Archive for the 'Venezuela' Category

PDVSA Financials: A Magical Mystery Tour

June 10, 2009

For the last three days I have been staring at PDVSA’s financial statements. There are 161 pages of them. Supposedly audited by the same firm that has been doing that job since a while back. I like stuff like that. It may seem like boring reading to some, but numbers about Venezuela have become like a detective story. You keep tabs on Fonden, so that you can keep tabs on PDVSA, so you can check what the Central Bank says.

But it no longer works.

Assume for the sakes of argument, that PDVSA’s financials are right, audited after all by the local partners of a well known international accounting firm. Let’s say that is written in stone. I believe it. You too.

Then we are in trouble. Real trouble. Because in February the Venezuelan Central Bank (BCV) told us (and I believed them) that PDVSA had paid US$ 36 billion in taxes and royalties.

So, now that PDVSA reports that this number is US 8.3 billion lower at US$ 27.7 billion, who do I believe?

I have no clue.

And I look further…

In one of the many press releases (can’t link to them, but they are all in PDVSA.com) except that somehow they use non-standard links. But one of them shows us the ever controversial export table.

Let’s assume we are a bunch of stupid radical morons who don’t know how to count oil barrels. Ramirez is right, PDVSA is exporting 3 million plus barrels a day.

Except, that in the line item about the heavy crude operations, the table says PDVSA is exporting 785,000 barrels a day.

Wait! If the Faja only has an installed capacity of 600,000 barrels a day. And if some of the heavy crude upgraders were shut down for maintenance, how can you be producing 185,000 barrels a day more than the maximum, well above the installed capacity?

I have no clue. (Unless they add the crude used to upgrade, but true output is lower, exports are lower, so the table is misleading)

And Hugo Chavez exaggerated (Noooo!) when he said that people said PDVSA is bankrupt. Nobody has said that. PDVSA is not bankrupt, what it “owns” underground is worth a lot more than what it owes. But PDVSA is in trouble.

In trouble, because according to fourth quarter figures not published (derived from what was published) PDVSA lost money in the fourth quarter of 2008. And the average price of the Venezuelan oil basket in the fourth quarter of 2008 was US$ 52.87 per barrel, way above the average price so far in 2009, so we should see losses again in 2009. Not pretty.

Take any line item. Say assets. In June 2008, PDVSA said it had assets of US$ 135.7 billion. Then in December 2008, in the unaudited financials, PDVSA said it had assets of US 144 billion. But then surprise, surprise, assets went down to US$ 131 billion, that’s US$ 13 billion drop. I wonder, I know accounting can be an art, but losing 9% of your assets when you consolidate is certainly strange. What did you double count?

But it gets even worse with liabilities. In the unaudited financials, they reached US$ 144 billion, in the final audited version they are only US$ 106 billion. Incredible, no? That’s a 26% difference. Do these guys have a clue? Or are we being screwed?

Even profits changed drastically.

In December we were told in the “Memoir” that PDVSA made US$ 12.1 billion, but the auditors somehow turned that down to only US$ 9.4 billion.

While Chavez will have you believe PDVSA is one of the strongest companies in the world. Except that, for example, Petrobras made more money. Twenty years ago, Petrobras was a tiny company. And PDVSA was a monster. Petrobras seems to be the monster these days.

It’s sort of downhill from there. PDVSA said that accounts payable was US$ 16.4 billion in December, it is now only 10.8, despite Pdvsa not announcing any major payments.

And you can also dig out that despite record oil revenues in 2008, social contributions went down.  So much for the revolution…

Anyway, I will try to understand it better and if I have anything believable, will post. I seriously doubt I will, I am giving up in understanding these now very obscure subjects.

It is a Magical Mystery Tour

The good, the bad, the ugly and Coca Cola Zero

June 10, 2009

Reporting on the Devil’s Excrement gets tiring and Chavez and his buddies make it even more tiring.

Take for example Globovision. Can I be surprised at the harrasment? Certainly not. The raid on Zuluaga’s home because of the stuffed animals was something out of the Marx Brothers or Peter Sellers movie. I mean, a country with over thirteen thousand homicides, 20% of which are committed by the cops themselves, but the Government finds the resources to have 100 heavily armed cops, intelligence police and soldiers to raid the home. We have yet to see any of these “environmental Prosecutors” around Maracaibo Lake, looking at the problem there.Now, THAT is a real environmental problem! But no time for it.

Or take the new Electoral Bill. How many times can I have the energy to write about a new manipulation of the Law that can give Chavez’ PSUV an edge? But then, the Bill is ready and we hear they have backtracked on it, because they realize there is a loophole: If the opposition unites, THEY could get the majority in the National Assembly without having a majority of the votes. A charade, just another one.

Even the Vergatario cell phone seemed too silly (imbecile?) to even mention, let alone write a post about it.

But then tonight, the Health Ministry comes out with one of those creative bursts that the Chavez Government is well known for: They prohibit a product that I have seen in dozens of countries “because it contains a susbtance that could be harmful to the population”.

I am not talking about a new pharmaceutical product or an imported Chinese root, I am talking about a product which I believe was launched in most of the world before Venezuela and that as far I have been able to determine, it represents a marketing move by the manufacturer.

I am talking about Coca Cola Zero!!!

Yeap. As of right now that product is banned without telling us what is that mysterious component that may damage our brain, or sex life, or skin.

This is simple harassment of a multinational. Nothing else to it. It’s a revolutionary pose.

Kids get poisoned regularly by products given to them at public schools. Nothing happens.

PDVSA is giving away UHT milk that is about to expire, because they purchased too much. Nothing happens.

All over the country you can buy vitamins, “natural” products  and pharmaceuticals that are not registered  or approved and are certainly smuggled into Venezuela. Nothing happens.

But the Minister gets this idea of screwing with a large multinational, now, that has sex appeal! That sounds revolutionary! That really makes headlines.

That is the true parody our poor country is living today. There is little that is good. A lot that is bad. Many things that are ugly, but the Government is worried about Coca Cola Zero!

Personally, I take offense. While I have not had my first Coke Zero in Venezuela (They had yet to phase out Coca Cola Light), I consider myself an addict of Coca Cola Light. In fact, in my family the running joke is we drink so much Coca Cola because we are missing a piece of DNA that does not allow you to digest food and Coke compensates for it. It even has a name: “Octaviosis”. Well known  genetic disease.

So, robolutionaries:  don’t mess with us! We might get really mad!

Rafael Ramirez: robolutionary logic at its best

June 8, 2009

Here is Rafael Ramirez’ explanation of why the oil service companies were nationalized:

“These activities were in he hands of third parties that would tell us: If you don’t pay me my invoice ..then i I will leave with my boats and my ships and let’s see how your produce oil”

Of course, he does not say that PDVSA had not paid these companies for six to none months and even a year in some cases. When PDVSA does not pay the workers of these companies, or does not invest in maintenance, then the boats will stay, but theyw ill not even float. He also says that these companies will be paid book value because they were nationalized, not “purchased”.

Oh, I see!

Robolutionary logic at it’s best.

Chacon’s Science and Technology numbers: Donde estan los reales (Where is the money?)

June 7, 2009

The new Minister of Science and Technology Jesse Chacon gave some interesting numbers the other day when he announced that from now on the corporate contributions to science will be centralized and decided at FONACIT. Since Chacon has no clue as to what he is saying someone is feeding him numbers. Let’s see some of them. First, he said that Venezuela’s expenditure per capita in science and technology is the highest in the world at something like 2.86% of GDP, which I will approximate to be 3% for simplicity.

He then said that Venezuela had six thousand-plus scientists, a number that I find somewhat exaggerated, but I will believe Jesse for once and use it.

Well, if you say GDP is 200 billion US$ (it’s higher), then 3% of 200 billion US$ is 6 billion US$, which means that each of those scientists, whose publications dropped by 15% in 2008, had the Government spend 923,000 thousand dollars on them. That’s high anywhere. I remember that number at Bell Labs, the best funded research lab in the world twenty years ago was US$ 2.5 million per scientist per year. There has been inflation, but it has not been so much and these were the best scientists in the world in Physics, Chemistry, Materials and Computers.

But let’s look closer. A tenured scientist in Venezuela makes less than Bs. 100,000 a year (US$ 46,000 at the official rate of exchange). So, given that scientists say there is no money for research, we have to say like Luis Herrera: Donde estan los reales? (Where is the money?).

Because the Minister himself gave the Locti numbers for universities and said all universities received 336 million Bolivars from Locti or barely US$ 156 million, for all universities!. Given that most research in Venezuela is done at the universities, you have to wonder where the rest of the money went. IVIC I don’t believe has a budget of more than US$ 30-40 million, Intevep barely does anything, so the whole thing is quite mysterious.

But the most dangerous part is that Chacon seems to suggest that the money is not well distributed, because Universidad Central is the top beneficiary, followed by Universidad Simon Bolivar and Universidad Catolica in fourth place. The Minister then asks (In El Nacional, June 4th. page C-3) how can Simon Bolivar which does not have the diversity of laboratories that exists in other universities receive so much money?(The only one missing from the top list is Universidad de Los Andes)

Well, I don’t know the answer off the bat, but how about that at Simon Bolivar, more Professors have Ph.D.’s or do research? Or higher academic standards? Or tougher to get tenure? Just to name a few possibilities. And he also attacks Universidad Catolica wondering what the hell does that university spend Bs. 45 million (US$ 20.93 million) in science for? Maybe the Minister should have found about what that was before making statements to the press. I wonder how much the Armed Forces University gets, Chacon did not mention it, but we all know its budget was increased in 2009 as the other university’s budgets were reduced, despite the low academic evel of UNEFA.

But, of course, I bet that in the US$ 6 billion the Government included the payment for Satellite Simon Bolivar (US$ 400 million), which while rotating in orbit, it does not quite fly and nobody knows if it came with a warranty or not. Of course, that satellite was neither science nor technology. So, you wonder what other misnomers are included in Chacon’s numbers.

Spying equipment? Firewalls to filter the Internet one day?

Who knows, but clearly the former Lt. was placed there to destroy oligarchic science, the same one that on the same day, last Thursday, celebrated at Fundacion Polar, the achievements of five Venezuelan scientists*, who do research, publish and are well known internationally for their high quality work, but none of which has a clue as to where their million bucks a year is.

Clearly, the revolution has no use for them.

(*One of which is a relative of the author)

A peek into the oxymoronic economic models of XXIst. Century Socialism

June 5, 2009

After ten years in power you would think that Hugo Chavez would have at least learned a little bit about how the world works. But it is clear that he while he does not like capitalism, there is no concrete alternative behind his vaporous XXIst. Century Socialism.

As an example, I was quite dismayed when I first saw the financial report for Electricidad de Caracas for 2008. While I was quite sure that the company would go downhill fast after its nationalization (It was already deteriorating due to the freeze in tariffs), I was surprised at the speed at which the destruction of value in the company is taking place.

Not that I really understand the financials anyway. I mean, a company that sent a press release talking about its shareholders meeting took place on May 31st., can’t be too careful about its financials either. It ahs since been fixed, but I keep a copy as a souvenir of the robolution.

Reviewing the financial statements, the first thing that surprises you is that despite energy sales being the same, price per GWH being roughly constant, revenues for the company went down from US$ 1.01 billion in 2007 to US$ 851 million, a 15.7% drop which as far as I can tell has no reasonable explanation. But this is  a revolution, so I move forward and I find that “operational expenses” went down from 681.4 million US$ to 648.8 million US$, surprising given that the number of workers went up from 2816 to 3427, an increase that seemed to have little impact, I guess the revolution is stingy with the “working” people.

I finally get to the capitalist line and find that Electricidad de Caracas went from earning 60.8 million in 2007 to losing US$ 140.4 million in 2008. It turns out that margins, which had been in the upper 30%+ range, dropped to only 23.75% last year. But even more worrisome, margins dropped to only 15.07% in the last quarter of 2008.

Why you may ask?

Well, a number of reasons. First, Electricidad de Caracas had to increase its purchases of electricity by 25% in 2008, no explanation given. But even more interesting it also includes the cost of buying back a bond expiring in 2014 at an outrageusly high price and issuing a new one almost three times larger (including corruption profits for both).

But then Chavez says that such concepts as profits are simply a capitalistic invention and are irrevlevant. Except that Electricidad de Caracas, which had revenues (i.e. energy sales) of only 851 million dollars, owes US$ 681 million dollars (in US$) of the new fangled-corruption bond and has to come up with at least US$ 55.8 million every year to pay the interest, together with investment, maintenance and the like. At the rate they are going by 2010, there may not be money for either.

But then, just to assure us that the robolution has no clue, the Head of Corpolec tells us that the only reason Electricidad de Caracas lost money was because those damned capitalists were not investing. Except that there is no evidence whatsoever that anything has changed. According to the financial statements, there was no change in operating expenses, no increase in capital equipment, so Mr. Hipolito has no clue.

But it gets worse, he actually says that because of this operating costs were above normal, but they were actually smaller by 1.99%! and until the revolution says so, if the number is less than, it means that it was smaller. Of course, then we are told that some Spanish Group will build a new plant for US$ 2.1 billion. I guess this plant will go right next to the Trans-Amazonic pipeline. By the way, what ever happened to that?

What is clear, is that this capitalistic concept that there is no such thing as a free lunch is still alien to XXIst. Century Socialism. At the rate EDC is going, in two or three years, it will no longer be able to service ts debt, let alone invest in the future. Sound familiar? It’s the PDVSA model, except there is nothing to nationalize  here to push the collapse forward into the future.

And since we are talking about PDVSA, the absence of a model or a plan other “than Hugo wishes to do something”, was ratified this week when it was learned that capo di tutti capi Hugo Chavez, had given a Russian consortium some tracts of the heavy crude oil field Carabobo I. You may say, nothing wrong with that, he is the President after all, no?

Except that PDVSA opened a bidding process last year, inviting all oil companies in the world, to participate in these projects of which they would be allowed to own up to 40%. The process was to have been culminated in April, but you know, we did have a referendum that distracted us, so it had been postponed till August 14th.

So, the other 18 oil companies which paid US$ 3 million to participate in the process are asking themselves what they have to do to get ahead in the line.  Easy, join the buddy group, its like the mafia, but among nations, the Brazilians did it, now the Russians, what are they waiting for? It will help if nobody complains in your country, just ask the Argentineans.

But what this shows is that the concept of an economic model for XXIst Century Socialism is simply oxymoronic. There is none, beyond a plan to have oil prices be higher in the future.

The rest will depend on whether (or not) the moods are whims of Don Hugo Corleone Chavez favor you or not.

Minister of Interior and Justice: 20% of crimes are committed by policemen

June 3, 2009

After ten years in power and a tripling of homicides, nothing defines the Chavez Government’s incompetence more than the statement from the Minister of the Interior and Justice Tareck El Aissami:

“20% of crimes are committed by policemen”

Truly the Law of the Jungle.

End of post.

A day of shame as the OAS lifts Cuban suspension and human rights be damned

June 3, 2009

Long ago, after finishing my graduate work, I had a very naive view of the world. I guess spending years sweating in a lab to complete a thesis limits the time that you can devote to the world. And if you dominate your field, you think history or politics has to be much simpler than something involving technological know how.

At the time, I innocently believed the world was divided into two groups: Sensible and fairly educated people, on both the right and the left, who cared about human rights and a small legion of uneducated thugs, mostly with a military background who found human rights annoying and an obstacle to their goals. It was simple, I had never personally met anyone in the first group who did not spouse or defend human rights.

Then, it was maybe 1983, when I went to a conference in Argentina, Mar de Plata to be more specific. There, in the peace and quite of an academic coference and the refreshing ocean air of that city, I heard of the horrors of the military regimes in that country. I met 20 year old kids who had been jailed, tortured. I heard of their friends, dissapeared. I heard of the story of Antonio Misetich, the famous Argentinean scientist, arrested, fired and despite assurances to the US Government that he would be well treated, dissapeared. His crime? He had a sister involved with groups actvely opposing the Government.

But if the stories shocked me, what absolutely blew my mind was a speaker, name forgotten, describing the horrors, the dissapearances and the tortures, closing his talk by addressing those in the audience who collaborated with the regime, those that held official positions, passed information to the Government and were quiet in the face of the most abominal human right abuses Latin America had seen in decades. He asked them openly and loudly: How do you expect me to say hello to you in the halls of the university? How do you expect me to support your promotion? How do you expect me to support your funding?

Afterwards, talking to people, they even pointed out some of their colleagues who knew, who helped, who participated. It was truly shocking and an eye opener.

Later, I came to see more clearly, that in the end human rights tend to be mostly secondary. Everywhere. The end tends to always justify the means. Ideology also tends to prevail in the face of the tough choices that come with political responsibility and choosing between success or the respect of the most basic rights that people deserve to have.

And then came Chavez, who revealed to me how marginal human rights can be across our Continent. I saw how despite the most overt and absurd violations of human rights in Venezuela, it did not matter in the end. Foreign politicians care more abour their future than about principles. Foreign Governments care more about commerce than about rights. Diplomats are educated to walk the middle ground, not stepping on anyone’s toes, no matter how bad things might get.

Things like the Holocaust became easier to understand, as well as my own country’s history, recent and long past. Respect for human rights turns out to be a rarity, not the norm. Most people, given the chance, will look the other way, be silenced, justify the unjustifiable.

And as we have fewer and fewer rights in Venezuela today, while Lula and many others laugh and joke with Hugo Chavez, and Insulza says little about everything that has been going on in Venezuela, I see the cynical nature of Governments, politicians and people in general. Not only do they stay quiet in the face of the obvious, but the OAS, an organization representing mostly democratically elected countries, decides to suspend Cuba’s ban from that organization, revoking the resolution from 1962 that expelled Cuba from that organization.

Little has changed in terms of human rights since 1962 in Cuba. people are still shot for crimes against the state which do not involve even injuries to other human beings, people can’t freely leave the country, people are repressed. But these political geniuses, now collaborators in my mind, decide to give Raul Castro a chance. And he accepts it and in his own words, says there are no conditions attached, laughing at the fools that revoked the resolution.

It is indeed a terrible and sad day, when supposedly educated men and women, are capable of leaving their principles and most basic human nature aside in order to achieve their political goals or make a gesture to satisfy the crowds watching your every movement or gain an electoral advantage.

The message sent to Latin American politicians, present and future is quite clear: You don’t have to worry. The OAS democratic charter is just a piece of paper. We will look the other way as far as human rights is concerned. We have no morals. Anything goes in Latin America. We are not ready to defend and respect the human rights of our people.Human rights be damned

It is a terrible day. They should all be ashamed.

The mystery of Chavez’ dissapearance explained…or was it?

June 2, 2009

So revolutionary and counter revolutionary la-la-land exhaled a collective sigh of relief when the four day disappearance of the Dictator was finally explained. Simple, the CIA and an 81 year old man had cooked up a very precise plot to launch a rocket against the Cubana de Aviacion plane that was to take him to El Salvador.

But wait! Why did he not show up for four days? Why did he concede defeat in his quest for his four day Alo Presidente Marathon? Come on! Even the Guinness Book people were here in Caracas to monitor Chavez beat Fidel’s record. Oh! Could that be it?

But how does the rocket plot explain the four day hiatus?

And since we are talking about the rocket, why did Maduro say it was Alejandro Peña Esclusa and now Chavez says it was the CIA and Luis Posada Capriles? You have to give credit to the CIA, in this era of gadgets and technology, they went with an octogenarian with experience. That’s what’s called an equal opportunity employer.

I imagine when you want to shoot down a plane with a rocket like that, those that want to do the shooting (and get paid for it), do like when Chavez asks Wall Street investment banks to give him proposals for new bond issues: They come one after the other with fancy notebooks and presentations and the best proposal wins.

I can imagine Posada showing up like Giordani, with his viewgraphs written with indelible ink, no colors, and everyone at the CIA scrambling to find a viewgraph projector. But then Posada gave a kick-ass presentation and some jerk at the CIA who is getting fired today gave him the green light.

I also wonder if Posada himself was going to hold and aim the rocket launcher. It’s been pretty hot down in Maiquetia these days, just ask Wolfram. Why didn’t they use Jack Bauer? He could have come up with twelve working plots in 24 hours.

And you have to accept that Barack and Hillary are quite devious, no? They played the nice guys in Trinidad, while at the same time they were giving the CIA the green light to go kill Hugo. Truly amazing how sneaky these democrats have turned out to be. I wonder if Bill  knew about it. Or Monica, for that matter.

But the only thing I don’t understand is why Maduro said it was Peña Esclusa. I guess Maduro is very patriotic and preferred a Venezuelan-made plot versus this highly sophisticated US-rocket launcher-including-octogenarian plot.

So now we can all sleep assured that Chavez is protected from the malevolous Empire and that the revolutionary Government keeps the population informed at every step of Chavez’ whereabouts with the transparency that characterizes other Dictatorships/Autocracies. I mean, where is Fidel? Where is Kim Il-Sung?

But we know where our Hugo is and was…

Or did we?

Chavez backtracks again, no Alo Presidente today

May 30, 2009

In another about face, the four day Chavez Alo Presidente marathon has been cancelled, Venezuelans will be allowed to rest on Saturday after Chavez’ about face on a debate with Vargas Llosa…

Note added: And there will be no Alo Presidente on Sunday either…

Science (the journal) writes about Venezuelan science and the fascist science comissars are upset

May 30, 2009

While everyone was watching the Chavez show, another interesting one was developing in Venezuelan science, which made the fascist science comissars come out of their caves to cry right-wing conspiracy as usual.

It all began with a letter written by the head of the Venezuelan Academy of Physical, Mathematical and Natural Science published in the prestigious journal Science, published by the American Association for the Advancement of Science. The letter addresses the main problems facing Venezuelan Science under Chavez. You can see the original here, but since it has little waste here is the full text:

The Venezuelan Academy of Physical, Mathematical, and Natural Sciences would like to share with the international scientific community our fears for the present and future fate of science and higher education in our country. A number of worrisome recent events and our interpretations of their implications motivate our concern:

1. The president of our country has stated what he believes science should be in Venezuela and has created his own initiatives for workable lines of scientific research (1).

2. At all levels of the national scientific establishment, inexperienced professionals with little scientific or technical knowledge or background have been appointed to positions of authority. They have been chosen on the basis of their loyalty to the political party in power. This approach precludes a constructive dialogue with the R&D community and curtails academic freedom of research.

3. The Ministry of State for Science, Technology, and Intermediate Industries controls discretionary use of resources collected from the private sector (2). Some of these resources, which were previously allotted to researchers according to the nature  and quality of their research proposals, are now being centralized and distributed according to the “social aim” of the research proposal.

4. The government has decided to create some 40 new universities but has not published a plan to provide them with suitable academic staff.

5. Universities and centers of research have been subjected to drastic budget cuts, which severely affect most current research programs. Restrictions have been imposed on the acquisition of scientific literature and information as well as
of access to Internet (3).

6. The loss of intellectual capital to the United States, Canada, Mexico, Brazil, France, Spain, and other countries has accelerated (4). Young scientists, technology experts,
physicians, and engineers are leaving the country. The process started in 2003 with the firing of some more than 800 researchers from the Venezuelan Institute of Petroleum Research.
7. We believe that Dr. Raimundo Villegas, an emblematic researcher of Venezuela and founder of the Institute for Advanced Studies (IDEA), a wide-scope research institute,
was forced into retirement by the Directory from his post of tenured professor of IDEA. His departure was accompanied by the cessation of IDEA’s support of the Latin American Academy of Sciences (ACAL) (www.acal-scientia.org/); this support was stated in ACAL’s foundation charter. ACAL has an office in Venezuela that has been headed by Dr. Villegas since its creation 25 years ago.

8. Dr. Jaime Requena, who had applied for retirement, was instead fired from his tenured post at IDEA. This appears to have been a result of a personal decision of the Institute Director, as it occurred without the expected and due legal
procedures.

The above-mentioned observations represent just a fraction of the many actions that clearly reveal an aim of the government to control all of the national scientific activity and the higher education system, putting Venezuela’s scientific activities at risk.
References
1. B. Casassus, Science 324, 1126 (2009).
2. Gobierno Bolivariano de Venezuela, Fonacit;www.fonacit.gob.ve/locti/.
3 Gaceta Oficial Numero 38.145, 25 March 2009.

4. I. de la Vega, Mundos en Movimiento: El Caso de la Movilidad y Migración de los Científicos y Tecnologos Venezolanos (Ediciones Fundacion Polar-IVIC,Venezuela, 2005).
22 May 2009; accepted 27 May 2009
Published online 28 May 2009; 10.1126/science.1176733

Because of this letter the journal asked Barbara Cassasus to look into the matter and in the same issue in which the letter appeared last Thursday, Science published this article on the travails of Venezuelan scientists under Chavez written by Cassasus. The article includes the drop in publishing by Venezuelan scientists, Chavez naming Lt. Colonel Chacon with no prior experience in science as Minister and admonishing him “put the screws” on the scientists as well as the firing of Jaime Requena when he requested his retirement from IDEA, a scientfic research institution.

I have written about some of these topics before including one Requena’s firing. In the article in science the other Chacon (not related), Prudencio, the Comissar of Chavez at idea repeats his lies that Requena was fired because: 1) He worked at two institutions (a University Foundation and IDEA at the same time 2) He ordered a software that benefited him personally and 3) He left work a few times without permission from his supervisor.

Chacon is a good Comissar of the robolution and believes that a lie said many times becomes the truth. In fact, he somehow found out about my post on the matter and dared put a comment with the same old lies. To put these lies aside, once and for all, on the charge that Requena worked at two institutions at the same time, I have uploaded two files to the web: Requena’s letter of resignation in January 2007 and his severance pay receipt a couple of weeks later, which clearly prove that Requena quit his job at the Foundation. I have also uploaded the terms of purchase of software from University which includes the software that Requena helped design (he used it in his research on the productivity of Venezuelan science) which clearly states that only the University benefits from the software and not those that helped develop it. Maybe Chacon wanted him to use a pirated a copy?

Finally, the third charge is absolutely ridiculous and shows the clear malice and bad faith behind Requena’s firing: Nobody fires a tenured researcher near retirement because he left work without telling his supervisor. This would be a first in Venezuelan science.

But the most remarkable part of the story was that Prudencio Chacon and the Vice-President of IDEA Miguel Angel Perez Pirela went on the Government’s propaganda channel VTV and put up the most absurd and hysterical (not for being funny, but for the hysteria they showed) performance of their lifetime. By the way, the information I have is that Perez Pirela, who has no science background and claims to be an expert on bioethics, gets paid not only by IDEA, but also by the Foreign Ministry and the Presidency of the National Assembly, besides having a car and driver. I wonder if he will be fired for that?

In any case, Chacon first came on and told us what a wonderful institution he presides at IDEA, whose object is not to publish, but has a new modern (??) concept of science whose purpose is to give service to the people, solving their problems so that they will have better quality of life. Clearly, this in no way describes science and the quality of the BS in some sense proves part of the points of the letter above by the President of the Academy.

Then came on the second in command, sub-comissar I guess must be his position, and referred to the article in Science. First he pointed put that it was a journalist who wrote it for Science. Then he explains that Science is a medium for propaganda for American science and which does not have much importance in the world of knowledge. He even dared say that at some point in time, Science was an important and significant journal, but has lost its audience, which is patently another lie, a big one at that. Then came the typical Marxist/Chavista dialectic of disqualifying Science by attaching it labels when he said that Science responds to something like ” the most reactionary north American right wing” and was clearly wrong on everything. He then proceeded to make the connection to the same reactionary right wing in Venezuela via the Academy of Sciences and the Venezuelan Association for the Advancement of Science (which as far as I know encompasses 99% of active Venezuelan scientists). He even said something to the effect that the publication of the letter was proof of the conspiracy of the endogenous right and the imperialist right backed by obscure reactionary interests that only want to….yes! destabilize Chavez’ Presidency!

At this point, the little rabbi (Rabinito),as he is called behind his back, raised his voice and started shouting why the Science article was wrong. He said Venezuela had the highest spending per capita in the world on science, that the drop in publications was not important, that is not how the revolution measures it, but represents an oligarchic methodology so that the great centers of capital can maintain control over knowledge. He then talked about the thousands of scientists (!!) that Chavez’ Government has incorporated into science.  He claimed that IDEA went from 10 researchers to 110 since 1999. (He did not say that even students and technicians and even the person that feeds the rats are now called scientists)

I could go on, but I am sure you get the picture with the above distortions and lies by the two of the scientific Commisars of the robolution. I am not sure who watches VTV in mid-morning on Friday, but these two guys had nothing better to do than to try to take advantage of VTV’s 4% rating to convince them that everything is peachy in Venezuelan science and the scientists are a bunch of liars.

A true charade and hysterical performance that went on for a while, I hope somebody puts the video on the Internet