The Devil's Excrement

The Minister of Energy and Mines Rafael Ramirez demonstrated that he does not recognize the law, when today he called for the PDVSA workers to be kicked out of the oil camps, which no Court has ordered, as well as saying that it would be “unfair” to pay the fired workers severance pay, as the law mandates. Severance pay is such an integral part of labor laws (for good or bad, it is simply that way) that the law says you can not seize severance pay legally in any way. Moreover, workers have not been paid their savings in voluntary pension plans, which are also theirs. The Minsiter wants to argue that these workers did damage to the country and thus should not get their money. This includes 18,000 fired workers, including secretaries. Legally you would have to prove that each individual did damage and that the value of the damage is higher than their savings, their severance could not be touched.

Now, what appears to me to be shortsighted is that any upcoming Government could deny Minister Ramirez his severance and his pension, because it will be very easy to prove that HE has done damage to PDVSA and that such damage is more than what is owed him, that he is an incompetent and a liar and that he has violated repeatedly the rights of the company’s workers. To think that these guys claim to be running a compassionate revolution. What a farse!

I like people that keep track of items in the news. That is one nice thing about blogs; you can keep track of everything. Sometimes I wish I kept better track of things, like in today’s  timeline by Tal Cual about the multiple statements by the bumbling Minister of Energy and Mines and PDVSA’s President on whether PDVSA will hand in its financial statements. After saying all during June that they would do it on time, here is what has happened (from Tal Cual):

June 27^th. : Ali Rodriguez (President of PDVSA) says that they are awaiting the financials from January and February to close the books and they have asked the SEC for a fifteen day extension

June 29^th. : The President of PDVSA says that even though they could ask for a second extension, they expect to submit the statements on time (extension expired today)

June 30^th. : PDVSA Finance hands in its financials in form 6K (should have been 20K) and requests an extension

July 1^st. Minister of Energy and Mines Ramirez says that PDVSA handed in its financials, not true it was PDVSA Finance its affiliate.

July 14^th. Ramirez announces that the books have been closed and will be audited in 15 days and the results presented to the shareholders and then to the SEC.

 (Now, to those that don’t know this, it usually takes two to three months to audit the financials of a company, so Ramirez has no clue about what he is talking about and PDVSA will simply not be able to hand them in for at least a couple of months. This is the “new” PDVSA. Moreover, what if the auditors question some things in the financials?)

I like people that keep track of items in the news. That is one nice thing about blogs; you can keep track of everything. Sometimes I wish I kept better track of things, like in today’s  timeline by Tal Cual about the multiple statements by the bumbling Minister of Energy and Mines and PDVSA’s President on whether PDVSA will hand in its financial statements. After saying all during June that they would do it on time, here is what has happened (from Tal Cual):

June 27^th. : Ali Rodriguez (President of PDVSA) says that they are awaiting the financials from January and February to close the books and they have asked the SEC for a fifteen day extension

June 29^th. : The President of PDVSA says that even though they could ask for a second extension, they expect to submit the statements on time (extension expired today)

June 30^th. : PDVSA Finance hands in its financials in form 6K (should have been 20K) and requests an extension

July 1^st. Minister of Energy and Mines Ramirez says that PDVSA handed in its financials, not true it was PDVSA Finance its affiliate.

July 14^th. Ramirez announces that the books have been closed and will be audited in 15 days and the results presented to the shareholders and then to the SEC.

 (Now, to those that don’t know this, it usually takes two to three months to audit the financials of a company, so Ramirez has no clue about what he is talking about and PDVSA will simply not be able to hand them in for at least a couple of months. This is the “new” PDVSA. Moreover, what if the auditors question some things in the financials?)

In a little noticed decision, the Venezuelan Supreme Court voided a section of the Land Bill which allowed  infamous “burping” General Acosta Carles to take over a soda and beer distribuitor last January. The Court said that Judges may not use this Bill in emergencies to take property away from people. The suit was presented by the Polar beer company and in a rare case, the Court decided on the substance of the issue even though it was a request for an injunction.  

While I have been expecting that the Chavistas will use any trick in the book to stop the recall referendum, I have been somewhat surprised by their second salvo in this battle. (The first being not agreeing on the composition of Electral Board (CNE)). As suggested by MVR Deputy Maduro last week and confirmed today, the strategy is going to be simply that they will refuse to accept that the Supreme Court pick the CNE as established by law. According to Deputy Maduro, for the TSJ to name the CNE would be an intromission of one power in another. The threat is that they would not recognize the new authorities and the MVR Deputies would “take to the streets”, whatever that means, in order to show that they do not recognize the Supreme Court on this matter. Umm, are we going to from Chavez is the law, to MVR is the law?