Chavez shakes up PDVSA’s Board

May 26, 2011

In a surprise move, President Chavez shook up the Board of Venezuela’s oil company PDVSA. Chavez removed half of the Board, including many long time members during Chavez. But the name that jumps out the most is that of PDVSA’s CFO Eudomario Carruyo, who was responsible for the Pension Funds that invested close to half a billion dollar in a fund that turned out to be a Ponzi scheme and was managed by a former consultant to PDVSA. Carruyo washed his hands in the matter and the company President said he will replace the missing funds.

Others removed from the Board were the internal Director for Production Luis Pulido, the Head of the Gas Division Carlos Vallejo, Planning Director Fadi Kabboul and Research Director Hercilio Rivas. Pulido and Kabboul had also been involved in scandals in the past, including the rotten food scandal, but appeared to be untouchable.The new internal members are Victor Aular, Jesus Luongo, Orlando Chacin, Ower Manrique and Willis Rangel (from the union)

Curiously, Gral. Aref Richany, President of the Government’s weapons manufacturer CAVIM, which was also included in the sanctions by the US State Department, was also removed from the Board. As I have suggested, the CAVIM sanction was a message to the Venezuelan Government and it was clearly understood.

As external members Chavez named Foreign Minister Nicolas Maduro and Planning and Finance Minister Jorge Giordani. This indicates that Giordani continues to have the ear of the President and he is likely to impose more control over the oil company’s finances and debt issuing now that he is on the Board.

14 Responses to “Chavez shakes up PDVSA’s Board”

  1. Tom O'D Says:

    Please notify me of new posts – Thanks

  2. GWEH Says:

    Nomi, I can guarantee you that the DEA did not capture Makled in Colombia for nothing and that the Manhattan DA did not prepare indictments because they have nothing better to do and that the fight was down to the wire and my comments where there for a purpose.

  3. jau Says:

    Maduro, really? wow, depressing.

    What a sad day for PDVSA, talk about meritocracia!!!

    We now know the true colors of Giusti, but MADURO!!! come on!!!

  4. nomi Says:

    Just FYI, GWEH is the same person that assured everybody that Makled was going to be extradited to the US. He knows people in high places, I guess…

  5. GWEH Says:

    Gerry, RR is very powerful and cannot be replaced just like that. The sanctions are inconsequential… USGOV (i.e. POTUS) is afraid of Chavez that is why AG Holder said Makled was nobody and stalled on the extradition request. Manhattan DA did have the indictments ready. It’s election time on both sides so nothing should happen

  6. GWEH Says:

    Carruyo father and son have made a name for themselves… remember Jr crashed his Lamborghini in Miami killing his passenger (dui vehicular manslaughter) and received unheard of ONE YEAR HOUSE ARREST (he had the best attorney in town for this matter). Jr flew the coup and surfaced in Venezuela… he’s now a fugitive from US justice.

  7. Gerry Says:

    If he had replaced Rafael Ramírez then we would know Chavez was serious in believing the U.S. sanctions ‘might’ be lifted.
    However, as he did not replace R.R., Chavez recognizes that he, himself, authorized the shipments to Iran. But R.R. is not ready to be thrown under the bus “just yet”.
    Until’ there is a new government and completely new Board for P.D.V.S.A., the sanctions will stick.
    Other governments’ oil and gas companies might become more cautious in dealing with P.D.V.S.A., (think Brazil). What sanctions could the U.S. impose on joint ventures, or the like, if the non-Venezuelan entity were dealing with P.D.V.S.A.

  8. HalfEmpty Says:

    It’s still nothing. A puppet board is changed a smidgen. Life will go on.

    Meanwhile…. I advise some ex-boardmembers, to shake the dust… as it were.,…


  9. Ira Says:

    So in other words, Kepler was wrong in saying the U.S. sanctions would mean nothing?

    And wrong not even weeks or months later, but a mere two DAYS later?

    But you have to say something in defense of him, because he was wrong with 90% of the other posters on this subject, who said these sanctions mean nothing.

    And I guess if you consider Hugo’s total reshaping of PDVSA as “nothing,” those comments warrant some merit.

    However…in the real world…

    These sanctions shook Hugo to his stupid red socks and beret, and like the idiot that he is, he thinks that rearranging the PDVSA leadership so quickly after the sanctions (two days!!!), is going to absolve him from blame and further scrutiny.

    The man is a total idiot, with 1930s sensibilities that mirror Mussolini, Hitler, Hirohito, and even America’s Joe McCarthy of the 50s who fought communism where it didn’t even exist:

    Stupidity lives on both sides of the political spectrum, as well as on the side of many posting here.

    When someone claims to be an expert, you can certainly be assured they’re not.

  10. loroferoz Says:

    Maduro and Giordani. What are they supposed to do, exactly?

    They have been mentioned over and over. However, if they are in any manner relevant to activities in PDVSA, this board change sounds, like the proverb said:

    “Arreglar un roto con (un) dos descosidos ”

    Fixing a rip in the fabric by unraveling it.

  11. A_Antonio Says:

    Puros bates quebrados…

  12. […] thanks to the Devil for alerting me to this news. Click for his clear, concise analysis of the changes. […]

  13. BigFire Says:

    Shuffling deck chair on Titanic while the ship goes down?

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