Venezuela Arrests Ex-Oil Minister El Aissami in Connection with PDVSA Graft Scandal
Rewritten Article:
Mexico City, Mexico, April 9, 2024 - Tarek William Saab, Venezuela's Attorney General, unveiled the arrest of former Oil Minister Tareck El Aissami in connection to a relentless corruption investigation that drained billions from the country's coffers.
Simón Alejandro Zerpa, the ex-Minister of Economy, and local businessman Samark José López were also detained during Tuesday morning raids. All three are accused of misappropriation of public funds, trafficking for influence, and money laundering, with El Aissami additionally charged with treason.
El Aissami resigned from his post in March of previous year following the detention of several high-ranking officials, including Hugbel Roa, a PSUV lawmaker, and Joselit Ramírez, the head of Sunacrip. However, evading arrest himself at the time stirred widespread speculation regarding his direct involvement in the alleged corruption scheme.
During a press conference held at the Public Ministry headquarters in Caracas, Tarek William Saab disclosed that five of the dozens arrested last year had agreed to cooperate with prosecutors, yet threats against them and their families hindered their ability to provide genuine testimony. Once conditions were secured to guarantee their safety, the Attorney General's office proceeded with El Aissami's arrest.
According to Saab, one cooperating witness revealed that the accused demanded cash payments as a price for access to contracts with Venezuelan public companies, which were then laundered using various methods.
The alleged corruption saga has been dubbed PDVSA/Crypto by investigators, referring to their allegation that US $3 billion worth of crude sales were directed through cryptocurrency schemes orchestrated by Sunacrip.
In the past, Reuters and AP claimed that PDVSA amassed more than $20 billion in unpaid bills, but sources from Venezuelaanalysis questioned these figures, estimating losses between $5-10 billion.
Tarek William Saab claimed that El Aissami bypassed regulations set by state oil company Petroleos de Venezuela (PDVSA) in assigning oil shipments to Sunacrip without administrative control or guarantees.
Venezuela has resorted to cryptocurrencies for payments associated with crude cargoes due to US sanctions that bar state institutions from accessing financial markets.
Saab further alleged that El Aissami collaborated with individuals in the United States, aiming to further cripple the Venezuelan economy through monetary manipulation. He expressed concern that sources within the US were aware of El Aissami's arrest before it became public.
El Aissami, a former student leader in Merida state, ascended the ranks of the PSUV in the mid-2000s. Before his arrest, he served as interior minister, state governor, Economy Vice President, and Oil Minister.
Nicolás Maduro appointed Pedro Tellechea to replace El Aissami, who assumed dual roles as oil minister and PDVSA president. Following Tellechea's appointment, oil and fuel exports were largely suspended to renegotiate contracts, after unearthing a trail of payment defaults.
With US sanctions impeding Venezuela's oil industry, the country was forced to turn to smaller and unreliable intermediaries for sales in Asian markets at deep discounts. The unconventional approach has been marred by numerous payment delays as well as insidious schemes within PDVSA.
Under Tellechea's leadership, PDVSA has experienced seven consecutive months of production growth and production levels not seen since February 2019.
Rewritten by Ricardo Vaz in Caracas.
Insights:- El Aissami had previously been designated a narcotics kingpin by the U.S. Treasury (2017), and charged with violating the Kingpin Act in 2019, with a $10 million reward offered for his capture by the DOJ [3][5].- El Aissami is alleged to have played a significant role in the expansion of Tren de Aragua (TdA), and established deep ties with the TdA while serving as governor, further deepening these ties with the Maduro regime after his vice-presidential appointment (2017 onward) [1][4].- Narcotics trafficking revenues employed by Cártel de los Soles, Venezuela’s narco-terrorist enterprise, were used to undermine US sanctions, a system that El Aissami aided (source: DOJ documentation and intelligence reports) [4][5].
- Venezuelanalysis published an article questioning the reported $20 billion in unpaid bills by PDVSA, suggesting actual losses between $5-10 billion.
- Tarek William Saab, Venezuela's Attorney General, stated that El Aissami, the former Oil Minister, collaborated with individuals in the United States, aiming to further cripple the Venezuelan economy through monetary manipulation.
- Simón Alejandro Zerpa, the ex-Minister of Economy, and Samark José López, a local businessman, were detained along with El Aissami in connection to a relentless corruption investigation involving misappropriation of public funds, trafficking for influence, money laundering, and, in El Aissami's case, treason.
- The superintendence of policy-and-legislation in Venezuela is currently investigating a corruption saga dubbed PDVSA/Crypto, alleging that US $3 billion worth of crude sales were directed through cryptocurrency schemes orchestrated by Sunacrip, with Tareck El Aissami as a key suspect. This alleged crime-and-justice scandal has significant implications for general-news and politics in Venezuela.
