Are There More Irregularities Hidden Inside PDVSA?
PDVSA is a center of financial and political intrigue, as it is the hub of Mr. Chavez’ political ambitions. The Venezuelan government uses the proceeds from oil sales to finance Chavez’ Bolivarian revolution, in essence the spread of the hybrid Socialism espoused by Chavez and Fidel Castro. Yet, despite the secrecy, over the last few years numerous questions have been raised, not just about PDVSA’s actual oil reserves and production capacity, but also about PDVSA’s finances. In 2005, we wrote about “Venezuela’s oil receipts,” and the significant questions being raised, including a “shortfall in PDVSA cash deposits to Venezuela’s central bank” of “perhaps by as much as $2 billion.” The trail of that story grew cold, but the questions did not. In fact, little has changed. In 2005, we reported that the alleged shortfall was “not totally verifiable, since PDVSA has not filed papers with the SEC in at least two years.” Indeed, no one really knows what PDVSA’s books really hold. As we report
