Tag Archives: Menges Hemispheric Security Project

The Chavez & Kirchner suitcase scandal

 

Early on the morning of Saturday August 4th 2007, a Cessna plane 750 X with license N 5113 S, property of "Royalclass" company arrived at Buenos Aires’ Newberry airport (Aeroparque) in Argentina. The aircraft had taken off from Maiquetía international airport near Caracas, Venezuela and landed in Buenos Aires two days before an official visit by Chávez . The passengers on the plane were seven Argentine and Venezuelan oil officials. Some of them had been in Caracas negotiating the bond and gas plant deals. When having to pass through Customs, most of the passengers made it without problems, except one, Venezuelan/American, Guido Antonini Wilson who told authorities that his briefcase was full of "books". When searched, officials found it was stuffed with $790,550 in non-declared unmarked $50 bills. [1]

The Argentinian Justice has confirmed the names of the people aboard the aircraft that landed in Buenos Aires:

  • Guido Alejandro Antonini Wilson. Mr. Wilson left for Montevideo 24 hours later. The FBI has located him in his residence in Miami, sources told Argentinian daily newspaper La Nación. To this date he has not been arrested. [2]
  • Claudio Uberti , director of the government agency which controls the freeway concessions (OCCOVI) in Argentina, a close contact of Venezuelan President Hugo Chávez. Juan Mussa, a Peronist leader who was present at the time has denounced that Mr. Uberti threatened the customs agents not to check Antonini’s suitcase.
  • Ezequiel Espinosa, president of ENARSA, Argentina’s state Oil and Gas Company.
  • Victoria Bereziuk, a young employee of ENARSA, secretary of Ezequiel Espinosa who has been romantically linked to President Nestor Kirchner.
  • Daniel Uzcateguy Speech, son of vice president of PDVSA in Argentina. He supposedly invited Antonini Wilson to board the plane.

Another person under investigation for being connected to the people in the airplane is Julio De Vido, the Minister of Federal Planning, Kirchner’s right hand. [3]

There are many peculiarities regarding this incident. First of all, authorities learned that the plane had been chartered by ENARSA at a cost of $90,000 . The purpose of the flight to and from Caracas was to discuss the building of pipelines. On its way to Venezuela, Espinosa, Uberti and Victoria Beresiuk were on board to discuss the above mentioned agreements. Representatives of the company stated they chartered the plane "because there were not many convenient flights to Caracas". ENARSA was created three years ago by President Kirchner. [4]

A day later the plane arrived in Aeroparque at 2:30 AM when the airport is normally closed. Usually, international flights do not land at Aeroparque but at Ezeiza International Airport. A special order was necessary to open the airport to receive the flight from Venezuela and to arrange for customs officials to be present. It took those officials three days before the incident was reported to the Justice Ministry.

According to official reports, the group, except Antonini Wilson who claimed to be a businessman and was briefly detained at Aeroparque, left the airport after picking up their luggage and passing through immigration. The only one that waited for Wilson was Daniel Uzcateguy Speech, son of the vice president of PDVSA Argentina who at the time claimed to be a nephew of Antonini. [5]

After customs officers confiscated the cash, they let Wilson go. The cash was deposited in a government account in Banco de la Nación, Argentina’s Central Bank. Customs stated publicly that at any time the Venezuelans wanted to, they can come and pick up $400,000 and go since the fine for a "customs infraction" is 50% of the total amount. As of today, no one has appeared to claim the cash. [6]

An Argentinean TV station, America TV, has revealed declarations from the officers who stopped Antonini Wilson. These statements were then given to Prosecutor Luz Rivas Diez. One airport security officer said Antonini had confessed having a meeting with Hugo Chavez where he was informed about the flight to Argentina. Wilson said he had no time to gather winter clothes because when he arrived in Caracas from Miami, he had to go to a meeting with President Chavez and there he was advised about the trip. [7]

The first judge assigned to investigate the case, Marta Novatti, resigned saying she was being harassed by Ricardo Echegaray, the director of Customs who reportedly is a big supporter of Kirchner. Novatti said that she has been subjected to a climate of "moral violence." [8] In addition, sources say that there were several "errors" with the paperwork related to the bust, which may make it difficult to convict Antonini Wilson. Even more unusual, the official report states that Antonini never tried to hide what was in his bag, so customs is considering the incident a "luggage infraction" and not a crime. [9]

Who is Guido Antonini Wilson?

Guido Antonini Wilson is 46 years old and is a partner in the Venezuelan Oil Company, VENOCO, together with Carlos Kauffman. Mr. Kauffman is a well known entrepreneur with very close ties to the Chavez Regime.  Wilson and Kauffman reportedly carry badges from the Venezuelan Intelligence Agency, DISIP. [10] In addition, Antonini has a company in Venezuela dedicated to the "sale, distribution, and import and export of military and police armament" called "Defensa y Tecnología." He has attended preliminary negotiations for Chávez-Kirchner agreements on energy and finance, which were also attended by Claudio Uberti. Wilson has an exclusive condo in Ocean Club, Key Biscayne, Florida and his name is linked to other companies in southern Florida, such as Venuz Supply Inc., Intertel Telecom and Techmilk Inc. Venezuelan public records show he is registered to vote at the Venezuelan consulate in Miami. [11]

Luis Ignacio Planas, secretary-general of the opposition Copei party of Venezuela, claimed that there is a "serious" direct link between President Hugo Chávez and businessman, Guido Antonini. "The President of the Republic was aware of the money that would be brought into Argentina and – even worse – he instructed Antonini to take that money to Buenos Aires," said Planas. The opposition leader prompted a query about the intended use of the cash and wondered if it would back political activities in other countries, such as the presidential campaign of Cristina Kirchner in Argentina. [12]

Who is Claudio Uberti?

Claudio Uberti is an Argentinean and the director of a government agency that since November, 2003 controls all freeway concessions (OCCOVI) and is in charge of collecting the fees on every toll booth of every road, highway and bridge in the country. OCCOVI has become extremely important since it manages millions of dollars. Uberti is a trusted official and personal friend of the Minister of Planning, Julio De Vido, Kirchner’s right hand man. Uberti was present at every single agreement signing between the Argentinian Government and Hugo Chavez and Minister De Vido is behind all contacts of the Argentinian government with Venezuela. [13]

Elisa Carrió , who is now running for president in Argentina, remembered that in 2004, two congress members from the " Afirmación para una República Igualitaria" (ARI) party, Adrián Pérez and Fabiana Ríos denounced Uberti, claiming he collected illegal money for the Presidential campaign of Néstor Kirchner. [14]

The Argentinean Government’s Response

After two days of strict orders not to inform the press, Kirchner waited for Chávez to leave the country and then ordered the people involved in the scandal to prepare a written statement of what happened. ENARSA issued the communiqué denying any links with the cash. Planning Minister Julio De Vido said Uberti was asked to resign because he made a "mistake" by permitting Antonini to board the plane . Uberti agreed to step down. De Vido must have known about the illegal transfer, since those familiar with the Kirchner regime say that nothing happens without De Vido’s approval. [15]

Kirchner defended his administration, vowing to get to the bottom of events. "I don’t cover anything up. When something happens, the people find out as they should find out and we take the corresponding measures," he said. Senator Cristina Fernandez de Kirchner is the front-runner to succeed her husband in the Oct. 28th presidential election. But the scandal prompted opposition candidate Roberto Lavagna and others to call for a full investigation. Mr. Kirchner’s chief of staff, Alberto Fernández, "asked" Venezuelans to apologize for the incident, saying that Argentina had "done everything that it needed to do;" but his plea fell on deaf ears since Venezuela has denied any involvement whatsoever. [16] Former "piquetero" Luis D’Elía, who refers to Hugo Chávez as "Compañero" (comrade), a former Kirchner official whose leftist group is rumored to be financed by Chávez, said that "the bagman was planted by the CIA" to hurt the Kirchner-Chávez relationship. [17]

PDVSA Argentina has denied any connection with Antonini Wilson. However, news reports in Argentina and Uruguay claimed that Antonini Wilson’s hotel bills and other expenses in Montevideo had been paid for by the Venezuelan oil company, PDVSA. A warrant has been issued for Wilson’s arrest by an Argentine court and Prosecutor Luz Rivas Diez said she wants to have him detained so he can answer questions about the cash. Critics of the Argentine first couple said the incident proves that Chavez is buying the support of the Kirchner government. [18]

According to the Federal Bureau of Investigation, they have already notified the Federal Police, via Interpol, that Antonini was apprised of a bench warrant issued by an Argentinian judge. Antonini cannot leave the United States or his home. On September 1st 2007, Argentina’s ministry of Foreign Relations formally requested Antonini’s extradition. [19] Some analysts remain skeptical this will actually occur. Others believe that this is a tactic to distract the public.

Cristina Kirchner apparently reacted violently after the suitcase incident was revealed. It is reported that she even broke three glasses yelling at her husband which prompted the intervention of some of the people present. Sources close to the government say Mrs. Kirchner’s outburst is understandable considering that this episode could damage her reputation and her chances of winning the election. But what left witnesses confused was that she seemed to be extremely upset by the presence of Victoria Bereziuk in the flight because of her closeness to President Kirchner. [20]

PDVSA’s Preferential Treatment in Argentina

The public was astounded to learn that PDVSA flights have enjoyed an incredible privilege in Argentina. PDVSA passengers are allowed to land in the military area at the Metropolitan airport, an area reserved for official planes. While customs and migration requirements are fulfilled, the luggage is not thoroughly controlled or scanned. If it were not for the suitcase scandal, the preferential treatment conferred on PDVSA flights and passengers would sure continue. Based on sources that are well acquainted with the airport traffic, "over the past few months, at least eights flights of PDVSA have landed in the military area." [21]

The Chavez’s Regime Response

Roberto Hernández, vice president of Venezuela’s lower house, said President Chávez "doesn’t have to say sorry" to anyone because the cash found on Antonini was a personal matter. Petróleos de Venezuela (Pdvsa) issued a press release reporting the resignation of Diego Uzcátegui Mateus as managing director of the Pdvsa unit in Argentina. Uzcátegui’s decision to quit was accepted "in order to facilitate the investigation." It is important to note that Venezuelan law prohibits carrying more than US$10,000 in cash and such a sum should have been declared upon leaving. [22] Average citizens find it harder than ever to get hold of any foreign currency.

Conclusions

The warrant against Antonini, who happens to hold U.S. citizenship, is particularly important because of his links to Hugo Chávez and various high ranking Argentinian officials. In addition, the incident occurred just a few months before the presidential election in Argentina. The good news is that Argentinian Customs functioned despite pressure from influential passengers. Uberti’s interference, however, suggests the complicity of some other passengers. There is reason to believe that this has not been the first cash transfer and that we are talking about cash smuggling on a larger scale.

Andrés Oppenheimer of the Miami Herald argues that the money could have been intended for the campaign of first lady Cristina Kirchner or for pro-Chávez groups such as D’Elía’s, "piquetero" movement or may be a kickback to Argentine government officials for a business deal.  The first option seems rather unlikely, despite what appears to be incriminating evidence, since the Kirchners would presumably be too prudent to topple a successful campaign by accepting any illegal assistance through Chavez linked representatives. The latter possibility is much more likely, though. The Venezuelan government has a track record of subsidizing politically close clients, thus increasing their stakes in Latin American neighbor states and influencing the policy of local decision makers in their favor; through financed proxies.   This is the plausible pattern of a financially well equipped, aspiring hegemon.  

Others say that the money could be a bribe for ENARSA because if it had been clean, it would have been done by wire transfer. This could be true, since Venezuela tries to get constant Latin American customers for the future, a future where the US might consider other sellers. The Venezuelan government has been well instructed by the Russian example as to how to exercise influence in Eastern and Western Europe. The idea that Latin America needs Chavez like Europe needs Putin is quite tempting for a leader whose aspirations are clearly bigger than his country. Circumstantial evidence, such as the aforementioned prior meeting between Antonini and Chavez might be pointing in this direction.

Another possibility might just be that some renegade PDVSA officials wanted to get some cash out of the party, creating personal reserves for a foreseeable end of the Venezuelan bonanza. Following Antonini’s fate upon his return to Venezuela might give some hints as to whether that might be true.   

It remains to be seen if the people involved can reveal more details of this bizarre affair when the investigation begins. Regardless, analysts have been arguing for months now that Chavez has spent millions of dollars trying to influence elections in several countries, such as Bolivia, Ecuador and Nicaragua and there have been widespread opposition claims that pro-Chávez candidates had received suitcases filled with cash from Venezuela. These allegations have been denied by the parties involved. But the Antonini case demonstrates clearly how Venezuelans are trying to influence other countries’ political life, and about how it spreads its massive corruption to countries in the region. [23]

  1. El trámite que desató el escándalo. August 9, 2007. Diario La Nación, Argentina.
  2. Antonini Wilson presumably found in Miami. August 28, 2007. El Universal.
  3. Ibid.
  4. Involucra al Gobierno el caso de la valija con dólares. August 9, 2007. Diario La Nación, Argentina.
  5. El trámite que desató el escándalo. August 9, 2007. Diario La Nación, Argentina.
  6. Involucra al Gobierno el caso de la valija con dólares. August 9, 2007. Diario La Nación, Argentina.
  7. COPEI denuncia vinculación directa entre Chávez y Antonini. August 20, 2007.
  8. Se apartó la jueza y el caso se demora. August 11, 2007. Diario Clarín, Argentina.
  9. Errores más que notorios. August 15, 2007. Diario La Nación, Argentina.
  10. Un millonario con lazos políticos y fama de aventurero. August 9, 2007. Diario La Nación, Argentina.
  11. La sombra de la corrupción: aparece en 4 empresas registradas en Florida. Aug. 11, 2007. Diario Clarín, Argentina.
  12. COPEI exige investigar la presunta conexión. August 21, 2007. El Universal, Venezuela.
  13. El misterioso señor de los peajes. August 9, 2007. Diario La Nación, Argentina.
  14. Críticas de la oposición por la situación de Uberti. August 9, 2007. Diario La Nación, Argentina.
  15. Public prosecutor applies for international arrest of Antonini Wilson. August 14, 2007. El Universal, Venezuela.
  16. Niega Kirchner vínculo con caso dólares. August 11, 2007. El Universal, Mexico.
  17. Suitcase of cash shows Chávez’s ways. August 16, 2007. Miami Herald. By Andres Oppenheimer.
  18. Argentina wants to arrest Venezuelan businessman. August 15, 2007. Miami Herald.
  19. Cancillería envió a los EEUU el pedido de extradición del venezolano Antonini Wilson. Sept, 1st, 2007. Infobae.
  20. Secretaria de alto vuelo. August 18, 2007. Revista "Noticias," Argentina.
  21. Oscuros privilegios de Pdvsa. August 23, 2007. Diario La Nación, Argentina.
  22. Pdvsa VP resignation confirmed. August 18, 2007. El Universal, Venezuela.
  23. Oppenheimer, Ibid.

The Chavez & Kirchner suitcase scandal

 

Early on the morning of Saturday August 4th 2007, a Cessna plane 750 X with license N 5113 S, property of "Royalclass" company arrived at Buenos Aires’ Newberry airport (Aeroparque) in Argentina. The aircraft had taken off from Maiquetía international airport near Caracas, Venezuela and landed in Buenos Aires two days before an official visit by Chávez . The passengers on the plane were seven Argentine and Venezuelan oil officials. Some of them had been in Caracas negotiating the bond and gas plant deals. When having to pass through Customs, most of the passengers made it without problems, except one, Venezuelan/American, Guido Antonini Wilson who told authorities that his briefcase was full of "books". When searched, officials found it was stuffed with $790,550 in non-declared unmarked $50 bills. [1]

The Argentinian Justice has confirmed the names of the people aboard the aircraft that landed in Buenos Aires:

  • Guido Alejandro Antonini Wilson. Mr. Wilson left for Montevideo 24 hours later. The FBI has located him in his residence in Miami, sources told Argentinian daily newspaper La Nación. To this date he has not been arrested. [2]
  • Claudio Uberti , director of the government agency which controls the freeway concessions (OCCOVI) in Argentina, a close contact of Venezuelan President Hugo Chávez. Juan Mussa, a Peronist leader who was present at the time has denounced that Mr. Uberti threatened the customs agents not to check Antonini’s suitcase.
  • Ezequiel Espinosa, president of ENARSA, Argentina’s state Oil and Gas Company.
  • Victoria Bereziuk, a young employee of ENARSA, secretary of Ezequiel Espinosa who has been romantically linked to President Nestor Kirchner.
  • Daniel Uzcateguy Speech, son of vice president of PDVSA in Argentina. He supposedly invited Antonini Wilson to board the plane.

Another person under investigation for being connected to the people in the airplane is Julio De Vido, the Minister of Federal Planning, Kirchner’s right hand. [3]

There are many peculiarities regarding this incident. First of all, authorities learned that the plane had been chartered by ENARSA at a cost of $90,000 . The purpose of the flight to and from Caracas was to discuss the building of pipelines. On its way to Venezuela, Espinosa, Uberti and Victoria Beresiuk were on board to discuss the above mentioned agreements. Representatives of the company stated they chartered the plane "because there were not many convenient flights to Caracas". ENARSA was created three years ago by President Kirchner. [4]

A day later the plane arrived in Aeroparque at 2:30 AM when the airport is normally closed. Usually, international flights do not land at Aeroparque but at Ezeiza International Airport. A special order was necessary to open the airport to receive the flight from Venezuela and to arrange for customs officials to be present. It took those officials three days before the incident was reported to the Justice Ministry.

According to official reports, the group, except Antonini Wilson who claimed to be a businessman and was briefly detained at Aeroparque, left the airport after picking up their luggage and passing through immigration. The only one that waited for Wilson was Daniel Uzcateguy Speech, son of the vice president of PDVSA Argentina who at the time claimed to be a nephew of Antonini. [5]

After customs officers confiscated the cash, they let Wilson go. The cash was deposited in a government account in Banco de la Nación, Argentina’s Central Bank. Customs stated publicly that at any time the Venezuelans wanted to, they can come and pick up $400,000 and go since the fine for a "customs infraction" is 50% of the total amount. As of today, no one has appeared to claim the cash. [6]

An Argentinean TV station, America TV, has revealed declarations from the officers who stopped Antonini Wilson. These statements were then given to Prosecutor Luz Rivas Diez. One airport security officer said Antonini had confessed having a meeting with Hugo Chavez where he was informed about the flight to Argentina. Wilson said he had no time to gather winter clothes because when he arrived in Caracas from Miami, he had to go to a meeting with President Chavez and there he was advised about the trip. [7]

The first judge assigned to investigate the case, Marta Novatti, resigned saying she was being harassed by Ricardo Echegaray, the director of Customs who reportedly is a big supporter of Kirchner. Novatti said that she has been subjected to a climate of "moral violence." [8] In addition, sources say that there were several "errors" with the paperwork related to the bust, which may make it difficult to convict Antonini Wilson. Even more unusual, the official report states that Antonini never tried to hide what was in his bag, so customs is considering the incident a "luggage infraction" and not a crime. [9]

Who is Guido Antonini Wilson?

Guido Antonini Wilson is 46 years old and is a partner in the Venezuelan Oil Company, VENOCO, together with Carlos Kauffman. Mr. Kauffman is a well known entrepreneur with very close ties to the Chavez Regime.  Wilson and Kauffman reportedly carry badges from the Venezuelan Intelligence Agency, DISIP. [10] In addition, Antonini has a company in Venezuela dedicated to the "sale, distribution, and import and export of military and police armament" called "Defensa y Tecnología." He has attended preliminary negotiations for Chávez-Kirchner agreements on energy and finance, which were also attended by Claudio Uberti. Wilson has an exclusive condo in Ocean Club, Key Biscayne, Florida and his name is linked to other companies in southern Florida, such as Venuz Supply Inc., Intertel Telecom and Techmilk Inc. Venezuelan public records show he is registered to vote at the Venezuelan consulate in Miami. [11]

Luis Ignacio Planas, secretary-general of the opposition Copei party of Venezuela, claimed that there is a "serious" direct link between President Hugo Chávez and businessman, Guido Antonini. "The President of the Republic was aware of the money that would be brought into Argentina and – even worse – he instructed Antonini to take that money to Buenos Aires," said Planas. The opposition leader prompted a query about the intended use of the cash and wondered if it would back political activities in other countries, such as the presidential campaign of Cristina Kirchner in Argentina. [12]

Who is Claudio Uberti?

Claudio Uberti is an Argentinean and the director of a government agency that since November, 2003 controls all freeway concessions (OCCOVI) and is in charge of collecting the fees on every toll booth of every road, highway and bridge in the country. OCCOVI has become extremely important since it manages millions of dollars. Uberti is a trusted official and personal friend of the Minister of Planning, Julio De Vido, Kirchner’s right hand man. Uberti was present at every single agreement signing between the Argentinian Government and Hugo Chavez and Minister De Vido is behind all contacts of the Argentinian government with Venezuela. [13]

Elisa Carrió , who is now running for president in Argentina, remembered that in 2004, two congress members from the " Afirmación para una República Igualitaria" (ARI) party, Adrián Pérez and Fabiana Ríos denounced Uberti, claiming he collected illegal money for the Presidential campaign of Néstor Kirchner. [14]

The Argentinean Government’s Response

After two days of strict orders not to inform the press, Kirchner waited for Chávez to leave the country and then ordered the people involved in the scandal to prepare a written statement of what happened. ENARSA issued the communiqué denying any links with the cash. Planning Minister Julio De Vido said Uberti was asked to resign because he made a "mistake" by permitting Antonini to board the plane . Uberti agreed to step down. De Vido must have known about the illegal transfer, since those familiar with the Kirchner regime say that nothing happens without De Vido’s approval. [15]

Kirchner defended his administration, vowing to get to the bottom of events. "I don’t cover anything up. When something happens, the people find out as they should find out and we take the corresponding measures," he said. Senator Cristina Fernandez de Kirchner is the front-runner to succeed her husband in the Oct. 28th presidential election. But the scandal prompted opposition candidate Roberto Lavagna and others to call for a full investigation. Mr. Kirchner’s chief of staff, Alberto Fernández, "asked" Venezuelans to apologize for the incident, saying that Argentina had "done everything that it needed to do;" but his plea fell on deaf ears since Venezuela has denied any involvement whatsoever. [16] Former "piquetero" Luis D’Elía, who refers to Hugo Chávez as "Compañero" (comrade), a former Kirchner official whose leftist group is rumored to be financed by Chávez, said that "the bagman was planted by the CIA" to hurt the Kirchner-Chávez relationship. [17]

PDVSA Argentina has denied any connection with Antonini Wilson. However, news reports in Argentina and Uruguay claimed that Antonini Wilson’s hotel bills and other expenses in Montevideo had been paid for by the Venezuelan oil company, PDVSA. A warrant has been issued for Wilson’s arrest by an Argentine court and Prosecutor Luz Rivas Diez said she wants to have him detained so he can answer questions about the cash. Critics of the Argentine first couple said the incident proves that Chavez is buying the support of the Kirchner government. [18]

According to the Federal Bureau of Investigation, they have already notified the Federal Police, via Interpol, that Antonini was apprised of a bench warrant issued by an Argentinian judge. Antonini cannot leave the United States or his home. On September 1st 2007, Argentina’s ministry of Foreign Relations formally requested Antonini’s extradition. [19] Some analysts remain skeptical this will actually occur. Others believe that this is a tactic to distract the public.

Cristina Kirchner apparently reacted violently after the suitcase incident was revealed. It is reported that she even broke three glasses yelling at her husband which prompted the intervention of some of the people present. Sources close to the government say Mrs. Kirchner’s outburst is understandable considering that this episode could damage her reputation and her chances of winning the election. But what left witnesses confused was that she seemed to be extremely upset by the presence of Victoria Bereziuk in the flight because of her closeness to President Kirchner. [20]

PDVSA’s Preferential Treatment in Argentina

The public was astounded to learn that PDVSA flights have enjoyed an incredible privilege in Argentina. PDVSA passengers are allowed to land in the military area at the Metropolitan airport, an area reserved for official planes. While customs and migration requirements are fulfilled, the luggage is not thoroughly controlled or scanned. If it were not for the suitcase scandal, the preferential treatment conferred on PDVSA flights and passengers would sure continue. Based on sources that are well acquainted with the airport traffic, "over the past few months, at least eights flights of PDVSA have landed in the military area." [21]

The Chavez’s Regime Response

Roberto Hernández, vice president of Venezuela’s lower house, said President Chávez "doesn’t have to say sorry" to anyone because the cash found on Antonini was a personal matter. Petróleos de Venezuela (Pdvsa) issued a press release reporting the resignation of Diego Uzcátegui Mateus as managing director of the Pdvsa unit in Argentina. Uzcátegui’s decision to quit was accepted "in order to facilitate the investigation." It is important to note that Venezuelan law prohibits carrying more than US$10,000 in cash and such a sum should have been declared upon leaving. [22] Average citizens find it harder than ever to get hold of any foreign currency.

Conclusions

The warrant against Antonini, who happens to hold U.S. citizenship, is particularly important because of his links to Hugo Chávez and various high ranking Argentinian officials. In addition, the incident occurred just a few months before the presidential election in Argentina. The good news is that Argentinian Customs functioned despite pressure from influential passengers. Uberti’s interference, however, suggests the complicity of some other passengers. There is reason to believe that this has not been the first cash transfer and that we are talking about cash smuggling on a larger scale.

Andrés Oppenheimer of the Miami Herald argues that the money could have been intended for the campaign of first lady Cristina Kirchner or for pro-Chávez groups such as D’Elía’s, "piquetero" movement or may be a kickback to Argentine government officials for a business deal.  The first option seems rather unlikely, despite what appears to be incriminating evidence, since the Kirchners would presumably be too prudent to topple a successful campaign by accepting any illegal assistance through Chavez linked representatives. The latter possibility is much more likely, though. The Venezuelan government has a track record of subsidizing politically close clients, thus increasing their stakes in Latin American neighbor states and influencing the policy of local decision makers in their favor; through financed proxies.   This is the plausible pattern of a financially well equipped, aspiring hegemon.  

Others say that the money could be a bribe for ENARSA because if it had been clean, it would have been done by wire transfer. This could be true, since Venezuela tries to get constant Latin American customers for the future, a future where the US might consider other sellers. The Venezuelan government has been well instructed by the Russian example as to how to exercise influence in Eastern and Western Europe. The idea that Latin America needs Chavez like Europe needs Putin is quite tempting for a leader whose aspirations are clearly bigger than his country. Circumstantial evidence, such as the aforementioned prior meeting between Antonini and Chavez might be pointing in this direction.

Another possibility might just be that some renegade PDVSA officials wanted to get some cash out of the party, creating personal reserves for a foreseeable end of the Venezuelan bonanza. Following Antonini’s fate upon his return to Venezuela might give some hints as to whether that might be true.   

It remains to be seen if the people involved can reveal more details of this bizarre affair when the investigation begins. Regardless, analysts have been arguing for months now that Chavez has spent millions of dollars trying to influence elections in several countries, such as Bolivia, Ecuador and Nicaragua and there have been widespread opposition claims that pro-Chávez candidates had received suitcases filled with cash from Venezuela. These allegations have been denied by the parties involved. But the Antonini case demonstrates clearly how Venezuelans are trying to influence other countries’ political life, and about how it spreads its massive corruption to countries in the region. [23]

  1. El trámite que desató el escándalo. August 9, 2007. Diario La Nación, Argentina.
  2. Antonini Wilson presumably found in Miami. August 28, 2007. El Universal.
  3. Ibid.
  4. Involucra al Gobierno el caso de la valija con dólares. August 9, 2007. Diario La Nación, Argentina.
  5. El trámite que desató el escándalo. August 9, 2007. Diario La Nación, Argentina.
  6. Involucra al Gobierno el caso de la valija con dólares. August 9, 2007. Diario La Nación, Argentina.
  7. COPEI denuncia vinculación directa entre Chávez y Antonini. August 20, 2007.
  8. Se apartó la jueza y el caso se demora. August 11, 2007. Diario Clarín, Argentina.
  9. Errores más que notorios. August 15, 2007. Diario La Nación, Argentina.
  10. Un millonario con lazos políticos y fama de aventurero. August 9, 2007. Diario La Nación, Argentina.
  11. La sombra de la corrupción: aparece en 4 empresas registradas en Florida. Aug. 11, 2007. Diario Clarín, Argentina.
  12. COPEI exige investigar la presunta conexión. August 21, 2007. El Universal, Venezuela.
  13. El misterioso señor de los peajes. August 9, 2007. Diario La Nación, Argentina.
  14. Críticas de la oposición por la situación de Uberti. August 9, 2007. Diario La Nación, Argentina.
  15. Public prosecutor applies for international arrest of Antonini Wilson. August 14, 2007. El Universal, Venezuela.
  16. Niega Kirchner vínculo con caso dólares. August 11, 2007. El Universal, Mexico.
  17. Suitcase of cash shows Chávez’s ways. August 16, 2007. Miami Herald. By Andres Oppenheimer.
  18. Argentina wants to arrest Venezuelan businessman. August 15, 2007. Miami Herald.
  19. Cancillería envió a los EEUU el pedido de extradición del venezolano Antonini Wilson. Sept, 1st, 2007. Infobae.
  20. Secretaria de alto vuelo. August 18, 2007. Revista "Noticias," Argentina.
  21. Oscuros privilegios de Pdvsa. August 23, 2007. Diario La Nación, Argentina.
  22. Pdvsa VP resignation confirmed. August 18, 2007. El Universal, Venezuela.
  23. Oppenheimer, Ibid.

The Chavez & Kirchner suitcase scandal

On August 4, 2007, a Cessna plane property of "Royalclass" company arrived at Buenos Aires’ Newberry airport (Aeroparque) in Argentina. The passengers on the plane were seven Argentine and Venezuelan oil officials. Some of them had been in Caracas negotiating the bond and gas plant deals. When having to pass through Customs, most of the passengers made it without problems, except one, Venezuelan/American, Guido Antonini Wilson who told authorities that his briefcase was full of "books". When searched, officials found it was stuffed with $790,550 in non-declared unmarked $50 bills. An analysis of Wilson’s connections with some Argentinian officials and Hugo Chavez. PDVSA’s involvement.

Articulo: "El escándalo del maletín: los lazos entre Kirchner y Chávez se estrechan."

En la madrugada del Sábado 4 de Agosto del 2007, un avión Cessna propiedad de "Royalclass" aterrizó en Aeroparque, en la ciudad de Buenos Aires. Los pasajeros abordo eran siete ciudadanos entre Argentinos y Venezolanos algunos de los cuales habían estado en Caracas negociando el acuerdo de la instalación de una planta conversora de gas anunciado por el presidente Hugo Chávez. Al pasar por aduanas, casi todos los pasajeros lo hicieron sin problemas excepto el Venezolano/Americano Guido Antonini Wilson ya que cuando su valija pasó por el escáner se descubrió que contenía US $790,550 sin declarar. Análisis de las conexiones de Wilson con algunos altos oficiales del gobierno Argentino y Hugo Chávez. La participación de PDVSA en el caso.     

NEWS:

  • Chile and Japan sign Free Trade Agreement. Chile: inflation rises at fastest rate in six years.
  • Petrobras to start works in bilateral refinery with no agreement with Venezuela.
  • Chávez to solve with Uribe territorial dispute. Venezuela frees Colombians prisoners.   Venezuela : Chavez says he could govern until 2027. Chavez to meet with FARC leader. Iranian President to visit Venezuela. Iran requests ALBA observer status. Venezuelan Constitutional Reform in Gear.
  • Peru and China to sign Free Trade Agreement. Peru Hopes for Normal Links with Chile. Peru grants asylum to Venezuelan union leader.
  • Protests escalate in Bolivia.
  • Mexico reasserts willingness to resume ties with Venezuela.
  • Ecuador House Asks for OAS Aid.
  • Argentina and Cuba to Boost Cooperation.

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For any questions, comments, or those interested in receiving this report in the future or seeking to have their email removed from our list please contact Nicole M. Ferrand at our new e-mail address: mengesproject@centerforsecuritypolicy.org. If you have news stories that you think might be useful for future editions of this report please send them, with a link to the original website, to the same e-mail address. If you wish to contribute with an article, please send it to the same address, with your name and place of work or study.

Peru’s reaction to Venezuelan intervention

On July 26 2007 "The Americas Report" ran an article entitled: "Chávez’s dangerous intervention in Perú" which described the massive protests that were occurring in different regions of Peru that reached extreme violence due to the infiltration of terrorist groups such as "Shining Path," "Patria Roja" and others.

Although some of the demands of the population are legitimate, analysts are convinced that the demonstrations are being promoted by Venezuelan President, Hugo Chávez. Peru’s Prime minister, Jorge del Castillo, even declared that followers of President Chávez, especially in Puno, are internally interfering with Peru’s government in an attempt to weaken the Garcia regime.

In addition, we described Chavez’s intent on pressuring Peru into joining an alliance with Venezuela, Cuba, Bolivia and Nicaragua called the Bolivarian Alternative for the Americas (ALBA), which Chavez bills as an alternative to U.S. free trade agreements. "ALBA is an organization made up of four countries (Venezuela, Cuba, Nicaragua and Bolivia). I don’t think they can make an NGO work. I think that it’s not ethical for them to just come in here and tomorrow say we are going to open an office in Perú boosted by Caracas. " del Castillo said, [1] adding that Venezuela is actually meddling in Peruvian affairs. Chávez has branded the office as "something merely symbolic, for the time being." To this, the Peruvian Prime Minister responded: "Whether symbolic or not, it is meddling. In this way, with a little bit of sand, a beach is being formed. Afterwards they will get the beachhead and then will enter the country." [2]

We, at "The Americas Report" decided to talk to specialists in this subject to see what legal measures could be used against this overt intervention of Hugo Chavez in Peruvian internal affairs. A prominent Peruvian lawyer, who prefers to stay in anonymity, gave us an insight of what the Garc í a regime is doing in this regard.  

In recent days, the Central government has learnt that local organized groups favoring the government of Venezuelan President Hugo Chávez opened six offices of ALBA both in Lima and several provinces . Newspaper "La República" noted that the agencies started operations in the urban districts of Callao, Santa Rosa and Los Olivos, as well as in the Andean regions of Junín, Huancavelica and Puno. The ALBA representative in Santa Rosa, Fernando Alvarado, told the daily that the office was established one month and a half ago, to take care of extremely poor people with vision disorders and provide training on leadership for small businesses. Alvarado, also a district leader for the "Partido Nacionalista Peruano" (PNP) of Ollanta Humala, explained that the Santa Rosa office was aimed at "improving the friendship ties with Venezuela and getting access to the humanitarian people’s network "Mission Miracle," an initiative of Cuba and Venezuela. "We do not receive money or have political purposes," Alvaro said, and explained that the office is set to act as liaison between the patients and the Venezuelan embassy for health care. [3]

On a radio show hosted by journalist César Hildebrandt, Del Castillo accurately pointed out the following: "Exact evidence of interference in Peruvian internal affairs by Venezuelan President Hugo Chávez can be hardly found, but there is meddling indeed as part of "a whole strategic hemispheric move,"…"It is very difficult. One cannot say, ‘here the evidence goes.’ However, something really is going on, particularly strong suspicion of funding some people or political parties." [4]

According to Peru’s Chancellor, José Antonio García Belaúnde, the appearance of the ALBA offices and the help they are providing, will be investigated by the Peruvian International Cooperation Agency (APCI).

The importance of APCI

On December 8, 2006, members of the governing Aprista party passed a law that gave the Peruvian state more control over non-governmental organizations. Of the 2,100 registered NGOs in Peru, some 900 are active. Less than 1/3 receive "state aid" (are reimbursed for sales tax). However, between 2004 and 2005, NGO’s received nearly $500 million from international aid organizations. While their development can often go hand in hand with neo-liberal policies in poor countries, replacing public services and support mechanisms formerly provided by State Owned Enterprises, they can also support popular social movements. [5] 

The new law modifies and amplifies the activities and powers of the governmental Peruvian Agency for International Cooperation (APCI). According to the law, NGO’s have to register with the APCI, and "their work plans should be in line with the development guidelines and priorities established by the state." NGO’s have to report their projects, donors and funds spent and the ones that cause public disturbances, damage public or private property or contravene proper behavior will be penalized. [6] In this case, the Peruvian government is considering ALBA as a non-governmental organization and will have to comply with the laws created for NGOs.

The Government’s response

"The installation of the ALBA offices has not been authorized by the Ministry of Foreign Affairs and, therefore, is unacceptable and plagued with illegality," said Prime Minister Jorge del Castillo adding that the Peruvian government "is assessing this issue to make the relevant moves." Meanwhile, in an interview with the newspaper "El Comercio", Hernán Fuentes, regional president of Puno, said that ALBA is spreading to 13 provinces in the department of his jurisdiction. [7]

Genaro Matute, Peru’s General Controller declared that all regional governments must report all donations received by ALBA offices in their respective regions. They must give detailed information to the APCI and the Controller’s office. In addition Mr. Matute stated that the regional governments must provide information on the exact amount of donations received and how are these funds being managed. If they don’t comply, they would be acting against the law and would be denounced by the Public Ministry. The General Controller went on to say that according to the law, all foreign contributions must be monitored by the Ministry of Foreign Relations and not by a regional government. [8]              

On Monday 23 July, the Executive passed a law that prohibits any regional president, mayor, congressman or any other civil employee to participate in manifestations or strikes under penalty of jail. They will also be dismissed from their jobs for a period of time . The referred legislative decree, of a total of 11 which they were published in the official newspaper "El Peruano," was elaborated within the framework of the faculties granted to the Executive by the Parliament in the matter of citizen security, drug trafficking and terrorism. Although many agree with this initiative, others are labeling it as undemocratic. In fact, some analysts believe that this law was approved in a state of emergency and could jeopardize Alan García’s democratic commitment, hurting his political party in the nest presidential elections while benefiting Ollanta Humala, which could be catastrophic. [9]

In addition, Puno’s National Council has decided to investigate and denounce Hernán Fuentes to the authorities for establishing an ALBA office in Puno and for his close ties with Hugo Chavez. The presence of this agency has been questioned by many, including Regional President of Lambayeque, Yehude Simon who stated that he would "never" allow such an office to be placed in the region without having first sought the approval of the Ministry of Foreign Affairs or the Regional Government itself. Simon said that Fuentes has made a mistake in placing another country’s office on Peruvian soil without having first requested the Chancellery’s permission.

Furthermore, the Vice President of Puno’s Regional Government, Mauro Justo Vilca has stated that Fuentes should reconsider his position on the issue or he could face being removed from his post. Vilca considers that Fuentes’ behavior has negatively affected Puno’s regional government and paralyzed work in the area. Vilca added that Fuentes did not let any of his 13 advisors know of his plans. "This was a personal issue for Fuentes, he didn’t let anyone know. I’m going to speak to the other advisors and hold a meeting so we can make a decision about the problems that are affecting the region," stated Vilca. [10]

Humala’s reaction

Former Peruvian presidential candidate Ollanta Humala rejected claims that Venezuelan President Hugo Chávez is meddling in Peruvian domestic affairs, and rather advocated an office of the Bolivarian Alternative for the Americas (ALBA) in Puno, over the border with Bolivia. "ALBA should not be rejected, and I do believe the Peruvian government should ponder joining this space of international cooperation," Humala said. According to Humala, the ALBA is good economic choice, as Peru is engaged with the United States in a Free Trade Agreement. "Having spaces to make people in our country know the ALBA would be positive," said Humala, personal friend of Hugo Chavez and allegedly behind the protests that nearly paralyzed Peru few weeks ago. [11]

 

Problem with ALBA offices in Peru

The APCI visited the ALBA offices in Puno to collect information on its activities and stated that it did not meet with the registration requirements stated by law. Even more, the "House of ALBA" has not even initiated the necessary proceedings as an international cooperation entity, a necessary prerequisite to send patients to hospitals abroad. The APCI declared that indeed an organization with the name of "House of ALBA" was registered in Puno on March 28, 2007, as non-profit civil association which is dedicated to send patients with eye problems to be treated in "Bolivarian hospitals". However, the APCI states that the House of ALBA has not registered any non-reimbursable international cooperation project in the Budget Planning and Territorial Organization of Puno’s Regional Government, entity that should have approved the project to be able to be registered in the APCI. [12]

Conclusions

It is crucially important that the Peruvian government dispose of the legal means to effectively neutralize Chavez’s influence in the region. The laws pertaining NGO seem to be a good tool to counterbalance Chavez influence via the presence of the ALBA offices in Peru.  Accountability by organizations operating within the Peruvian national territory is vital. If the Government finds that the organization is provoking social unrest, the proper measures should be adopted. The fact that ALBA offices were not authorized seems to be in open violation with Peruvian laws and these laws should be properly applied.

In addition, the Garcia regime should secure an adequate monitoring of regional activities by the national government without undermining regional autonomies. If indeed what Peru’s general controller says that all foreign donations to regional governments must be reported to the national government, the question that ensues is to what extend the national government has the legal power to block donations that come from Hugo Chavez aimed at interfering in Peru’s internal affairs. If there is such legal power it should be applied. If there is no such legal power, adequate laws aimed at curbing such damaging activities should be legislated following proper process and legislative-executive power cooperation.

It is also critically important that the government does not engage in non-democratic or unconstitutional practices. For example the executive decree that penalizes public employees and public officials to participate in demonstrations could be perceived as an authoritarian measure aimed at silencing civil protest or even the opposition. If such perception exists, this could be used by pro-Chavez groups and dangerous individuals like Humala as a tool of propaganda and mobilization against the constitutional regime of Peru in general and against the Alan Garcia government in particular. Therefore, it is crucial that the Peruvian government refrain from non-democratic practices.

We will continue to explore the legal possibilities of counterbalancing the influence of Hugo Chavez in the next issues of the "America’s Report".  This is a problem that Perú is now confronting but other countries will no doubt follow suit.

Meanwhile, it is of utmost importance that the U.S. should help its allies in the region against the "Chavista" influence. An interest initiative would be the ratification of the Free Trade Agreements with Panama, Perú, and Colombia. Colombia and Peru are at the brink of falling into Hugo Chavez’s hands and it is difficult to understand why the US or the Democrats in this case are postponing the signing of these agreements.

  1. Del Castillo: El chavismo pretende desestabilizar el país. July 5, 2007. Diario Expreso, Perú.
  2. Perú acusó a Chávez de injerencia extranjera. July 6, 2007. Radio LV12, Argentina.
  3. Venezuela ya tiene 6 oficinas de Alba en Lima y en el interior del país. August 1, 2007. Diario La República.
  4. Primer ministro peruano: No hay pruebas de injerencia venezolana, pero existe. July 20, 2007. El Universal, Venezuela.
  5. Presidente regional debe reportar donaciones del ALBA en Puno o será denunciado. July 20, 2007. 24 Horas, Perú.
  6. 24 Horas – Ibid.
  7. Chávez: Oficina del ALBA en Perú es ”simbólica’ ‘ y no representa ninguna "injerencia." July 16, 2007. RPP, Perú.
  8. Región Puno debe reportar donaciones de ALBA ante APCI y Contraloría. July 20, 2007. Diario Correo, Perú.
  9. Presidentes regionales que se sumen a huelgas serán inhabilitados. July 23, 2007. Diario Correo, Perú.
  10. Peru: Regional President could Lose Position after ALBA Decision. July 10, 2007. Living in Perú.
  11. Chávez dice que ALBA en Puno es "simbólica". July 17, 2007. Perú 21, Perú.
  12. Casa de ALBA en Puno obvió requisitos de inscripción. July 31, 2007. 24 Horas, Perú.

Peru’s reaction to Venezuelan intervention

On July 26 2007, The Americas Report ran an article entitled: "Chávez’s dangerous intervention in Perú" which described the massive protests that were occurring in different regions of Peru. Analysts are convinced that the demonstrations are being promoted by Venezuelan President, Hugo Chávez. In addition, we described Chavez’s intent on pressuring Peru into joining an alliance with Venezuela, Cuba, Bolivia and Nicaragua called the Bolivarian Alternative for the Americas (ALBA). We at The Americas Report decided to talk to specialists in this subject to see what legal measures could be used against this overt intervention of Hugo Chavez in Peruvian internal affairs.

NEWS:

  • Bolivia’s President Criticizes Peru & Promotes Chavez during Stay. Bolivia: rising inflation. Confusion in Bolivia over arrival of Venezuelan military group.
  • Chavez again to the rescue of Argentina’s financial woes. Jews in Argentina wary of nation’s ties to Chávez. Chavez tours Latin America. Chavez hails Cristina Kirchner as Argentina’s next president. Chávez buys $500M in Argentine bonds, wants more.Brazil ‘s Petrobras to exchange technology with Mexico’s Pemex. Lula tour pushes Brazil biofuels.
  • U.S. Congress Representative Charles Rangel Backs Trade Deal in Peru.
  • Chile: Bachelet continues to lose support.
  • Colombia: The FARC reject Uribe’s proposal to release hostages Colombia: The FARC reject Uribe’s proposal to release hostages. Colombia : Ingrid Betancourt to be freed in Venezuela?
  • Nicaragua and Iran Sign Trade Deal with Hugo Chavez’s help. Ortega asks the world to join the crusade of Ghadafi, Chávez and Castro.
  • Ecuador warns Telefonica, Repsol YPF of revisions to contracts, concessions. 

View the full version of the Americas Report (PDF) 

For any questions, comments, or those interested in receiving this report in the future or seeking to have their email removed from our list please contact Nicole M. Ferrand at our new e-mail address: mailto:mengesproject@centerforsecuritypolicy.org. If you have news stories that you think might be useful for future editions of this report please send them, with a link to the original website, to the same e-mail address. If you wish to contribute with an article, please send it to the same address, with your name and place of work or study. 

The AMIA bombing

On July 18th, the thirteenth anniversary of the attack on the Jewish –Argentina Mutual Association (AMIA) was commemorated. The attack killed 85 people and left many others seriously injured. Like every year, including this one, there was a public gathering of tens of thousands of people. The Argentinean President, Nestor Kirchner, as well as many cabinet members and his wife, Cristina, a Presidential candidate, also attended the ceremony. The main points of the event were to demand that the Kirchner government advance the investigation further as well as immediately cease all diplomatic relations with Iran. An analysis of the mismanagement of the investigation.  

NEWS:

  • Iran and Nicaragua Strengthen Relations.
  • Venezuela refines purchase of Bolivian bonds. Venezuela and Argentina Deepen Industrial Integration. Argentina increases its economic dependency on Hugo Chavez. Venezuela and Cuba will begin jointly exploring for oil in Cuban waters. Venezuelan Government could make RCTV unavailable by cable. Venezuelan court: RCTV to continue on cable for now. "Chávez wants to be Castro’s successor."
  • Bolivian President Morales Visits Perú.
  • "It’s essential" that Mexico joins Mercosur says Kirchner. Brazil says Mexico cannot enter MERCOSUR. Argentina and Uruguay: Pulp mills dispute moves to New York.
  • Bush and Harper in favor of FTA with Colombia. The FARC wants to prevent pro-government electoral campaign in Colombia (Minister).
  • Chilean Miners Reach Accord, End Strike.
  • Cuba makes early Pan Am Games exit to prevent mass defections.

View the full version of the Americas Report (PDF)

For any questions, comments, or those interested in receiving this report in the future or seeking to have their email removed from our list please contact Nicole M. Ferrand at our new e-mail address: mengesproject@centerforsecuritypolicy.org. If you have news stories that you think might be useful for future editions of this report please send them, with a link to the original website, to the same e-mail address. If you wish to contribute with an article, please send it to the same address, with your name and place of work or study.

Chavez’s dangerous intervention in Peru

 

In recent weeks, there have been massive protests in different regions of Peru that have turned extremely violent due to the infiltration of terrorist groups such as "Shining Path," "Patria Roja" and others. The protests first began as a national strike by the left-wing Peruvian education workers’ union (SUTEP), and soon others from the construction workers’ union (CGTP), farmers and miners joined, and the demonstrations grew in size and became more widespread with thousands of participants. The protesting teachers (SUTEP) object to a new law which obliges them to take a proficiency test. The test is part of the government’s attempt to reform and improve the standard of Peru’s state education. But union leaders say it will mean hundreds of arbitrary sackings, a version that has been vehemently denied by the Peruvian government but that has been carefully used by union leaders to manipulate the teachers to march.

There have been violent clashes with the police, and the authorities have detained more than 100 union leaders. In the southern region of Puno, protestors stormed an airport and a railway station, and three people have been killed in different clashes across the country. A tourist train on its way to Machu Picchu was pelted with stones, and in the city of Trujillo, striking teachers tried to throw eggs and tomatoes at President Garcia, clashing with his supporters. Several police officers were held hostage by angry demonstrators in the same city but later released.

Although some of the demands of the population are legitimate, analysts are convinced that the demonstrations are being promoted by Venezuelan President, Hugo Chávez, with the intent of destabilizing the country. Peru’s Prime minister, Jorge del Castillo, has spoken out against the Union and regional leaders saying that followers of President Chávez, especially in Puno, are internally interfering with Peru’s government in an attempt to weaken the Garcia regime. "There is foreign tampering in Peru’s internal policies that aim to destabilize the country" declared the Prime Minister. "This comes from the Chávez movement. He is trying to do here what he has done in Nicaragua and other parts of Latin America". Prime minister del Castillo stated that this was his personal opinion and that he would present his ideas to Peruvian President Alan Garcia and his cabinet. He explained that the events were "unacceptable and that the time has come to look more closely into this and decide what action to take."[1]

The relationship between Peru and Venezuela has been tepid since President Hugo Chavez and Peru’s President Alan Garcia exchanged insults during the 2006 Peruvian Presidential elections. At that time, Chavez openly supported Garcia’s opponent, Ollanta Humala. Since then there has been some attempts at improving the relationship between Lima and Caracas. On July 20, 2007, the protests seemed to have calmed down. Government officials have decided to start meetings with union leaders to listen to their demands and needs, and the SUTEP and CGTP have accepted the government’s offer. The problem is that huge segments of the population feel abandoned, since efficient conduits of communication between the "campesinos" and the government were stopped during the government of Alejandro Toledo. This method was first implemented during President Alberto Fujimori’s regime, and proved to be extremely efficient. Some small groups remain hostile but the government’s attitude has been well received by the majority of the demonstrators.

Chavez’s strategy

In recent elections in Latin America, especially in Bolivia, Ecuador, Peru and Nicaragua, there have been allegations that the Chavez regime was directly intervening in the internal affairs of the above mentioned countries by allegedly financing and supporting candidates that would help him promote his Bolivarian Revolution, a plan of action that was concocted together with Fidel Castro. Chavez takes advantage of any social unrest in any Latin American country, and then steps in to promote them even more and win sympathizers for his "Bolivarian Revolution." This strategy worked in Bolivia, Nicaragua and Ecuador but backfired in Peru when Alan Garcia defeated Ollanta Humala. The Venezuelan President’s strategy is to create social unrest and promote massive protests to topple an incumbent of his disliking in order to replace him with one of his own followers.

 

Evidence of Chavez’s intervention in Peruvian protests

Why many analysts believe Mr. Hugo Chavez is behind Peru’s social convulsion? There are many indications. First, when the protests began, Ollanta Humala reappeared as a prominent figure saying that Peru was undergoing a deep political crisis and that Alan Garcia should end his term in office soon.[2] In TV news programs, there were images of Humala being shielded from the protesting masses by bodyguards and heavy sticks. People around him were chanting his name and he was encouraging the demonstrators to continue marching. When he was candidate for the Presidency of Peru, there were allegations that cash was being sent through the Venezuelan consulate to Mr. Humala’s campaign management. Now, according to the newspaper "Expreso" from Peru, it is said that Humala receives $600,000 dollars from Hugo Chavez to finance demonstrations and promote social unrest to destabilize the country.[3]

Secondly, Prime Minister Jorge del Castillo has said that Chavez is trying to pressure Peru into joining an alliance with Venezuela, Cuba and Bolivia called the Bolivarian Alternative for the Americas (ALBA), which Chavez bills as an alternative to U.S. free trade agreements. ALBA, which is named after the 19th century independence leader Simon Bolivar, is opening an office in the southeast Peruvian city of Puno. "ALBA is an organization made up of four countries (Venezuela, Cuba, Nicaragua and Bolivia). I don’t think they can make an NGO work here nor do I think that it’s ethical for them to just come in here and tomorrow say we are going to open an office in Peru," del Castillo said.[4]

Regarding this point, the Regional President of Puno, Hernán Fuentes, has been harshly criticized for making the decision to establish the ALBA office given that Peru has nothing to do with this trade agreement. In spite of the government’s concern and rejection of the presence of ALBA offices, Mr. Fuentes has announced that another ALBA office will be established in Juliaca. Fuentes has explained that the presence of the offices will aid in health services and assist in education. He has expressed his plans to place more ALBA offices in different parts of the province when possible. Fuentes has even said that President Alan Garcia and Prime Minister Jorge del Castillo "are not welcome" in Puno but rather that President Garcia should leave the country and establish himself in the United States.[5]

In addition, Fuentes said that he didn’t need an authorization from the government to open an ALBA branch in his jurisdiction, which is not true since he needs governmental consent. Even more, in his office in Puno, there is a picture of Hugo Chavez instead of a photograph of the President of Peru, Alan Garcia, though the law clearly establishes that in every government office there must be a visible image of the President. After learning this, Prime Minister Jorge del Castillo said that if Mr. Fuentes likes Hugo Chavez so much, he should go and live in Venezuela. He then said that some authorities in Puno want to build a "Bolivarian Hospital" run by Cuban doctors and paid for by Venezuela in a site that was destined to be used to erect a public hospital and that "we all know where that money comes from and the price that will be paid for it [by Fuentes and his followers]."[6]

Third, two lawmakers from Humala’s ‘Nationalist Party,’ Yaneth Cajahuanca Rosales and Werner Cabrera, mysteriously traveled to Venezuela the last week of May and returned on June 4, just days before a strike broke out in Iquitos, Puno, Casapalca and Ucayali. They traveled together and returned to Peru together as well. According to immigration officials, Mr. Cabrera had already visited Caracas on February 23, 2007 but his passport was not stamped when he returned to the country, so nobody knows the exact amount of days he spent in Venezuela. It is important to clarify that the congressman openly declared himself a "Chavista" and follower of Hugo Chavez in a TV program and even recognized that Ollanta Humala was behind the strikes.[7] Some analysts are speculating that the visit was programmed to arrange last minute details for the demonstrations that would soon plague Peru.

Fourth, the business attaché of the Venezuelan embassy in Lima, Ramon Lopez Martinez, has become very close to the President of the Peruvian National Confederation of Commerce (CONACO), Humberto Sánchez Palacios. Months ago, Caracas invited 50 businessmen to show them the ‘benefits of ALBA.’ While there, the Peruvian ‘delegation’ was ‘instructed’ on the benefits of the ‘Bolivarian ideals.’ Even more, Sánches Palacios decided to ‘lend’ the ninth floor of the CONACO building to facilitate the business operations of Lopez Martinez in Peru.[8]

Fifth, after the marches in Puno, Venezuelan diplomatic officials now have their eyes set on another city, Loreto. Virly Torres, commerce manager of the embassy of Venezuela in Lima, and her colleagues held a meeting with Salomón Abensur Diaz, mayor of that municipality, on May 18, 2007. The Venezuelan officials spent a few days there and coincidently, 72 hours after, a massive strike began in Loreto which left millions of dollars in losses. The coordinator of the meeting between Torres and Abensur was lawmaker Victor Isla from the Nationalist Party of Ollanta Humala. The first accord between the two parties was the realization of "Misión Milagro" (Mission Miracle), an instrument Hugo Chavez used to attract locals from different areas under the umbrella of a ‘humanitarian program.’ One hundred and ten people with eye problems were transported to Caracas in an official Venezuelan airplane in order to undergo eye surgeries performed by Cuban doctors. The municipality covered the costs of the passports, which amounted to $4,400 dollars.[9]

Finally, there are claims that "Chavista" agents from Venezuela and Cuba are already in Peru and that they came through Bolivia and then Puno using local hospitals and the offices of ALBA to co-opt sympathizers to destabilize the country. Analyst Alberto Bolivar says he has evidence regarding the presence of Venezuelan military and civilian personnel and that this situation has been promoted by the existing friendship between Fuentes and Chavez.[10]

The bottom line

Battling extreme poverty continues to be a challenge for Peruvian authorities and should be a priority of the current regime. People’s needs must be heard and in order for this to happen, direct channels of communication and dialogue should be re-established between the people, the regions and the Central Government.

It would be wise for President Alan Garcia to consider breaking off diplomatic relations with Venezuela for interfering in the internal affairs of Peru. In addition, the Peruvian authorities should close down any existing Alba office in the nation and should bring charges against Fuentes for breaking the law and for behaving as if Puno was separate from the rest of the country. In this regard, Fuentes’s activities and links to the "chavismo" movement should be a deeply investigated. The sovereignty of the nation is being threatened by Chavez and, unless Garcia takes direct action to thwart him, Peru might fall just in the same way as Bolivia.

"The Americas Report" has shown in several articles Chavez’s eagerness to extend his tentacles all over Latin America. He takes advantage of marginal sectors of the population to co-opt potential followers and destabilize a country to place one of his cronies in power and has been trying to increase Venezuela’s political influence by offering favorable credit deals and swapping oil for agricultural exporters to poor countries. Leaders in the region must be aware of the potentially dangerous scenario of the Venezuelan President’s meddling in the internal affairs and politics of any nation. Just as he did in Bolivia and Ecuador, he will create, promote and possibly finance social unrest in different countries of Latin America to finally realize his dream of the "Bolivarian Revolution of the XXI Century."

Notes

[1] Jorge del Castillo dice que hay injerencia de Hugo Chávez en las protestas en Puno. June 30th, 2007. Diario "El Comercio", Perú.

[2] Injerencia chavista denuncian en Perú. July 6, 2007. El Universal, Venezuela.

[3] "Humala recibe US$ 600,000 mensuales" July 24, 2007. Diario Expreso, Perú.

[4] Del Castillo: El chavismo pretende desestabilizar el país. July 5, 2007. Diario Expreso, Perú.

[5] Fuentes falta el respeto a García y lo declara "persona no grata." July 10, 2007. Diario Correo, Perú.

[6] Del Castillo arremete contra Merino y Fiscalía por protestas. July 12, 2007. Diario Correo, Perú.

[7] ¿A qué viajaron Cajahuanca y Cabrera a Venezuela? July 5, 2007. Diario Expreso, Perú.

[8] Chavismo busca capturar Conaco. July 14, 2007. Diario Correo, Perú.

[9] Loreto, el próximo blanco político del chavismo. July 17, 2007 Diario Correo, Perú.

[10] Agentes chavistas captan a peruanos en el altiplano. July 2, 2007. Diario Expreso, Perú.

Chavez’s dangerous intervention in Peru

In recent weeks, there have been massive protests in different regions of Peru that have turned extremely violent due to the infiltration of terrorist groups such as "Shining Path," "Patria Roja" and others. Although some of the demands of the population are legitimate, analysts are convinced that the demonstrations are being promoted by Venezuelan President, Hugo Chávez. Peru’s Prime minister, Jorge del Castillo, has spoken out against the Union and regional leaders saying that followers of President Chávez, especially in Puno, are internally interfering with Peru’s government in an attempt to weaken the Garcia regime. An analysis of the situation.

NEWS:

  • Chavez threatens to throw out foreigners who criticize him. Chavez sets unlimited terms for President. Venezuela to buy $1 billion worth of arms from Belarus. Chávez visits Nicaragua. Chávez inaugurates refinery in Nicaragua. Venezuela : a hub for cocaine smuggling. Venezuela may regulate RCTV although signal is transmitted through cable.
  • Peru : "Ollanta Humala receives $600,000 dollars from Hugo Chavez every month."
  • Ecuador : Correa says he fears for his life. Ecuador re-negotiates foreign oil deals.
  • Bolivians at war over move of capital city. Morales seeks indefinite re-election terms. Bolivia : new economic model in Progress.
  • Uribe: Colombia has overcome paramilitarism.
  • Argentina : Presidential Candidate Cristina Kirchner Visits Spain. Argentina : 13th anniversary of the AMIA bombing. Kirchner approval drops to less than 50%. Analysis of the current inflation problem in Argentina by Chief Economist of Standard Chartered Bank, Doug Smith.
  • Peru offers air base access to U.S.

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The meaning of Kirchner’s recent defeat

 

In a recent election for the mayoralty of the city of Buenos Aires, the candidate of Argentinean president, Nestor Kirchner, was defeated by a huge margin of sixty one to thirty four percent. The Peronist party, to which Kirchner belongs, was also defeated in the southern province of Tierra del Fuego. Mauricio Macri, a candidate defined as being center-right was elected in Buenos Aires and in the South, the winner was Fabiana Rios, a candidate who describes herself as center-left.

Most analysts agree that the victory of these candidates does not mean that Kirchner’s party will not prevail in the upcoming presidential election which will be on October 28, 2007. However, there are reasons to believe that these political setbacks of Kirchner’s candidates indicate more.

[More]Curiously, Macri, the winner in Buenos Aires, presented an agenda that was in many aspects the total opposite of Kirchner’s style and content. Macri, one of the wealthiest entrepreneurs in Argentina, benefited a great deal from the privatizations of the 1990’s. He ran on a platform that promised greater efficiency in the provision of government services (mostly in public education, health and transportation), and more security in a city where crime has increased tremendously. He also repudiated political clientelism, a practice that has characterized most governments, including Kirchner’s. Macri is seen to represent values which the average Argentinean considered important for the functioning of a good government. In a society characterized by a lack of legal security, corruption, chaos, impunity, and economic uncertainty, Macri presented what Argentine journalist Eduardo Aliverti defined as non-ideological programs:1 law, order, stability, and security. The vote for Macri represented an expression of tiredness, with the political class, long considered to be opportunistic and useless, among Argentineans.

These recent election results might also be seen as resistance to the populism practiced by Kirchner and, in a way, the rejection of what Cristina Kirchner – the President’s wife and the next Presidential candidate on behalf of the peronist party has indirectly referred to as a new spirit in Latin America guided by neo-populisms.2 The vote for Macri very well may speak speaks for an important urban, upper, middle and middle-lower class group that has become concerned with Kirchnerbs policies.

The government of Kirchner is viewed as a moderate form of populism. An argentine political analyst, Marcos Novaro, says that Kirchner is not a populist like Chavez (who rejects free trade, neo-liberal economics, liberal democracy and is anti-American), nor is he like the former Chilean president Ricardo Lagos (who supports free-market, liberal-democracy, and integration with the developing world).3

Indeed, Kirchner has not gone as far as Hugo Chavez in destroying the private sector, nor has he carried out large scale nationalizations in the name of socialism. Neither has he subordinated the whole arc of the political party system under the wing of a political movement that has the monopoly on truth as Chavez did. However, Kirchner is not exactly a model of an enlightened leader who respects the principles of the free market, or the laws of a true republican democracy. The Kirchner regime or "style K," as the Argentinean press calls it, is a model of populism that includes elements of authoritarianism less flamboyant than Chavezbs but highly problematic nonetheless.

His unprecedented four-year popularity has been sustained by an incredible economic growth which has been at eight percent each year, mostly due to increases in prices of Argentinean commodities in the world market, a situation no different than the one Juan Domingo PerC3n experienced during the post World War II years. This economic growth has enabled Kirchner to promote policies based on strong state intervention, redistribution and anti-corporatism.

From the beginning, Kirchner adopted a popular anti-business ideology and attitude,4 which worked well with the Piqueteros–the groups formed by unemployed, residents of the shantytowns and others– whose demonstrations with brought down the government of Fernando de De La RC:a in 2001. He proceeded to intimidate companies, corporations, supermarkets and other businesses in an effort to force them to lower the price of their products. These actions, which are against the laws of a free market system, were carried out in the name of the people, or "the consumer" who could not afford the market prices.

In the same vein, Kirchner organized an overall boycott of Shell Oil Company, using the Piqueteros to demonstrate in front of the company headquarters and force the company to lower the gas prices. Shell could not resist the governmentbs coercive pressure and went on to comply with the "request" to lower the prices. Esso (Exxon) followed. Kirchner repeated the same assault on the supermarkets when their productsb prices rose. The government again blamed Argentinean inflation on companies that "seek profit and care very little about the people." According to Kirchner "supermarkets have united to raise the prices at the expense of Argentineans." He demanded that supermarkets "work for the country and leave the people alone." He also promised that the "government will organize the consumers (against the corporations)".5

The supermarkets, having learned from the Shell experience, proceeded immediately to comply with the governmentbs demand. Here we see not only an unconstitutional act of bullying, but an old fascist and totalitarian method where the state mobilizes people. In a normal constitutional state, the government would respond to mobilizations or protests and intervene to solve the conflict or, in the worst case scenario, would impose a binding mediation. But to become an active part of the conflict by mobilizing and using intimidation is clearly typical of non-democratic regimes.

In the last few months, an energy crisis has taken place in Argentina. Power outages threaten to paralyze the country and leave many people at the mercy of a colder than usual winter. This crisis can be attributed to numerous factors including the lack of water caused by drought in the rivers that provide hydroelectric energy, an increase in public demand, an increase in exports of gas to Chile, and a drop in the production of gas.6 The Kirchner government, after denying the existence of this crisis, stated "the crisis is the consequence of lack of investment on the part of the energy companies". Kirchnerbs price control policies caused a general tendency for companies not to invest in Argentina. Despite this fact, the governmentbs chief of staff, Alberto Fernandez, categorically asserted that "even if the prices rise, increases in investments are not guaranteed."7 Thus, what can be concluded from this statement is that the lack of investment or re-investment is not related to the governmentbs policy of price control (that discourages further production and investment), but to an intended "anti-people" policy on the part of the corporations.

The government then moved to take over MetroGas, the company in charge of gas distribution, for having interrupted such distribution as a result of the need to keep the reserves given increasing expected demands in the short run. While the government agreed not to take over the company, it succeeded in forcing the director out of office.8 This action was harshly criticized by the private sector that accused the government of violations of property rights and creating an improper climate for new investments.9

Kirchnerbs threat to cancel contracts with foreign companies if they do not re-invest in Argentina has become a common practice. This is a bit of nationalism in an era of globalization. His obsolete Third World conceptions of foreign capital imperialism seem to go against his need for investments. For example, in the sector of electric transportation, foreign investments are not welcome.10 According to some statistics and reports, the percentage of foreign direct investment in Argentina is one of the lowest in Latin America.11 There is no doubt that Kirchnerbs policies are mainly responsible for this situation. Moreover, Kirchnerbs anti-business war frightens not only the big businesses but also the small businessman and the merchant who feels vulnerable by his anti-capitalistic discourse. After all, the small businessman seeks "his own profit," as he should, but for Kirchner this basic 19th century principle, can "conspire" against the "common interest". Even though Kirchner has expressed strong support for national industry (which also benefited from the countrybs economic growth), it is pretty obvious that the private sector knows that its power can be curtailed by a random and capricious president. It is this sense of arbitrariness that is intimidating because it flies in the face of law and justice.

Kirchnerbs mindset contains a mixture of anti-establishment sentiments. His discourse is a combination of vulgar Marxism with what the philosopher Friedrich Nietzsche calls "a rebellion in slave morality," namely, a sort of resentment against those perceived as being powerful. It is an angry discourse that contains conspiracy theories that attack big capital, the corporation, globalization, foreign businesses and others. This plays well with the naturally chaotic and often violent mind of the Piqueteros, whose political activity is in the streets and whose slogan is the simplistic dual formula of "friend and enemy," "good and bad." The Piqueteros, who come from the most marginal sectors of society, (many of whom are literally lumpemproletariat, not even members of the working class), have become experts at spreading this anger, supported by a bunch of enthusiastic journalist and intellectuals who celebrate the fact that the left is finally in power.12

What is interesting about Kirchner is that one of his objectives was to distinguish himself from the government of former President Carlos Menem (1990-1999). However, Kirchnerbs government has not scored improvements in the area of good government or even rights. Menem was accused of authoritarianism, as the executive power gained ground at the expense of the legislative and the judiciary. He was also accused of disparaging his criticizers, particularly the press. However, Kirchner is not much different.

Kirchner and his partners approved a law of financial administration which gives unlimited powers to government administrators to re-allocate budgets, a function usually carried in coordination and with the approval of Congress. Not only has Kirchner "bulldozed" the legislative branch, but he also tried to gain more control over the Judiciary. The legislature passed, and Kirchner quickly signed,13 a new law that reduced the number of professional and academic members of the Council in charge of appointing judges. The new law enables a political majority over the professional members of the Council. The law also denies a place for the second minority in Congress in order to make it easier for the majority party to exercise influence. It also allows the Council to meet without the presence of its professional and academic members.14 Kirchner and his accomplices in Congress passed a law that gives them control over judicial appointees, defining the future relation between the executive and judiciary, which is the virtual subordination of the latter to the former.

Kirchner has also grown increasingly intolerant of the press calling the free press "opposition." He has been cited by the press for not allowing them access to information on government activities, and, for boycotting certain journalists. Indeed, President Kirchner applied his influence on Congress to defeat "The Public Information Act" (Ley de Acceso a la InformaciC3n PC:blica), that would have enabled more transparency and access by citizenry to government activities.15 Cristina Kirchner became a vocal opponent of this law and a key player in the anti-press crusade.

It is not surprise that Kirchner has established strong relations with President Chavez of Venezuela. The most common belief among the people and the media for the relationship is pragmatic to receive cheap oil and to secure an additional source of foreign aid to counterbalance the weight of the International Monetary Fund. Interestingly, while Argentina faces an energy crisis, experts think that fuel-oil imported from Venezuela cannot resolve the Argentinean energy problem in the long run and scarcely in the short run.16 It seems Kirchner has become an ally of Hugo Chavez because he feels that he represents a new spirit in Latin America. This alliance is not mere coincidence. Kirchnerbs bullying of the private sector, his increasing executive decisionism, his take-over of the judiciary, his arbitrariness, his alliance with the highly tumultuous Piqueteros, and his pro-Chavez foreign policy, have frightened the Buenos Aires urban educated population. They want to continue down the path of modernization, respect for private capital, the rule of law and the need for a legal order that can guarantee rights, liberty and ensure that economic transactions are subject to legal protection. The vote for Mauricio Macri in Buenos Aires may well be a reflection of these feelings, and, perhaps, the beginning of the end of the Kirchner era.

Dr. Luis Fleischman is an advisor to the Menges Hemispheric Security Project at the Center for Security Policy in Washington DC. He is also an adjunct professor of Political Science and Sociology at Wilkes Honor College at Florida Atlantic University.

Behind Kirchner’s defeat

In a recent election for the mayoralty of the city of Buenos Aires, the candidate of Argentinean president, Nestor Kirchner, was defeated by a huge margin of sixty one to thirty four percent. The Peronist party, to which Kirchner belongs, was also defeated in the southern province of Tierra del Fuego. Mauricio Macri, a candidate defined as being center-right was elected in Buenos Aires and in the South, the winner was Fabiana Rios, a candidate who describes herself as center-left. Analysis and implications.

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  • Argentina ‘s Economy Minister Resigns after $64,000 in cash are found in her office.

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For any questions, comments, or those interested in receiving this report in the future or seeking to have their email removed from our list please contact Nicole M. Ferrand at our new e-mail address: mengesproject@centerforsecuritypolicy.org If you have news stories that you think might be useful for future editions of this report please send them, with a link to the original website, to the same e-mail address. If you wish to contribute with an article, please send it to the same address, with your name and place of work or study.