing, education, security and jobs."

"We are moving towards the goal of winning (the presidential election) to be held on October 7; but we will go beyond that, because our goal is not only to win an election, but to have a good government. Venezuela's wealth must become an opportunity for all. Venezuela is my party. We do not intend to change the red color (the color used by the ruling United Socialist Party of Venezuela) to yellow (the color of Capriles' opposition Primero Justicia (Justice First) party. We do intend to build a country model that enables us to make progress."

Capriles Radonski reiterated that he does not want to be president to create a party but to advance Venezuela's social and economic development.

caracas, Venezuela
{02-12-2012}

Venezuela’s Capriles favored in Sunday’s primary election
JIM WYSS

Henrique Capriles Radonski has taken on President (DICTATOR) Hugo Chávez from congress, the governor’s mansion and from jail. Now, he’s hoping to continue that fight in the national arena.

On Sunday, Venezuelans head to the ballot box to choose a single opposition candidate to battle Chávez for the presidency in October. Most polls give Capriles, the governor of Miranda state, a 15 to 20 point lead over his nearest rival in the five-way race.

Wiry and intense, Capriles, 39, has made a name for himself as a hands-on leader with a workaholic streak. During recent flooding, he was photographed in chest-high water helping constituents. At campaign rallies, he has the politician’s knack of making just enough eye contact to satisfy supplicants as he plows through massive crowds.  It’s that energy that he says will allow him to beat the 57-year-old Chávez, who has stepped up his TV appearances as he recovers from an undisclosed form of cancer. “That horse is tired and this horse is full of energy,” Capriles told reporters recently. “We are going to travel this country from point to point...You win the race on the ground not on television.”

Capriles’ political sprint has helped give him a comfortable lead over his nearest rival, Pablo Pérez, the governor of Zulia state. Further behind in the race are legislator María Corina Machado, Venezuela’s former permanent representative to the United Nations Diego Arria and Pablo Medina, a one-time Chávez ally turned foe.

After years of squabbling that played into Chávez’s hand, the coalition of opposition parties is hoping a unified front will give them the momentum necessary to capture the presidency. All the contenders in Sunday’s race have pledged to back the winner.

But the cooperation hasn’t started yet. On the campaign trail, Capriles has pledged to be tough on crime, loosen state controls and create a business-friendly environment. But he has also promised to improve social programs, or the “missions” that have been one of the backbones of Chávez’s popularity. “The sense that the quality of these programs has deteriorated is unanimous,” said Capriles, who advocates auditing the initiatives — which include free food, housing and subsidies to the elderly, among others — to see if they’re effective.

In Miranda, 60 percent of the free medical clinics that Chávez began rolling out in 2003 have been shuttered, he said. “What do I offer? Let’s get these programs working again. And why stop there? Let’s take them even further.”

In polarized Venezuela, giving Chávez any credit is anathema to the opposition. Capriles’ willingness to do so has exposed him to attacks by his rivals. But his message has resonated among those weary of the political divide.

In this primary race, the anti-Chávez hard-liners have been polling near the bottom, said John Magdaleno, the director of Politi, a political consulting firm.  “If people still think that confronting Chávez head on works, here’s the evidence that it’s a failed strategy,” he said. And even though social issues, such as healthcare, education and housing, are Chávez mainstays, the opposition is wise to address them.  “If your competitor is strong in some areas and those areas are vital for the majority, you have to try to beat that monopoly,” he said. “You have to steal his flags.”

Despite his age, Capriles is already an old political hand. At 25 he won a seat in congress and became the youngest person to hold the presidency of the chamber of deputies. He went on to win two terms as mayor of the Baruta municipality — part of greater Caracas.

It was as mayor that he first caught national attention — but for the wrong reasons. In the wake of a 2002 coup that briefly ousted Chávez, an aggressive hoard descended on the Cuban embassy to try to drum out government officials suspected of taking refuge there. Capriles was among the crowd. Less than two days later, Chávez was restored to power and the government accused Capriles of abetting the aggressors and not calling on the Baruta police to restrain the mob.

Rather than flee the country, as some politicians did, Capriles faced the accusations from jail. The charges were eventually dropped, but his popularity soared, Magdaleno said. “Jail was a big boost for him,” he said. “The fact that he stayed here to face the charges … was noteworthy and people appreciated him for it.”

Capriles ran for governor of Miranda, which includes part of Greater Caracas, in 2008 and won with 53 percent of the vote. The fact that he beat Chávez’s hand-picked candidate and longtime ally Diosdado Cabello made the victory more impressive.

Chávez has discounted the opposition’s chances. On the mend from the cancer treatment that left him bald and bloated, Chávez used a recent meeting of regional leaders to skewer the opposition.  “I’m sure they’re very sad that my sickness didn’t prosper like they hoped it would,” he said. He claimed his polls showed he had a 30-point lead on any rival. “We only have eight months to go but anyone who knows about these things says it’s almost impossible to change that tendency.

Even an ailing Chávez is a formidable contender. With more than a decade in power, he still has popularity ratings of about 50 percent and a devout legion of followers. The government’s television, newspaper and radio empire gives him almost daily access to millions of households. (His speech to the national assembly, which ran more than 9 hours, was recently broadcast.)

In addition, his government also has been ramping up public spending as new price controls push down the costs on household goods. Not a week goes by without government workers handing out subsidized microwaves, or inaugurating new projects.

That has won Chávez a loyal following that’s deeply suspicious of people like Capriles.  “Those opposition people will say anything to get elected,” said Octavio Machado, 67, a sidewalk salesman in one of the poorer areas of Miranda state. “But there’s not a single one of them who came from the street or the mountain. They’re all rich kids. Chávez is the only one who has ever done anything for the poor.”

Capriles has accused Chávez’s PSUV party of using the state-run oil company as its personal piggybank. “This is going to be an unfair competition, but we’ve never had fair competitions and we’ve always won,” Capriles said. “We have one thing that the government doesn’t. We are on the side of the future where as this government is on the side of the present and the past.”

Capriles prides himself on never having lost an election. On Sunday, the voters will decide if he keeps his winning streak.

caracas, Venezuela
{02-05-2012}

NGO: Chávez wants to force the Armed Force to take sides
el universal

Venezuelan activist Rocío San Miguel, and opposition leader Luis Manuel Esculpi, agreed on saying that President Hugo Chávez Frías seeks to provoke and instill fear when he admonished that the National Armed Force supports Chávez.

San Miguel is the spokesperson of NGO Control Ciudadano (Citizen's Control), a private organization focused on national security and defense issues, and Esculpi chaired the Venezuelan Parliament's Committee on Defense.

"Venezuelans and the international community should be alert to Chávez's remarks because his words clearly show the illegal behavior of the President who is forcing the National Armed Force to take sides. It is an unprecedented behavior in the democratic era of the continent."

In the opinion of the expert in military affairs, "his speech is disgusting and represents by no means the prevailing sentiment in the armed forces. Articles 328 and 330 (of the Constitution), which refer to the military behavior, have been violated."

For his part, ex deputy Esculpi feels that the Venezuelan president seeks to provoke military officials in declaring that the army supports him. His words are "provocative remarks against the Armed Force and military officers." "He means to encourage radical positions," he concluded.

caracas, Venezuela
{02-05-2012}

Venezuelan army is Chavist, President Chávez proclaims
EL UNIVERSAL

"The Armed Force is Chavist. The Armed Force has Chávez in its heart and Chávez has the Armed Force in his heart and soul," ejaculated President Hugo Chávez in a nationwide mandatory broadcast on all free-to-air TV and radio networks. The president delivered a speech to celebrate the 13th anniversary of his rise to power.

Chávez showed up in a rally in Caracas neighborhood of Catia and referred to upcoming presidential elections. In his view, it is impossible to remove all traces of Chavezism, Bolivarianism and patriotism from the National Armed Force.

To his mind, the weapons needed to defend the Bolivarian Revolution are in the right hands: the officers of the National Armed Forces, state-run news agency AVN reported.

Chávez also ordered Minister of Interior and Justice Tareck El Aissami to launch an inquest into an irregular situation occurred several days ago involving a series of photographs taken in the 23 de Enero neighborhood (west Caracas). The pictures, posted on the web, show a group of children holding assault rifles.

The president suspected that the publication of those images could be related to a smear campaign from opposition sectors. He suggested that some pro-government groups, such as La Piedrita, have been infiltrated by the CIA.

CARACAS, VENEZUELA
{01-24-2012}

US SUPREME COURT DISMISSES VENEZUELA'S APPEAL IN BANDAGRO CASE
EL UNIVERSAL

THE US SUPREME COURT TURNED AWAY AN APPEAL FROM THE VENEZUELAN GOVERNMENT and paved the way for a suit that US investor group Skye could file in US courts for Venezuela's refusal to honor the payment of USD 900 million in bank notes allegedly issued in 1981 by the then state-run Banco de Desarrollo Agropecuario (Bandagro).

In September 2010, the 6th U.S. Circuit Court of Appeals in Cincinnati ruled that US Courts have jurisdiction to decide whether Venezuela should pay the bank notes. The Venezuelan government had filed a request to make the decision null and void.

Venezuela may have to repay the USD 900 million debt owed to Skye Ventures for two promissory notes with a total nominal value of USD 100 million plus USD 800 million in interest rates. With its appeal to the Supreme Court, Venezuelan government wanted this opinion to be terminated.
The Venezuelan government may be forced to cancel the company Skye Ventures dollar two notes with a face value of $ 100 million, plus 800 million in interest that would have been issued by Bandagro.
Skye bought the bonds Ventures Panama Triad group in 2004 and with this decision the claim in the courts of the United States takes in oxygen.

On August 8, 2003, Tobias Nobrega, by then Finance Minister, sent to the Attorney General's Office, Marisol Plaza, an opinion of the Legal Adviser's office in which they favor the cancellation of a cluster Triad Group of "promissory notes" supposedly issued by the now defunct Agricultural Development Bank (Bandagro) in 1981, representing $ 600 million excluding interest.

Marisol Plaza fixed its position on October 3, 2003, when it decides to "accept the value and the standard maintained by the Legal Adviser of the Ministry of Finance in this regard (...) and the Attorney General's Office is in favor of the source of that claim. "

But things change quickly for the Triad Group. Tobias Nobrega, who had sent the report to the Office of Counsel, Oscar Guzmán Cova, who dismisses this official in a surprise move and requested a new legal ruling, while asserting that he is willing to cancel "promissory notes".

In August 2004, Skye Ventures brought a lawsuit against the Ministry of Finance and the Republic for failure to pay the opinion of the Attorney General's Office in the United States.

In January 2005 the Attorney General told the Court that the opinion of Columbus October 3, 2003 is not binding, cataloging it as an inter-administrative issue.

Skye Ventures claims that it acquired the bonuses because it considered them binding on the Attorney General’s first opinion.

MIAMI, FLORIDA
{01-21-2012}

VIRGIN ISLANDS REFINERY SHUTDOWN TO HIT VENEZUELA HARD
ANTONIO MARIA DELGADO

THE ANNOUNCED SHUTDOWN OF AN OIL REFINERY IN THE VIRGIN ISLANDS WILL HIT HARD THE STATE-RUN PETRÓLEOS DE VENEZUELA, S.A. (PDVSA), a company that loses a major customer for its hard-to-place heavy crude and a major supplier of components for the gasoline consumed in the country, analysts said.

The experts added that the closing of the refinery — one of the world’s 10 largest — could also impact the cash flow of the state-owned company, as the complex, where PDVSA has a 50 percent share, is one of the clients that best pays for Venezuelan crude.

“It’s a very important customer for Venezuela,” said former state oil company manager Horacio Medina. “It is one of the places where they were sending large amounts [of crude] every month.”

The refinery, operated by the joint venture Hovensa has the capacity to process 495,000 barrels a day, 248,000 of which are supplied by PDVSA.

Hovensa, which belongs to PDVSA and the U.S. company Hess Corp., announced this week it will close the refinery in a month after accumulating losses totaling $1.3 billion in the last three years.

Hovensa said the company had lost its profitability due to the global economic downturn and strong competition from a number of new facilities built in emerging markets.

Jorge Piñón, an oil market analyst, said in Miami that the St. Croix refinery also faced difficulties in competing with U.S. refineries because it uses the oil itself as fuel for its facilities. “U.S. refineries use natural gas, which is selling at one of the lowest prices in its history,” Piñón said.

So the closure makes sense for Hess, a company that was bleeding from the sustained losses. But the situation is different for PDVSA, said analysts, describing the shutdown of the refinery as a strategic mistake.

“If I see myself only as a refiner, then obviously the decision is correct; the refinery has to be closed. But if I see myself as a producer, you’re depriving me of 300,000 barrels of production that now I have to place somewhere else,” said Juan Fernández, former PDVSA planning manager.

The problem is that the heavy Venezuelan crude is difficult to place in a global network of refineries designed primarily to process light crude. For Venezuela, it would have been more convenient to reach a financial settlement with the refinery so it could stop operating at a deficit.

The cost of such an arrangement, which could be below $4 a barrel, a small fraction of the more than the $100 per barrel it currently charges, would be far below the cost of losing access to a market that generated revenues of over $9 billion a year.

It was the difficulties in placing its heavy and extra-heavy crude oil in international markets that led PDVSA to invest aggressively in the refining industry, buying stakes in refineries and modifying them so they could process the thick Venezuelan oil.

But that strategy, which had provided Venezuelan industry with an enviable vertical integration, was abandoned during the presidency of Hugo Chávez.

“The Venezuelan government has been destroying its refining capacity abroad. It had about 2 million barrels, with the sales of the refineries it owned in Europe and the U.S., and now comes Hovensa, which, along with Citgo, was one of the few customers that pays it correctly,” said Fernández.

The rest of Venezuela’s customers, like China, Cuba and other ALBA countries, receive oil under economic terms that are unfavorable for the nation, he said.

And the shutdown also could cause problems for the supply of gasoline in the country, because the Virgin Islands refinery had begun to supply components used in the production of gasoline that were no longer produced in Venezuela due to problems in domestic installations.

The problems in the Venezuelan refining system continued during November and December, according to local press reports that highlighted the serious problems faced in the Venezuelan refineries El Palito, Amuay and Cardón.

These problems, coupled with the closure of Hovensa, could exacerbate the problems in fuel supply that have started to become frequent in Venezuela, Fernández said.

“It’s a grim picture, but Venezuela seems to be following in the footsteps of countries like Libya and Iran, which, while big producers of oil, don’t have gasoline,” he said.

CARACAS, VENEZUELA
{01-16-2012}

VENEZUELAN DICTATOR HUGO CHAVEZ SAYS JUDGE'S CASE COULD BE REVIEWED
EL UNIVERSAL

VENEZUELAN PRESIDENT (DICTATOR) HUGO CHAVEZ said Friday that he can ask legal authorities to review the case of a judge who has been detained for more than two years on corruption charges.

Judge Maria Lourdes Afiuni was released from jail last year and has been under house arrest due to health problems.

She infuriated Chavez when she freed a banker from prison while he was awaiting trial on charges of flouting the country's currency exchange controls. A day after her arrest in 2009, Chavez said on television that she should face a maximum sentence of 30 years in prison.

The judge maintains she is innocent.

American intellectual Noam Chomsky has taken an interest in Afiuni's case and last month called for her release in a letter, saying she "has suffered enough and should be released."

"I received a letter, a new letter from Chomsky. I have to respond to him," Chavez said during Friday's speech. "Now, in reality that's not within my powers. I can ask as head of state, well, that the case be studied in the courts."

"She's not any political prisoner in truth. She isn't. Now if she's sick, has some problem, well the case must be studied," Chavez said.

The president last year urged judicial authorities to consider parole for any prisoners with serious health problems, and subsequently four jailed government opponents were granted parole.

Chavez commented on Afiuni's case when asked by an opposition lawmaker during his annual speech to the Nation Assembly.

He also referred to the cases of several former police officials now serving prison sentences for their alleged roles in killings during a protest march that preceded a short-lived 2002 coup.

"Now, to ask me to do something in that case, I'm sorry there's nothing I can do," Chavez said.
 

CARACAS, VENEZUELA
{01-12-2012}

IRAN ASKS VENEZUELA TO REPAY DEBTS EXCEEDING USD 290 MILLION
FRANK LÓPEZ BALLESTEROS // EL UNIVERSAL

IRANIAN PRESIDENT MAHMOUD AHMADINEJAD MAY HAVE VISITED LATIN AMERICA TO LEAD PEOPLE TO BELIEVE THAT HE HAS ALLIES IN THE REGION, but he also seized the opportunity of his visit to Venezuela to demand the payment of a USD 298 million debt that the Venezuelan government has contracted with state-run Iranian companies.

Venezuela has debts with Iranian firms in the areas of automotive industry, construction, and housing, which are three of the main pillars of the relationship between Caracas and Tehran.

"Ahmadinejad's delegation wanted to talk about the debts that the Venezuelan government has contracted with five Iranian corporations operating in Venezuela, whose activities have been hampered by a series of obstacles," sources close to those businesses told El Universal.

First, Venezuela owes USD 98 million to Iranian state-run company Ehdasse Sanat. Repayment of this debt has already been approved by the National Assembly. The representatives of the company are seeking repayment of the debt to meet their commitments, including bank loans.

Ehdasse Sanat was awarded a USD 198 million contract signed in 2005 for the construction of the Cerro Azul cement plant located in El Pinto, in the northeastern state of Monagas. The plant was scheduled to start operations in 2008, but it is actually going to start operations in March 2012.

Company executives told officials of the Venezuelan Ministry of Science, Technology, and Intermediate Industries (MCTI) that Ehdasse was willing to build a second production line in the cement plant, as well as other lines. "We have good intentions but Venezuela has not responded," the source said.

Meanwhile, Iranian companies Khodro Industrial Group (Iran Khodro) and Saipa, two of the largest Iranian automotive industries, have requested the payment of a USD 120 million debt.

Other Iranian companies facing financial problems due to Venezuelan debts are leading construction companies Kayson and Iranian Housing Company. Venezuela owes them USD 80 million.

Both companies are dedicated exclusively to the construction of housing complexes and industrial construction.