Patrick J. O'Donoghue's round up of news from Venezuela -- August 6, 2008

The Supreme Tribunal of Justice (TSJ) has ruled that the organic law of General Comptrollership and the National System of Control Article 105 is constitutional. The TSJ constitutional chamber has thrown out a complaint lodged by the opposition that the article in question was illegal because it violated the human rights of citizens aspiring to be candidates in the November elections. The TSJ upholds the faculty of the Comptroller General to declare administrative responsibility of those public officials who have incurred in illegalities in detriment to the public good and to impose fines and prevent the offenders from exercising public office when merited.

Comptroller General, Clodosbaldo Russian says the ruling by the TSJ ends the conflict regarding inhabitations to elections created by the opposition. Russian has dismissed commentaries from lawyers of main ban protester, Leopoldo Lopez that there are still unfulfilled legal requirements surrounding the candidate's administrative ban preventing him from running for the Metropolitan Mayor's Office. "It doesn't make sense ... I respect the opinions of lawyers about the matter ... they have plenty of knowledge to merit remaining quiet ... they have to admit that in Venezuela things have changed and crimes in public office are punishable ... we cannot continue with impunity."

Commenting on the imminent visit of the Southern Cone Economic Zone (Mercosur) human rights commission president, Adriana Pena, the Comptroller General says he is ready to receive them with the authorization of the National Assembly and the Ministry of Foreign Affairs.

Yesterday, it was the turn of the opposition Christian Socialists (COPEI) to announce new unitary candidates to four state governments and 26 municipalities. COPEI president, Luis Ignacio Planas has announced the following candidates: Rafael Simon Jimenez in Barinas, Victor Cedeno in Delta Amacuro, Domingo Urbina in Guarico and Jovito Villegas in Portuguesa

During his visit to Argentina, President Chavez has stated that the processes currently developing in South America have similarities and differences but the world should understand that there is a real revolution taking place in Latin America. Chavez insists that anybody who cannot see the revolution must be blind and anyone who does not feel it must be dead. The revolutionary processes that are rising in each South American nation, the President insists, are product of the resounding failure of the neoliberal model imposed by the USA. "The cause of the revolution is not Communism, but misery."

Speaking about the new law on the right of persons to access assets and finances decreed by President Chavez as part of the Enabling law, Internal Trade Deputy Minister, Cruz Martinez says communal councils will have co-responsibility in defending consumer interests. The current consumer defense organ (Indecu) will give way to the Institute for the Defense of People in the Access of Assets and Services (Indepabis). Cruz Martinez promises that fiscal control exercised by the new organ and communal councils will be more expedite and there will be public audiences that will allow for an opportunity to create mechanisms of action as quickly as possible. The government has promised to be present in all points of the production, marketing and distribution food chain and there will be more officials employed to carry out inspections and fines.

Southern Cone Economic Zone (Mercosur) Parliament's human rights commission president, Adriana Pena has stated that the commission has no faculty to take decisions or get involved in the internal affairs of any member countries. Speaking to the opposition 24-hour news channel, Globovision, the Uruguayan parliamentarian says her visit to Venezuela with other commission members will consist of dialogue and listening to different points of view regarding the administrative inhabitation slapped mostly on aspiring opposition candidates.

In an effort to create a single institution aimed at strengthening small to medium industry, as well as social production units, the government has decided to fuse the Industrial Credit Fund (Foncrei) and the National Institute for the Development of Small to Medium Industry (Inapymi). The fusion is aimed at simplifying red tape and creating a single mechanism that will impulse that particular sector of national economy.

Executive Vice President, Ramon Carrizalez, says that 16 laws excluded in the presidential promulgation of the Enabling law will be discussed by Parliament. Among the laws to be discussed by Parliament is the controversial territorial ordinance and development law, which, the Vice President argues, has been viciously attacked, despite it not being approved. Other laws to be presented to Parliament and that missed the Enabling law deadline are: the Merchant Navy law, the control of casinos, bingo halls and gaming machines bill, the Central Bank of Venezuela law, and the public financing system law.

Vice President Carrizalez has responded to attacks from the opposition regarding the Gaceta Oficial's failure to publish the full text of 26 laws promulgated on July 31. The Vice President admits that while the full texts were not included in Friday's edition, they were available to the public in special editions published yesterday.

Patrick J. O'Donoghue

patrick.vheadline@gmail.com

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Venezuela is facing the most difficult period of its history with honest reporters crippled by sectarianism on top of rampant corruption within the administration and beyond, aided and abetted by criminal forces in the US and Spanish governments which cannot accept the sovereignty of the Venezuelan people to decide over their own future.

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Dan Russo: Crystallex International gets failing grade on communicating with the investor community!

VHeadline guest commentarist and gold investor Dan Russo writes: It is with much trepidation that I write this article... The management of Crystallex International has been given every conceivable opportunity over the last grueling two and half years to get their act together with the people to whom they report ... their investors.

The fact is that they have failed terribly at each and every opportunity to communicate effectively and to create value for their shareholders.

• The sad part about this is that Crystallex International management just doesn't get the message.

Shareholders are starving for effective communication from Bob Fung himself and their Investor Relations department; which is useless and ineffective. This lack of communication is a text book case for what NOT to do and how NOT to treat investors when a company faces crisis.

Does Crystallex International management realize how to create value?

Crystallex International has lost hundreds of millions of dollars in net worth ... a stock price that has gone down in value by over 400% ... termination of a company president ... de-listing ... rumors of bankruptcy ... downgrades ... analysts lack of coverage ... and mutual funds lacking interest and running away from this company.

Additionally, two main public and well known financial experts -- Jim Cramer and Bill Cara -- who both were once behind Crystallex have disappeared!

I could go on and on with examples of a management team that is failing at almost each and every opportunity given to them.

Has Bob Fung picked up the phone and called Cramer, NO.

Has Bob Fung picked up the phone and called Bill Cara, NO.

Has Bob Fung gone out to the market and purchased shares of his own company to show the investment community that he has faith in his own company, NO.

Have they in the wake of tragic events, as I have pointed above, become more investor friendly, NO.

Have they hired a top rate public relations firm to assist them, NO.

They rather pay a former executive hundreds of thousands a year who are no longer currently employed.

Bob, desperate times call for desperate measures. More of the same is NOT working!

The fact is that Crystallex has alienated thousands of investors to whom they have a fiduciary responsibility ... they have mismanaged what could still be a tremendous opportunity and overnight 'stock of the year' in spite of the management's poor decisions and callous behavior.

I believe in my heart of hearts that Crystallex will get the permit and will be bought out by either a Russian or Chinese company. It almost seems as though Crystallex' lawyers are running this company ... if this is the case it will prove to be a big mistake.

As for Bob Fung, I hope he reads this article and finally gets the message that the experts have been consulted and all have agreed that there is much more that could be done in dire situations like this to keep Crystallex' gold shining. Right now it's just another sad story of how important management's decisions or lack thereof can effect thousands of innocent investors.

Bob, you know this.

Someone a long time ago explained to me that communication takes both a sender and a receiver. Your investors have been sending messages loud and clear.

With all due respect you need to listen in order to receive.

Dan Russo
dtr1029@aol.com

____________________________________

Venezuela is facing the most difficult period of its history with honest reporters crippled by sectarianism on top of rampant corruption within the administration and beyond, aided and abetted by criminal forces in the US and Spanish governments which cannot accept the sovereignty of the Venezuelan people to decide over their own future.

HELP US TO KEEP BRINGING YOU THE TRUTH
http://tinyurl.com/n4fg

Venezuelan candidate ban upheld

The Venezuelan Supreme Court has ruled that a ban on some 270 people from standing in November's state and municipal polls is constitutional. The list of barred candidates, most from opposition parties, was issued by Venezuela's anti-corruption chief. He said the law gave him the right to impose restrictions on potential candidates suspected of corruption. Critics said the ban was unconstitutional because none of those affected had been convicted of a crime. Venezuelan Comptroller General Clodosbaldo Russian issued his list of barred candidates earlier this year. He argued that under Venezuelan law he had the right to disqualify people suspected of corruption from running for office. His view was upheld by the Supreme Court (TSJ), which ruled on Tuesday that a contested article of law that enabled the ban did not violate the constitution.

A silly old fuddy-duddy who thinks that cuddly pets are more productive to society than dogs of war!

VHeadline editor & publisher Roy S. Carson writes: You know that there is a generally accepted wisdom that a dog will not bite the hand that feeds it and that is why police dog handlers always insist that nobody should give their dogs any food or treats so that they remain loyal to the dog handler. One problem is that when the dog handler retires or when the dog retires there is only one thing to do -- to euthanize the trained-to-serve-the-master dog since it is impossible for the dog to learn to be loyal to anyone else but the original dog handler who has fed it for the greater part of its life.

This is why I believe that some people must learn that other dogs may be just as useful and sometimes more clever than the trained-to-serve-the-master dogs because they have been brought up in a loving family and have learned not to be as aggressive as the trained-to-serve-the-master dogs. They often have a kindlier nature than the German Shepherds.

I once had a German Shepherd who I rescued at 3 months from an abusive alcoholic who was basically training him to be aggressive. I actually had to punch the drunk in the face and take the dog away from him because he was abusing it. That little dog lived many years with me and grew to a powerful size, always a true and faithful friend. He once adopted a little kitten from a neighbor's cat he had befriended. I had no significant choice in the matter! The cat showed him her new kittens and very much to my neighbor's and my own surprise, he brought one of them back to me very carefully in his mouth with an expression on his face that said -- I want to adopt this one! He had been trained (by me) to be very gentle -- trained with an egg in his mouth to carry and put down without cracking it etc.

The little kitten remained with its mother for several weeks until it was weaned and my dog visited it and its mother several times a week until we decided to take it home with us. Over the next 10 years, the cat and the dog slept with each other and they cared very gently for each other as well as for me. They would play together but they would sometimes (rarely) fight when it came to feeding time -- I got around that problem by putting the dog's food in one corner of the kitchen and the cat's in another -- but sometimes they would try to steal a bite from each other's plate, otherwise they were very happy together.

When the dog died at the age of 12, the cat went into visible mourning, looking everywhere for him. Throughout the 10+ years the two of them were with me together it was always cute how they could sometimes be jealous of each other but that they would always defend each other when there was trouble -- it may sound crazy but you can just imagine the fury of a cat defending a German Shepherd when the dog was feeling ill or sleeping -- it simply happened!

The whole point of this little anecdote is that the dog and the cat together were able to live in peace and harmony. They were not trained-to-serve-the-master dogs, they were not loyal to me simply because I was the source of their food. Yes, they might squabble over food, but they always looked out for me and each other. They knew that they would not simply be discarded when their "usefulness" came to an end or when they got a little too playful and perhaps bite a finger or a hand by sheer accident --- certainly not out of any malicious ill-intent.

It should therefore be no surprise that while the trained-to-serve-the-master dog will guard the master's interests in exchange for dog food and bones -- it is the dog and cat, treated with human love and kindness, respect and consideration that will make the most loyal and determined of lifelong friends.

While the trained-to-serve-the-master dogs need to be euthanized when their masters die or desert them, the friendly family dog and cat can get along with everyone and make life a hell of a lot more tolerable in spite family disruptions, sad bereavements and the happinesses which are all part of a normal transition from youth to old age.

Okay -- write me off as a silly old fuddy-duddy who thinks that cuddly pets are more productive to society than dogs of war.

But it's true!

Roy S. Carson
vheadline@gmail.com

____________________________________

Venezuela is facing the most difficult period of its history with honest reporters crippled by sectarianism on top of rampant corruption within the administration and beyond, aided and abetted by criminal forces in the US and Spanish governments which cannot accept the sovereignty of the Venezuelan people to decide over their own future.

HELP US TO KEEP BRINGING YOU THE TRUTH
http://tinyurl.com/n4fg

Venezuela buys additional USD 1 billion in Argentinean bonds

Venezuela is one of the major Argentina's guarantors. Thus far, Argentina has issued no bonds in the global market after completing in 2005 refinancing of a huge debt. The Venezuelan government purchased some days ago USD 1 billion in Argentinean bonds, disclosed on Tuesday President Hugo Chávez. 'Venezuela bought one week ago, a few days ago, USD 1 billion in Argentinean bonds,' said Chávez during a press conference in Buenos Aires, Reuters quoted. 'We trust in Argentineans a lot,' he added. Venezuela is one of the major Argentina's guarantors. Thus far, Argentina has issued no bonds in the global market after completing in 2005 refinancing of a huge debt. Earlier on Tuesday, Argentina and Venezuela initialed several cooperation agreements in the fields of agriculture and industry in a ceremony held at the Argentinean Ministry of Foreign Affairs, in Buenos Aires, with the presence of some 200 local businessmen and headed by Venezuelan President Hugo Chávez.

Venezuela Reforms Social Welfare Law

Partial reform of the Venezuelan Social Welfare Law strengthens the system of sanctions against entities which violate legislation and increase the workers' benefits, government authorities said on Tuesday. Deputy Minister of Labor and Social Security Jesus Faria said that the new regulation will sanction minor, serious and very serious offenses with fines of 10, 50 and 100 bolivars, respectively. Previously, violators paid just two bolivars (less than a dollar) per offense, a ridiculous amount of money, the official told journalists. He said reoffending businesses may be closed up to tree days, as 'we are seeking a fulfilment of their obligation to give information about the payroll and give resources to the workers.' Our ministry will promote information campaigns on the law to guarantee its enforcement with the backing of mainstream, community and alternative media, said Faria. It is the workers who must play a main role in the construction of the new Venezuelan society, he stressed.

Chávez announces quick agreement to buy Banco de Venezuela

Venezuelan President Hugo Chávez announced on Tuesday in Buenos Aires that a 'prompt agreement' is envisaged to buy Banco de Venezuela, a Venezuelan subsidiary of Spanish financial giant Grupo Santander. Chávez said at a press conference that a meeting held on Monday night between the Venezuelan Vice-President and a group of executive officers of Spain's Grupo Santander 'was excellent, extraordinary and willing.' 'An agreement is envisaged soon; we will recover Banco de Venezuela,' added the head of state. Banco de Santander is trying to sell its Venezuelan subsidiary 'quietly,' said Chávez, and explained that when he heard the news about the operation of the Spanish group, from intelligence sources, ordered to investigate and got a copy of a deal that had been made earlier. 'Intelligence sources told me about it. I ordered an investigation, a query. Getting the information was not very difficult. They brought me a copy of the draft agreement they had signed already. Therefore, I got the price they had agreed in advance.' 'Even the Venezuelan banker was to pay almost everything in bonds, just paper,' Chávez added.

Ternium Will Retain Stake in Venezuela Steel Plant

Ternium SA, the second-biggest steelmaker in Latin America, agreed to retain a stake in the Venezuelan plant seized by the government this year, Venezuelan President Hugo Chavez said. Government and company officials reached an agreement on the price Venezuela will pay for nationalizing the Siderurgica del Orinoco steel mill, Chavez said today in remarks shown on state television. The state is now auditing the inventory before naming the final price, he said. ``There should be a final agreement soon, and friendly,'' Chavez said. ``They will keep a percentage. They don't want to leave the country. They like Venezuela a lot. And we don't want them to leave.'' Chavez said he didn't remember the price the sides had agreed to. Ternium's American depositary receipts, each worth 10 ordinary shares, gained 52 cents, or 1.5 percent, to $34.10 at 3:28 p.m. in New York Stock Exchange composite trading. The stock has gained 9.7 percent in the past year. Ternium is based in Luxembourg. Gerdau SA is the biggest steelmaker in Latin America.

Chávez cancels trip; accuses the US of "destabilizing actions" in Bolivia

The presidents of Venezuela, Hugo Chávez, and Argentina, Cristina Kirchner, cancelled their travel to the Bolivian city of Tarija, where they were slated to meet with their Bolivian counterpart Evo Morales, the Venezuelan leader announced in Buenos Aires. Chávez accused the United States for alleged destabilizing actions in Bolivia before a referendum next Sunday, AFP reported. 'We have decided to cancel the visit to Tarija because there were some attacks against journalists and against the delegations from Argentina and Venezuela. These actions represent a resurrection of fascism,' said Chávez who claimed that he had taken the decision after a phone conversation with Bolivian President Evo Morales. Chávez accused the US for the alleged destabilizing actions in Bolivia. 'We accused directly the US empire, as it is doing everything to prevent our union,' the Venezuelan Head of State said. Chávez attributed the alleged action to 'the imperial despair of Mister Danger,' which is the way Chávez usually calls US President George W. Bush.

The “Bridge” in the Coup: the IRI in Venezuela

Yesterday morning, following a massive protest in Washington, D.C., George Bush resigned from his post as President of the United States of America. Though several major media outlets have claimed the resignation was a response to the public’s call for his resignation, it is quickly becoming apparent that the situation was much more complex. It appears that several high-ranking military officials defected from the President’s camp, cornering him in the White House and essentially intimidating him into resignation. In a surprising twist of events, one of the first groups to recognize the ostensible coup was a Chinese NGO, the International Political Institute, whose President congratulated Americans, saying, “Last night, led by every sector of civil society, the American people rose up to defend democracy in their country. Americans were provoked into action as a result of systematic rights violations by the government of George W. Bush.” Since the momentous events described above, it has been confirmed that the Chinese NGO played an integral role in the development of the opposition parties that set the scene for the overthrow of the president. Over the past several years, the organization has spent nearly $3 million funding political “training clinics,” almost exclusively for opposition groups, as well as political party-building activities. Americans now find themselves wondering whether they should view the removal of the unpopular president as a foreign blessing or a sovereignty-smashing curse.

Financial Times: Infighting threatens Venezuela vote

Bitter infighting between political parties struggling to resolve differences and official measures to ban opposition candidates on corruption charges are threatening to overshadow regional elections in Venezuela this autumn.

Increasingly evident internal divisions between parties supporting leftwing President Hugo Chávez as well as within the opposition movement – which lacks a clear leader to settle its differences – are in danger of splitting votes on both sides, analysts say, as parties scramble to nominate candidates by the August 12 registration deadline.

By Benedict Mander

An added complication for the opposition is that some of its most popular candidates are likely to remain disqualified because of corruption charges, pending a ruling from the Supreme Court. (While the corruption charges also apply to some pro-Chávez politicians, most are not planning to compete for office, so the charges would have little effect.)

Jennifer McCoy, director of the Americas Programme at the Carter Center, which played a key role in endorsing Venezuela’s disputed 2004 recall referendum, worries about perceptions that electable opposition politicians are being prevented from running to clear the way for government-backed candidates.

“This perception has the potential to damage the legitimacy of the elections and those elected in them, particularly if the legal issues are not resolved by the Supreme Court before the candidate registration period,” she said.

Tensions in Mr Chávez’s ruling coalition appear to have abated after the president railed against dissidents on Sunday, but a leader of Mr Chávez’s party, Diosdado Cabello, admitted that agreed candidates for all seats would be “practically impossible”. Mr Chávez has warned of “civil war” if several particularly important seats are lost.

Similarly, while opposition parties seem mired in dispute in many areas, they have nevertheless been able to compromise in some of the most critical races including that for the mayoralty of Sucre in Caracas, which contains one of the largest slums in Latin America. Pollsters say the opposition has a good chance of winning this election, a huge symbolic victory over Mr Chávez, whose core supporters are the poor.

Mr Chávez suffered his first electoral defeat in almost a decade as president in a referendum over constitutional changes last December, largely because of popular dissatisfaction at the government’s failure to resolve basic problems such as food shortages, inflation, crime and corruption.

The November 23 elections for governorships and mayoralties offer the opposition an opportunity to consolidate its support base, and build a platform from which to mount an effective challenge in national assembly elections in 2010 and presidential elections in 2012. At the moment, the opposition controls four of 24 governorships, but Consultores 21, local pollsters, said this week they could win as many as 10 in November.

“Plurality is emerging: after these elections we will have a much more fluid political map and the game is going to open up, allowing more diversity, dialogue and discussion,” says José Virtuoso, a political analyst and a director of Electoral Eye, an independent local election monitor. “Chávez will be under greater pressure for his political project to be more democratic.”

Still, Gregory Wilpert, a political scientist sympathetic to Mr Chávez, questions to what extent the elections will limit Mr Chávez’s room for manoeuvre. While he admits that the president has “mellowed” in recent months – perhaps in order to gain electoral support in the forthcoming elections – he does not rule out more radicalisation in 2009, with the next elections not due until 2010.

“Chávez, as usual, is totally exaggerating the significance of these elections. Venezuela is still a very presidential political system. Having half of the governorships in opposition hands [as was the case before 2004] was important for the opposition, but it didn’t put any real brakes on Chávez,” he says.

Venezuela Has One of the Fastest Growing Telecom Industries in Latin America

Venezuela's high GDP per capita contrasts with low fixed-line teledensity and scant broadband penetration, indicating that there is considerable room for growth in both these two sectors. In fact, promising plans are being implemented to improve the country's fixed-line and broadband infrastructure. The mobile sector, though nearing saturation, is likely to experience a lift from the rollout of GSM networks by the two major mobile operators. Nevertheless, destabilisation of the political and economic balance could reverse this positive outlook. This report contains statistics and scenario forecasts for the country's fixed-line, mobile, and broadband markets for the years 2012 and 2017.

Patrick J. O'Donoghue's round up of news from Venezuela -- August 5, 2008

United Socialist Party of Venezuela (PSUV) leader and Miranda State Governor, Diosdado Cabello has stated that all pro-government candidacies are subject to review. Cabello made the statement after meeting parties belonging to the Patriotic Alliance (AP). The PSUV has noted that the allies have withdrawn some candidates to the November regional elections, Cabello declares, and the PSUV will follow suite, if it sees that a candidacy has lost force ... such reviews will depend on political conditions of the moment and developments in the regions. The AP and PSUV have reached an agreement on unitary candidates in Aragua, namely Rafael Isea and for the Alto Apure mayor's office, Jorge Rodriguez. Henry Ramirez has been accepted as the unitary candidate for the mayor's office of Maracaibo and Jesse Chacon has received unanimous support from all allied political organizations to run as unitary candidate for the Sucre (Caracas) mayor's office. Discussion continues regarding consensus candidates for Sucre, Tachira and Barinas.

Desperate opposition pre-candidate to the Caracas Metropolitan Mayor's office, Leopoldo Lopez has convoked a march on Saturday, August 9 to defend his right to run for election, despite a legal ban against him. The march will start from the Ombudsman's Office and end in front of the National Electoral Council (CNE) HQ. The march will coincide with a visit from the Southern Cone Economic Zone (Mercosur) human rights commission that wants to investigate the " inhabitation" ban slapped on many opposition pre-candidates.

The National Elections Council (CNE) has announced that it is waiting for a ruling from the Supreme Tribunal of Justice (TSJ) on the ban against 250-plus aspiring candidates that are facing legal charges for a series of matters while exercising public office. CNE president, Tibisay Lucena says she hopes the ruling will come sometime this week before the enrollment deadline lapses. The CNE, she states, will respect and abide by any ruling.

According to the newly-named Bolivarian National Guard (GNB), 14 tonnes of assorted drugs have been seized in the first months of 2008, which averages around 2 tonnes a month. GNB commander, General Fredy Salon says the seizures were undertaken by GNB agents working in conjunction with other state security organs. The National Anti-Drugs Organisation (ONA) reports that last year an average 4.79 tonnes a month were seized. The total amount seized last year was 57.5 tonnes, which was down 12.5 tonnes to seizures in 2006 when the monthly average was around 5.83 tonnes. One of the biggest successes of the GNB this year has been the seizure of 2.95 tonnes of high- purity cocaine on March 14 in a commercial centre of Carabobo State. In 2007, 4,150 persons were arrested, of which 400 were foreigners mostly Colombian and Spanish.

Federation of Chambers of Industry & Commerce (Fedecamaras) president, Jose Manuel Gonzalez has questioned the promulgation of 26 laws via the Enabling Law process. According to Gonzalez, they are a "fraud to democracy" and he insists, as do other opposition leaders, that President Chavez wants to impose the rejected constitutional reform on the Venezuelan people. The businessman mouths the claim that the laws were passed by stealth, an accusation that President Chavez has vigorously rejected, arguing that the laws are part of public domain and debated in Parliament. President Chavez has promulgated 164 laws, Rodriguez comments, but insists that the problem facing Venezuela has not been solved because what Venezuela needs, he challenges, are clear rules, production, foreign investment and not frightening investors off with measures such as the nationalization of Banco do Venezuela.

The Fedecamaras president quips that people should be asking why the Santander Group that owns Banco de Venezuela wants to leave Venezuela. "The sale of the bank is not a positive message for what is happening in Venezuela ... the President of the Republic wants to become the only businessman in the country." Gonzalez prefers to call the takeover of the private bank not nationalization but "statization" or state control and he says it will allow the State to control a fourth part of the financial markets. Pointing to the history of the Banco Industrial de Venezuela (BIV) which, he asserts, has been characterized by corruption and inefficiency, Gonzalez hopes that the Banco de Venezuela will continue to run with transparency, efficiency and optimum service for all Venezuelans.

Executive Vice President, Ramon Carrizalez has told members of the National Guard (GNB) that a new rank will be created between General of Division and General-in-Chief. The new rank will be called Major General and in the Navy the new rank will be called Admiral-in-Chief, which will be the highest rank in the Navy. Speaking about the new Armed Force Law, Carrizalez says the national territory will be divided into a number of integral defense zones, consisting of all branches of the National Armed Force where there will be divisional commands, regional commands and commands of tactical units. The Vice President also mentioned the new category of technical officers that will affect current professional career sub- officials as an answer to a long-running aspiration for lower-ranked officials.

A spokesperson for Transport for London (TfL) has confirmed to VHeadline Venezuela News that news reports published in El Universal are incorrect in as far as London Mayor, Boris Johnson has not agreed to hand back any specific sum of money to Venezuela. What is emerging is that the Mayor's office is doing its sums and seeing how much of the discount money has been been used. Johnson apparently is willing to return money unused. It has been learned that Venezuela's Ministry of Foreign Relations (MRE) is also applying a bit of mathematics to gauge the input of the technical team sent to aid Caracas in solving traffic. garbage and other problems. The spokesperson says he is unaware at the moment whether the Mayor's Office and TfL will make a public review of the achievements or failure of the agreement, which officially expires on August 20.

Patrick J. O'Donoghue
patrick.vheadline@gmail.com

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Venezuela is facing the most difficult period of its history with honest reporters crippled by sectarianism on top of rampant corruption within the administration and beyond, aided and abetted by criminal forces in the US and Spanish governments which cannot accept the sovereignty of the Venezuelan people to decide over their own future.

HELP US TO KEEP BRINGING YOU THE TRUTH
http://tinyurl.com/n4fg

A picture on the shelf of a presentation to Queen Elizabeth II ... an ambassador's job is a little more demanding than that!

VHeadline editor & publisher Roy S. Carson writes: In my email box this morning was a message from a foreign investor concerned about the "state of affairs" in Venezuela, expressing continuing confusion over what the Venezuelan government's true intentions are and whether or not the Chavez government will be able to deal properly with a raft of problems ... most of his own, or his command executives' making.

"Sorry to say it," the investor wrote, "but the biggest factor effecting Venezuelas' future economic stability is the incompetence of its own government officials ... not the greed of foreign investors ... investors just expect business to be carried out in a timely, professional manner, like it should be!"

The communication was in response to a recent editorial in which I had pointed out that there's little to be gained from hassling Venezuelan officials at the Ministries of Basic Industries & Mines (Mibam) or the Environment Ministry (MinAmb) since they are generally subject to an ineffective gag order from senior management that only contributes to unconfirmed news and often hostile comment getting out from the inner sanctums of officialdom by other means, usually via disgruntled wage-slaves who couldn't give two hoots about an edict from the slave-master so long as their identity is not revealed.

While, elsewhere, it is something that senior business and government executives fully understand i.e. that you have to keep the troops happy to ensure your own position will not be undermined by internal or external information leaks, it is a concept that seems to have passed entirely by Venezuelan government ministers, ambassadors and their ilk. Understandibly, perhaps, they react with shock, horror, when they find that underlings speak confidentially about their woes and concerns with journalists and that their insistence on channelling all information via boring press releases usually means that the horse has bolted even before they've entered the farmyard in any feeble attempt to close the stable door.

VHeadline has understood the complexity of Venezuelan ministerial attitudes towards the quest for accurate and timely information with the nett effect that we're blacklisted by more government departments than we care to number. The same goes for certain diplomatic postings around the world although the fact that many Venezuelan embassies are in the hands of rank diplomatic amateurs seems of little concern to the power brokers in the hallowed hallways of the Yellow House HQ of Venezuela's Foreign Ministry (MRE) in Caracas.

As readers of our Spanish-language edition will, from time to time, have learned, there is a witch's cauldron of discontent about to boil over at the MRE with political appointees unceremoniously replacing fully-trained and competent diplomatic staff with family and friends of certain individuals in the administration who, like their sponsors, have little understanding of the role that consular and embassy staff play in a modern world scenario.

One only needs to take a case in point ... Venezuela's London embassy, house in a rather shabby corner location close to the majestic (British) Natural History Museum, the imposing Victoria & Albert Museum and Brompton Oratory in fashionable South Kensington, only a stone's throw away from bustling Knightsbridge and the tourists' much-loved Harrods department store.

At a first glance at the outside it's clear that Venezuela's London embassy has seen better days and the sombre outlook inside is perhaps symptomatic of the degradation into which the embassy and its occupants have forfallen since "Ambassador" Samuel Moncada acceded to the sinecure last fall, replacing Alfredo Toro Hardy who was posted to a key role as Ambassador to Madrid in Spain. While he admittedly had held offices of high distinction back home in Venezuela as a university professor and Minister for Higher Education, it quickly became obvious in London that he was but a pale replica of his predecessor as he set about dismantling the good diplomatic relations in Britain that Toro Hardy had succeeded in winning over a space of six-seven years previously.

Local embassy staff were quite ignominiously dismissed, to be replaced with Moncada ingenues still wet under the collar direct from Caracas and oblivious to the political climate in Labor/socialist Britain, Moncada appears to have sought counsel only with the extreme left, pseudo intellectuals -- often financed by the Westminster Group or even worse by USIS or its Swedish confrere -- as well as trade unionists and others on the make. Reliable information from within security services happily spoke of embedded sources close to Moncada and the embassy residence in Holland Park. In one sparse communication the ambassador himself expressed concern over telephone security issues so he must have been aware who may have been listening in on his not-so-confidential telephone calls.

Career professional diplomats might take such matters cautionary in their stride with a degree of outward panache, but paranoia and reclusivity are unhappy bed fellows in international diplomacy and Venezuela's diplomatic reputation in the United Kingdom capital has been on a slippery slope since last December when Moncada 'hit town'.

It was therefore not really surprising that when News Editor Patrick O'Donoghue and I made individual efforts to call both the embassy and the ambassador's residence following the May 1 victory of Boris Johnson to become Mayor of London, replacing Chavez' 'best-buddy' Ken Livingstone, that we were given short shrift and basically told to take a hike even though we had met and interviewed key officials in both candidate's mayoral line-up previous to the event and already knew then what has just become apparent in the public domain i.e. that conservative Johnson knows little or nothing about what is truly happening in Venezuela (why not Mr. Ambassador?) and has just decided to return the equivalent of $14 million to curtail an honorable agreement set up by Moncada's predecessor, Toro Hardy, to provide low-cost diesel oil to power London buses in barter exchange for know-how counselling on policing, traffic control and city environment ... matters on which London has excelled. Moncada's diplomatic incapacity and his callous neglect of the basic elements of compliance with an ambassador's job description have become apparent in the professor's series of failures in eight short months at Cromwell Road. The embassy is now a paper and string botch-up of its previous status ... and we're not just talking about the urgent necessity of a coat of paint.

The ambassadorial presumption that Boris Johnson should be an avid reader of his occasional musings in the communist Morning Star is simply too much to stomach. Moncada's focus on the choir of 'born again' Chavistas in London has quite naturally neglected any discourse with the majority of other Venezuelan citizens in the south-east of England, much less anywhere else in the United Kingdom including Scotland, Wales and Northern Ireland or even his side-representation to Dublin, Ireland. Quite frankly, if it were not for visiting delegations from Petroleos de Venezuela (PDVSA) and other more competent Venezuelan representatives, you might as well relegate Venezuela's London embassy to the ignominious status of some sea-shell republic in the South Pacific.

Yes, indeed ... "the biggest factor effecting Venezuelas' future economic stability is the incompetence of its own government officials" ... and isn't it about time that President Hugo Chavez woke up to the fact that his ambassadors need to be more "with the job" that diplomacy is all about. It's not just enough that Moncada has a picture of his presentation of diplomatic credentials to Queen Elizabeth II to display on the shelf ... the job is a little more demanding than that!

Roy S. Carson
vheadline@gmail.com

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Venezuela is facing the most difficult period of its history with honest reporters crippled by sectarianism on top of rampant corruption within the administration and beyond, aided and abetted by criminal forces in the US and Spanish governments which cannot accept the sovereignty of the Venezuelan people to decide over their own future.

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Chris Herz: One of our own, or a tale of two scientists

VHeadline's Washington-based commentarist Chris Herz writes: In past times, a military officer caught in the act of some crime or another was given by his brothers-in-arms a pistol loaded with just one bullet. In order to spare his army and colleagues further embarrassment he was expected to blow his brains out his ear.

Was this how it is with Dr. Bruce E Ivins?

This bacteriologist was a 36-year veteran of the American rogue state's biowar program, working in the army installation at Fort Detrick in the city of Frederick, Maryland. My own home town. His house is one street away from my parents' old home, now occupied by my son and his family. And if we are to believe what government and media authorities tell us, Ivins was also the author of the infamous anthrax terrorism which occurred in late September and October of 2001. This terror was directed against the Democratic Party leadership in the Senate and against the media; prime focii for right-wingnut hatred.

Five persons lost their lives: Most unpleasantly.

The main postal facility for the capital city of Washington was disabled, and the Congressional offices were for weeks rendered unusable.

Oddly enough, or not so oddly, as you please, it seems this man was permitted, even encouraged to suicide. A government armed with the power to declare anyone an enemy combatant on the merest of suspicions, then intern him indefinitely without charge chose instead to actually tell this criminal terrorist suspect that he would soon be indicted by a grand jury and the government would seek the death penalty against him. Dr Ivins then did the "right thing."

All through this investigation, the interest on the part of government to avoid among other things, disclosure of the extent of its violations of the various treaties concerning bioweapons has been evident. Also it is almost certain that the attacks could not have been just the work of Ivins, but may have involved others, possibly a serving army officer (66% of whom describe themselves to the ARMY TIMES as "very conservative"). This last I have heard from a disgusted local police officer.

The fact that a public trial of a white, anglo, apparently militantly conservative biowarrior with the personal resources to secure proper legal representation has been avoided must have many in the imperial high command breathing a bit easier.

This has to be contrasted with the case of computer scientist, the Florida professor Sami al-Arian who is a Palestinian migrant. This man has been held now for over five years under often atrocious circumstances -- involving two years of solitary confinement, etc. And this after a jury deadlocked at 10 to 2 for acquittal on charges of the professor having given and raised funds for Islamic charities which may or may not have been associated with the Gaza Hamas Party. Here government have not hesitated to use their powers to keep al-Arian incarcerated indefinitely. For giving money to charities!

Ours is a sick and racist justice -- if you can call it that. Ours is a government which hesitates not at fostering corruption at the highest levels of its own Justice Department. What else may one expect of a regime which has labored assiduously for decades to destroy its own constitutional and democratic legitimacy? But all this is only another example of the Byzantine politics of the New Rome.

From the imperial capital,

Chris Herz
cdherz44@yahoo.com

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Venezuela is facing the most difficult period of its history with honest reporters crippled by sectarianism on top of rampant corruption within the administration and beyond, aided and abetted by criminal forces in the US and Spanish governments which cannot accept the sovereignty of the Venezuelan people to decide over their own future.

HELP US TO KEEP BRINGING YOU THE TRUTH
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Southern gold miners occupation of Mibam offices precipitates Thursday meeting with Minister Rodolfo Sanz

VHeadline Venezuela News reports: Southern Bolivar State miners have occupied the offices of the Basic Industries & Mining (Mibam) Ministry in Ciudad Bolivar, demand payment of compensation promised by the Mibam Minister Rodolfo Sanz. The compensation related to controversial conversions of mining rights which have basically thrown local small-scale and artesanal miners out of their previous mine workings to make way for industrial-scale transnational corporations which are themselves in a state of paralysis while the central government dilly-dallies on final clearances to begin mining operations.

Raul Leoni miners representative Alfredo Villanueva says many projects have been promised by Minister Sanz with attendant jobs for local workers but they are fed up waiting for payments and/or compensation that was promised as part of the deal reached with Mibam TWO YEARS ago ... and all the while, people are left without jobs.

Villanueva says the population of La Paragua has been left abandoned to its own resorts ... roads are inaccessible, a local hospital has been without without doctors and/or medical supplies for more than a year and public water supplies are out of reach as well as power lines bringing electricity to the area. "Miners are starving ... three months ago Mibam Minister Sanz committed himself to honoring the payments, however ... but we have seen neither hide nor hair of any money."

Within hours of the occupation of Mibam offices in Ciudad Bolivar, the vice president of the state-owned heavy industry conglomerate, the Venezuelan Guayana Corporation (CVG), Alfredo Arcila arrived to assure the demonstrators that Rodolfo Sanz is addressing the problem and that he will give answers on Thursday (August 7) in a specially convened meeting with miners at 6:00 p.m. at Mibam headquarters in Puerto Ordaz.

VHeadline Venezuela News
vheadline@gmail.com

____________________________________

Venezuela is facing the most difficult period of its history with honest reporters crippled by sectarianism on top of rampant corruption within the administration and beyond, aided and abetted by criminal forces in the US and Spanish governments which cannot accept the sovereignty of the Venezuelan people to decide over their own future.

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Vice President defends new laws, but another 16 legislative proposals would be sent to the National Assembly

Caracas Daily Journal (Jeremy Morgan): Vice President Ramon Carrizalez said the government's package of 26 new laws were based on a "humanist spirit" and he claimed the people weren't listening to the opposition any more. Speaking at a press conference to which only the state media were reportedly invited, he said: "Venezuelans have learnt not to allow themselves to be manipulated or influenced by the coup-mongering attitudes of opposition groups. Now, the people recognize the spirit of these laws, the great humanist sense, and understand that if they're attacked it's only because we're on the right road."

Carrizalez took issue with criticism by "counter-revolutionary sectors" of President Hugo Chavez' having made use of his special powers to promulgate these laws by decree before the Enabling Act expired on July 31. The President had been fully within his powers in doing so, the laws had been declared to be constitutional by the Supreme Justice Tribunal (TSJ), and they had been duly published in the Official Gazette, he added.

Carrizales said proposals for a further 16 laws would be submitted to the National Assembly (AN) because they contained "many elements of discussion" but he did not go into detail about what these envisaged.

Julio Borges of the opposition party Primero Justicia dismissed the presidential package as a bad joke on the referendum late last year which rejected Chavez' plan to reform the Constitution, not least by removing a ban on more than one successive presidential election. Borges claimed many of the new laws consisted of changes that had been submitted to and rejected by the voters at the referendum last December 2.

The laws signed by Chavez were "exactly what the Venezuelan people had voted against in a clear manner on that day, he added. Rafael Simon Jimenez made much the same point, accusing the government of "inconceivable piracy" in its method of using the enabling powers to introduce "contraband" laws.

CNE to begin registrations; Director says 'inhabilitados' won’t be accepted as candidates

Caracas Daily Journal (Jeremy Morgan): The National Electoral Council (CNE) today begins the process of registering candidates for the state and municipal elections scheduled for November 23 amid contradictions over what attitude it would take towards aspirant candidates banned by Comptroller General Clodosbaldo Russian.

Officially, the CNE will not accept registrations from individuals on Russian's list. Several people on the list including Chacao Municipal Mayor Leopoldo Lopez have vowed they'll turn up and try anyway, if only to make a point about the ban -- and in the process put the supposedly autonomous and independent CNE on the spot.

CNE Director German Yepez said anyone on Russian's list of 'inhabilitados' wouldn't be registered as a candidate because they would be rejected by the automated system. In saying this, he tacitly admitted that the Russian list had already been fed into the CNE's computers. Yepez didn't say how many people were already in effect banned from standing as candidates. Russian's list was cut down to 272 individuals before he handed it over to the Supreme Justice Tribunal (TSJ) and, presumably, the CNE as well.

Critics of the ban claim that the only individuals ineligible to run for elected office are those who've been convicted in court of committing a crime. People on Russian's list insist this doesn't apply in their cases. Given that roughly half of Venezuela's prison population of a little over 19,000 are behind bars serving jail sentences (the rest are in custody awaiting trial), this would put the number of people not allowed to vote at around 9,000, including those barred by Russian.

It would seem that while Yepez' view of the 'inhabilitados' is shared by CNE president Tibisay Lucena, it isn't universally held by all of his colleagues. Fellow CNE director Vicente Diaz reiterated his earlier opinion that the Russián ban was illegal. It had "no foundation in any Article of the Constitution, nor under any laws, nor the Penal Code, nor the Suffrage Law, nor the electoral power," he said.

Humberto Castillo, a member of the National Electoral Board -- the organization which actually runs elections -- appeared to try to dampen speculation that the vote could be delayed. Any alteration of the CNE's timetable would put the elections at risk, he said. Candidate registration is scheduled to close on August 25.

Chavez in trilateral talks; meets with Lula, Fernandez de Kirchner

Caracas Daily Journal: President Hugo Chavez said his meeting with Presidents Luiz Inacio Lula da Silva of Brazil and Cristina Fernandez de Kirchner of Argentina was aimed at reaching accords on guaranteeing "food supply sovereignty" in their countries. Speaking to reporters on his arrival in Argentina shortly after noon on Monday, Chávez said the trilateral meeting had an "open agenda" including food supply and trade between the three countries.

The meeting, he continued, would also be important in forging the so-called Axis of the South between Caracas, Brasilia and Buenos Aires. It would also help consolidate the bilateral alliance between Venezuela and Argentina, he added.

Chavez took the opportunity to reiterate his oft-stated view that the "globalized world imposed by the empire" -- his shorthand for the free market economics supposedly developed at the behest of the United States -- had failed. As a consequence of this, he added, the rest of the planet was confronted with crises in food supply, finance, energy and even morality, he claimed.

The axis formed by Venezuela, Brazil and Argentina, and South American integration was looking for ways to confront this dilemma, he continued. "How? Developing our agro-alimentary potential, energy industry, finance, because South America has everything to be a world power," he said.

Chavez noted that Venezuela and Argentina had worked together on policies intended to increase food production, including the supply of Argentine bulls to service Venezuelan cattle. Argentina was also assisting Venezuela in the production of soya and corn. "We're developing our potential to confront the crisis and we are helping, humbly, in the energy sphere," he added.

Lula had arrived on Sunday with a team of 264 Brazilian entrepreneurs for bilateral talks. He and Fernandez de Kirchner also discussed the outcome of the Doha Round of multilateral economic discussions in Geneva.

National Assembly (AN) Commission of Security & Defense declared in permanent session

Caracas Daily Journal: The Commission of Security and Defense of the National Assembly declared itself in permanent session until the Organic Law on Kidnapping & Extortion is sanctioned. The president of the Commission, Rafael Gil Barrios, said on Monday that the commission is working hard with the proposals and suggestions received last week during a public consultation regarding the law.

"We expect to submit the project to a second discussion on Tuesday with all the members of the chamber. That is our goal", Gil said.

The deputy also said that the members of the Commission are in favor of hard punishments for people who take part in extortion, kidnapping and related crimes.
Punishment, he said, includes paying time in maximum security prisons. "There is a full rejection against criminals who deprive people of their liberty by force. The people request the maximum sentence (30 years) to them without any kind of benefit", the deputy added.

Gil added that he is in favor of revising laws linked to crimes in which the criminals get out of jail because of some legal benefit and they go on committing crimes. "We need to overhaul those cases in order to avoid greater damages."

Regarding Congressman Calixto Ortega's proposal to apply life imprisonment, Gill Barrios said: "we support severe sanctions, but in correlation with the penitentiary system regarding its implementation and reinsertion of citizens into society."

Higher Education and Interior & Justice Ministries working to merge several institutions into new National Experimental University of Security

Caracas Daily Journal: Officials from the Higher Education Ministry and the Interior & Justice Ministry are working on a plan to merge several existing institutions into a new National Experimental University of Security, (UNES), according to Higher Education Minister Adan Chavez.

Luis Acuna, a senior official of the Higher Education Ministry, and academic planning chief Humberto Gonzalez recently had a high level meeting with Orietta Caponi, who is the head of the University Institute of the Scientific Police (IUPOLC), which will be one of the institutions incorporated into the new security university.

Other organizations destined to forge the UNES include the Metropolitan Police University Institute (IUPM), the Penitentiary Studies University Institute (IUNEP), the School of Fire Fighting Studies, the Terrestrial Transit School and the Civil Protection training scheme, according to the state run news Agency, ABN.

The National Universities Council (CNU) has also been consulted over the UNES plan.

Banco de Venezuela to have branches in small towns -- similar to Banco Caixa in Brasil

Caracas Daily Journal: Banco de Venezuela will be put on a municipal basis with branches in small towns -- similar to Banco Caixa in Brasil -- after it passes to state ownership under the latest nationalization by President Hugo Chavez.

Outside major urban centers, bank branches are few and far between in rural areas of the interior, a point noted by Chavez when he referred to the takeover plan in his regular broadcast, Alo Presidente, last Sunday, which was broadcast from the Orinoco.

"Here in Caicara del Orinoco there are only three bank branches," he said. One represented the Andean development bank, Banfoandes, another Banco Industrial and the other Banco de Guayana. There were many municipalities that didn't even have one bank branch, he added.

Chavez was quite open about his wish to copy the model set by Caixa, having recently met with senior executives from the bank. "The good experiences have to be copied," he said. The takeover had been welcomed by the private banking sector and its Spanish owners, Grupo Santander, he claimed.

Caracas Daily Journal News Briefs -- Tuesday, August 5, 2008

Labor Minister Roberto Hernandez roundly denied suggestions that he was about to resign, describing such reports as false and badly intentioned. "We revolutionaries absolutely don't resign from any office because we're complying with the duty of fighting on behalf of the dispossessed of the Earth," he said.

National Assembly Deputy Alberto Castelar claimed that the Patriotic Alliance of parties behind President Hugo Chavez had been able to reach accords in recent weeks. The "climate" between them was improving for the government to present "electoral options" in time for the elections on November 23, he claimed.

Armando Battista, a 79-year-old Italian, was rescued by the National Guard (GN) last Saturday night from an isolated house in Yaracuy state where he had been held captive after being kidnapped 26 days earlier. Two females, one of them a legal minor, were arrested as they received Bs.F.100,000 in ransom money.

The National Guard, which celebrated its 71st anniversary earlier last week, announced that it had seized 14 tons of illegal drugs this year so far. Most of the drugs are said to have been cocaine in transit from Colombia to lucrative markets in Europe and North America.

Interest rates ended the last week of July at a basic 22.9 percent, marking a drop of 1.2 percentage points on a week before, according to figures from the Venezuelan Central Bank (BCV). The official reserves rose in the same week by $677 million to reach $33.784 million, continuing an upward trend seen in recent weeks.

A driver and two men who were traveling with him in his truck drowned after the vehicle plunged into an irrigation canal at the side of a highway linking Cumaná and San Juan de Macarapana in Sucre state around midnight last Sunday. They were on their way from a party when the crash occurred.

Venezuela Government To Take Greater Role In Tourism Industry

The Venezuelan government will take a greater role in the tourism industry under a new law decreed by President Hugo Chavez that also makes it easier for the government to seize control of companies in the tourism sector. The new law, which was approved by Chavez last week and whose contents were published Monday, labels the tourism industry as 'public interest' which allows to nationalize any companies operating in the sector. The law, which was approved as part of a legislative package signed by Chavez using special decree powers just before they ran out Aug. 1, states that its main objective is to make tourism 'an instrument of social inclusion.... to build a new socialist society.'

Venezuela Approves Food Security Laws

Venezuelan Agaricultural Economy Minister Richard Canan said Monday the legislations recently approved by the local Executive seek to guarantee national food security. Venezuelan President Hugo Chavez announced promulgation of 26 new decrees related to sectors such as the Armed Forces, social security, banks, public administration and others on August 1st, which were approved by the National Assembly. Canan defended legitimacy and accountability of the regulations and criticized some media adducing growing state control or false regulations and saying that the regulations approved by the National Assembly are already published in the Venezuelan Official Gazette. He said that the regulations regarding the agricultural sector benefit a great number of producers, supervise all the chains in the system, and are in frontal combat against smuggling and speculation. He mentioned the benefits of the Organic Law on Food Security and Sovereignty, but also the reach and usefulness of legislations like the Law on Agricultural Integral Health and the Law on Debt Payment Benefit. These legislations consolidate supervision of the productive chain and grant a better organization of the trade and transportation systems and other entities. He said creation of strategic reserves for basic products under the protection of the government would strongly fight speculation and provide optimum control of products, with greater participation of producers.

Argentine, Brazilian, Venezuelan leaders hold impromptu summit

The presidents of Argentina, Brazil and Venezuela held an impromptu summit late Monday in Buenos Aires to bolster what Venezuelan President Hugo Chavez said was 'the main axis of South America'. Mr Chavez was an unexpected addition to what was meant to be a bilateral meeting scheduled between Argentine President Cristina Kirchner and Brazilian President Luiz Inacio Lula da Silva. After the brief meeting, Mr Chavez told a media conference he suggested to his counterparts that a mothballed plan to build a gas pipeline across South America be revived. 'I think it is the moment to bring that back', he said of the project, which would involve building a pipe 8,000 kilometres long at an estimated cost of US$23 billion (S$31.5 billion).

Venezuela and Brasil on Joint Naval Maneuvers

Warships from Brazil and Venezuela are taking part in joint naval maneuvers, including test firing drills, at the firing range of La Orchila Island, Venezuela, a military source said on Monday. This time, the Venbras maneuver, which has been carried out for 15 years, started at Guanta port, then moved to La Orchila air and sea base and was scheduled to conclude at Pampatar, Margarita Island, on Tuesday. Venbras includes drills with artillery, choppers, tactic maneuvers and communication, also involving Venezuelan Sukhoi planes. El Tiempo daily, from eastern Anzoategui state, quoted Brazilian Rear Admiral Carlos Auberto Guimaraes as saying that the exercise is aimed at exchanging experiences between troops from both countries. At the end of Venbras, the Brazilian visitors will set sail for Panama, where they will continue their practices.

Venezuelans Producing Natural Gas Buses Locally

Venezuelan bus manufacturer ENCAVA has taken its first steps into natural gas bus production, with their first compressed natural gas (CNG) bus clocking up its first 20,000 km. Latamgas reports that demand for natural gas buses in Venezuela could be as high as 150,000 units in the coming years. The 20,000 kms inlcuded trips to the city of Maturin, more than 650 km from Caracas. The 32 seater ENCAVA bus is powered by a 195 hp Cummins B series engine and is expected to be followed by a 54 seater bus during 2009. The chassis and body were built by ENCAVA entirely in Venezuela.

Business group opposes Venezuela bank takeover

Venezuela's largest business chamber is opposing a decision by President Hugo Chavez to nationalize a Spanish-owned bank. Fedecamaras business chamber president Jose Manuel Gonzalez says nationalizing Banco de Venezuela shows «the government wants to become the only businessman in the country. Chavez hopes to reach an agreement with Banco Santander for its subsidiary, which is Venezuela's third largest bank. He has said he decided to nationalize it after learning the owners were in talks to sell the bank. Gonzalez says the withdrawal of the Spanish investors is a negative sign for investors and that the government will soon control one-fourth of Venezuela's financial market.

Venezuela pushes Trinidad out of Caribbean oil market

Venezuelan President Hugo Chavez's sale of subsidized oil to the Caribbean through the Petrocaribe initiative is pushing traditional supplier Trinidad and Tobago out of the region in search of new markets. Trinidad state oil company Petrotrin's usual Caribbean market sales of around 60,000 barrels per day (bpd) have fallen by half since the 2005 creation of Petrocaribe, which sells oil and fuel on advantageous terms to Caribbean and Central America nations. 'We lost market in the (Caribbean) region but the displaced products are now going into other markets' including the United States, said Kenneth Allum, Petrotrin Vice President for Refinery and Marketing. Venezuela is selling around 190,000 bpd of oil and products to Caribbean and Central American nations through the Petrocaribe initiative. The Caribbean imports around 450,000 bpd of oil, according to U.S. Department of Energy data.

Venezuela hits Cemex unit with $37.3 mln tax tab

Venezuela's Seniat tax agency on Monday said it hit Cemex Venezuela VCM1.CR, a local subsidiary of Mexican cement company Cemex, with a $37.3 million tab for back taxes. Venezuelan President Hugo Chavez this year announced his government was nationalizing the nation's cement sector.

Argument over the 26 decrees issued at the end of the Enabling Law period is unsubstantiated brouhaha

Caracas Daily Journal: President Hugo Chávez on Sunday said the 26 last decrees he issued within the framework of a controversial Enabling Law, given to him by the National Assembly 18 months ago and ended on Thursday, were all discussed and approved, and called on opponents to turn to the Supreme Justice Tribunal.

During the commemoration of the Day of the National Flag, Chávez said that "those who disagree can turn to the Supreme Justice Tribunal. There is a state of law in Venezuela," national media quoted the president as saying.

The president said that the national executive had used the special powers during a year and a half to elaborate a series of bills that were later approved. "The last (bills) issued, which we had been discussing, came out on July 31."

In references to some aspects approached in the decrees, the president spoke about the National Armed Forces (FAN, under its Spanish acronym), which "now, under the law is Bolivarian".

The new law ruling the FAN is very important because every law must obey the nature of things … It (means) a change in conception, not only a change in name. Even the structure of the Armed Force is starting to be changed." The president also said that national media outlets and opposition-aligned personalities had created too much, baseless, brouhaha over the 26 decrees issued on Thursday, July 31, which was made public on Friday in the Official Gazette edition.

"They go with all that brouhaha – that they are secret laws … Those laws were all debated and discussed," the president was quoted as saying. The 26 decrees, the president was reported to have said, were all created in the country's benefit.

There were two announcements the president made during his Sunday speech. On one side, considering that the current Presidential Office's Minister Jesse Chacón is running for the Sucre Mayoralty in the regional elections, pro-government student leader Héctor Rodríguez, who is also part of the PSUV's board, is now the Presidential Office's Minister. Rodríguez emerged as a student leader during the political confusion involving student protests last year triggered by the conflict over the cancellation of broadcast license of the private TV station RCTV.

The president also said that 24 Russian Sukhoi planes had been received in Venezuela as part of a military equipment acquisition Venezuela recently bought from Russia. The business includes AK 47 rifles and artillery tanks. The president also presented excuses for not attending the Anti-Drug summit recently held in Colombia. He said despite the fact that he had planned to go, the government had received "worrying information" regarding his security at the summit setting.

Luis Miquelena says the 26 bills camouflage introduction of "everything Venezuelans had already rejected on December 2"

Caracas Daily Journal: Personalities opposing President Hugo Chávez' government criticized the electoral ban issue and the 26 decrees issued at the end of the Enabling Law period. Former top deputy Luis Miquelena referred to the 26 bills as a means to camouflage the introduction of "everything Venezuelans had already rejected on December 2," Miquelena was quoted as saying.
The former deputy was reported as having catalogued the introduction of the 26 bills as an "aggressive felony of introducing the country to a series of laws that no one knows. Headlines of laws, because they are not even elaborated." Chacao Mayor candidate Liliana Hernández said it was "abusive and rude" to publish 26 law decrees without content.

One of the most prominent inhabilitados, Chacao Mayor Leopoldo López, said he was waiting for the Supreme Justice Tribunal ruling to formalize his bid or not. López faces an electoral ban imposed from the Comptroller General's Office to run for upcoming regional elections. The ban has caused a lot of controversy over its legacy. There was also a delay in the presentation of the official list of candidates of opposition parties who have agreed to present unity candidates in the upcoming regional elections.

Instead of making their official choices public on Sunday, as had been scheduled, Un Nuevo Tiempo, Primero Justicia, Movimiento Al Socialismo, Copei and Acción Democrática said they were "in permanent session" and were waiting for polls results to make final decisions. The official list of names is now to be made public on August 5.

Banco de Venezuela: It might take some more time for people to trust the government’s decision

Caracas Daily Journal: President Hugo Chávez on Sunday called on workers and savers of the Banco de Venezuela to trust the Republic and its decision to nationalize the currently Spanish-owned financial entity, national news agencies reported. Chávez spoke during a political act held in Bolívar state, southeastern Venezuela.

Savers, the president was reported as saying, have more guarantees than before because Banco de Venezuela belongs to the Republic now, and the Bolivarian Republic of Venezuela is one of the strongest in the continent nowadays," the state-run TV station Venezolana de Televisión, VTV, quoted Chávez as saying.

The aim of the move, the president explained, is to recover a bank that since its beginnings had belonged to Venezuela. With the purchase of the bank, which is part of a strategic economic field, the president was quoted as saying, the financial entity is now property "of the people and of the state."

President Chávez referred to the nationalization strategy as one opposed to privatization, which had put Banco de Venezuela into foreign investors’ hands years ago, along with other important enterprises.

Sidor, the president recalled, had been put into capitalist hands, and the workers had to "suffer the worst side" of the "fiercest capitalism." "One of the first thing Sidor's foreign managers did was to dismantle the Scientific Investigation Institute of the enterprise."

"But we are reactivating it with another mission – downstream development," VTV quoted the president as saying. The president went on asking what would have happened if PDVSA had been put into foreign capital's hands too. "Where would Venezuela get resources for the national economic development project?"

An opponent to the nationalization of Banco de Venezuela was also reported to have spoken on Sunday, not only opposing the government's decision, but also calling on Venezuelans to give the case the importance it had. For Economist Vicente Brito, who heads the opposition-aligned organization Red por la Defensa al Trabajo, la Propiedad y la Constitución, the move was "a bad business for Venezuela," the private TV station Venevisión reported.

"I we analyze the purchases of private enterprises that the government has made during the last three or four years … it would make some 10 million dollars Venezuela has compromised to acquire private enterprises that pay taxes and have given an efficient public service," Brito was quoted as saying. "We estimate that in 2008 over $5,000 million will be allocated to cover the deficit created by many public enterprises."

Venezuelan hotel robber dead in police custody; authorities say the suspect tried to flee

EFE News Service: Guyanese authorities on Sunday were continuing to investigate the death in police custody of one of two Venezuelans who allegedly beat and attempted to rob the owner of a hotel at gunpoint in eastern Guyana, near the border with Suriname, police spokesman Ivelaw Whittaker said.

Robielkis Monte de Oca Arias began having difficulties breathing while in custody on Saturday and was taken to the public Skeldon Hospital, where he died while being treated, Whittaker said. Monte de Oca had sustained a wound over his left eye while he and his suspected accomplice jumped over a gate in the hotel compound in a bid to escape in one of several boats moored along the Corentyne River, which separates Guyana from Suriname, and investigators believe he hit his head on a concrete slope while fleeing, police said.

The Venezuelans rented a room Friday evening at the Malinmar Hotel from owner Rahat Ally, Whittaker said, adding that about two hours after arrival the men complained that the shower was not working properly and insisted that the hotel owner accompany them to take a look at the problem.

"As he entered the room, one of the men, who was armed with a firearm, held him at gunpoint and a scuffle ensued during which Rahat Ally was hit about the body with the firearm and a round was discharged," Whittaker said.

The Venezuelans attempted to escape after the gunshot drew the attention of Ally's wife and another hotel employee. As the men tried to start the engine of one of the boats, customs agents opened fire, forcing the suspects to abort their getaway. The firearm was not found.

In the past, Guyanese police have killed Venezuelans who were allegedly involved in cocaine smuggling, illegal entry, kidnapping or illegal fishing in Guyana's waters.

Patrick J. O'Donoghue's round up of news from Venezuela -- August 4, 2008

During his Sunday radio address from Caicara de Orinoco in south- eastern Venezuela, President Chavez has defended the passing of a package of 26 laws through the Enabling Law. Many of the new laws, the President insists, will modernize the state administration, bureaucracy and corruption in public office. Perhaps the most controversial is the law governing the Armed Forces (FAN). The President declares that with the new law, the FAN is now finally " Bolivarian." Chavez denies charges from opposition groups that the laws were done in secret, stating that they were debated and openly discussed and anyone who has an argument against them can take their complaint to the Supreme Tribunal of Justice (TSJ) because in Venezuela there is a rule of law.

Under the new law, the national reserve will be called the Bolivarian National Militia, the Army (Ejercito) The Bolivarian National Army, the Air Force (FAV) the Bolivarian Military Aviation and the Navy will be called Bolivarian War Marine Force. Finally, the National Guard (GN) will add Bolivarian to its title. The President insists that it is not just a change of name but a change in the structure of the Armed Force. What is not yet clear is whether the Reserve will start receiving wages and promotions as promised by the President.

Former Bolivarian strongman who went over to the opposition camp, Luis Miquilena has questioned the 26 new laws that were passed before the 18-month Enabling Law period ended on Friday. The former constituent assembly president argues that many of the titles were rejected in last December's constitutional reform referendum and accuses President Chavez and the government of introducing the laws by stealth. The opposition is taking exception to the inclusion of the national reserve into the Bolivarian Armed Forces, which, it claims. was part of the constitutional reform and rejected by majority vote.

President Chavez has appointed university student, Hector Rodriguez as Presidency Secretariat Minister, replacing Jesse Chacon, running as candidate for the United Socialist Party of Venezuela (PSUV). Chavez comments that the appointment gives the government an injection of young and fresh blood. The announcement was made during the Sunday radio address from Caicara del Orinoco.

During his Sunday radio address, the President insists that the State should be able to complete with private industry without eliminating it. The government rejects the premises of neoliberalism that the State should not get involved in the economy and that all profits should go to the private sector. The President says he would like to see state companies offering insurance and providing efficient and quality services to the public. The purchase of the Banco de Venezuela, Chavez maintains, is an example that will allow the State to compete in the area of interests.

Referring to the purchase of Banco de Venezuela, President Chavez says he would like to see it performing similar to Brazil's Banco Caixa, which has a branch in every town. In comparison, he points out, Caicara de Orinoco where the Sunday radio address was being held, has only three banks, of which two are public, adding that many municipalities that do not have a bank. President Chavez met the directors of the Banco Caixa do Brazil last week and it now appears that the reason for the meeting was to see how the bank works. The visit was made before the President announced the nationalization of Banco de Venezuela. One of the aims of the nationalised bank will be to connect to communal organizations.

Answering critics, President Chavez contends that there are important investments in Venezuela. In the Orinoco oil belt, he proclaims, investments have reached $70 billion for the next six years, while money has been poured into bridges, roads, metro system and trains to a total of $30 billion, partly financed by the government and partly by foreign investment. China has invested $4 billion this year to boost its current investment to around $1.2 billion in thermal-electrical generation centers and other projects. Chavez maintains that Venezuela is working with Brazil and Argentina for technological independence and the country is a good state to push the process forward.

Chavez will be meeting Brazil's President Lula da Silva and Argentina's Cristina Fernandez this week for talks on economic development in what he calls the Caracas- Buenos Aires- Brasilia development axis.

In an interesting insight to some of the problems facing President Chavez in getting the Bolivarian revolution to make inroads locally, several cases of mayors and even State Governors getting cold feet when implementing Socialist policies have been revealed. During the radio address, Chavez tells the story of a meeting with one mayor. When quizzed by Chavez why he was not applying one government measure, it emerged that the mayor was afraid of the reaction of the local Catholic bishop. In other cases, local officials were afraid of traditional land-owners known for reacting violently to any agrarian reform. Chavez insists that public officials must rise to the task and lose their fear. He even quoted a story of a revolutionary leader in South America whose son had been kidnapped to stop the father from pursuing his goals. The leader asked to talk to his son by phone and on hearing the boy, shouted so that the kidnappers could hear him. "You must die like a hero." That is the kind of leader needed in a revolution, Chavez insists.

The government has finally finished the Yacambu-Quibor hydraulic system which will bring water from Lara State hill areas to Barquisimeto, Quibor and Cabudare. The tunnel was started 35 years ago, after a series of technical difficulties, delays and abandonment. The tunnel carrying the vital water is 24 km long and 1,200 meters underground. The water will be used for agricultural purposes in the Quibor Valley which is an important agricultural zone and to supply the city of Barquisimeto. The Bolivarian government has guaranteed 62% of the financial support needed to conclude the infrastructure, which should be fully operational in 2010. The excavation of the tunnel is said to have been one of the most difficult in the world and in the 10 years of the Bolivarian government workers were able to advance 10 km of the 24.

A spokesperson for Mayor of London, Boris Johnson has contacted VHeadline Venezuela News regarding a piece we wrote, stating that Johnson will return money from the London-Caracas agreement to the Venezuelan government. It is "incorrect. As yet, no money has been returned, and no-one is being 'forced' to do anything. Livingstone should have got his facts straight before attacking the Mayor in the media. The fact remains though that, under the widely derided deal, Venezuela - a very poor country, has given London - one of the world's richest cities, some £16m of which several million has not been used. Boris Johnson feels that this was a morally bankrupt approach, and it would be ridiculous if unspent money was not returned. Negotiation between the parties will decide the final amount. The Mayor is discussing with Transport for London (TfL) how best to ensure that low income Londoners who rely on the public transport system will continue to get the assistance they require." VHeadline Venezuela News would like to clarify to TfL and its press office that our source was an article written in Spanish by El Universal broadsheet and not former Mayor Ken Livingstone.

Patrick J. O'Donoghue
patrick.vheadline@gmail.com

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Venezuela is facing the most difficult period of its history with honest reporters crippled by sectarianism on top of rampant corruption within the administration and beyond, aided and abetted by criminal forces in the US and Spanish governments which cannot accept the sovereignty of the Venezuelan people to decide over their own future.

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Ponzi's pyramid scheme pales compared to the complexity of the financial shenanigans unraveling before our eyes!

VHeadline commentarist and money market expert Fred Cederholm writes: I've been thinking about Ponzi schemes/pyramids, the press, governmental investigations, the past and our present dilemmas. As the summer of 2008 progresses, there is a growing undercurrent of concern gnawing at the very foundations of our US financial/economic systems. Page one news stories talk of losses and write offs in the mega billions. The investors of the planet played fast and loose with money they had (or money they leveraged).

Their judgment was clouded by visions of easy money and big returns ... now they see mountains of losses, not profits ... they are wary of being bitten or taken twice. Such hard learned caution will prove a major obstacle to any long term recovery or any quick turnaround.

Charles (Carlo) Ponzi -- 1882 to 1949 -- is forever identified with the pyramiding scam which bears his name. Ponzi was a wheeler-dealer from the moment he got off the boat from Italy in 1903. He soon relocated to Canada where worked as a teller at a bank that was growing by leaps and bounds because it paid more money in interest than its competition. He saw that the "premium" being paid was financed by new deposits, not from operational profits. The game worked only as long as a steady stream of new money and customers underwrote any would-be withdrawals of the earlier deposits. Rollovers and continued cash infusions were essential. The Bank eventually failed and Ponzi's boss fled Canada with the remaining funds. Ponzi was apprehended and ended up doing time for an unrelated check fraud rap.

Still ... he had learned much from his former employer!

After his release, he relocated to the US where he was soon arrested for smuggling in illegal immigrants and he served two more years. Upon his release, he settled in Boston where he came up with a money raising scheme involving international postage reply coupons -- effective selling "prepaid return postage stamps." He promised a 50% return on a 45-day investment paying lucrative commissions to his sales force for every friend and family member they enticed into investing. He started his own company, the Securities Exchange Company -- the SEC -- to promote the scheme. (Has a nice "ring" to it don't you think?)

His take in February 1920 was $5,000, by March it was $ 30,000, by May it was $420,000, by July his take was in the millions; by then he was raking in $250,000 a day!

An alert local press and government began to question (and investigate) his money making model. On August 10 the Feds shut down Ponzi's "SEC." August 13 he was arrested and charged with 86 counts of fraud. He plead guilty to mail fraud on November 1 and was sentenced to five years in prison. He served three and a half years only to be sentenced to nine more years on state charges. He was ultimately deported in 1934.

Ponzi's flash-in-the-pan pyramid scheme pales in comparison to the complexity and sums of money involved in the financial shenanigans that are unwinding/unraveling before our eyes some 80 years later. His mess was local to New England. Our messes are nationwide and global.

Still ... there are similarities and two differences to the Hell Ponzi had wrought, and looming crises "we" face. In substance over form, both scenarios necessitate an ongoing and increasing influx of new money and investor/ lenders to keep the "engines" chugging away. This is far more critical than the greed driven quest for easy money and a fast buck. Loss of large returns today is not as devastating as the fear of losing principal (or investment basis) to present and future would-be investors.

How is the housing crisis to be solved without new buyers armed with fresh borrowings? How can GDP consumption continue (much less grow) based solely on earned incomes? How will retirees draw on promised retirement benefits without ongoing influx of future workers' tax withholdings? How will retired auto workers draw their pensions without profits from future car sales? How will Uncle $ugar re-finance any weekly redemptions and additional borrowings from our national debt without the continued/expanded largesse of foreign creditors? Ditto for our ballooning trade deficits.

Ponzi's victims had to eat THEIR losses, but at least HE did time for his crimes.

Has anyone now really been indicted yet?

Fred Cederholm
asklet@rochelle.net