The Devil's Excrement

Hugo Chavez has nominated Marxist Economist Gaston Parra Luzardo as the next President of the Venezuelan Central Bank. Parra Luzardo is currently Vice-President of the Central Bank and is best known for his brief stay as President of PDVSA March 2002 to April 10th. 2002, which caused the protests that led to Chavez brief departure on April 11th., after more than twenty people died and over one hundred were injured. He is best remembered by his speech in the National Assembly in March 2002, a passionate attack on PDVSA, given in the best old style of the fourth Republic. He is retired from the University of Zulia and has been a Vice-President of the Central Bank since 2000.

Parra Luzardo is not the most modern economist in the world, to say the least, and you can be sure there will be interest rate controls soon after his nomination is confirmed and the Central bank starts handing over foreign exchange profits. Curiously, after Chavez criticized the current President as being too old, he is 74; the new President is 71 so it is not clear exactly what Chavez meant by that. This is likely to be the beginning of the demise of the only semi independent institutions left in the country.

The folklore surrounding the decisions by the Venezuelan Electoral Board has now become so legendary that last week humorist Laureano Marquez suggested the CNE might decide that Carlos Andres Perez’ election in 1998 will be declared void by the current CNE, only as a way of making sure that Chavez’ coup can no longer be characterized as one and give firm ground to our President’s accusation against the opposition.

Such is the folklore that I actually forgot to report that the CNE decided last week to declare void the election b the CTV, the Confederation of Unions. Now, understand these union elections are not very recent, they took place in 2001, but actually the current leadership of CTV has already called for new elections to replace those that won at that time three years ago.

Today, Provea, a human rights organization that our distinguished* President used to quote often when he was only a candidate held a press conference to point out how this decision by the CNE violates not only the law, but the right to unionize freely. This right is actually guaranteed by Article 95 of the Venezuelan Constitution.

But it also violates the Agreement with the International labor Organization, which actually has constitutional hierarchy, according to which public authorities have to abstain from participating in the administration or activities relation to unions and the freedom of labor association.

CTV decided today to walk a very fine line and used the regulations of the CNE but control its own electoral process. We are sure this will not be allowed by the Chavez Government who despises unions. But in the end it will all depend on the final result. Last time around, the anti-Chavez leaders of CTV took over 50% of the vote versus 19% by the pro-Chavze candidate and current Minister of Education Aristobulo Isturiz.

*adjective used to comply with the new Penal Code.

The folklore surrounding the decisions by the Venezuelan Electoral Board has now become so legendary that last week humorist Laureano Marquez suggested the CNE might decide that Carlos Andres Perez’ election in 1998 will be declared void by the current CNE, only as a way of making sure that Chavez’ coup can no longer be characterized as one and give firm ground to our President’s accusation against the opposition.

Such is the folklore that I actually forgot to report that the CNE decided last week to declare void the election b the CTV, the Confederation of Unions. Now, understand these union elections are not very recent, they took place in 2001, but actually the current leadership of CTV has already called for new elections to replace those that won at that time three years ago.

Today, Provea, a human rights organization that our distinguished* President used to quote often when he was only a candidate held a press conference to point out how this decision by the CNE violates not only the law, but the right to unionize freely. This right is actually guaranteed by Article 95 of the Venezuelan Constitution.

But it also violates the Agreement with the International labor Organization, which actually has constitutional hierarchy, according to which public authorities have to abstain from participating in the administration or activities relation to unions and the freedom of labor association.

CTV decided today to walk a very fine line and used the regulations of the CNE but control its own electoral process. We are sure this will not be allowed by the Chavez Government who despises unions. But in the end it will all depend on the final result. Last time around, the anti-Chavez leaders of CTV took over 50% of the vote versus 19% by the pro-Chavze candidate and current Minister of Education Aristobulo Isturiz.

*adjective used to comply with the new Penal Code.

Venezuela’s sovereign debt rating was cut to selective default by S&P over a technicality. Essentially the country missed a debt payment of roughly US$ 35 million last October and this creates a technical default even if the country is willing to pay and is up to date in other payments.

The missed payment results form oil-linked warrants that were issued in 1990 as part of the Brady restructuring of the country’s debt. Basically, each “unit” of the so called PAR bonds was attached to one of these oil-linked notes and the warrants made sporadic payments which depend on the difference between the exports price of the Venezuelan oil basket and a preset reference price. The missed payment corresponds to the period 2001-2004.

The Government argues that it has not been able to calculate exactly how much I ahs to pay and that it expects to make payment in the next fifteen days. The argument is that there is no data for the period of the 2002-2003 oil strike.

Others claim this is simply part of the absolute disorganization and lack of management by the Government at this time. Supposedly, nobody remembered to make the payment and it was not until a bond holder complained to the payment agent that S&P started finding out whether a payment had been missed or not. The B rating will be reinstated as soon as payment is made.

Venezuela’s sovereign debt rating was cut to selective default by S&P over a technicality. Essentially the country missed a debt payment of roughly US$ 35 million last October and this creates a technical default even if the country is willing to pay and is up to date in other payments.

The missed payment results form oil-linked warrants that were issued in 1990 as part of the Brady restructuring of the country’s debt. Basically, each “unit” of the so called PAR bonds was attached to one of these oil-linked notes and the warrants made sporadic payments which depend on the difference between the exports price of the Venezuelan oil basket and a preset reference price. The missed payment corresponds to the period 2001-2004.

The Government argues that it has not been able to calculate exactly how much I ahs to pay and that it expects to make payment in the next fifteen days. The argument is that there is no data for the period of the 2002-2003 oil strike.

Others claim this is simply part of the absolute disorganization and lack of management by the Government at this time. Supposedly, nobody remembered to make the payment and it was not until a bond holder complained to the payment agent that S&P started finding out whether a payment had been missed or not. The B rating will be reinstated as soon as payment is made.

Venezuela’s sovereign debt rating was cut to selective default by S&P over a technicality. Essentially the country missed a debt payment of roughly US$ 35 million last October and this creates a technical default even if the country is willing to pay and is up to date in other payments.

The missed payment results form oil-linked warrants that were issued in 1990 as part of the Brady restructuring of the country’s debt. Basically, each “unit” of the so called PAR bonds was attached to one of these oil-linked notes and the warrants made sporadic payments which depend on the difference between the exports price of the Venezuelan oil basket and a preset reference price. The missed payment corresponds to the period 2001-2004.

The Government argues that it has not been able to calculate exactly how much I ahs to pay and that it expects to make payment in the next fifteen days. The argument is that there is no data for the period of the 2002-2003 oil strike.

Others claim this is simply part of the absolute disorganization and lack of management by the Government at this time. Supposedly, nobody remembered to make the payment and it was not until a bond holder complained to the payment agent that S&P started finding out whether a payment had been missed or not. The B rating will be reinstated as soon as payment is made.

The Minister of the Enviroment supposedly got fired for falling sleep during Chavez’ State of the Union address last Friday. I wonder if the Minister of Defense (left), Minister of the Interior (middle) and the guy who brings Chavez his coffee (right) got a warning!

One of the arguments which have been used quite a few times by Venezuelan authorities in the Granda case was that he was not added to the Interpol list of wanted persons until January 9^th. Of this year. This is somewhat ridiculous as you would have to be really naïve to believe that the Foreign Minister of the FARC has had no relations or contacts with the Chavze Government ever. In fact, there are official Government documents that I quoted in my earlier timeline of the Granda case that show that Venezuelan Government officials, specifically the Minister of the Interior and Justice, intervened in favor of Granda’s family twice and reportedly (there is no proof, only testimony) Granda himself was present on at least one of these occasions.

Thus, the excuse that Granda was not in the Interpol list is childish and one more attempt by the Venezuelan Government to twist the truth and explain away the unexplainable.

Well, tonight both the Associated Press and EFE are reporting that Granda was in the Interpol list since January 5^th. 2004. In both cases the source of the news appears to be “Colombian Government Officials” and EFE even lists the other seven members of the FARC that the Colombian Government had said that they had asked the Venezuelan Government about, which include among others: Luis Edgar Devia, alias “Raúl Reyes”,; Marco León Calarcá, alias “Oliverio Medina” or “Cura Camilo”, and Nubia Calderón.  I wonder if they are busily removing them from the Electoral Registry right now, like they did on Granda’s case?

—-It turns out that this paragraph in Manuel Caballero’s article yesterday, entitled ‘Welcome Granda”, was not a joke, he is very serious about this charge:

“A friend of mine, originally from the state of Trujillo and who is famous for being overly generous, complete these two conditions with a very fertile imagination. So that I would believe him, he swore by my Virgin the Divina Pastora that he witnessed in the Presidential Palace when the current crazy one, not only handed him personally and in the name of the Republic, and by the authority bestowed on him by the law, the documents as a Venezuelan national to the Foreign Minister of the FARC (Granda), and with a smile on his face, welcomed him with the words that serve as the title of this article (Welcome Granda)…”

Expect more from this source in the next few days!

—-And then there is the fired Minister of the Environment, who reportedly was fired because she fell sleep during Chavez’ State of the Union speech. Lucky her! She did not have to listen to him that day and she does not have to listen to him anymore!

—-And for our final puzzle tonight, recall that Chavez first action in the Granda crisis was to suspend “all commercial trade with Colombia”, so why does the Minister of Information say today that trade “has not suffered any delays” and that “traffic, the smuggling of gasoline has been restricted as part of an operation by the Armed Forces….but the rest of the commercial flow continues normal”. Hold it! Whatever happened to Chavez decision? Don’t these guys listen to what he says? Can I file this under another broken promise? Am I the only one that is confused?

—-And as the Venezuelan Government and its Foreign Minister, the honorable Ali Rodriguez, attempt to tell the world that they want nothing to do with terrorists or the FARC, 11abril.com, reminds us that Rodriguez is in the Editorial Board of a magazine called America Libre with the honorable company of none other than Manuel Marulanda Velez alias “Tirofijo” and Chief of the FARC! Way to go Ali! Very consistent! We believe you!

—-It turns out that this paragraph in Manuel Caballero’s article yesterday, entitled ‘Welcome Granda”, was not a joke, he is very serious about this charge:

“A friend of mine, originally from the state of Trujillo and who is famous for being overly generous, complete these two conditions with a very fertile imagination. So that I would believe him, he swore by my Virgin the Divina Pastora that he witnessed in the Presidential Palace when the current crazy one, not only handed him personally and in the name of the Republic, and by the authority bestowed on him by the law, the documents as a Venezuelan national to the Foreign Minister of the FARC (Granda), and with a smile on his face, welcomed him with the words that serve as the title of this article (Welcome Granda)…”

Expect more from this source in the next few days!

—-And then there is the fired Minister of the Environment, who reportedly was fired because she fell sleep during Chavez’ State of the Union speech. Lucky her! She did not have to listen to him that day and she does not have to listen to him anymore!

—-And for our final puzzle tonight, recall that Chavez first action in the Granda crisis was to suspend “all commercial trade with Colombia”, so why does the Minister of Information say today that trade “has not suffered any delays” and that “traffic, the smuggling of gasoline has been restricted as part of an operation by the Armed Forces….but the rest of the commercial flow continues normal”. Hold it! Whatever happened to Chavez decision? Don’t these guys listen to what he says? Can I file this under another broken promise? Am I the only one that is confused?

—-And as the Venezuelan Government and its Foreign Minister, the honorable Ali Rodriguez, attempt to tell the world that they want nothing to do with terrorists or the FARC, 11abril.com, reminds us that Rodriguez is in the Editorial Board of a magazine called America Libre with the honorable company of none other than Manuel Marulanda Velez alias “Tirofijo” and Chief of the FARC! Way to go Ali! Very consistent! We believe you!