Archive for September 6th, 2012

Chavez’ Ever Morphing Petrorinoco Investment Instrument

September 6, 2012

Remember the Petrorinoco bonds that Chavez said would be used to pay Bs. 40 billion in debt the Government has with public sector workers? Above is the picture of the “bond” Chavez showed in national TV (That’s his hand). However after handing out less than Bs. 1 billion and after failing to issue an official gazette with the conditions of the “bond”, not much was heard again and the electoral promise of handing out billions seemed to die away.

Another failed promise of the fake revolution?

Well, we still don’t know. We now hear from another non-financial expert of the Cabinet (Chavez is the other one) Minister of Higher Education Yadira Córdova that the “bonds” are not going to be quite bonds.

According to Mrs. Córdova (or is it Dr. Córdova?) the investment instrument to be used in paying the public workers can be better defined as “A system or certificate of payment with defined financial characteristics” and that they will have a trust backing it.

To clarify the ever morphing financial instrument, whose main purpose seems to try to obtain votes, Dr./Mrs. Córdova added: “The subject of severance pay is complicated and you can not generate an obligation without it being in the budget”

At this point, you are all lost, so is she. This is not an “obligation”. This is the law, which the Government has bypassed for 14 years, while the private sector can’t miss a payment because the Government raises hell. But the Chavernment is the Chavernment and they are in a world where the rule of law can be suspended at their will. But even worse, is the fact that a bond is precisely that, a promise of payment with a financial instrument, backed by the Government, a trust or whatever. Chavez’ Government did it before and they were called Vebonos.

In closing, the Minister put the nail in the coffin by saying: “There is not a definite date for payment of the labor debt”

Oh Yadira, public workers know that, they haven’t been paid in fourteen years, do you think they believe you one month before the election that you will pay this time?

In the end, using Hugo’s words, the Petrorinoco, is simply part of the show. And as an infamous aspiring little Dictator of Venezuela once said: “The show must go on”

And it does…