New twist in the political crisis in Venezuela: former oil minister Pedro Tellechea has just been arrested, accused of murky links with the American intelligence services. The oil sector, vital for the country, shaken by yet another corruption scandal…
The Venezuelan oil sector, crucial for the economy of the country which has the largest reserves in the world, is once again shaken by a resounding scandal. This time, it is the former oil minister himself, Pedro Tellechea, who finds himself behind bars.
According to Attorney General Tarek William Saab, Mr. Tellechea and his closest collaborators are accused of “serious crimes against the best interests of the nation”. More specifically, they allegedly delivered the command and control system of the state-owned oil giant PDVSA to a company controlled by the American intelligence services.
A minister who seemed in grace
This arrest is a bolt from the blue, as Pedro Tellechea, 49, seemed to be on the rise until recently. In August, this former soldier left his positions as minister and CEO of PDVSA to everyone’s surprise to take the helm of the Ministry of Industry and National Production.
Many observers believed that he had contributed to partially recover the Venezuelan oil sectorin the grip of a deep crisis. His unexpected replacement at the Ministry of Industry last Friday by Colombian businessman Alex Saab had already raised questions.
A sector plagued by corruption
Pedro Tellechea himself took the reins of the oil sector in the wake of the scandal affecting his predecessor Tareck El Aissami, close to President Nicolas Maduro. The latter was arrested on April 9 in a huge corruption case affecting PDVSA, with embezzlement estimated at $17 billion involving more than 60 people.
The stratagem would have consisted of sell oil on the black market and use cryptocurrencies to try to circumvent the sanctions imposed by Washington. A risky bet which seems to have turned into a fiasco.
Precedents that multiply
The repeated scandals rocking the state oil company are unfortunately not new. Former oil minister Rafael Ramirez (2002-2014) is on the run in Italy. His successors Eulogio del Pino and Nelson Martinez were arrested, the latter even dying in custody.
For Venezuela, extremely dependent on black gold, it is the entire economic structure and the stability of Chavista power which falter a little more with each episode. The spectacular arrest of Pedro Tellechea, after a brief improvement, shows that the worm is deep in the fruit.
In a country already undermined by an unprecedented political, economic and social crisis, this new shock in the strategic oil sector could prove devastating. How far will the ramifications of this new judicial aspect lead? The Nicolas Maduro regime is undoubtedly playing one of its last cards.
