The Devil's Excrement

I have repeatedly argued, whenever I have been allowed to say so, that Venezuela needs more democracy in the selection of both party leaders and candidates, because it seems as if most political parties in Venezuela were created to satisfy the ambitions of one person and that there is no common vision for Venezuela, but that of the individual leaders who create and control these parties, in ways that would make Stalin proud.

The usual argument against my idea of more democracy is that any primary-like process to elect party leadership or candidates would cost a lot of money and in the end wear out political figures.

I don’t buy it, I think that rather than “wearing out” what any primary process would do is to “weed out” those that have little acceptance by the voters, despite their personal belief that they are what the country needs. In fact, I think that a primary within a party will get little attention outside of those involved and candidates from various opposition parties could then meet at a run-off election which if held within a short period of time after the party primaries, would not be able to “damage” candidates as many believe would happen.

This all comes to mind because this weekend Chavez’ new party PSUV, held primaries to elect the leadership for the next few years. While you can criticize many things about the process, such as the fact that Government resources were massively used for a party activity, that only candidates that had Chavez’ blessing made it to the final list and the process had close control fromm party authorities, I have to praise the fact that some form of democratic process took place and that in itself is a huge progress to me.

But even more interesting, is the fact that the results were quite different from what everyone expected. The election selected principals and alternates for the party leadership and surprisingly, the man most likely to succeed Chavez if can’t run for a third (or fourth?) period in a row, Diosdado Cabello, failed to make it as a principal to everyone’s surprise. He will have to be happy as an alternate.

And he was not alone, as other leading figures of Chavismo, such as Hector Navarro, Freddy Bernal, Luis
Reyes, Rafael Rami­rez, Willian Lara, Ramon Rodri­guez
Chaci­n and Rodrigo Cabezas, also failed to make the cut as principals, as lesser figures such as Aristobulo Isturiz, Adan Chavez, Mario Silva, Jorge
Rodri­guez, Antonia Munoz and Carlos Escarra did make it, proving that even almighty and seer Chavez can be wrong also about who can get elected or not in Venezuela. In fact, it is relevant to note that in a machista/militaristic Chavista leadership, seven out of the ten women won the election as principals. Similarly, only one, yes just a single one of the five former military in the running made it as principals, sort of the antithesis of the structure of the  Chavez Government.

And while I certainly believe there were orders from above to vote in a certain way, I do not believe that Diosdado Cabello was not among the chosen few, nor do I believe that Aristibulo Isturiz was among those favored by the leader himself.

Which indirectly proves my point about the opposition and the need for more democracy: they should allow the party members to elect candidates and leaders, because those that they see as their “natural” leaders may be nothing more than political mirages, within their own Stalinist structures.

And the PSUV elections show this, despite the strict “controls” and candidate selections, the PSUV party members, however few of them actually voted, silently rebelled in their own way.

Maybe if the opposition allowed the people and their members to shake them up and rebel, Venezuela politics will be irreversibly changed forever.

Just because there was more democracy…

Venezuelan Industrialist Describes Corruption, from today’s Wall Street Journal

(In Spanish here)

In December, Venezuelan multimillionaire Franklin Duran told agents from
the U.S. Federal Bureau of Investigation that he loved traveling to his
mansion on the wealthy island enclave of Key Biscayne to “scuba dive,
swim with the dolphins and have peace of mind.”

Peace of mind for Mr. Duran may be hard to find these days. The owner of
Industrias Venoco CA, a leading Venezuelan petrochemical company and
lubricants manufacturer, is being held without bail in Miami on charges
related to a cash-stuffed suitcase at the center of an international
scandal involving the U.S., Argentina and Venezuela. He could face up to
five years in prison and a $250,000 fine.

After his December arrest, Mr. Duran was interviewed by FBI agents. In
the FBI’s account of the interrogation, a copy of which was reviewed by
The Wall Street Journal, he described widespread corruption in the
Venezuelan government of Hugo Chávez. At one point in the interview,
according to the FBI account, Mr. Duran says his rise as a businessman
was paved by bribing “politicians, government officials, and high ranking
officials.”

Mr. Duran’s statements also provide a fascinating glimpse into
Venezuela’s “Boli-burgueses,” or Bolivarian bourgeoisie, a class of newly
rich businessmen who share an extravagant lifestyle, boast close ties
with Mr. Chavez’s government and its self-proclaimed “Bolivarian
Revolution,” and make Miami their playground of choice.

According to the FBI account of the interrogation, Mr. Duran says the
only thing he is guilty of is “having lots of money, successful
businesses, many lady admirers and expensive cars.”

The case against Mr. Duran, 40 years old, and three co-defendants stems
from the August discovery at the Buenos Aires airport of a suitcase
stuffed with $800,000 in cash flown in on a private jet from Venezuela.
U.S. prosecutors say the money came from the Venezuelan government and
was destined for the presidential campaign of Argentina’s Cristina
Fernández de Kirchner. Ms. Fernández, now president, denies the
accusation.

Mr. Duran wasn’t on the plane. But the U.S. government says that he and
four other men flew to Miami in the months after the discovery to
pressure the man caught with the suitcase, a Venezuelan-American named
Guido Antonini, to cover up the source and destination of the money. The
men are accused of acting as unregistered agents of the Venezuelan
government in the U.S.

Edward Shohat, Mr. Duran’s lawyer, says his client is innocent. In court
filings, he said the prosecution is an attempt by the U.S. to smear
Venezuela’s government. In the filings, the lawyer says Mr. Duran was
merely giving advice to Mr. Antonini.

Two of Mr. Duran’s co-defendants, including his business partner in
Venoco, Carlos Kauffmann, have pleaded guilty to the charges in the case,
which in Latin America has been dubbed “Maleta-gate,” or “Suitcase-gate.”

A former auto mechanic from a lower-class family, Mr. Duran has tried his
hand at all kinds of businesses, including selling weapons and
riot-control equipment to Venezuela’s government. He won control of
Venoco after its former chief executive took part in a 2002 coup attempt
against Mr. Chávez.

During his talk with the FBI, Mr. Duran was nonchalant — and chatty. He
even waived his right to counsel. When FBI agents warned him it was a
crime to lie to federal officials, he disagreed. “Former President
Clinton and President Bush didn’t get into trouble for lying,” Mr. Duran
told the agents, according to the FBI’s account.

Like many of the Bolivarian bourgeoisie, the young businessman flaunts
his wealth and fast-paced lifestyle. He owns a $4.6 million waterfront
mansion in Key Biscayne, just a few miles from the downtown Miami
detention center where he now spends his days. Last year, Mr. Duran
totaled a $600,000 Porsche Carrera GT in the Gumball 3000 millionaires’
road rally in Europe. His driving partner was Mr. Antonini, the man
caught with the suitcase. Also taking part in the rally was the Venoco
co-owner, Mr. Kauffmann, driving a $500,000 McLaren Mercedes SLR.

Mr. Duran, Mr. Kauffmann and Mr. Antonini were all close friends and
partners. Mr. Antonini acted as Mr. Duran’s “CEO in the U.S.,” according
to the FBI document. The three shared a love for fancy cars. Mr. Antonini
even drove a Porsche Boxster with a bumper sticker that extolled Mr.
Chávez’s socialist revolution. “Venezuela is now for everyone,” it said.

Mr. Duran’s fortunes soared after Mr. Chávez came to power in 1999. In
2002, Messrs. Duran and Kauffmann bought Venoco from its owners shortly
after the company’s chief executive, Pedro Carmona, took a lead role in a
failed coup attempt against Mr. Chávez. During the coup, Mr. Carmona
named himself “interim president” until Mr. Chávez retook power two days
later. Mr. Carmona is still jokingly called “Pedro the Brief.”

After Mr. Chávez regained power, his government cut off supplies to
Venoco of oil derivatives that it needed to make its lubricants, and hit
the firm with surprise tax audits, making the company’s owners eager to
sell. “[It was] practically being given away,” recalled Mr. Duran to his
FBI interviewers, explaining his purchase.

In the FBI’s account of the interview, Mr. Duran said that his company’s
value has tripled since the purchase thanks to his government contacts
and an almost “symbiotic” relationship with state oil company Petroleos
de Venezuela SA, or PDVSA. Last year, Venoco bought a concession to
supply 49 service stations in the country from Exxon Mobil Corp. after
the Texas company decided to leave Venezuela over Mr. Chávez’s
nationalistic oil policy.

Mr. Duran said his business is helped by an intimate relationship with
Venezuela’s intelligence services, where he knows “everybody.” According
to the interrogation account, he told agents that another key to his
success is his habit of paying off important Venezuelan officials,
including “politicians, government officials, and high-ranking
officials.” Mr. Duran didn’t want to name names because of “fear of
retaliation,” the statement said.

A spokeswoman at Venezuela’s embassy in Washington said that she wasn’t
authorized to comment on Mr. Duran’s allegations of generalized
corruption within the Venezuelan government.

Despite his rise, Mr. Duran showed disdain for Venezuela’s political
masters — and his benefactors. “Venezuela is being governed by ignorant
and uneducated people,” he told the agents, according to the statement.

Mr. Duran’s lawyer, Mr. Shohat, wouldn’t confirm that Mr. Duran had made
those statements to the FBI, saying, “It’s what the FBI said he said.”
Mr. Shohat added: “I don’t see the post-arrest statement as problematic.”

Mr. Duran has come under scrutiny by law enforcement before. A decade
ago, U.S. and Venezuelan authorities investigated him for drug-money
laundering, records show. Two federal grand juries in the U.S. heard
testimony concerning Mr. Duran’s alleged money-laundering activities,
according to three people with knowledge of the matter and a review by
The Wall Street Journal of extensive legal correspondence. U.S.
authorities received detailed information on at least $13 million of
suspicious financial transactions made by Mr. Duran and his associates
from 1998 to 2001, according to the documents.

Mr. Duran was never charged, says Mr. Shohat, who declined to discuss the
substance of the money-laundering allegations. Grand-jury proceedings are
secret, and it wasn’t possible to determine the outcome of the
investigation.

In trying to persuade the judge in his current case to allow him bail,
Mr. Duran offered to hire a reputable security company to monitor
himself. The judge ruled that Mr. Duran, who owns a private jet, is a
flight risk, and denied him bail.

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