Jesús Daniel Romero and William Acosta for Poder & Dinero and FinGurú
Executive summary:
This report analyzes a series of key developments that have significant strategic implications for Venezuela and the region. On one hand, it has been discovered that the American oil company Chevron may have violated the terms of its license by paying 300 million dollars to Nicolás Maduro's regime, which could lead to the revocation of its operating permit in Venezuela by the incoming administration of Donald Trump. On the other hand, Maduro's government seems to be intensifying its efforts to raise taxes and limit the diplomatic presence of countries that support the opposition, reflecting the severe economic crisis the country faces. These events occur within a context of increasing international pressure against Maduro's regime, led by the new incoming U.S. government.
According to information provided by Bloomberg, this news agency was the one that obtained and revealed data regarding Chevron's payments to Maduro's regime, which could have originated from Seniat (Venezuelan tax service) itself or from a leak within Chevron.
Analysis:
Chevron and the 300 million dollars paid to Maduro:
The leak of information concerning Chevron's payments to Maduro's regime, in apparent violation of the terms of its license, represents a serious irregularity that is likely to be investigated by U.S. authorities. This jeopardizes the continuity of Chevron's operations in Venezuela, as the new Trump administration appears determined to take strong action against Maduro's regime, including the potential revocation of licenses for companies like Chevron. The exit of Chevron and other foreign oil companies from Venezuela would have a significant impact on the already deteriorated economy of the country, forcing it to seek alternatives like Iran, which will also face increased pressure from the Trump administration.
According to information provided by Bloomberg, Chevron Corp. is said to have filed tax returns in Venezuela for approximately 300 million dollars, raising doubts about the benefits Nicolás Maduro derives from the company's oil production, despite sanctions. The company also reported that its operations in Venezuela owed 8.1 billion bolivars to Seniat as of March 2024, although it is unclear whether the company has made these payments. Chevron claims to comply with Venezuelan laws and regulations, but any payment to the government could violate General License 41, which prohibits the company from paying taxes to state-controlled entities.
"Companies like Chevron are contributing billions of dollars to the regime's coffers, and it has not fulfilled any of the promises it made," said Secretary of State candidate Marco Rubio on Wednesday during his Senate confirmation hearing. "All of that needs to be explored."
"Chevron is not only allowing oppression, but is benefiting from it," said Florida Republican Representative María Elvira Salazar in an email. "Its licenses need to disappear."
Chevron has submitted documents indicating that its operations in Venezuela, under the registered entity Chevron Global Technology Services Company, have a tax obligation of 8.1 billion bolivars with Seniat, the Venezuelan tax authority, as of March 2024. This data, obtained through a Bloomberg News review, raises questions about the nature and compliance of those payments, given the lack of clarity on whether Chevron has indeed settled that tax debt and how it would have done so.
The company's spokesperson, Bill Turenne, stated in an email that Chevron operates in Venezuela respecting all applicable laws and regulations. However, any payment made to the Venezuelan government could contradict restrictions imposed by the U.S. Treasury's Office of Foreign Assets Control, which granted Chevron an exemption under General License 41. This license explicitly prohibits the U.S. company from paying taxes, royalties, or dividends to Petróleos de Venezuela SA (PDVSA) and any other state entity. Additionally, it limits Chevron's activities by prohibiting it from selling oil to markets outside the U.S. and expanding its operations in the country.
The situation is complex, as Chevron finds itself in a delicate position between complying with local regulations and avoiding international sanctions. This generates a debate surrounding the ethics of its operations in a country where Maduro's regime has been accused of human rights violations and authoritarian practices. The lack of transparency and corporate accountability on the part of Chevron raises questions about its commitment to ethical principles and respect for human rights in the Venezuelan context.
Record tax collection in Venezuela and the economic crisis:
The announcement from Maduro's regime regarding a record tax collection of 12 billion dollars by Seniat, led by José David Cabello, reflects the government's desperate efforts to generate revenue amid a deep economic crisis. With a national budget of only 24 billion dollars, half of what it was 14 years ago, Venezuela increasingly relies on foreign investment and tax collection to maintain its state apparatus and finance its programs. This situation highlights the severity of the economic crisis and the fragility of the Venezuelan rentier model, which could be further exacerbated by the exit of key companies like Chevron.
Summary of the relationship between José David Cabello and Diosdado Cabello:
The analysis highlights the close relationship between José David Cabello, the head of Seniat, and Diosdado Cabello, one of the top leaders of Maduro's regime. José David Cabello, brother of Diosdado Cabello, was praised by Maduro for the "record tax collection," suggesting that his actions at the helm of Seniat align with the priorities and strategies of Diosdado Cabello and the hardest sector of Chavismo. This establishes a close connection between the Cabello brothers, where José David Cabello is aligned with Diosdado Cabello and the more authoritarian wing of Maduro's government, contributing to the perpetuation of the regime through tax collection.
Importance of the efforts of Marco Rubio, María Elvira Salazar, and others:
Figures such as Senator Marco Rubio and Representative María Elvira Salazar, both from the Republican Party, have been significant critics of Chevron's role in Venezuela and have urged stronger action against Maduro's regime. These efforts by key officials in the new Trump administration underscore the priority that policy toward Venezuela will have in the incoming administration, which could lead to increased pressure and sanctions against companies that have continued to operate in the country.
Conclusion:
This case highlights the challenges facing multinational corporations in politically sensitive environments, where they must balance legal obligations and ethical considerations. The exit of Chevron and other oil companies from Venezuela could have a devastating impact on the already fragile economy of the country, underscoring the need for coordinated action from the international community to promote a democratic transition and address the humanitarian crisis in Venezuela. There must be corporate accountability where multinationals are held responsible for their actions and ensure they do not contribute to the perpetuation of authoritarian regimes and human rights violations. The lack of transparency and accountability by Chevron regarding its operations and payments in Venezuela calls into question its ethical commitment and respect for human rights.
Credits: Bloomberg, The Wall Street Journal, The New York Times.
Jesús Romero retired after 37 years of service in the U.S. government, covering military, intelligence, and diplomatic roles. He began his career in the Navy in 1984, rising from enlisted member to Naval Intelligence Officer through the Navy’s Enlisted Commissioning Program. A graduate from Norfolk State University with a Bachelor’s degree in Political Science, Romero also completed Naval Aviation Pre-Flight Training and served in various capacities, including on board a nuclear missile cruiser and in attack squadrons. His deployments included Libya, Bosnia, Iraq, and Somalia. The intelligence career of Romero included key assignments with the Defense Intelligence Agency (DIA) in Panama, the Pacific Joint Intelligence Center in Hawaii, and leading U.S. efforts to locate missing personnel in Asia. He retired from active duty in 2006, decorated with numerous medals, including the Defense Meritorious Service Medal and the Navy Commendation Medal. After his military career, Romero worked as a defense contractor for BAE Systems and Booz Allen Hamilton. He spent 15 years in civil service as an Intelligence Operations Specialist for the U.S. Army in the Southern Joint Interagency Task Force in Florida. His diplomatic roles abroad included periods in Peru, Ecuador, and Guatemala. Romero has been widely recognized, including the Joint Meritorious Civilian Service Medal from the Chairman of the Joint Chiefs of Staff, the Army Superior Civilian Service Medal, and multiple international awards for his contributions to anti-narcotics missions. Romero wrote his latest book to honor his peers and illuminate the disruptive strategies against an international criminal organization, which under his leadership, significantly hindered cocaine trafficking to the United States. His efforts contributed to dismantling operations that supported Mexican cartels and reduced the cocaine airbridge by over 120 tons annually.
He is the author of the Amazon best-seller titled "The Final Flight: The Queen of the Skies."
William Acosta is the founder and CEO of Equalizer Private Investigations & Security Services Inc. He has coordinated investigations related to international drug trafficking, money laundering, and homicides in the U.S. and other countries such as Germany, Italy, Portugal, Spain, France, England, and literally, all of Latin America.
William has been 10 years a New York Police Investigator, 2 years in the Treasury Department, and 6 years in the U.S. Army with multiple international deployments on communications and intelligence issues.
CAREER AND EXPERIENCE
William Acosta, a veteran international investigator, coordinated multijurisdictional investigations on drug trafficking, money laundering, and homicides in the United States and other countries.
Acosta's martial arts training in taekwondo has reached the 6th dan, practicing it as a traditional lifestyle and not just for fighting.
The transition from police to private investigation allowed Acosta to make his own rules and choose clients after more than 20 years in the profession.
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