The price of 'stolen' oil: SA may have to pay a political price for its dealings with Hugo Chavez

'Beware of Greeks bearing gifts' is the sceptical response of one respected businessman with Venezuelan experience, commenting on the recent pacts SA signed with the South American country. There are potentially lucrative mining and energy resources in Venezuela - but getting access won't be easy. 'The country has been infected by the Hugo Chavez doctrine,' the businessman says. Last year Chavez began a nationalisation drive in the petroleum, communications and electricity sectors. Business practices are another problem. 'The ethics of the workforce are not anything like you or I are used to. It makes the imposition of Western corporate governance very difficult,' says the businessman. 'It's bloody difficult, but if you get it right it can be very profitable.'
But Canadian gold miner Crystallex argues that many problems in the country are 'perceptional'. Says spokesman Richard Marshall: 'Overall, we have been pleased with Venezuela.' Crystallex has operated in Venezuela for 16 years. It has struggled to develop its Las Cristinas project in the Imataca Forest Reserve because of government's social and environmental concerns.