BTW Denny, I want you to know, and I think I speak for the collective effort here, that your posts are greatly appreciated. I would chalk up the rather small number of rejoinders to the fact that we do not have much to add-- but note that the read to post ratio on the Venezuelan threads (about 150/1 on this one) is quite strong.
When one is not in the trenches or in the command post there is not much one can say beyond reporting what one perceives as the facts specially if the news are about a distant land. I'm not expecting replies to my posts, I'm quite happy that in a small way I'm able to overcome the tyrant's censorship. If the members of this forum were to rebroadcast these news to other forums and social networks, that would be highly appreciated.
Didn't you used to post on the infamous Gilder Tech Board yrs ago?
I most certainly did!
Do you ever feel in danger in Venezuela?
No more than elsewhere if you know how to stay out of unnecessary trouble. But on occasion one does feel a terrible pressure of not being in control. You have to remember that good news is not news and sells no papers. The lost Malaysian plane is getting hundreds of headlines but the thousands of flights that arrive safely get none at all.
Narrated in Spanish but the images need no translation. In America a video such as this would have a warning label.
I'm amazed that it has taken some people fifteen years to realize that peaceful elections is not the practical solution to dictatorship any more than prayers are the cure for cancer. Cancer is fought with deadly force, surgery and chemotherapy. Dictatorship is a social cancer that needs to be destroyed with deadly force.
To Those That Think Maduro Is Not A Dictator: ¿Qué Pasa en Venezuela? by Foro Penal Venezolano March 14, 2014
I am still amazed by the number of people that are still saying we should wait for elections, bla, bla bla. The video above proves beyond any doubt that Nicolas Maduro has become the Dictator of Venezuela. He has to go. Period.
And if you still have doubts, read Gustavo Coronel’s article “Approaching the Unthinkable” about Venezuela importing oil and you will realize that indeed, under Chavismo, all that oil underground will always stay there.
World Bank's ICSID Rejects Venezuela "Appeal" over ConocoPhillips
CARACAS -- In a 2-1 decision, the World Bank's arbitration panel, the International Center for the Settlement of Investment Disputes (ICSID), has rejected Venezuela's request for "reconsideration" of ICSID's September 2013 finding that it had jurisdiction and that Venezuela was liable for the expropriation of ConocoPhillips' investments in the Latin American nation.
ConocoPhillips originally brought the biggest case to date against Venezuela in December of 2007, seeking $30 billion in compensation for stakes in two Orinoco projects - Petrozuata and Hamaca - and two joint venture exploration agreements in the Gulf of Paria, all of which Venezuela expropriated in 2007.
After years of briefs and hearings -- including an attempt by Venezuela to disqualify one of the 3 arbitrating judges and the death and replacement of another -- on September 3, 2013, ICSID ruled that it had jurisdiction to hear the claim and that Venezuela had indeed breached its obligations under the Netherland's Bilateral Investment Treaty "to negotiate in good faith" to compensate ConocoPhillips for the expropriation and was therefor liable to pay damages for the expropriation.
In an unusual move that the majority of the panel ruled was not allowed, Venezuela sought to have the panel "re-consider" the jurisdiction and liability decision, after writing a letter 5 days after the decision, on September 8, 2013 (below), and claiming that new evidence had come to light via a U.S. Embassy cable leaked by Wikileaks that Venezuela had not stopped negotiating.
After examining the ICSID treaty and past rulings, "the majority of the Tribunal concludes that it does not have the power to reconsider the Decision of 3 September 2013," the majority made up of Judge Kenneth Keith, President, and L. Yves Fortier, CC, QC, wrote. "Section 3 of Part IV of the ICSID Convention sets out the Powers and Functions of the Tribunal, with nothing among its provisions even hinting at such a power."
The judge appointed by Venezuela, Egyptian Professor Georges Abi-Saab, dissented.
Abi-Saab, who replaced English barrister Sir Ian Brownlie after Brownlie died in 2009, has a law degree from Cairo University, an MA in Economics from the University of Paris, an MA in Economics from the University of Michigan, a Masters of Law (LLM) and SJD from Harvard Law School, and Doctor of Political Science from the Graduate Institute of International Studies in Geneva, according to his biography.
"A strong case can be made for the existence of a general power of reconsideration by an ICSID tribunal of its interlocutory decisions (within certain limits or under certain conditions all the same) in a case still pending before it," wrote Abi-Saab in his lone dissent, that contained many typographical and grammatical errors. "However, if the answer to the question whether such a power exists or not were to be in the negative, there remains the possibility ... that the Tribunal possess a specific power for dealing with requests based on a particular or certain particular legal grounds."
The ICSID panel then ordered Venezuela and ConocoPhillips to move on to arguing over how much the award should be. ConocoPhillips, which says it invested over $4.6 billion in the oil ventures starting in the 1990s, is now reportedly seeking $6.5 billion for the siezed assets. Venezuela has offered $2.3 billion.
ConocoPhillips is to file their damages brief ("Memorial on Quantum") by May 19, with Venezuela's damages brief due 10 weeks later. After that, both sides will have another 8 weeks in which each will file Reply Briefs, with ICSID fixing a hearing for oral arguments after that.
Another U.S. oil giant, Exxon Mobil Corp, has been seeking up to $10 billion at ICSID also for the expropriation in 2007 of a large heavy crude project in the Orinoco region. In February of 2012, Venezuela was ordered to pay ExxonMobil about $908 million in compensation by the International Chamber of Commerce (ICC) in lost contractual earnings because of the expropriations (decision below).
"The ICSID decision on the actual losses suffered by ExxonMobil from Venezuela's expropriation is expected soon," says Russ Dallen, an international lawyer and banker who follows the cases and studied under ICSID judge Sir Ian Brownlie at Oxford University. "Venezuela and ExxonMobil filed their final post-hearing briefs almost 2 years ago in May of 2012."
In the ConocoPhillips case, Venezuela may keep stalling for time, says Dallen. "Apparently, Venezuela now intends to try to disqualify the 2 judges that ruled against them on the panel -- even after they had already challenged one and lost."
In October of 2011, Venezuela filed a challenge to Canadian Judge L. Yves Fortier, QC, who had been appointed by ConocoPhillips. A tribunal heard the challenge and ruled against Venezuela 4 months later in February of 2012.
For the record, this is not yet the time for talks - Denny Schlesinger.
Protests and talks widen rifts in Venezuela opposition By Daniel Wallis
CARACAS (Reuters) - As violent protests in Venezuela alienate moderates in the opposition and show no signs of toppling President Nicolas Maduro, the socialist leader's call for talks is deepening divisions between his rivals.
The country's worst civil unrest in a decade has killed at least 20 people, including supporters of both sides and members of the security forces, since early last month.
Day after day, thousands of opposition supporters march peacefully in cities around the nation, demanding political change and an end to high inflation, shortages of basic foods in stores, and one of the highest murder rates in the world.
Then every night, hooded opposition militants emerge around a square in eastern Caracas brandishing rocks and Molotov cocktails, clashing with riot police and turning one of the capital's most affluent neighborhoods into a battlefield.
The violence is fueling tensions inside the opposition, with moderates scared it could spin further out of control and tarnish the cause of peaceful political change in the future.
Maduro appears to have weathered the worst of the demonstrations on the streets for now and is repeatedly offering talks, creating a new dilemma for opposition leaders.
So far, they have put tough conditions on any discussions, saying they refuse to be part of a "photo opportunity" and that they fear the government has no intention of addressing issues such as corruption, impunity and political prisoners.
The Democratic Unity opposition coalition said on Friday it would only sit down for dialogue with Maduro if the meeting were mediated by someone "of good faith" - and broadcast live.
"We're sick of violence. Everyone is being attacked," it said in a statement. "We're showing our hand to the public ... (We want) true dialogue, a clear agenda, and equal conditions."
But with pleas for talks coming from as far afield as the White House, U.N. Secretary General Ban Ki-moon and Pope Francis, the refusal to attend any discussions to date has drawn criticism, including from within the coalition's ranks.
Opposition lawmaker Hiram Gaviria quit his party Un Nuevo Tiempo (A New Time) and the coalition on Friday over its ban on attending talks at the Miraflores presidential palace.
Gaviria blamed the unrest on the government, which he said had imposed a broken social and economic model and used 15 years of "hate speech" to undermine its opponents.
But he said he would meet anyone, anywhere, to try to avoid more violence, even if dialogue stood little chance of success.
"How many more deaths must there be before we talk and find understanding?" asked the legislator from central Aragua state. "There has to be dialogue."
The opposition was deeply divided for years until it showed remarkable cohesion ahead of the 2012 presidential election and again last year when a new vote was called to succeed socialist leader Hugo Chavez after his death from cancer.
The current protests, however, have reopened old rifts between those who advocate street action to force the president from power, and others with a slow-boil strategy of building support in the cities and states they govern while letting the dysfunctional economy weaken the government.
Maduro's critics, some of whom have vowed to stay in the streets until he resigns, are demanding the release of political prisoners, justice for victims of what they call repression, and the disbandment of armed pro-government militant groups that are accused of attacking opposition protesters.
Another opposition lawmaker, Ismael Garcia, said the majority of Democratic Unity were in favor of serious talks.
"Nobody has rejected dialogue, but there have to be very clear rules to the game, and we must work together," he said.
But it is not clear how opposition leaders want to handle the demonstrations. Though Maduro's opponents condemn the violence by a small but vocal minority, they continue to support street mobilizations that often lead to such clashes.
Plaza Altamira, site of the nightly battles with riot police, once enjoyed its reputation as one of the capital's nicest spaces. Now the street corners are piled with burnt trash and charred wires, broken bricks and shattered glass.
The barricading of roads by demonstrators has led to fist-fights, fatal shootings, more teargas, and incensed cries of "repression" from more shrill voices in the opposition.
While they understand the frustration, others disagree.
"Rejecting the barricades doesn't mean one supports the government," said local political analyst Luis Vicente Leon.
Maduro appears to have survived the short-term challenge to his rule. Coinciding with the emotional anniversary of Chavez's death, the protests have even given him a chance to unite the ruling Socialist Party against a common threat.
At an event to mark International Women's Day on Saturday, Maduro consoled the sobbing wife of a pro-government actor who described how they were screamed at in a Caracas restaurant by dozens of opposition supporters who walked in banging pots and pans and yelling that her husband was a murderer.
Maduro offered again to sit down with the opposition.
"If you want, we'll do a closed-door session first and tell each other everything we need to say, and then we'll speak to the country together," he said in a nationally televised speech.
He was worried, he said, that the opposition's leadership was crumbling and creating an unpredictable power vacuum.
"I don't say this as a joke ... it's very dangerous. Anyone could take over who has violent plans, and that would be worse."
In a sign of increasing confidence, an interview with CNN's Christiane Amanpour that many in the opposition had hoped would prove to be a disaster for Maduro, pleased the president so much that state TV has re-run it in its entirety two nights running.
The answer which most outraged his foes in the opposition: when Amanpour asked Maduro what kept him awake at night, and he replied that he slept "peacefully, like a child."
"It was a very good interview, forgive my immodesty," he told Saturday's rally. "But any of you, if you sat with Amanpour, would answer as well or better than me, because it's the truth of the people, the true story of Venezuela."
(Additional reporting by Brian Ellsworth; Editing by Kieran Murray and Eric Walsh)
Biden says Venezuela 'concocting' bogus stories By FRANK BAJAK 23 minutes ago
Demonstrators lie on the ground holding statistics about the people murdered in the 14 years of Chavista government, at a protest in Caracas, Venezuela, Friday, March 7, 2014. Venezuela is coming under increasing international scrutiny amid violence that most recently killed a National Guardsman and a civilian. United Nations human rights experts demanded answers Thursday from Venezuela's government about the use of violence and imprisonment in a crackdown on widespread demonstrations. (AP Photo/Fernando Llano)
CARACAS, Venezuela (AP) — U.S. Vice President Joe Biden calls Venezuela's situation alarming in remarks published Sunday, suggesting its government is using "armed vigilantes" against peaceful protesters and accusing it of "concocting false and outlandish conspiracy theories" about the United States.
Biden's remarks, issued in writing to a Chilean newspaper in response to questions, drew an angry rebuke from Venezuelan President Nicolas Maduro.
"We reject their aggression," President Maduro told supporters at a rally the socialist-led government held at the presidential palace. "They were defeated in the OAS and now they want revenge."
The U.S. had strongly objected to a declaration of solidarity for Venezuela issued by the Organization of American States on Friday night.
Washington said the declaration contradicted the OAS charter, in part, by stressing non-intervention in Venezuela over guaranteeing that human rights and free speech are respected there. Twenty-nine states voted in favor of Friday night's declaration with only the United States, Canada and Panama objecting.
"The situation in Venezuela reminds me of previous eras, when strongmen governed through violence and oppression; and human rights, hyperinflation, scarcity, and grinding poverty wrought havoc on the people of the hemisphere," Biden told El Mercurio.
"The situation in Venezuela is alarming," he wrote. "Confronting peaceful protesters with force and in some cases with armed vigilantes; limiting the freedoms of press and assembly necessary for legitimate political debate; demonizing and arresting political opponents; and dramatically tightening restrictions on the media" is not what Washington expects from a signatory to international human rights treaties.
Rather than engaging the opposition in a "genuine dialogue," Biden added, "Maduro has thus far tried to distract his people from the profound issues at stake in Venezuela by concocting totally false and outlandish conspiracy theories about the United States."
Maduro claims student-led protests that ignited Feb. 12, mostly peaceful but including almost daily street clashes with security forces, are an attempt by the extreme right to overthrow him.
The demonstrations have been joined mostly by middle-class Venezuelans fed up with inflation that reached 56 percent last year, chronic shortages of some food staples, and one of the world's highest murder rates. But some poorer Venezuelans, students in particular, are taking part. The government says 21 people have died.
On Sunday afternoon in eastern Caracas, about 100 demonstrators threw rocks at police, who responded with tear gas and water cannon. Some protesters tore a bus kiosk from the sidewalk and set it ablaze, providing authorities with an opportunity to repeat on state media its accusation that anti-government activists are vandals.
Despite a growing body of evidence to the contrary, Maduro on Sunday denied that armed paramilitary supporters of the government have employed violence against protesters.
"The only violent armed groups in the street are those of the right," he told the crowd.
In a statement issued by the presidency, Maduro also accused the opposition was "receiving financing from the United States" to undermine "a solid democracy that has had the popular backing in 18 elections over 15 years." He offered no evidence.
The statement said Venezuela was nevertheless interested in renewing" full diplomatic relations with the United States based on "mutual respect" and "non-intervention."
The two nations have been without ambassadors since 2010 and Venezuela has expelled eight U.S. diplomats in the past 13 months for alleged meddling.
Maduro, the hand-picked successor of the late Hugo Chavez, later met at the presidential palace with actor-activist Sean Penn and Haiti's prime minister. Penn is an ambassador-at-large for Haiti, where he runs a nonprofit aid group. He was shown on state television and made no public comments.
Biden and Maduro are both scheduled to attend Tuesday's swearing-in of Michelle Bachelet as Chile's president.
Bachelet, who was also Chile's president in 2006-10, recently said her administration will support Maduro's government and the Venezuelan people so they can "search for the democratic means to social peace."
Associated Press writers Fabiola Sanchez in Caracas, Josh Lederman in Washington and Luis Andres Henao in Santiago, Chile, contributed to this report.
Caracazo se refiere a las protestas populares de 1989
Guaicaipuro Lameda: Estamos viviendo la misma situación del Caracazo
6 Marzo, 2014
Enrique Meléndez / especial Noticiero Digital / 6 mar 2014 / imagen cortesía La Patilla.- El general Guacaipuro Lameda dice que la situación explosiva que vive hoy el país se debe a cosas a las que la gente le teme y otras que le molestan. Y que en este berenjenal se parece al que se vivió previo al Caracazo de 1989.
“”¿No estamos viviendo la misma situación? Esa es la reacción natural de una sociedad, frente a un gobierno que no le satisface sus necesidades. No nos puede extrañar lo que está ocurriendo; ahora, lo que nos puede extrañar es que quienes están en esas altas posiciones de poder no lo comprendan o lo están utilizando para beneficio propio, lo cual es una co…emadrada”", indica el general Lameda.
A continuación la primera parte de la conversación con Noticiero Digital:
¿Qué piensa usted del clima de violencia que se ha desatado en el país? ¿Acaso al gobierno se le escapó la situación de las manos?
-El clima que vive hoy el país es la respuesta natural de una sociedad frente a la perturbación que vive, frente a la insatisfacción de sus necesidades. La sociedad venezolana venía de una cantidad de cosas que le preocupan y cantidad de cosas que le molestan.
-Por ejemplo, ¿a qué le teme la gente? La gente le teme a que la maten, a que la secuestren, a que la roben, a la persecución y a la represión por parte del Estado, y no sólo a la persecución política, a la persecución económica, a la persecución judicial, policial y militar; la gente le teme a perder el trabajo o a perder el negocio si es independiente; al problema de la confrontación con la violencia armada que incluye los colectivos; a la inseguridad jurídica: hoy está vigente una ley, pero mañana no; al abuso de poder.
-Eso por un lado, y por el otro, a la gente le molestan algunas cosas. Por ejemplo, ¿qué le molesta a la gente? Le molestan que le hayan restringido el poder de escoger sus bienes de consumo; el toque de queda autoimpuesto; la escasez: aquí falta todo menos balas; la impunidad: un muerto cada veinte minutos en Venezuela en manos del hampa; corrupción, burocracia e ineficiencia del Estado; discriminación política: apartheid; censura de la comunicación; el engaño, la mentira, la desinformación y el fraude como política de Estado; la encubierta invasión cubana: ya la gente se molesta, cuando le toca ir a un CDI, y el personal que atiende allí es cubano; inflación e inestabilidad económica, violación permanente a la Constitución y las leyes.
-De esto resulta que hay once cosas que le molestan a la gente y ocho cosas a las que les teme; de modo que si nos ponemos a ver, aquí tengo diecinueve cosas; eso que te las he dicho a vuelo rasante, quizás haya más de diecinueve, y ahora tú me preguntas por qué está pasando lo que se está sintiendo en las calles. ¡Esa es una reacción de la sociedad frente a estos temas! El régimen es incapaz de darle respuesta a estos diecinueve temas, y frente a esa incapacidad la gente se vuelca contra el régimen.
-Lo que está ocurriendo es una reacción natural dentro de una sociedad que se siente agobiada por una serie de necesidades insatisfechas, y no sólo que no están satisfechas, sino que se agravan.
¿Cómo compara usted esta situación con aquella que se vivía la víspera del “Caracazo”?
-Exactamente: una sociedad que se siente insatisfecha; con un gobierno que no le resuelve sus problemas. Aquí yo tengo un reporte de la Comisión de Servicios de la Cámara de Diputados de la década de 1990, y donde se habla unos casos irregulares en Caricuao y Altvista en algo que ocurrió dos años antes del “Caracazo”. En ambos casos, un grupo de vecinos, deliberadamente, organizados para enfrentar el problema de la inseguridad tomaron la justicia en sus manos, al aprehender, juzgar, sentenciar y ejecutar por la vía de la aplicación de pena de muerte a quienes calificaron como azotes de barrio.
-Este incidente fue consecuencia del hecho de que esos vecinos organizados, y quienes se valían de una serie de pitos y alarmas capturaron a dos malandros, y como no venía la policía; porque las patrullas ya no andaban por falta de cauchos, entonces procedieron de esa forma. Pero, ¿por qué las patrullas no tenían cauchos? Porque el dinero que se había destinado para la compra de los nuevos se había ido por los caminos verdes de la corrupción.
-¿No estamos viviendo la misma situación? Esa es la reacción natural de una sociedad, frente a un gobierno que no le satisface sus necesidades. No nos puede extrañar lo que está ocurriendo; ahora, lo que nos puede extrañar es que quienes están en esas altas posiciones de poder no lo comprendan o lo están utilizando para beneficio propio, lo cual es una co…emadrada.
¿Cómo ve usted la serie de pronunciamientos que circulan por la red de militares de un comando de resistencia que asegura que en lo más inmediato la fuerza armada en su conjunto le pedirá la renuncia a Maduro?
-Yo lo que veo es que las cosas todavía no han terminado de concretar. Todavía hay mucho miedo de decir las cosas, como son. El sistema está absolutamente distorsionado. El gobierno tiene un objetivo muy concreto, que se le fue de las manos la posibilidad de alcanzarlo, y ahora digamos que la lucha del gobierno, no es por el objetivo sino por el medio. Te lo explico: el objetivo del gobierno es generar una transformación ideológico-cultural en la sociedad venezolana.
-Ellos lo llaman comunismo, socialismo, chavismo, bolivarianismo, marxismo; todas las etiquetas que tú te imaginas. Pero los venezolanos tenemos que pensar de manera distinta; a mi modo de ver, es comunismo; como me lo dijo a mí de manera muy clara Jorge Giordani: “El comunismo es el sistema más perfecto para la organización de la sociedad, y lo que pasa es que quienes lo han tratado de establecer lo han hecho mal y nosotros los venezolanos lo vamos a hacer bien”.
-Ahora, ¿cómo se lo planteaban ellos? De acuerdo a lo que escuché cuando estaba adentro: la única manera de plantearse ese objetivo es manteniéndose en el poder; hasta tanto se produzca la transformación. No hay alternabilidad posible; porque la alternabilidad trunca el proceso. Entonces hay que mantenerse en el ejercicio del poder hasta tanto se logre la transformación ideológico-cultural.
-Ahora, en estos momentos, ellos se metieron en unas acciones prácticas para mantenerse en el poder que le hacen daño a la sociedad, y ahora no pueden salir del poder; porque las acciones tácticas que ejecutaron los convierten en delincuentes.
¿Cuáles son esas acciones?
-Corrupción, lesa humanidad, violación constitucional. ¿El ministro Giordani no dijo que se robaron 25 mil millones de dólares unas empresas de maletín? Yo te garantizo que ahí hay gente de los dos lados; de la oposición y del gobierno; gente que se dice de la oposición, a quienes le dieron una remesa de dólares, y con eso le paga la gorrita con la bandera de Venezuela a ambos lados. Lo que sucede es que hay gente de los dos lados, que no quiere que se publique la lista de las personas que se beneficiaron por esta vía.
-Entonces, cuando yo te digo que no se terminan de desnudar las cosas, es que estamos metidos en ese berenjenal; que está bien armado; para que sea un berenjenal. Entonces, los que están en el gobierno consideran que ellos están metidos en el medio, y del cual no pueden salir. Para ellos entregar el poder es un problema. ¿Tú crees que ellos se pueden quedar aquí, ejerciendo, como políticos? Ellos terminan defendiendo el medio, que es mantenerse en el poder para poder hacer el cambio ideológico-cultural.
There is another report of the same news by Reuters and it says the exact opposite of what happened. Not strange at all. Reuters published doctored photos during the Israeli Palestinian confrontations to show Israelis to be baby murderers. Don't ever trust Reuters, they are highly biased.
2 dead as Venezuelans clash at protest barricades
By JORGE RUEDA and EZEQUIEL ABIU LOPEZ
CARACAS, Venezuela (AP) — A National Guardsman and a civilian were killed Thursday as gangs of government supporters on motorcycles rode into east Caracas neighborhoods to remove street barricades placed by opposition protesters.
The pitched battle in a mixed industrial and residential district heightened tensions on the same day the Venezuelan government expelled foreign diplomats for the second time in a month.
More than 100 men on motorcycles carrying pipes and rocks swarmed Los Ruices in the incident, trying to force their way into some buildings. Residents screamed "murderers, murderers" from rooftops and the motorcyclists taunted them from below, urging them to come down and fight.
Venezuelans fed up with food shortages and unchecked violence have been staging nearly daily street protests since mid-February, snarling traffic with barricades of garbage, furniture and burning tires. At least 21 people have been killed in related violence, by government count, in the country's worst unrest in years.
President Nicolas Maduro's administration shows no signs of crumbling from several weeks of nearly daily demonstrations, but the country appears in a stalemate. Protesters are mostly from the middle and upper classes although they do include poorer Venezuelans who don't protest in their home districts for fear of pro-government paramilitaries.
Sucre Mayor Carlos Ocariz said residents of Los Ruices reported hearing gunshots after motorcyclists began dismantling the barricades. Some apartment dwellers began banging pots and raining down bottles to express their anger, he said. In the melee, a 24-year-old motorcycle taxi driver was shot dead.
"I'm not going to be irresponsible and accuse anyone," Ocariz said. "I condemn the violence and the shots must be investigated, but I also reject the brutal repression" of security forces.
When National Guardsmen arrived to secure the area, a 25-year-old sergeant was shot through the neck and killed. Ocariz said that according to district police, who report to him, in both cases the men's wounds seemed to indicate the shots came from above.
Pro-government motorcycle gangs who reside in slums served as street-level enforcers for the late President Hugo Chavez and continue to menace opponents of the ruling socialists. The opposition claims they are bankrolled by the government.
Maduro, meeting with U.S. actor Danny Glover, said on state TV that the slain motorcyclist, Jose Gregorio Amaris, used his motorcycle as a taxi and was clearing debris in order to do his job.
He called those who build street barricades "vandals who hate the people" and said a second motorcyclist was seriously injured.
Among opposition demands is that the government disarm the motorcycle-riding paramilitaries, called "colectivos."
A day after Maduro said he was breaking diplomatic relations with Panama over its push for Organization of American States-sponsored mediation in the crisis, his government expelled Panama's ambassador and three other diplomats, giving them 48 hours to leave.
Last month, Venezuela expelled three U.S. diplomats, accusing them of conspiring with the opposition, a claim that Washington denied.
Foreign Minister Elias Jaua said Venezuela also had suspended debt negotiations over $1 billion owed to Panamanian exporters.
In the latest development affecting what the opposition calls a full-scale government assault on freedom of expression, a newspaper critical of the government said it was the target of a criminal defamation suit filed by National Assembly President Diosdado Cabello.
Editor Teodoro Petkoff wrote in the paper, TalCual, that the Caracas judge overseeing the case had ordered him and three other executives as well as columnist Carlos Genatios not to leave the country without permission.
Cabello accused the newspaper of printing something he claimed never to have said: That if people don't like crime they should leave the country.
A conviction would carry a prison sentence of two to four years.
Associated Press writer Christopher Sherman and cameraman Marko Alvarez contributed to this report.
Not since 2002 has there been so much political violence on the streets. Back then it was led by the PDVSA employees upset that Chavez had fired their CEO. Later Chavez said he did it to incite them to have an excuse to fire them which he did. This time around the protest is much more grass roots, led by students. Back then threatened opposition leaders quickly went to exile. Now they are staying and defying the state to arrest them. Back then the protest were peaceful. Now there are burning barricades. Back then the Chavista militia were called Circulos Bolivarianos, now they are called "colectivos," the same armed thugs on state supplied motorcycles. When they fire on protesters the Bolivarian police and the Bolivarian national guard just watch. Venezuelans never lose their sense of humor.
Today the violence was at a high point. Even though the press is censored there are plenty news and pictures on Twitter. Today every citizen with a cell phone is a reporter. If you follow me on Twitter @captainccs you'll get to see a lot of them. I retweet them as often as I can.
Provea acusa a Maduro de incitar confrontación pueblo contra pueblo
El Programa Venezolano de Educación-Acción en Derechos Humanos (Provea) responsabilizó al presidente Nicolás Maduro por las posibles víctimas que se produzcan por su llamado a la confrontación pueblo contra pueblo.
Este miércoles, Maduro llamó a los colectivos armados a “apagar candelitas” y confrontar manifestaciones y protesta
La policia y la guardia miran como los "colectivos" disparan a la gente y no hacen nada. Son todos cómplices de la dictadura castro marxista comunista que es la que está gobernando a Venezuela.
Colectivos amenazan con meterse a edificios de Los Cortijos en una hora
Motorizados en Los Ruices, se enfrentan a los habitantes de la zona | Cortesía @suprema1984
Los grupos se presentaron para derribar las barricadas de los manifestantes. En el intercambio entre vecinos y miembros de los colectivos, un motorizado fue herido en la clavícula, lo que recrudeció el ataque de los colectivos. El alcalde Carlos Ocariz confirmó el fallecimiento de un funcionario de la guardia nacional en los hechos
EDGAR LÓPEZ/EL NACIONAL WEB 6 DE MARZO 2014 - 01:24 PM
Los ataques de colectivos armados a vecinos de Los Cortijos, a la altura de la avenida Francisco de Miranda, comenzaron luego de que un motorizado resultara herido en la clavícula. Dos funcionarios de la Guardia Nacional Bolivariana resultaron heridos en los enfrentamientos y uno falleció posteriormente, confirmó en su cuenta en Twitter el alcalde Carlos Ocariz.
"Lamentablemente anunciamos el fallecimiento de un efectivo de la guardia nacional en los enfrentamientos", escribió después de la 1:00 de la tarde.
Los miembros de los colectivos son más de 500, rompieron las rejas de los edificios de la zona para meterse y quemaron un carro. Algunos gritaban consignas a favor de Hugo Chávez. Ni la Policía Nacional Bolivariana ni la GNB se lo impiden.
Los motorizados advierten que “si en una hora ellos (GNB y PNB) no hacen nada, nosotros nos metemos”, en los edificios.
“Para ir a la guerra tenemos que oír una sola voz, la del comandante”, grita un motorizado al resto. Y agrega: “Aquí somos disciplinados en el amor a Cristo”.
Los otros motorizados le responden: “Chávez vive, la lucha sigue. Algunos aseguran que José Vicente Rangel Ávalos se presentará en Los Cortijos.
Desde tempranas horas de la semana, los vecinos, que se encontraban protestando en el lugar, fueron sorprendidos por los motorizados quienes con piedras y objetos contundentes los replegaron hacia los edificios, desde donde también lanzaban botellas y otros objetos. En el lugar, se presentaron efectivos de la Policía de Sucre y efectivos de la Policía Nacional Bolivariana.
La protesta estudiantil comenzó en el Estado Táchira y los eventos se aceleran. Ante la represión aumetó la protesta y las barricadas. Ayer el gobernador Vielma Mora, quien es chavista hasta la médula habiendo tomado parte en el golpe de estado con Chávez, dijo estar en contra de la represión:
Solo hay libertad de publicar lo que al gobierno le convine
Gobierno de Venezuela revoca credenciales a equipo de CNN
(CNN Español) – El viceministro de Comunicaciones de Venezuela le comunicó este jueves a nuestra corresponsal en Venezuela, Osmary Hernández, que se le revocaba el permiso de trabajar como corresponsal acreditada.
De la misma forma le fue comunicado a nuestra presentadora Patricia Janiot y a su productora, quienes se encontraban haciendo un programa especial que se emitió el jueves, que se les retiraba el permiso que se les había otorgado para trabajar y les preguntaron que cuándo se iban.
El presidente Nicolás Maduro anunció el jueves en cadena de televisión que se iniciaría el proceso de retirar del aire la señal de CNN, pero no hemos recibido notificación oficial del órgano regulador.
CNN en Español ha reportado ambos lados de la tensa situación que vive Venezuela, aún con acceso muy limitado a funcionarios del gobierno. Este jueves, Patricia Janiot estaba tramitando un entrevista con el presidente Maduro. Esperamos que el gobierno reconsidere su decisión. Mientras tanto seguiremos informando sobre Venezuela de la forma justa, acertada y balanceada que nos caracteriza como empresa periodística
Amigos de la Carta Democrática Interamericana se pronuncian sobre Venezuela febrero 21, 2014 4:33 pm Publicado en: Actualidad, Internacionales
Los Amigos de la Carta Democrática Interamericana expresan su rechazo ante los hechos ocurridos con ocasión de la manifestación pacífica convocada por organizaciones estudiantiles el 12 de febrero pasado en Venezuela. En este sentido, el grupo de Los Amigos lamenta la perdida de vidas humana y los heridos, y hace pública su enérgica condena a la detención de más de 100 estudiantes, algunos de los cuales han denunciado que sufrieron atentados a su integridad física.
Especialmente preocupante es el allanamiento a la oficina de un partido político sin orden judicial, así como la detención del coordinador del partido político Voluntad Popular, Leopoldo López. Dicha situación configura una criminalización de la actividad política de los sectores de oposición, lo cual es inaceptable en una sociedad democrática.
Igualmente preocupantes son los obstáculos existentes para que los medios de comunicación informen sobre los acontecimientos, incluyendo las amenazas de penalidades que conduce a la autocensura, la eliminación del aire de un canal televisora internacional y la falta de papel para la prensa escrita.
En virtud de estos graves hechos, el Grupo de Amigos de la Carta Democrática:
1. Condenan la represión de las manifestaciones pacíficas y la detención arbitraria de estudiantes venezolanos;
2. Condenan la detención arbitraria de dirigentes políticos;
3. Requieren la inmediata liberación de todas las personas todavía detenidas, en los términos en que el derecho a la libertad personal está garantizado por la Constitución venezolana, el Pacto Internacional de Derechos Civiles y Políticos de Naciones Unidas, y otros instrumentos internacionales que obligan a Venezuela, sin perjuicio de que quienes hayan sido inculpados por hechos de violencia o vandalismo, sean sometidos a los procedimientos legales para determinar su responsabilidad, con las debidas garantías al debido proceso;
4. Requieren una investigación independiente exhaustiva y transparente de los hechos de violencia así como de las denuncias de abusos contra estudiantes detenidos;
5. Llaman al Gobierno de Venezuela a respetar y garantizar las condiciones necesarias para la realización de las actividades políticas por parte de la oposición y los sectores sociales que lo adversan, como está garantizado en la Carta Democrática Inter-Americana;
6. Recuerdan a todos los venezolanos y venezolanas que el ejercicio de su derecho constitucional a protestar deber ser pacífico, tolerante y respetuoso del pluralismo de una sociedad democrática.
Urgimos a los líderes políticos buscar urgentemente soluciones y mecanismos que prevengan una escalada del conflicto en el país.
El Grupo de Amigos de la Carta Democrática Interamericana lo integran ex Presidentes, ex Primeros Ministros, ex miembros de gabinete, expertos y promotores de los Derechos Humanos del hemisferio, que procuran incrementar el reconocimiento y cumplimiento de la Carta Democrática Interamericana, así como prevenir que tensiones políticas se conviertan en crisis que amenacen la estabilidad democrática. Los Amigos de la Carta Democrática visitan países para analizar conflictos políticos, animar a la ciudadanía y a los gobiernos a utilizar los instrumentos internacionales para proteger sus democracias y resolver conflictos constitucionales. Asimismo, formulan recomendaciones a la Organización de Estados Americanos para aplicar la Carta Democrática con un carácter preventivo y constructivo. El Centro Carter actúa como la secretaría de los Amigos de la Carta Democrática Interamericana.
Amigos de la Carta Democrática Interamericana
Diego Abente Brun Ex Ministro de Justicia y Trabajo Paraguay
Cecilia Blondet Ex Ministra para la Promoción de la Mujer y el Desarrollo Humano Perú
Jorge Castañeda Ex Ministro de Relaciones Exteriores México
Joe Clark Ex Primer Ministro y ex Ministro de Relaciones Exteriores Canadá
John Graham Presidente Emérito, Fundación Canadiense Para las Américas (FOCAL), Canadá
Osvaldo Hurtado Ex Presidente Ecuador
Torquato Jardim Ex Magistrado del Tribunal Superior Electoral Brasil
John Manley Ex Ministro de Relaciones Exteriores Canadá
Barbara McDougall Ex Secretaria de Estado para Relaciones Exteriores Canadá
Andrés Pastrana Ex Presidente Colombia
Sonia Picado Presidenta Instituto inter-americano de Derechos Humanos Sergio Ramirez
Ex Vicepresidente Nicaragua
Sir Ronald Sanders Miembro del Grupo de Personas Eminentes del Commonwealth 2010-2011
Eduardo Stein Ex Vicepresidente Guatemala
Alejandro Toledo Ex Presidente de Perú
Fernando Tuesta Soldevilla Ex Director Oficina Nacional de Procesos Electorales Perú
Joaquín Villalobos Fundador del Frente Farabundo Martí para la Liberación Nacional (FMLN), Firmante de los Acuerdos de Paz de El Salvador en 19
En Venezuela siguen las protestas (Fotos) febrero 20, 2014 11:19 am Publicado en: Destacados, Nacionales 21104
Los enfrentamientos entre manifestantes y las fuerzas de seguridad recrudecieron el jueves en Venezuela, mientras opositores al presidente socialista Nicolás Maduro quemaban basura en improvisadas barricadas en Caracas y en otras ciudades del país.
Reuters/ Andrew Cawthorne y Eyanir Chinea
Al menos cinco personas han muerto en hechos directamente relacionados con los enfrentamientos, y una más falleció de causas naturales al no poder llegar a un hospital a causa de los bloqueos, según el Gobierno, mientras se reportaban decenas de heridos y detenidos en el país.
Policías y militares dispararon gases lacrimógenos y perdigones contra jóvenes armados con piedras y bombas molotov.
Hombres armados en motocicletas recorrieron barrios de la ciudad la madrugada del miércoles, mientras se escuchaban detonaciones, según testigos de Reuters. El jueves por la mañana, vecinos de algunos barrios comenzaban a acumular objetos para bloquear las calles.
Ante la falta de cobertura de los hechos de violencia por parte de las radios y televisoras locales, los venezolanos recurrían a las redes sociales para enterarse de la situación, entre reportes de fotos e informaciones falsas.
Miles de venezolanos han salido a las calles desde hace tres semanas para manifestarse contra la alta inflación, la escasez de productos básicos y la elevada inseguridad.
En un barrio del este de la capital, manifestantes mostraban el jueves por la mañana un cartel que rezaba “me declaro en desobediencia civil”.
Testigos reportaron helicópteros volando sobre la capital del país de 29 millones de habitantes.
“ZONA DE GUERRA”
La situación también había empeorado en las capitales andinas de San Cristóbal y Mérida, en el occidente del país, donde el Gobierno suspendió temporalmente el porte de armamento.
Residentes reportaban que San Cristóbal, en el estado de Táchira en la frontera con Colombia, parecía una “zona de guerra” y que el transporte público no funcionaba, y que ni los bancos ni el comercio abrieron sus puertas.
En el estado central de Carabobo, cercano a Caracas, una dependencia del Gobierno reportó que manifestantes opositores quemaron vehículos de mantenimiento.
En Caracas Bernardo Pulido, abogado del líder opositor Leopoldo López, quien encabezó las protestas antes de entregarse el martes a las autoridades, dijo que podría ser acusado de delitos como daños e incendios y asociación para delinquir.
Los delitos podrían conllevar a penas de cárcel de hasta 10 años. López, un economista de 42 años educado en Harvard, está siendo retenido en una prisión militar cercana a la capital.
La esposa de López, Lilian Tintori, dijo a través de la cuenta de Twitter de su esposo: “El cambio está en cada uno de nosotros, no se rindan”.
En la víspera, durante una reunión de líderes norteamericanos en México, el presidente de Estados Unidos, Barack Obama, hizo un llamado a su contraparte venezolana a oír a su pueblo y liberar a los detenidos.
“Todas las partes tienen que trabajar conjuntamente, abstenerse de la violencia y restaurar la tranquilidad”, dijo Obama. Estados Unidos es el principal comprador del petróleo venezolano.
(Con reporte adicional de Carlos García, Girish Gupta y Carlos Carrillo en Caracas, Javier Farías en San Cristóbal, escrito por Tomás Sarmiento; Editado por Pablo Garibian)
Obama: Gobierno venezolano debe oír reclamos del pueblo Jefe de Estado aprovechó una cita bilateral desarrollada en México, además, para criticar la decisión de Nicolás Maduro de expulsar a tres funcionarios diplomáticos.
POR VICTOR JAQUE 19 febrero 2014 El presidente de Estados Unidos, Barack Obama, condenó este miércoles la violencia desatada en Venezuela durante una ola de protestas contra el Gobierno y llamó a las autoridades a liberar a los manifestantes detenidos.
Después de una reunión de líderes norteamericanos en México, Obama sostuvo que el presidente Nicolás Maduro ordenó días atrás la expulsión de tres diplomáticos estadounidenses con falsas acusaciones.
El presidente estadounidense dijo que el Gobierno de Maduro trata de desviar la atención sobre las carencias del país.
"El Gobierno debería de concentrarse en atender los reclamos legítimos del pueblo venezolano", dijo en una rueda de prensa tras una reunión para celebrar los 20 años del Tratado de Libre Comercio de América del Norte (TLCAN).
Maduro asegura que las manifestaciones, que comenzaron hace tres semanas y han cobrado la vida de al menos cinco personas, son un intento de la oposición de sacarlo del poder con el apoyo de Washington.
"Hacemos un llamado al Gobierno venezolano para que libere a los manifestantes que han sido detenidos y que entablen un diálogo verdadero", dijo Obama. "Todas las partes tienen que trabajar conjuntamente, abstenerse de la violencia y restaurar la tranquilidad".
This is from yesterday, I didn't get a chance to post it earlier.
The reason I find it significant is because Leopoldo Lopez turned himself in. Previous "opposition leaders," facing similar situations, went into hiding or exile leaving the opposition leaderless. This could evolve into making Lopez the true leader of the opposition, something that until now has ben sorely lacking.
In Venezuela Opposition Leader Leopoldo Lopez Turns Himself In
February 18, 2014
It was certainly a day to remember. Despite the Government banning the opposition march and prohibiting marches, Leopoldo Lopez turned himself in in a demonstration which was simply massive. His handover was perfectly choreographed, leaving images that have a highly emotional content and guaranteeing that this day, whatever may happen was a victory for the Voluntad Popular leader.
I mean, there are very few things missing from a picture like this one:
Lopez being pushed into the National Guard tank, white flowers in one hand, flag in the other and screaming at his supporters. Really, can it get any more dramatic than this?
And this was after Lopez had given a fiery speech to his supporters hanging on the statue of Jose Marti in Plaza Brion of Chacaito at the end of which his wife was lifted up by the crowd to say goodbye to him right before he turned himself in. How can anyone not be moved by this image?:
And it was Lopez who, from the inside of the military vehicle, used a megaphone to ask people to move aside to let the vehicle through. Lopez was calma calm and at times it seemed as if the guardsman taking him looked more scared than he did.
And the show of support was nationwide, as students organized protests in all major cities, all of them with huge crowds, all ending at the Palaces of Justice of each State with the students handing in their demands.
I went to the march, leaving somewhat late, but was surprised when a couple of Kilometers away from the march, the street was still full of people walking towards Chacaito. And when I got to Chacaito it became difficult to get through because it was so crowded. Once in the intersection with the main Country Club Avenue, I was surprised by the sea of people coming down from that direction. It turns out it was the people from the West of Caracas, who, because the march was not allowed beyond Chacaito, had to come via Libertador Avenue to where Lopez turned himself in. From there, we turned South towards Las Mercedes, went under the Autopista and then climbed back on it, only to find that the students had not only blocked it, but occupied it all the way to the Cienpies Distributor. There were people everywhere, in front, below, above. And there was lots of police and guardsman, but they they were clearly given the order to do nothing, despite our fears that we could be gassed any minute.
This is an overall picture from above, two blocks away from where Leopoldo Lopez turned himself in:
And at this time, 7:37 PM , students are still out in the streets blocking the way
I am still surprised the Government went ahead and jailed Lopez. To accuse him of being a terrorist, when there are pictures showing that it was the Government’s intelligence police who shot the students on Feb. 12th. is somewhat dumb. By jailing him, not only does he become a martyr, elevating his stature within the opposition, but also creating another political prisoner and another reason for the students to fight.
Maduro also loses credibility, when it was him that suggested Lopez was responsible for the deaths of the students, not the Prosecutor, raising doubts, once again, abut the separation of powers in Venezuela. To make matters even worse, it was the Head of the National Assembly, Diodado Cabello, who took Lopez to his arraignment. What is Cabello doing there? He does not belong to any of the braches of Government that should be involved. The Government later said it was to protect Lopez’ life from the “right wing”, a silly excuse, more so, given that Lopez is also labelled as “right wing”.
Because while all this was going one, Maduro was holding his own march, despite his ban on demonstrations, where he said Lopez was being taken directly to jail (Ughh?) by helicopter, showing the President does not even understand legal procedures. In his speech, Maduro rambled, attaching President Piñera of Chile and Santos of Colombia, for involving themselves in Venezuelan affairs.
But more importantly, you just don’t go jail an opposition leader like Lopez on trumped up charges, without raising suspicions that this is simply autocracy at work. Lopez now becomes a hot potato for Maduro: Keep him in jail he becomes a symbol, release him, you look weak (and somewhat dumb!). He will actually be charged with murder, a silly charge if there ever was one.
Lopez seems to have scored a victory sooner than he thought when he started going out to try to gather the protests under his wing. Even Capriles went to the demonstration, as all opposition politicians showed up at the demonstration to show their support.
For now, the students remain on their own, a random band of disorganized protesters that have kept the Government in check for ten days. They will not go easily away and now they have one more prisoner to defend.
There is an ongoing protest about two blocks from my house
Beauty queen the latest victim in Venezuela unrest
By Tomas Sarmiento and Deisy Buitrago
14 minutes ago
CARACAS (Reuters) - A local beauty queen died of a gunshot wound on Wednesday in the fifth fatality from Venezuela's political unrest, as imprisoned protest leader Leopoldo Lopez urged supporters to keep fighting for the departure of the socialist government.
Tensions have risen in Venezuela since Lopez, a 42-year-old Harvard-educated economist, turned himself in to troops on Tuesday after spearheading three weeks of often rowdy protests against President Nicolas Maduro's government.
The latest included college student and model Genesis Carmona, 22, who was shot in the head at a protest on Tuesday in the central city of Valencia. She died later in a clinic.
"How long are we going to live like this? How long do we have to tolerate this pressure, with them killing us?" a relative, who asked not to be named, told Reuters.
"She only needed one more semester to graduate," he added of Carmona, who had been studying tourism and had won the 2013 Miss Tourism competition in her state.
Three people were shot dead in Caracas after an opposition rally a week ago, and a fourth person died after being run over by a car during a demonstration in the coastal town of Carupano. There have been scores of arrests and injuries.
State TV channel VTV said the mother of one its employees died while being rushed to hospital in Caracas. VTV said she suffered a heart attack while the ambulance carrying her was stuck in gridlock due to opposition supporters blocking roads.
Lopez has urged his supporters to keep fighting for the departure of Maduro's socialist administration.
"Today more than ever, our cause has to be the exit of this government," he said, sitting by his wife in a pre-recorded video that was to be released in the event he was jailed. (http://t.co/uJGiXVm0AV)
"The exit from this disaster, the exit of this group of people who have kidnapped the future of Venezuelans is in your hands. Let's fight. I will be doing so."
There was sporadic trouble across Venezuela again on Wednesday. Rival groups scuffled outside the Caracas court where Lopez was due, while student demonstrators also blocked a highway in the capital, burning trash.
In western Tachira state, security forces and protesters fought in the streets for about two hours, with two students injured, various vehicles damaged or destroyed, and local monuments charred, witnesses said.
In southern Puerto Ordaz city, pro- and anti-government marchers fought in the street, witnesses said, with police firing teargas to quell the trouble.
Three government supporters were injured in the melee when shots were fired, and both sides faced off with sticks and stones, the witnesses said.
The demonstrators are calling for Maduro's resignation over issues ranging from inflation and violent crime to corruption and product shortages.
Maduro, who was narrowly elected last year to replace Hugo Chavez after his death from cancer, says Lopez and others in league with the U.S. government are seeking a coup.
Street protests were the backdrop to a short-lived ouster of Chavez for 36 hours in 2002, before military loyalists and supporters helped bring him back.
Though tens of thousands joined Lopez on the streets when he turned himself in on Tuesday, the protests have so far been much smaller than the wave of demonstrations a decade ago.
Neither is there any evidence that the military, which was the decisive factor in the 2002 overthrow, may turn on Maduro now.
Lopez was being held on Wednesday at the Ramo Verde jail in Caracas, and was due at a first court hearing.
Hundreds of his supporters waved banners saying "Free Leopoldo!" in the city center on Wednesday as a line of soldiers stood in front with riot shields. "We're prepared to give our lives," said pensioner Juan Marquez, 68.
Police held back a rival demonstration by several hundred 'Chavistas', some of them striking the protesters and chanting "Leopoldo, off to Tocoron" in a reference to a notoriously overcrowded provincial jail.
In an intriguing twist to the drama, Maduro said his powerful Congress head Diosdado Cabello, seen by many Venezuelans as a potential rival to the president, personally negotiated Lopez's surrender via his parents.
Cabello even helped drive him to custody in his own car given the risks to Lopez's life from extremists, Maduro said.
With local TV providing minimal live coverage of the street unrest, Twitter, Instagram and Facebook have become the go-to media for many Venezuelans desperate for information.
However, many social media users are indiscriminately tweeting images without confirming their origin, leading to manipulation and gaffes including footage of unrest in Egypt and Chile being passed off as repression in Venezuela.
Old photos from past protests are also doing the rounds.
Detractors call Lopez a dangerous and self-serving hothead. He has frequently squabbled with fellow opposition leaders, and was involved in the 2002 coup, even helping arrest a minister.
"I've hardly been in office for 10 months and for 10 months this opposition has been plotting to kill me, topple me," Maduro said. "For how long is the right wing going to hurt the nation?"
Though the majority of demonstrators have been peaceful, a radical fringe have been attacking police, blocking roads and vandalizing buildings. Rights groups say the police response has been excessive, and some detainees say they were tortured.
In a nation split largely down the middle on political lines, 'Chavistas' have stayed loyal to Maduro despite unflattering comparisons with his famously charismatic predecessor. Many Venezuelans fear the loss of popular, oil-funded welfare programs should the socialists lose power.
(Additional reporting by Andrew Cawthorne and Diego Ore in Caracas; Javier Farias in Tachira; German Dam in Puerto Ordaz; Writing by Andrew Cawthorne; Editing by Chizu Nomiyama and Ken Wills)
In the immortal words of the artist formerly known as Puff Daddy, "It's all about the Benjamins."
In this week's weekly report on Venezuela (attached PDF), we cover the protests racking Venezuela, as rampant crime, an inflation rate officially over 56%, a bolivar currency that is virtually unconvertible (except in the black market where it has fallen to a fourth of its value in one year after falling to a third of its value the year before), and widespread shortages of everything from bread, flour and meat to toilet paper drive people out into the streets.
At the same time, the protestors are being put-down by well-armed state security forces and since the domestic television industry is now totally dominated and controlled by the Government, there is very little live coverage being reported. As I noted in a mid-week update to you last week, Colombian TV station NTN24 and CNN en Espanol have stepped up their coverage in that deficit, in addition to social media reports, pictures and video on Facebook and Twitter. Not happy that their "communicational hegemony" was being overcome, the Venezuela government took NTN24 off the air in Venezuela and blocked its internet feed. And learning from the failures of dictators in the Arab Spring, Venezuela even blocked Twitter -- which Twitter confirmed last week. In comparison to trusted news sources, the problem that we are also finding with new media like Twitter and Facebook is the reliability of the posts: while some of the information is good and current, other people put up old video and pictures, and some can be doctored, which confuses things and hurts its believability (the mistakes of which the government points out).
I spent some time on the weekend news shows talking about what is going on in Venezuela -- which has just kicked out 3 more American diplomats (third time in a year!). China, which has loaned Venezuela over $40 billion, is especially interested in what is going on there and you can see my interview on China's dominant broadcaster CCTV here: http://laht.com/article.asp?ArticleId=1620461&CategoryId=10718
But in the end, many of the problems -- the inflation, the shortages, the crime, the collapsing currency -- are all about the Benjamins (as in Benjamin Franklin who appears on the $100 bill). After the first of the larger size SICAD sales of $220 million was cancelled earlier this month, Venezuela President Nicolas Maduro promised the next one would be for $440 million. He lied, as only $216 million was announced on Friday (and the paper starved newspaper industry -- one of the last few outlets for opposition viewpoints -- was given nothing).
Here is the problem.
When oil prices crashed in late 2008 and into 2009, Chavez hit the capital markets to fund his spending. Beginning in May of 2009 (when they also expropriated and nationalized the oil service providers they could not pay), Venezuela and PDVSA began issuing massive amounts of US dollar bonds, for a 5 year total of $46.3 billion in new dollar debt, mostly at high interest rates (these are just bonds and does not include the $40 billion in loans from the China), essentially doubling the country's indebtedness.
Interest payments on those bonds are paid semi-annually (every six months) and this month alone Venezuela will pay out $732.5 million in coupon payments on its dollar bond debt -- which is essentially one week's worth of Venezuela oil exports, assuming 1.3 million barrels a day in real cash oil exports.
Throw in 4 weekly SICAD distributions of $220 million a week for $880 million and you are down another week of oil export earnings. That doesn't include the $80-90 million that CADIVI was providing weekly at 6.3, for another half a week of earnings. In the end, that doesn't leave much for paying the airlines the over $3.3 billion they are now owed, paying food companies the $2.43 billion they are owed, much less the billions owed to oil partners and service providers, workers, government employees, to say nothing of bread, chicken, flour or toilet paper.
It's all about the Benjamins -- or the lack thereof.
The press is heavily censored in Venezuela and the only way to get the real news is through social media like Twitter. Here is a sampler of the popular protest ongoing at this time that will not be reported by the press (pictures):
El pueblo frustra intento de arresto illegal por parte de militares
Noten que la franela del último personaje en el video tiene siete (7) estrellas, las siete estrellas tradicionales de nuestra bandera, no las ocho que le puso Chavez, el vende patria. Las siete estrellas representan las siete provincias de Venezuela en su momento de independencia y la octava, que se supone es Cuba, no tiene nada que ver con nosotros.
Desde hace mas de diez años no han habido manifestaciones anti gobierno en la calle como ahora. Un mostrario y esto en la cara de una censura de prensa. Para obtener noticias hay que usar medios sociales como Twitter.
Yes, they have. they were recorded on amateur video tape.
While Government Tries To Blame Lopez For Deaths, Paper Shows Otherwise February 16, 2014
Ever since last Wednesday’s student March which left two dead, the Government has tried to say that former Presidential candidate Leopoldo Lopez and Congresswoman Maria Corina Machado, who led the protest, were responsible for the the deaths right after the demonstration ended. But, usually pro-Government paper Ultimas Noticias, has done an extraordinary investigation of videos and pictures and what it has found is a carefully orchestrated withdrawal of the police, which were replaced by Intelligence police officers and plainclothesmen, who were wearing and used guns against running students.Having guns near a demonstration is illegal, Government officers murdering people at a demonstration is a crime against humanity by them and their superiors.
What this investigation shows is the power of the smartphone, as the evidence came mostly from amateur tapings (note that one of them, the person making the video is hiding under a car)
Here is the text and the video
and here is a summary of the text for those that do not speak Spanish. I recommend watching the video (at the end) after reading the text:
“It was at 3:13 PM when Bassil Alejandro Dacosta fell. The line of fire was in the hands of individuals identified with unirforms, plates and vehicles of the Bolivarain Intelligence Service (Sebin) accompanied by others dressed as civilians. They had taken over between the Tracabordo and the Ferrenquin corners of La Candelaria, after the Bolivarain National Police withdrew its troops
Here is the reconstruction: A group of students tries to go up from Monroy to Tracabordo. The march was over. Those left were screaming at police. They advanced towards a Sebin motorcycle, knocking it to the ground. The Sebin and civilians move forward and start shooting pistols rifles. The students withdraw. Others, among which was Bassil Dacosta, cross to a lateral street. It is not clear why they decide to trun around 12 seconds later, they cross the line of fire. Dacosta falls. At no point does the shooting stop.
Dacosta is the next to last of a line of students that crosses trying to escape the bullets. His buddies pick him up and carry him away”
Witneeses say the corner ahd been taken over by men and women in motorcycles, like “those you see in TV”. All dressed as civilains. Some with helmets and t-shirts. Some with their faces covered. They were shooting at the protesters in the Monroy corner. “They would shoot with their arms out and then hide”. In the wall of a City office there are at least 10 tarces of bullet impacts.
The civilians talked to the Sebin officers and withdrew. Sebin officers occupied their places.
At the head of the group came a Kawasaki Versys 1000 motorcycle with another large guy with kaki shirt and jeans with a short wave radio in his hand. He seems to be the leader. After Dacosta falls, he gestures towards a man in gray camouflage clothes.
At the instant of Dacosta’s death a photographic sequence shows at least seven men wielding their weapons. Five are shooting standing up, one is shooting in the air and four are shooting at the protesters. Two wear uniforms.
One of them wears a white shirt, green military pants, helmet and blck lenses, He moves in a motorcycle with official palate 2-177. The other wears a long sleeved black shirt, jeans and black shows. No helmet or glasses. The civialisn were acting in coordination with those in uniform.
One of the shooters picks up the motorcycle overthrown by the students. Two pick up the shells from the bullets, they get on their motorcycles and leave.
Questions: Maduro said those responsible had been identified, a day later the scientific police was still studying the scene?
Why did the National withdraw from the scene?
Why were weapons used to repress the protest?
Why were there civilians with uniformed Sebin officers repressing the march?
From the video: Why did the motorcycles easily cross between the students and the police?
Why did the guy jump over the police only to be seen shooting later?”
Here is the video:
Here are a few pictures of the guy in white from three different angles, one of them while shooting:
Meanwhile the investigative police last night went to Leopoldo Lopez’ parents’ home and his home reportedly to arrest him, in part for being responsible for the death of Dacosta. . He was not there. Maduro called him a coward for not turning himself in.
Tonight Lopez distributes this video, upping the ante in these protests calling for a march to the Prosecutors office to demand a number of things and to turn himself in for crimes he has not committed. He is asking everyone to wear white, as a sign that this is a peaceful movement.
For the Government this represents a quandary. Jailing Lopez will only ignite things even more, but it was Maduro who accused him of crimes, nobody knows specifically which ones. Will the Prosecutor obey Maduro and jail Lopez? Will a Judge sign the order to capture him?
Can the Prosecutor accuse Lopez while Ultimas Noticias has shown clear evidence that it was police and civilians in official motorcyles who were shooting at that instant at the students. Will they go after those responsible for Dacostas’s death?
It is certainly an interesting week to be here.
Note added at 9:21 PM Sunday Feb. 16th. : This work is having an effect, President Maduro said tonight on nationwide TV that he had order all Sebin officers to stay at their barracks!!!
Colonialism is over. The French and the Brits used own Suez. For that matter England used to own a big chunk of North America as did the Russians, the French, the Spanish, and the Dutch,. If you want to go back to biblical times just look at present day Middle East. There needs to be a statute of limitation on absentee ownership.
Maduro hasn't a chance of curbing inflation just as all the presidents who predated him since the oil embargo didn't. If you get a huge amount of money from oil and you give it to people to spend but curb production in the name of ideology or other failed economic policy you get too much money chasing too few good, the perfect recipe for inflation.
Maduro's new policy of clamping down on retailers is nothing new. I was an Apple reseller when Black Friday hit in 1983 when all this mess started, or when the mess got out of hand. I was forced to sell my old inventory at old prices. I could charge Bs. 10,000 for an Apple II but the new ones cost me Bs.14,000. Quite simply the government stole my working capital and my business went broke. What Maduro is doing in 2013 was already done in 1983 (30 years and they learned nothing).
By Brian Ellsworth and Deisy Buitrago | Reuters – 3 hrs ago
CARACAS (Reuters) - The U.S. Embassy in Venezuela on Tuesday defended three diplomats expelled by President Nicolas Maduro, rejecting charges they were involved in espionage and accusations Washington is trying to destabilize the OPEC nation.
In the latest spat between the ideological foes, Maduro on Monday ordered out three U.S. diplomats including Kelly Keiderling, temporarily in charge of the mission.
He alleged they had been meeting with "right wing" opposition leaders and encouraging acts of sabotage against the South American nation's electricity grid and economy.
The expulsions throw a wrench into cautious efforts this year to restore full diplomatic ties that were frayed for most of the 14-year rule of late socialist leader Hugo Chavez.
The U.S. government was evaluating its response and may take reciprocal action in accordance with the Vienna Convention on diplomatic relations, a statement from the embassy said.
"We completely reject the Venezuelan government's allegations of U.S. government involvement in any type of conspiracy to destabilize the Venezuelan government," it added.
"We likewise reject the specific claims against the three members of our embassy."
In an address to the nation, Maduro repeated his accusations on Tuesday, saying the three Americans had been handing over money and stirring up plots in southeastern Bolivar state.
"You can see the hand of the gringo conspiracy ... they talk of a Benghazi," Maduro said, referring to the cradle of revolt against late Libyan leader Muammar Gaddafi.
Maduro showed a video of the three in a special TV broadcast all local channels were obliged to show live.
To a backdrop of dramatic music, the video showed images of diplomatic vehicles, a flight manifest and the three diplomats entering and departing what appeared to be offices of pro-opposition groups in Bolivar.
"Until the U.S. government understands it has to respect Venezuela as a sovereign nation, quite simply there will be no cordial relations, nor cordial communications," Maduro said.
The U.S. Embassy statement said the diplomats were in Bolivar state on entirely "normal" business.
"We maintain regular contacts across the Venezuelan political spectrum," it said.
"This is what diplomats do. Venezuelan diplomats in the United States similarly meet with a broad range of representatives of our society."
Maduro, who is Chavez's successor and part of a Latin American leftist alliance including Cuba, Bolivia, Nicaragua and Ecuador, named a new acting head of Venezuela's U.S. diplomatic mission shortly after his April election.
Many took that as a sign of warming relations.
That official may now face expulsion in the tit-for-tat style retaliation that has characterized similar incidents in the past.
Chavez in 2008 expelled Ambassador Patrick Duddy over what he called Washington's involvement in violent protests in Bolivia. In 2010, he blocked the nomination of diplomat Larry Palmer over comments that there were "clear ties" between members of Chavez's government and leftist Colombian rebels.
Venezuela's opposition says Maduro is continuing a Chavez-era tactic of inflating and inventing diplomatic crises to distract attention from economic and social problems affecting the nation's 29 million people.
(Editing by Andrew Cawthorne and Cynthia Osterman)
Well, it's October 1 and we now know how the Third Quarter of 2013 ends, how Breaking Bad ends, and how the Federal Government ends. And after yesterday's expulsion of 3 US diplomats by Venezuela, including the top US diplomat in Caracas -- who was just a Deputy Chief of Mission, since the Ambassador had already been expelled, along with a host of others -- we now know how the Venezuela relationship with the US ends. Last one out of the US Embassy in Caracas please turn out the lights.
The last time Venezuela expelled U.S. diplomats was on March 5, when it ejected two US military attaches. Despite the fact that the US is the largest customer for Venezuela oil and Venezuela is the fifth largest supplier of oil to the US, the two countries have not had ambassadors in each others countries since former Venezuela President Hugo Chavez expelled US Ambassador Patrick Duddy in 2008 in "solidarity with Bolivia" and then failed to approve his nominated successor in 2010. The US reciprocated by expelling Venezuela Ambassador to the US Bernardo Alvarez the day after Chavez publicly said that Venezuela would reject the newly designated US Ambassador Larry Palmer in late December 2010.
We can expect that the Venezuelan charge d'affaires in Washington, Calixto Ortega, will be back in Caracas by the end of the week in the tit-for-tat strategy that the State Department has for dealing with the nettlesome Venezuelans.
And to say that the reason for the expulsions was wafer-thin is to insult wafer-makers all over the world: Maduro said it was because they were meeting with the "right wing" and making "economic war" on Venezuela and "sabotaging the electrical grid." He said he had evidence, but of course, did not provide any. Straight out of the Cuban playbook, which seems to be more of a one-pager these days than an actual binder. Sadly, this is all circus in this Bread and Circus satire, as there is not enough bread to go around as shortages and inflation continue ravaging the Venezuela economy. http://www.laht.com/article.asp?ArticleId=1049644&CategoryId=10717
I have attached our latest Weekly Report on Venezuela (attached pdf), in which we cover the continuing travails of the economy, including going into further analysis of the Venezuela President Nicolas Maduro's China trip and more.
As always, please don't hesitate to let me know if we can be of any assistance. (PDF attached).
P.S. By the way, you can make sure that you get these and other Latin headlines (including the best Picture and Cartoon of the day) delivered to your email inbox FREE every morning by signing up for headlines from the Latin American Herald Tribune. Sign up here: http://www.laht.com/article.asp?ArticleId=381843&CategoryId=35316 You can also join our 100,000 followers on Twitter to get real-time headlines: @lahtonline
Maduro went to China hoping to get a $5 billion loan but returned empty handed. At home things continue to deteriorate, recently we have had various blackouts, the dollar is sky high, over the last few months we have had the highest inflation rate I remember. The outcome is the expected one, blame the empire! What an asshole!
(VIDEO) Venezuela Expels Top US Diplomat, 2 Others (VIDEO) Venezuela President Nicolas Maduro says they were meeting with the country's "right wing" saying “Out of Venezuela! Yankee, go home! Enough with the abuse!”
CARACAS - Venezuela President Nicolas Maduro announced the expulsion of 3 US diplomats during a live speech to Venezuela soldiers commemorating 200 years since the day when Atanasio Girardot died fighting for Venezuela's independence.
Maduro asked Foreign Minister Elias Jaua to expel the 3 US diplomats, giving them 48 hours to leave the country.
Maduro accused the 3 US diplomats of meeting with the country's "right wing" to plan economic and electricital system sabotage.
“We have sufficient evidence collected of the hostile, illegal and interventionist attitude of the officials,” Maduro said. “Out of Venezuela. Yankee, go home! Enough with the abuse.”
He did not provide any evidence but identified the diplomats as Kelly Keiderling, who is the charge d'affaires and the top US diplomat in the country, Elizabeth Hunderland and David Mutt. The U.S. Embassy says it has not yet been officially informed of the expulsions.
Keiderling has been the US Deputy Chief of Mission and Chargé d’Affaires since July 2011. She joined the State Department in 1988 and has had a long and varied list of appointments, including in Ethiopia, Zambia, Botswana, Kyrgyzstan, Cuba and the Dominican Republic. Back in Washington, she has served as Senior Panama Desk Officer in the Office of Central American Affairs, Public Diplomacy Desk Officer for the Caribbean, Acting Deputy Director of Central American Affairs, and Chief of Staff of the Iraq Office.
Venezuela has been plagued by electricity shortages as well as shortages of water and basic foodstuffs despite having the largest known oil reserves in the world.
Venezuela-watchers point out that Maduro and his predecessor Hugo Chavez, who died in March, often blame the US "imperialist gringos" for the country's problems, despite being in power for over 15 years.
On that theme, the leader of the Opposition, Miranda Governor Henrique Capriles Radonski, tweeted that "Nobody believes the alerts from Miraflores. Pure smoke to cover that he cannot run the country! Maduro has no plan for the country and does not know how to solve the problems facing our people!"
Capriles narrowly lost a controversial and disputed special election to Maduro in April in the wake of the death of Chavez.
The last time Venezuela expelled U.S. diplomats was on March 5, when it ejected two military attaches on similar allegations. That move came several hours before Maduro announced that longtime President Hugo Chavez had died of cancer.
Despite the fact that the US is the largest customer for Venezuela oil and Venezuela is the fifth largest supplier of oil to the US, the two countries have not had ambassadors in each others countries since former Venezuela President Hugo Chavez expelled US Ambassador Patrick Duddy in 2008 in "solidarity with Bolivia" and failed to approve his nominated successor in 2010.
The US reciprocated by expelling Venezuela Ambassador to the US Bernardo Alvarez after Chavez publicly said that Venezuela would reject the newly designated US Ambassador Larry Palmer in late December 2010.
“I don’t care what actions Barack Obama’s government may take," Maduro told the soldiers today. "We’re not going to allow an imperial government to bring money and see how they shut down the basic industries, how they turn off electricity to black out all Venezuela. What is that?”
Maduro called on national soldiers and all those who feel proud of belonging to the fatherland set free by Simon Bolivar to "continue hoisting the flag of independence, revolution and socialism."
"I'm so proud of having the homeland we have, we should be so proud of feeling and being Venezuelans and continue raising the flag of independence here," Maduro said.
"An independent Venezuela endured difficulties, betrayal, defeats, painful losses as that of Atanasio Girardot, setbacks, hesitation, but its flag was always raised, there was someone to raise it and feel proud of it," Maduro stressed. "Soldiers, we only have our life to give it to our Republic, if necessary, to keep it alive, for independence to be strengthened."
Atanasio Girardot (May 2, 1791 – September 30, 1813) was a Latin American revolutionary leader who fought beside Simón Bolívar in the Campaña Admirable and other battles. He died during the Battle of Bárbula, trying to plant the republican flag on Bárbula Hill.
Chavista increpa a Gabriela Montero en concierto en Paraná 28 Septiembre, 2013
John Locke / 28 sep 2013.- Anoche, la gran pianista venezolana Gabriela Montero publicó el siguiente texto en su facebook, referente a un incidente que se dió en un concierto de la pianista en Paraná.
Anoche, toqué ExPatria y el Concierto No.5 de Beethoven con el maravilloso director Osvaldo Ferreira y la Orquestra Sinfonica do Parana.Como no habían insertado el texto sobre mi obra en el programa, tuve que hablar y explicársela al publico.Les expliqué cómo Venezuela está tomada por la violencia y la corrupción. Les expliqué que mi dolor está claramente ilustrado en ExPatria y que describe el llanto y frustración the millones de venezolanos que no tienen la posibilidad de hablar públicamente como yo puedo hacerlo. Les expliqué que muchos sentimos que hemos perdido nuestro país. También expliqué que no me interesa la política, pero sí me interesan los seres humanos y el sufrimiento que trae la política corrupta, deshonesta y que sirve a los interés de aquellos que se están enriqueciendo.
Me importan los efectos que tienen sobre la sociedad de mi país.
En ese momento, un hombre mayor, empezó a gritar,” Mentirosa! Eres una mentirosa! Son todas mentiras!!”
Él estaba muy agitado y el público, sorprendido y desagradado con su ataque hacia mi, empezó a defenderme y pedirle que se callara. Insitió, llamándome mentirosa, y mi respuesta fue decirle que era mi derecho y mi deber hablar sobre los eventos que nos afectan y brillar luz sobre las verdades que están siendo ignorados por el mundo.
Le dije que Rachmaninov y Chopin escribieron sobre su anhelo de regresar a su patria. Sobre todo lo que habían perdido. También debí haber mencionado a Prokofiev y Shostakovich. El volumen de la conmoción aumentaba, y alguien le gritó al señor lo que una vez el Rey Juan Carlos de España le dijo a Chavez, “¿Por qué no te callas?”.
Me senté en la banqueta para comenzar ExPatria.
El hombre continuaba ofendiendome, y en ese momento me paré y con voz muy firme grité: “Yo soy venezolana y sé exactamente lo que estoy diciendo y por qué lo estoy diciendo”.
Me senté nuevamente al piano, mi corazón latiendo fuertemente, y el público se levantó, aplaudiendo. La orquesta golpeaba el piso del escenario creando una ola de sonido- de apoyo, y todo el mundo en la sala seguía de pie- aplaudiendo y apoyándome. Apoyando lo que estaba apunto de hacer y de expresar a través de la música. Apoyando el hecho de que entienden lo doloroso que es que exista una obra como ExPatria porque no debería de existir. Deberiamos celebrar el amor, el respecto y la libertad entre todos.
Gracias a todos los que estuvieron presentes. Gracias a todos los que hablaron conmigo después del concierto y entendieron cada mensaje en mi obra y mi ejecución. Gracias a la gran humanidad de la orquesta y la demostración de afecto y solidaridad. Gracias a Osvaldo por estar ahí conmigo. Y gracias al hombre que me insultó, por demostrarnos una vez mas lo peligrosa que es la ignorancia y como siempre debemos luchar por aquellos que no pueden, y nunca darles la espalda a aquellos que lo necesitan. Que no se sientan olvidados. Anoche, los aplausos fueron para los venezolanos que se sienten representados por ExPatria. Gracias.
I don't know. The fact that the opposition is still at it and has not run for Costa Rica or some other safe haven like the previous opposition leaders did is a good sign. They need the backing of international bodies.
Opposition Challenges Results In Over Five Thousand Ballot Boxes May 8, 2013
As you may have noticed, I have been traveling the last few days. But my friends keep me informed by sending all sorts of information which I read and file, but was not thinking of posting. Then yesterday I got the note on the second challenge to the April 14th. vote and thought I would mention it. The opposition is challenging the results in 5,720 tables or boxes, which comprise 21,562 tallies. Each table challenged includes some form of irregularity which is documented in the challenge. The opposition is requesting that the vote be redone in all these, which comprises of 2.3 million votes. Separately, the fingerprint analysis shows a large number of inconsistencies. But the most significant one is that 20% of he voters had no fingerprint on file, including over four hundred thousand new voters, all of which were supposed to have their prints on file.
This challenge to the election votes is separate from the first one, which was based on irregularities associated with violations of the electoral laws,such as assisted voting, propaganda and abuses, not with the details of the voting process and the results. Both include recusing those magistrates that have expressed an opinion on the case or are related to Government officials.
Venezuelan Bank Official Charged in U.S. With Two in Bribe Plot Bob Van Voris and Patricia HurtadoMay 08, 2013 12:01 am ET
May 8 (Bloomberg) -- An official with Venezuela’s state- owned economic development bank directed its bond-trading business to a New York brokerage in exchange for bribes from two of its employees, U.S. prosecutors said.
Maria Gonzalez, 54, vice president of finance at Banco de Desarrollo Economico y Social de Venezuela, Tomas Alberto Clarke Bethancourt, 43, and Jose Alejandro Hurtado, 38, were charged in a criminal complaint unsealed yesterday in federal court in New York.
Prosecutors said Clarke was a senior vice president and Hurtado an employee in the Miami office of the brokerage, which was identified in a lawsuit by the U.S. Securities and Exchange Commission as Direct Access Partners LLC, or DAP.
“These latest charges certainly highlight the widespread corruption throughout the Venezuelan government and the immense sums of money available with no Venezuelan oversight,” Russ Dallen, head bond trader at Caracas Capital Markets, said yesterday in an e-mailed response to questions.
U.S. Attorney Preet Bharara in Manhattan said that the three defendants engaged in a conspiracy to pay bribes to Gonzalez in exchange for her directing the bank’s financial trading business to DAP. All three were arrested by agents with the Federal Bureau of Investigation on May 3 and presented in federal court in Miami on May 6.
The SEC said Hurtado, who lives in Miami, was the intermediary between DAP and Gonzalez. The Venezuelan government has a majority ownership interest in the bank, known as BANDES, and provided it with substantial funding, according to the SEC.
Henry Bell, a lawyer for Clarke, had no comment on the charges. Frank Rubino, who represents Hurtado, and Jane Moscowitz, a lawyer for Gonzalez, didn’t immediately return phone messages yesterday seeking comment on the allegations.
Phone calls to DAP’s offices yesterday after regular business hours weren’t answered.
From April 2009 through June 2010, Clarke, Hurtado and Gonzalez participated in a conspiracy in which Gonzalez directed trading business which she controlled to DAP and in return, agents and employees of the broker-dealer split the more than $60 million in mark-ups and mark-downs from trading with BANDES, the U.S. alleged.
Clarke and Hurtado allegedly devised a scheme with Gonzalez to split commissions which BANDES paid the broker-dealer, and the government said Gonzalez received monthly kickbacks from DAP and its employees which prosecutors said “were frequently in the six-figure amounts.”
Gonzalez, who was in charge of overseas trading for BANDES, made at least $3.6 million in kickbacks from the scheme according to prosecutors. In exchange, Gonzalez allegedly directed bank business to DAP. Hurtado and his wife made millions from DAP in salary, bonuses and finder’s fees in connection with the BANDES business, prosecutors said. Millions more went to a foreign entity controlled by Clarke, which then transferred some of the money to a Swiss account for Gonzalez’s benefit, according to the government.
In addition to generating money on mark-ups and mark-downs, Clarke caused DAP in January 2010 buy and sell the same bonds for BANDES on the same day.
“The result of such trades was that BANDES was left with the same bond holdings as before the trades, except that it had paid the broker-dealer approximately $10.5 million in mark-ups in the course of the two round-trip transactions,” the U.S. government said in its complaint.
The SEC’s lawsuit against Clarke and Hurtado includes as defendants Haydee Leticia Pabon, 33, who is Hurtado’s wife, and Iuri Rodolfo Bethancourt, 40, a resident of Panama. According to the SEC, Clarke and Bethancourt are “apparent relatives.”
Bharara’s office yesterday filed a civil forfeiture lawsuit seeking control of bank accounts used in the alleged scheme and Miami-area properties that Hurtado allegedly bought with his proceeds.
“The defendants’ arrests lay bare a web of bribery and corruption in which employees of a U.S. broker-dealer allegedly generated tens of millions of dollars through transactions in order to fund kickbacks to a Venezuelan government official in exchange for her directing the Venezuelan economic development bank’s financial trading business to their employer,” Bharara said yesterday in a statement. “The defendants also engaged in international money laundering to carry out their corrupt scheme.”
A BANDES press official, who declined to be identified because of bank policy, declined to comment on the charges. An official in Venezuela’s finance ministry, who declined to be identified because of ministry policy, also declined to comment. A representative of the Information Ministry, who couldn’t be identified because of ministry policy, declined to comment.
Gonzalez is charged with conspiracy to violate the Travel Act, violation of the Travel Act, money laundering and money laundering conspiracy. Clarke and Hurtado are each charged with conspiracy to violate the Foreign Corrupt Practices Act, violation of the FCPA, Conspiracy to violate the Travel Act, violation of the Travel Act, money laundering and money laundering conspiracy.
The money laundering and money laundering conspiracy charges carry maximum prison terms of 20 years.
The case is U.S. v. Clarke, 13-mag-00683, U.S. District Court, Southern District of New York (Manhattan). The SEC case is Securities and Exchange Commission v. Bethancourt, 13- cv-03074, U.S. District Court, Southern District of New York.
--With assistance from Nathan Crooks in Caracas and Joshua Gallu in Washington. Editors: Michael Hytha, Peter Blumberg
Good morning, I have attached our Report on Venezuela to this email, in which we cover the eventful first three weeks of the administration of Nicolas Maduro. I call it the Lindsey Lohan scenario -- it's not as hot as it was (9 people were killed in election-related violence the first week), but it is still WAY out-of-control!
This weekend marks one month that my former Oppenheimer investment bank partner Johnny Pettus has been detained without bail in jail at the SEBIN secret police headquarters Heliocoide, when the government raided and closed down the Oppenheimer office in Caracas, along with simultaneously raiding Johnny's home for "illicit foreign currency trading." ( http://www.laht.com/article.asp?CategoryId=10717&ArticleId=737339 ). I owned half the Oppenheimer investment bank franchise in Venezuela until mid-2007, when I sold my half to my then-partner Johnny. Sadly, this may make that sale the best trade of my life. In May of 2010, the government also raided our BBO offices in Caracas along with those of our largest competitor Econoinvest. Though the government arrested no one from our office, 4 people from Econoinvest were held for 2 years and 7 months without ever being convicted before they were released on bail on the last day of December last year. Their trial is still ongoing....
With that said, things continued to be Lindsey Lohan crazy in Caracas. Maduro's government arrested another American (Johnny is a US citizen as well), Tim Tracy, an actor and film-maker, and charged him as a spy. Obama denied that this weekend, but Venezuela doubled-down on the charge. I do not believe Tracy is a spy -- the closest he ever comes to working for the government is in an episode of the Geena Davis/Donald Sutherland series Commander-in-Chief when he plays a low-level White House administrative aide (you can watch the video here http://www.laht.com/article.asp?CategoryId=10717&ArticleId=760043 , as well as the trailer for another movie called Senseless where he plays a gay boyfriend. Given where he is, if the government or fellow prisoners believe either of these movies is reality, these two roles are probably not helpful).
Several clients have asked me for my thoughts on the Tracy incident. Personally, I believe that the government arrested Tracy to get his videos. He has been filming the conflicts and student movements against Chavez and now Maduro for most of last year. He has in depth interviews with the various student leaders as well as behind-the-scenes protest and fight footage. If they got all his video, it was a treasure trove of information for the government. As I have noted in this weekly email before, the students are the violent wild-card in this battle with the government. http://blogs.ft.com/beyond-brics/2013/04/15/guest-post-venezuelans-wake-up-to-economic-realities/#axzz2SWWXHx5x
Shortly after Tracy's arrest, the Government used some of Tracy's footage to arrest Antonio Rivero, a retired General who had gone into Opposition against the government and even showed an edited version of some of Tracy's tape at the announcement following the arrest.
Then, the day before the opposing Capriles and Maduro May Day marches, 7 opposition deputies -- including a woman, beautiful svelte Opposition leader Maria Corina Machado -- were brutally attacked and beaten in the National Assembly. The clash was a wake-up call, and march routes of the opposing camps were changed to avoid any further violence on May 1. The Government then blamed the National Assembly attack on the Opposition lawmakers (in which no one from the government was injured, but left Machado and Borges with fractures) and made a tape to try (and badly fail) to prove it, complete with an ominous soundtrack from Call of Duty 4 (kid you not, you can Shazam it as it plays). (Government video is here http://www.laht.com/article.asp?CategoryId=13303&ArticleId=768218 and shots from cell phones that prove the Opposition delegates were attacked here http://www.laht.com/article.asp?CategoryId=10717&ArticleId=767095 ).
That would be enough for this missive for the week, but the week was still not over. The Opposition has dispatched members around Latin America to make their case for a recount (see my email from last week or request it again if you missed it) and expose the actions of the government. Opposition leader Leopoldo Lopez led a mission to Peru, where the Peru Foreign Minister is the UNASUR spokesman on the elections in Venezuela issue. The Peruvian Foreign Minister Rafael Roncagliolo came out and said:
“Peru is promoting that Unasur pronounce itself in asking for dialogue and tolerance in Venezuela…the second element of the Unasur declaration consists in asking that there be in Venezuela a climate of dialogue and tolerance, request that we maintain, request that I reiterate," said Roncagliolo. "It seems fundamental to us for both Venezuelans and the region that such a climate of dialogue, tolerance and mutual respect can be established.”
In a knee-jerk response to that tame diplomatic statement, Maduro recalled the Venezuelan Ambassador to Peru, saying
“You may be Peru’s Foreign Minister, but you can not give opinions about Venezuela. I do not accept that lack of respect towards the political process that Venezuela is living. I don’t accept it…But to involve yourself with Venezuela’s problems to give us advice, please, don’t," said Maduro. "You made a mistake Peruvian Foreign Minister, you have made the mistake of your life”
Then, in response to the recall of the Ambassador, the Vice President of the Congressional Foreign Affairs committee Lourdes Alcorta said that it was clear in Venezuela that there is no President, but that there is a monkey holding office who has stolen the powers of the people. (Video here: http://www.laht.com/article.asp?CategoryId=10717&ArticleId=769672 ).
Never a dull moment in this Telenovela!
Until next week's chapter, please don't hesitate to let me know if we can be of any assistance. (PDF attached).
Analysis: Rough start to post-Chavez era augurs badly for Venezuela By Andrew Cawthorne | Reuters – 6 hrs ago
CARACAS (Reuters) - About the only tranquil place in Caracas over the last few days is a hilltop military museum housing the remains of late socialist leader Hugo Chavez.
Visitors tip-toe around his marble sarcophagus, reprimanded by guards if their voices rise above whispers.
Outside, a shell-shocked nation is still reeling both from Chavez's death from cancer last month and a week of violence and recriminations over the disputed election to succeed him.
Nightly protests - government supporters launch fireworks, opponents bang pots and bans - have been shaking the capital Caracas and most other major cities in the South American nation of 29 million people.
The beginning of Venezuela's transition into the post-Chavez era could hardly have been more raucous or controversial.
The dispute over Chavez protégé Nicolas Maduro's narrow presidential vote win led to the deaths of at least eight people.
It has also deepened the near 50-50 split in a nation polarized by Chavez's socialist policies, shown the fragility of Maduro's grip on the "Chavismo" movement, and left a raft of fast-accruing economic and social problems on the back burner.
"If we're at war among ourselves, everyone suffers," said construction worker Elias Simancas, 61, sitting on a bench in a square where police clashed with masked and rock-throwing protesters during riots after last Sunday's vote.
"We just want a country in peace," he said, expressing an oft-repeated sentiment by the less vocal but majority voices on both sides of the country's political conflict.
As well as longing for some quiet and normality after 14 years in the global spotlight under Chavez, Venezuelans also want plenty more tangible things on their street corners.
First on their wish list is an end to murders, kidnappings and violent robberies that rival the world's worst crime spots and leave many Venezuelan towns and cities eerily quiet at night.
Beyond that, most Venezuelans of all political creeds want an end to runaway price rises, shortages of basic products, power cuts, potholes, cronyism in politics, and the insulting rhetoric between politically divided neighbors and families.
"I'm sick of it. I want out. How can I bring up kids in this country?" said Manuel Pereira, a 39-year-old businessman who has seen his electronics importing company collapse due to lack of access to foreign currency under government controls.
Debating Venezuela's future with middle-class friends on Saturday morning as their children held weekend soccer training - instead of a local league match, canceled due to the unrest - he said he was going to use his Spanish roots to try and emigrate this year.
CHAVEZ'S SHOES IMPOSSIBLE TO FILL
Just as during Chavez's two-year battle with cancer, his re-election last year, and his death on March 5, ideological disputes rather than grassroots issues fill the headlines and dominate government and opposition agendas.
Opposition candidate Henrique Capriles' decision to contest Maduro's election victory - by less than 2 percent, or 265,000 of nearly 15 million votes - uncorked passions and resentments built up during Chavez's rule.
The day after the election, Venezuela teetered on the edge of all-out crisis as pro-opposition hard-liners took to the streets in protests that turned violent and, according to the government, killed eight and injured many more.
Capriles publicly distanced himself from the bloodshed - blaming government instigators for the violence and accusing officials of exaggerating and exploiting the trouble - and called off a march in Caracas that may have turned violent.
The election board then agreed to audit the result, helping to take more heat out of the immediate situation.
Longer-term, the political standoff remains unresolved.
Though safely sworn-in, endorsed by his peers in South America and very unlikely to see his win overturned by the audit, Maduro cannot hide from some obvious conclusions after the vote.
Clearly he failed to replicate Chavez's popularity despite presenting himself as his devoted "son" and deploying much of the state apparatus at his service for an emotion-charged election just five weeks after Chavez's death.
Lacking the charisma and iron grip of his mentor, and with a weaker mandate at the polls, Maduro may now struggle to keep the ruling Socialist Party together given its competing interests and factions ranging from socialist ideologues to military chiefs and businessmen.
There have already been a handful of calls from within the movement for a period of soul-searching and for improving social services to win back the more than half-a-million 'Chavistas' who defected to Capriles during the election campaign.
"Let what needs correcting be corrected and what needs rectifying be rectified," said Foreign Minister Elias Jaua.
Furthermore, though Maduro condemns his opponents as "fascists" and "ultra-right," almost half of Venezuelans voted against him and question his legitimacy given opposition leaders' claims of thousands of irregularities on polling day.
Many Venezuelans are deeply frustrated that their OPEC nation is not doing better economically despite being rich in natural resources from abundant rivers for hydropower to the world's largest oil reserves.
OPPOSITION WAITING GAME
Opposition supporters are downhearted at having come so close to the prize but just missed out.
The Democratic Unity coalition is also a disparate and fragile mix of right- and left-wing parties and competing egos.
Capriles' surprisingly strong showing - most opinion polls before the vote had left him for dead - has cemented his standing as the undisputed opposition flag bearer and reduced the probability of what many had anticipated would be an opposition implosion after a comfortable Maduro win.
But Capriles faces public vilification by Maduro, possible legal charges against him over the violence, and a potential move to debar him from the governorship of Miranda state, where he is serving a second four-year term.
"They should get rid of him and find a proper democrat to run the opposition," said Andrea Lopez, a government supporter in Caracas' largest slum, Petare, saying Capriles should be put behind bars for the week's events.
"Some of my 'Chavista' neighbors even voted for him. They were deceived by his lies. Now they have seen the wolf in sheep's clothes. If he had won, we would have lost everything," she added, listing the health, education and other welfare projects that sprung up in her neighborhood under Chavez.
With Maduro in a tricky situation and the economy slowing, Capriles will likely look to consolidate an image as Venezuela's president-in-waiting.
"This is unfolding chapter by chapter," Capriles said. "The whole system is collapsing. It is a castle built on sand."
The awkward economic backdrop adds to Maduro's challenges, especially if the gloom-and-doom predictions of most Wall Street and private analysts are to be believed.
They see economic growth slowing from 5.6 percent in 2012 to perhaps half of that or even lower this year, inflation heading for 30 percent, bottlenecks in dollar supply for businesses, and shortages of basics from flour and sugar to medicine and tampons.
"Time is on the opposition's side as the economic and likely also political dynamics may contribute to weaken the government," said Goldman Sachs analyst Alberto Ramos.
He predicts just 2.2 percent growth in 2013 and a minimum 25-percent currency devaluation in 2014 or earlier.
Balancing that, economic naysayers have exaggerated Venezuela's economic woes in the past, and the billions keep pouring in from the nation's oil production.
All the signs so far are that Maduro will stay faithful to Chavez's economic policies, including costly fiscal strategies to maintain and expand the social welfare "missions" that were the cornerstone of his late boss's popularity.
In the immediate aftermath of Chavez's death, Maduro, a burly former bus driver who became foreign minister, was seen in many quarters as an affable and experienced diplomat who could be a potential reformer and bridge-builder.
There was talk of possible free-market economic tweaking, rapprochement with the United States, dialogue with the opposition and amnesty for political prisoners.
But his need to imitate Chavez's rhetoric during the campaign, then the post-election dispute, have seen him looking every bit the hard-liner in public.
That may be exacerbated by his dependence on the support of tough-talking National Assembly head Diosdado Cabello, the country's second most powerful official, who had been seen as a candidate for the top job before Chavez gave his blessing to Maduro.
Cabello showed his teeth last week, banning opposition legislators from speaking unless they recognized Maduro's win.
"Capriles wants chaos," said Cabello, a former military comrade of Chavez who keeps strong ties with the security forces and is seen as the muscle in government behind Maduro.
"But we're not idiots! There is no weakness. We swear to defend Chavez's legacy."
(Additional reporting by Girish Gupta, Deisy Buitrago, Mario Naranjo, Brian Ellsworth; Editing by Daniel Wallis, Kieran Murray and Xavier Briand)
Opposition, election body differ on Venezuela vote audit By Daniel Wallis and Deisy Buitrago | Reuters – 2 hrs 10 mins ago
CARACAS (Reuters) - Venezuela's opposition and electoral authority expressed on Saturday widely differing expectations for an audit of the contested April 14 presidential election, a day after Nicolas Maduro was sworn in to succeed the late Hugo Chavez.
Opposition leader Henrique Capriles, who says there were thousands of irregularities, wants a manual recount of all ballots cast in the vote, but has accepted the electoral body's decision to carry out a more limited electronic audit.
That move by the National Electoral Council's (CNE), the night before Maduro's inauguration, helped calm tensions after the government said opposition-led protests killed eight people and both sides accused the other of potting more violence.
The opposition said on Saturday that the audit, which is expected to take a month, must examine all aspects of the vote.
Official results showed Maduro winning by less than 2 percentage points in a much closer race than had been expected for the presidency of the OPEC nation with the biggest oil reserves in the world.
"This is going to be a long process ... and our people have to stay alert," Carlos Ocariz, national director of Capriles' team, told a news conference. "We want to know the truth. Once we see what happened last Sunday, a new phase can begin."
Ocariz said an opinion poll showed a majority of Venezuelans supported the call for a manual vote-by-vote recount, a more comprehensive review than the authorities agreed to conduct.
He also denounced what he said were cases of state employees being persecuted over suspicions they voted for the opposition.
Meanwhile, the CNE sought to temper the hopes of Capriles supporters that the audit will produce a different outcome.
"We will not let something that aims to verify whether the system worked be turned into a sort of public impeachment that tries to question the results," CNE rector Sandra Oblitas told reporters at the council's headquarters.
"As always, when the CNE announces results to the country, it is because they are irreversible."
The body's president, Tibisay Lucena, has also cautioned against anyone raising "false expectations" from the audit.
On Thursday, the electoral authority said it would widen to 100 percent an audit of electronic votes from a previous audit on election day that reviewed 54 percent of the machines.
Venezuelans vote electronically, but the machines also print out paper receipts of each vote that are kept in boxes. The audit involves counting the paper ballots at some stations to ensure they are consistent with the machine-tallied results.
MADURO SWORN IN
Maduro, a burly former bus driver whom Chavez named as his preferred successor before dying from cancer last month, was sworn in on Friday at a ceremony in Caracas attended by heads of state including the leaders of Brazil, Argentina, Cuba and Iran.
In his first speech as president, Maduro paid homage to his late boss, and at times seemed to reach out to the opposition. "I'm ready to talk even with the devil," he said.
At other times, the 50-year-old revived his combative language from the campaign trail, condemning his rivals as fascists who wanted chaos and had tried to unseat him in a coup.
As well as welcoming high profile guests such as Brazil's President Dilma Rousseff to his inauguration, Maduro has also received the backing of South America's Unasur bloc of nations, whose leaders met in Peru the night before the ceremony.
Among the presidents who flew on to Venezuela after debating the post-election dispute was Argentina's Cristina Fernandez, who on Saturday visited the hilltop military museum in Caracas where the marble sarcophagus of her close friend and ally Chavez is on display.
"I felt a knot in my stomach and my eyes filled with tears," she said on Twitter, describing how loudspeakers in the museum played a recording of Chavez singing the national anthem.
Fernandez's vocal support for Maduro brought a sharp response from Capriles, who says Chavez frittered away Venezuelans' birthright by "gifting" oil revenue to political allies through subsidized fuel supplies and other aid.
"Has Argentina's president brought a check for the millions of dollars she owes the Venezuelan people?" he asked on Twitter.
"It is the people who funded Senora Cristina's election campaign ... To those who are visiting Venezuela and owe us, we ask you to PAY! Those resources belong to the people."
(Additional reporting by Pablo Garibian; Editing by Andrew Cawthorne and Paul Simao)
Venezuela is in total confusion. After the vote Capriles asked for a recount and Maduro accepted. Then Maduro did an about face. A couple of days later Maduro accepts an audit but the CNE, the election board does not go along and wants to send the mess to the supreme court, a bunch of hand picked Chavista judges.
The opposition is banging on pots and the Chavistas are firing unending barrages of fireworks. If there is an alien civilization near by, they will pick up planet Earth by our noise. I don't have a cue how this will end.
Historically tyrannical governments that don't let go of the iron grip are very hard to remove but at any sign of weakness they can quickly cave in. I mentioned the other day that was was coming was a game of chicken but tis is ridiculous. First Maduro blinks then about turns. Then Capriles takes a hard stand but blinks when threatened with violence. Now Maduro blinks again but the CNE takes a hard stand. How can anyone make heads or tails of it?
Yesterday Miguel had this to say:
Maduro Blinks, Recount Will Take Place » Madurosilla
Despite all the bravado, all the refusal to recount and even Luisa Estela’s opinion, the CNE spent a full nine hours yesterday discussing the possible recount and magically. an hour before UNASUR was to recognize Maduro but strongly request a recount, the CNE announced that the 46% of ballot boxes would be audited.
You have to realize that the other 54% was not 100% audited and that an audit is truly a recount, as votes, machines and voting notebooks have to match in detail.
So, what happened? Simply, Maduro was forced to blink. It was not only UNASUR, but also the Venezuelan military that exerted its pressure and force the acceptance of the recount that Maduro had backtracked on. And opposition radicals can claim what they want, but 46% is statistically VERY significant. Any discrepancy, any irregularity, any inconsistency will certainly come out in this audit.
Maduro may look really bad after this recount…
What Maduro and his cronies did not realize is how sensible a recount sounds no matter how partisan you may be. Thus, internationally, Maduro accepting the recount only to “recular” (go back) the next day, looked certainly suspicious to say the least.
For Capriles, this is a win-win situation. He knows the hundreds of irregularities in the voting and his team will focus on it. Any ballot box not present, any inconsistency and those votes will be subtracted from Maduro’s lead. Add Capriles 57,000 international votes and Maduro’s lead of 270,000 could easily melt into the 100,000 lead.
And make him look even weaker.
And what do you say at that point? If all irregularities add up to something significant, the road ahead could be quite difficult.What happens if Maduro’s lead is reduced to 100 thousand or even less? Do they audit the remainder votes?
But it could get tricky as soon as next week, when the audit begins and Capriles’ team asks for international observers and the CNE refuses them. Or Tibisay says in this audit no actual ballots will be counted. The road will not be easy or simple.
But I am told the military knows what happened in detail on April 14th.Thus, Maduro blinked, but not only because of UNASUR, but because the military knew what was happening on Sunday. The Government claimed all afternoon that Maduro was ahead by as much as 10%, only to announce a small (<2%) victory at the last minute and rushing the proclamation of Maduro, and event that has always taken two or three days to take place.
And the military is divided. Yes, they have opinions, but leadership, true leadership, is nowhere to be seen on either of the two sides. Or maybe they are afraid to show their true colors.
But in the meantime, Maduro blinks and backtracks, Tibisay goes back on her words and Luisa Estela is made to look like the obeying fool everyone knows she is.
The whole thing is more volatile than most people imagine. Maduro was weak, even if he won. But his performance since has weakened him even further, while many of his comrades wonder why Hugo picked Nicolas, if they are so much better than him.
Things could change so fast, that I can’t predict a month, let alone a year. And as I had suggested before the election, politics is a new game in Venezuela. Chavez dominated politics and the agenda for fourteen years, but Capriles has lead the first political fight of the post-Chavez ear and he seems to have won resoundly.
In fact, Maduro may want to sound tough, but in reality nobody fears him, after all, Capriles and others already made him blink…
Capriles blinked first, we lose again. There is this incredibly naive belief that dictators can be dethroned by voting, history to the contrary. In 2002 I did a survey of the life expectancy of a number of well known dictators, from our very own Juan Vicente Gomez and including such notables as Mao, Hitler, Stalin, Franco, Oliveira Salazar, Castro, Saddam Hussein, Chapita (Rafael Trujillo) and a few others.
These were ousted or killed outright
Allende Bishop Chapita Hitler Noriega Mussolini Saddam
all but one (Chapita) was done in by a foreign power. These died of natural causes:
Juan Vicente Gomez
Antonio Oliveira Salazar
Mao Tse Tung
1959-? ? ?
Hugo Chavez Frias
Based on these observation I forecast that Chavez would die of natural causes while still in power. i was spot on even if I didn't figure he'd go early victim of cancer. It's hard to tell this early if Maduro will grow into the job but so far he is playing the dictator perfectly. To stay in power you have to be ruthless and the other side has to blink, which it did.
Canceling the march “was a responsible thing to do because you cannot win the battle when Maduro has all the guns and tanks,” Dallen said in a phone interview from Caracas. “But this is not the end of it at all.”
Not the end but another six years of Chavista dictatorship.
Capriles Calls Off Protest After Venezuela Threatens Crackdown 2013-04-17 03:30:01.0 GMT By Charlie Devereux and Corina Pons
April 17 (Bloomberg) -- Venezuelan opposition leader Henrique Capriles Radonski took a step back from the brink of a mounting confrontation with the government by calling off a march planned for today to protest the results of the April 14 presidential election.
Capriles acted after Nicolas Maduro, proclaimed the winner by the national electoral council, vowed to come down with a “firm hand” on opposition supporters and seven people died in political violence, according to the public prosecutor. Capriles urged supporters to bang pots and pans at home to avoid violence. Maduro responded by telling his followers to drown out the protest with fireworks and music.
“We know that your agenda in the government is to try to get the country into a situation of confrontation and violence,” Capriles, 40, told reporters yesterday in Caracas. “Tomorrow we won’t mobilize.”
Tensions have escalated in Venezuela after a close result in an emergency election following the death of President Hugo Chavez March 5. While Capriles’ gesture averts the likelihood of bloodshed for now, Maduro’s response points to a protracted conflict, said Gregory Weeks, head of the department of political science at the University of North Carolina in Charlotte.
“This eases the tension, but I don’t know for how long,” Weeks, former director of Latin American studies at the university, said in a phone interview. Maduro’s response “is in many ways a provocation.”
Venezuela’s dollar-denominated bonds fell the most in almost 15 years yesterday as traders anticipated political instability will undermine the economy. Inflation accelerated to 25 percent in March, the fastest official rate in the region. The central bank’s scarcity index, which measures the amount of goods that are out of stock in the market, rose to a record high of 20.4 percent in January.
Maduro will be sworn in on April 19 even as the opposition insists irregularities affected about 300,000 votes, enough to overturn the result. Capriles said he believed he had won the election and is ready to concede defeat if a recount confirms Maduro’s victory.
Maduro said he didn’t recognize Capriles as the governor of Miranda state. Capriles, who the electoral council said took 49 percent of the votes, temporarily stepped down as governor to run for president. Maduro won the race with 50.8 percent of the votes, the council said.
“I’m going to take legal measures, because you have violated the constitution and assassinated the people,” Maduro said, referring to the opposition leader, after the march was called off.
The nationwide protests also left 61 injured and led to the arrest of 135 people, Public Prosecutor Luisa Ortega Diaz said. Opposition protesters have attacked health centers and local offices of the ruling socialist party, Maduro said.
“You won’t go to downtown Caracas to fill it with blood and death,” Maduro, 50, said yesterday in comments broadcast on state television. “This is a chronicle of a coup foretold.”
Capriles, in an interview with CNN’s Spanish-language channel yesterday, said “the government wants violence. We are calling for peace.”
In 2002, Chavez was overthrown for two days after opposition street protests in Caracas turned violent. A decade earlier, Chavez became a national figure by leading military rebels in a failed coup against President Carlos Andres Perez.
Protests should die down in the coming days or weeks after the march was canceled, said Francisco Rodriguez, senior Andean economist at Bank of America Corp. Rodriguez said he thinks Capriles doesn’t have enough evidence to overturn the result.
The country’s bonds due in 2027 dropped 6.89 cents to 91.22 cents on the dollar yesterday, the biggest decline since August 1998. The yield rose 95 basis points, or 0.95 percentage point, to 10.44 percent, the highest since November.
Bonds will continue to fall as the future of Venezuela remains unclear amid the political dispute and the potential of violence remains high, said Russell Dallen, the head trader at Caracas Capital Markets.
Caracas was flooded with music, fireworks and the sound of pots and pans being banged last night for more than an hour as supporters from both sides showed loyalty to their leaders.
Chavez, who tapped the world’s biggest oil reserves to reduce poverty, left the country polarized as he nationalized more than 1,000 companies or their assets and implemented currency and price controls that created food shortages and fueled inflation.
Canceling the march “was a responsible thing to do because you cannot win the battle when Maduro has all the guns and tanks,” Dallen said in a phone interview from Caracas. “But this is not the end of it at all.”