Venezuela’s need for dollars sparks PDVSA grant probe | – #Venezuelas #dollars #sparks #PDVSA #grant #probe

CARACAS, March 24 (Reuters) – Venezuela’s need for dollars to stabilize its exchange rate and shore up government wealth ahead of 2024 elections is among the motivations behind a crackdown on alleged corruption at state oil company PDVSA, four sources with knowledge of the matter said.

PDVSA this week 20the arrest of more than the president Nicholas Maduro caused the resignation of Tareck El Aissami, a long-known former oil minister in his government. Him january Pedro Rafael Tellechea, who was appointed as the head of PDVSA in substitute did

Maduro said that his government is committed to “getting to the root” of corruption and called the investigation that started last year “professional, scientific and disciplined”. His administration has provided few additional details about the alleged wrongdoing.

Three of the sources said the arrests of PDVSA officials were related to an investigation into heavy losses caused by tankers leaving the country carrying cargoes that the company paid for last year without being fully paid for.

According to documents seen by Reuters, PDVSA USA 21.2 in unpaid bills after turning to dozens of little-known intermediaries to export its oil under sanctions billion dollars collected.

Sources said the expected payments would take place next year, which traditionally sees a jump in government spending the president It is a sore spot for the government as it prepares for its elections. Government oil exports in 2023 national said that he expects to finance 63% of his budget.

“Money is important, money is at the center of this mess,” he said political source. “What do you do if you don’t have money? Invent the sounds.”

Ministry of Finance, central bank and PDVSA did not respond to requests for comment.

Almost all of PDVSA’s commercial crude and fuel exports have been suspended amid a contract review, part of an audit that Tellechea began after taking over.

It is unclear whether the corruption investigation and contract review will concretely improve PDVSA’s cash flow in the near term.

But this Maduro It comes as his government faces pressure to raise public sector wages, which have been held steady for a year despite rising food and utility prices.

Maduro 2018A monthly low in March, two months before the last presidential race, the results of which were disputed labour increased the fee by 58%.

Maduro eased currency controls in 2019, allowing de facto dollarization. More than enough inflation In order to combat the government then reduced public spending and other measures to stabilize the exchange rate dollars used injections.

Finance and judge from PDVSA to the economy, said three of the sources with knowledge of the party’s economic strategies dollars The flow of money into the central bank has been intermittent in recent months.

According to the non-governmental Venezuelan Financial Observatory, consumer price growth has been in single digits for nearly a year, but annual inflation in February it increased again to 537%. The decrease in the dollar’s money flow has led to a sharper depreciation of the bolivar currency since the end of last year.

“(The government’s) exchange strategy will remain unchanged in the coming months,” one of the sources said, adding that the government needs more foreign cash to sustain dollar injections that local companies have to pay providers and imports.

According to the calculations of the Sintesis Financiera economic firm, the central bank will provide the banks with the funds from the beginning of 2023 to the middle of March. offer had only $420 million to make.

During 2022, it tripled its dollar injections to 3.7 billion delivered to the dollar.

Reuters news gives about 3.6 of PDVSA’s expected payments billion dollars are not refundable because they are related to tankers who leave the country without paying at least part of the cargo’s value in advance.

PDVSA delayed cash payments to several of its suppliers last year due to declining revenues.

Reporting by Mayela Armas and Vivian Sequera in Caracas, addition by Mircely Guanipa report Writing by Julia Symmes Cobb; Edited by Christian Plumb and Rosalba O’Brien

Our standards: Thomson Reuters Trust Principles.

2023-03-24 23:56:11
Source – reuters

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