Oct
3
2013
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ICYMI: To Venezuelans, Heir of Chavez Is a Poor Copy

The New York Times
October 2, 2013
By William Neuman

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Courtesy of: The New York Times

CARACAS, Venezuela — The start of the season for two premier teams in this baseball-loving nation was thrown into doubt after thieves stripped vast amounts of copper wire from the lights in this city’s main stadium. Basic items are often so hard to find that when a truck driver slumped dead at the wheel after a highway accident last week, motorcycle-riding looters swarmed in to grab the cargo: tons of red meat.

Prices are soaring, the country is plagued by electrical blackouts, some neighborhoods go days without water, and protests tangle the already stifling traffic. To top it all off, the cheap beer that helps people let off steam at many a weekend party has suddenly become scarce, too.

Nearly seven months after the death of Hugo Chávez, the country’s longtime leftist president and father figure, there is a growing sense that things are falling apart.

The new president, Nicolás Maduro, has revived a longtime scapegoat for the country’s woes, accusing Washington of conspiring with other enemies of the government in waging an “economic war” that has subjected the populace to blackouts, chronic shortages and other ills. Borrowing from Mr. Chávez’s script, Mr. Maduro on Monday expelled the top American diplomat here and two other embassy officials, contending that they were plotting to destabilize the country.

But while Mr. Chávez skillfully portrayed the United States as an imperialist bully and cast himself in the role of underdog hero, many Chávez supporters are finding Mr. Maduro’s attempts to imitate his mentor unconvincing.

“This is the biggest mistake Chávez ever made,” said Axel Ortiz, 20, a student, referring to Mr. Chávez’s choice of Mr. Maduro as his successor. Mr. Ortiz still defines himself as a Chavista — a loyal Chávez supporter — but he questioned Mr. Maduro’s ability to solve the nation’s problems. “Chávez was the only one who was qualified, the only one who could keep things here under control.”

The country’s economic problems have become acute. Inflation in the first eight months of this year was more than triple the rate in the same period last year. When measured over the 12 months that ended in August, it exceeded 45 percent. A government indicator that measures the scarcity of basic goods is close to its highest level in more than five years.

Many stores allow customers to buy only a limited number of scarce items like corn flour and cooking oil. People complain of having to stand in line for hours, often in vain, and many are losing patience with the government’s explanation that unsavory conspirators are to blame for the nation’s problems.

“The government is resorting to more and more outrageous and extravagant actions and statements to control the agenda,” said Andrés Cañizalez, a communications professor at Andrés Bello Catholic University.

All of this would be a lot to handle for any neophyte president, but the gaffe-prone Mr. Maduro has come under withering criticism for regularly tripping over his words, eliciting cringes from supporters and jeers from opponents. When he fell off his bicycle on live television recently, the event threatened to become a metaphor for a struggling presidency.

“People laugh at him,” said María López, 32, a mother of two on a recent morning in the Terrazas del Alba slum in the center of Caracas. She voted for Mr. Maduro, and said she still supported him. But she fought back a smirk when asked about Mr. Maduro’s bicycle accident, which occurred during a ride to promote his party’s youth movement. “We don’t want a president who’s a joke,” she said.

The blunders have piled up, much like the entourage of politicians and bodyguards who screeched to a halt in a tangle behind the president’s fallen bicycle.

In one of his most infamous verbal flubs, in August, Mr. Maduro sought to make a reference to the biblical story of Jesus’ multiplying the loaves and fishes — only to have it come out of his mouth as “the multiplication of the penises.” Mr. Maduro apparently conflated “peces” (fish) and “panes” (loaves) to produce “penes” (penises). He quickly apologized and corrected himself, but the damage was done.

“A person who doesn’t know how to speak will never know how to run a country,” said Jorge Flores, 30, a messenger at a government-run hospital, who voted for Mr. Maduro but now bitterly regrets doing so.

“This is the worst government I’ve ever seen,” Mr. Flores said. “The best government we’ve ever had here was with Chávez.”

Mr. Maduro calls his critics elitists and once said he had misspoken on purpose to bait his detractors.

Mr. Chávez, a fiery socialist, had a connection with ordinary Venezuelans that was so strong they often refused to blame him for many of the same problems that continue to bedevil the country. Mr. Maduro does not have the same charisma, and at least some of Mr. Chávez’s followers seem to be tuning him out.

“The government does these things to distract us from our real problems,” said Cristian Nivela, 24, a Chávez loyalist who voted for Mr. Maduro, referring to the expulsion of the American diplomats.

On Tuesday, Mr. Maduro used a special national television broadcast to present what he said was evidence that the diplomats had been conspiring with the extreme right in Venezuela to destabilize the country.

He showed a video, accompanied by ominous music, contending that the top diplomat at the United States Embassy, Kelly Keiderling, and the other two expelled diplomats had met in recent weeks with elected officials — including a state governor and a mayor — who belong to the Venezuelan opposition. The video also showed them leaving a meeting at the office of a pro-democracy group.

“These officials are meeting, well, in a shameless manner, and talking about strikes, sabotage, talking about the internal affairs of Venezuela, offering money,” Mr. Maduro said.

Such accusations resonate here because of the United States’ history of intervention in Latin America, including its tacit support of a 2002 coup that briefly ousted Mr. Chávez.

But a State Department official called the accusations absurd.

“Our diplomats were doing what they do all over the world,” said the official, Roberta S. Jacobson, assistant secretary of state for Western Hemisphere affairs. “They were visiting parts of the country and talking to all kinds of different people. They were doing nothing covert or out of the ordinary for diplomats.”

She said that in response, the United States was expelling the top Venezuelan diplomat in Washington and two other Venezuelan Embassy officials. The United States and Venezuela do not maintain an ambassador in each other’s capital.

On Tuesday night the State Department identified the Venenezuelan diplomats, who were given 48 hours to leave the country, as the charge d’affaires, Calixto Ortega Rios, and Second Secretary Monica Alejandra Sanchez Morales, both of whom are assigned to the country’s embassy in Washington, and Marisol Gutierrez de Almeida, the consul in Houston,

“It is regrettable that the Venezuelan government has again decided to expel U.S. diplomatic officials based on groundless allegations, which require reciprocal action. the State Department said in a statement. “It is counterproductive to the interests of both our countries.”

With the diplomatic tussle in the background, officials said the burglarized stadium — home to the Caracas Lions and the La Guaira Sharks, roughly equivalent to the Yankees and Mets in Venezuelan baseball — would be ready for the start of the season on Oct. 10.

They said workers had finally finished repairs to the lighting system after thieves stripped out much of the wiring, in a very public example of the crime, corruption and disarray in this country.

But the looting of the meat truck on Friday was shocking even to many who have become inured to the high levels of violence here. The truck became stuck under a barrier meant to block oversize vehicles. Part of the cargo crushed the top of the cab.

Denny Medina, 44, the owner of a fleet of trucks, said that he had tried to rescue the driver, but that he could not open the door. Instead of helping, he said, looters clambered over the vehicle.

“What made me feel powerless was to see the people carrying off the boxes of meat, and no one was showing any concern for the driver right below them,” Mr. Medina said. “It was terrible. I hope that we don’t get used to this.”

To read this article at The New York Times, please click here.

 
Sep
4
2013
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ICYMI: Blackouts Hit Nearly Half of Venezuela

Wall Street Journal
September 3, 2013
By Kejal Vyas

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Courtesy of: AFP

CARACAS—A failure in a transmission line cut power across much of Venezuela on Tuesday, leading the government to blame unidentified saboteurs for the widespread disruption.

Electricity outages struck parts of at least 11 of Venezuela’s 23 states in the early afternoon, mostly in the central and western regions, as well as the capital city, Electricity Development Vice Minister Franco Silva said in comments carried on state television.

Information Minister Delcy Rodríguez said in an address about five hours after the initial outage that power had been restored to several states, adding electricity was in the process of coming back online in the oil-rich western states of Zulia and Táchira, and the greater Caracas area.

A shaky power grid remains a thorn in the side of energy-rich Venezuela, leading critics of the current government to point the finger at mismanagement at state-run utility companies. Authorities have periodically turned to power rationing and levied additional surcharges and penalties on heavy electricity users.

Ms. Rodríguez said “complete restoration of this important service will be done in a progressive manner” without specifying how long it would take.

Messages posted on the Twitter account of President Nicolás Maduro said that the power grid was attacked by unnamed enemies of the government.

“It’s evident that behind [the blackout] is the hand of those that want to weaken our country,” said one post. Mr. Maduro didn’t offer evidence to back up his allegations. Calls seeking further comment from officials weren’t immediately returned.

While the government’s detractors accuse authorities of misappropriating investments into the country’s electricity network and falling behind growing consumer demand, the late leader Hugo Chávez often blamed conspirators against his self-styled socialist “Bolivarian revolution.” Mr. Chávez died in March following a nearly two year battle with cancer. Mr. Chávez nationalized much of the electricity sector in 2007.

In recent weeks, his successor Mr. Maduro has disclosed details of various other alleged plots against Venezuela, including several alleged assassination attempts against his life supposedly masterminded by agents of the U.S. and Colombian governments. Critics accuse him of fabricating plots in a bid to boost support.

Venezuela opposition leader Henrique Capriles, who lost April elections to replace Mr. Chávez, said the power failure underscored mismanagement at state companies. “The blackout today demonstrates one more time the terrible incapacity of this government,” Mr. Capriles said in a post on his official Twitter account. “Now they’ll come up with another story to try to cover up the failure.”

In Caracas, the blackouts briefly hit some key government buildings, including the Energy Ministry, which is also the headquarters of state oil company Petróleos de Venezuela, or PdVSA.

In a statement, Oil Minister Rafael Ramírez said refining and production operations in Venezuela’s vital oil industry were unaffected.

The sprawling capital city was furthered tangled by knotted traffic, disrupted subway service and severed water supplies, as several treatment plants went down, authorities said. Power shortfalls and outages are more common in the interior of the country of 29 million residents, while more rarely reaching Caracas.

Between 2009 and 2010, a drought cut production at Venezuela’s hydroelectric facilities that accounted for some 70% of the country’s power. The country has since had to divert more of its crude oil production and imports gas from Colombia to fulfill its own domestic power needs.

To read this article at The Wall Street Journal, please click here.

 
Jul
7
2010
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Helmerich Warns Other Firms After Venezuela Seizes Oil Rigs

Article originally published by The Wall Street Journal

Helmerich & Payne is warning other oil-field-services companies doing business in Venezuela after the drilling contractor saw 11 of its idled rigs expropriated last week by the government of President Hugo Chavez.

In a press release Tuesday, the Oklahoma-based company said other oil-services firms should be contemplating whether to stay in Venezuela. It also criticized the way state oil company Petroleos de Venezuela, or PDVSA, conducts its business.

“Reflecting on last week’s forced exit from Venezuela, it is clear now that PDVSA was not interested in both sides achieving commercial terms to return our rigs to work,” Helmerich said. “That approach only heightens concerns for our oil-field-service peers contemplating their future there, as it should.”

The Chavez-led government, which has nationalized large parts of its all-important oil industry as part of a declared push toward socialism, announced plans last month to take ownership of Helmerich’s rigs.

The rigs haven’t been used since late 2009, and the U.S. company said it wasn’t going to put them back into service until PDVSA paid it the $43 million it owed for work that was already completed.

PDVSA President Rafael Ramirez said the government decided to nationalize Helmerich’s rigs because the country couldn’t afford to let them continue to sit idle while new wells needed to be drilled.

In a partial response to PDVSA’s nonpayment to Helmerich, Mr. Ramirez accused the company of stubbornly refusing to renegotiate the rates it charged to PDVSA when oil prices were falling in early 2009 and PDVSA was falling behind on its bills.

Venezuela’s legislature approved the nationalization plan of Helmerich’s rigs last week, and the government has officially taken control of them. Mr. Ramirez said PDVSA plans to pay Helmerich for the rigs at “book value.”

In announcing the nationalization plan for Helmerich’s rigs last month, PDVSA also said it reached a deal for oil-services work with U.S. energy giant Schlumberger Ltd.

Helmerich said in its statement Tuesday that it leaves Venezuela “with our heads held high,” adding that the company fulfilled all of its contractual obligations. It also said it trained and employed thousands of Venezuelans and achieved an outstanding long-term safety record.

“The loyalty of our employees and many suppliers there will long be appreciated and remembered,” Helmerich said.

Helmerich said its future is partly reflected in new rig-building for “paying customers.”

Officials at PDVSA weren’t available to comment on Helmerich’s latest statement.