Derwick Associates, the energy company embroiled in a mega-corruption scandal, overcharged the Venezuelan government by up to $2.933 billion, according to energy expert José Aguilar. In an interview with INFODIO, Aguilar argued that Derwick Associates is the “tip of the iceberg” in a significantly larger scam that could have cost Venezuela over $23 billion. He named several international corporations involved in the scheme: IMPSA from Argentina, IBERDROLA and Duro Felguera from Spain, Alstom from France, CMEC and Sinohydro from China, Ferroostaal from Germany, TSK from Thailand, as well as U.S.-based Waller Marine. In all projects involving these companies and numerous local partners, overcharging ranges from 48% to a staggering 515%, according to Aguilar.
Aguilar identified 40 projects, which are broken down into: announced capacity in megawatts, reported costs, fair international prices, percentage of overpricing, promised completion dates, contractors involved, operational status, available/unavailable megawatts, pending megawatts, and delays measured in months since project completion was announced. He presented shocking data, ranging from IMPSA’s 0% delivery rate in Tocoma nearly six years after the project was supposed to be completed to CMEC’s 24-month delay at the Centro Plant in Carabobo.
Aguilar utilized some official sources (PDVSA, CORPOELEC, Ministries of Basic Industries and Electric Energy) in his calculations. He claims that the Chávez regime implemented a policy of secrecy, making published statistics totally unreliable, opaque, or simply nonexistent. For example, Aguilar mentioned that he is aware of the Centro Plant thanks to images and documents leaked by his sources. He believes this policy aims to avoid any accountability or rebuttals from energy experts directing at the government. Aguilar further stated that 2008 was the last year a partial report on Venezuela’s energy situation was available, while the last complete report was published in 2007 by CAVEINEL, an old business association absorbed by Chávez’s regime.
Moreover, the Office of Interconnected Systems Operation (OPSIS) in Venezuela used to produce a monthly bulletin, which was essential reading for Aguilar and other experts, but this too was suspended in 2010 shortly after Ali Rodríguez Araque took over as Minister of Electric Energy. Aguilar also explained that Article 108 of the Organic Law on the Electric System and Service in Venezuela categorizes the revelation of information about the country’s electric system as illegal, punishable by 8 to 16 years in prison. Regarding this law, Aguilar noted that a convicted person for violation may receive a maximum of 14 years, while those publishing matters related to the power situation may face up to 16 years.
Aguilar stated that IMPSA, which he estimates charged Venezuela over $7 billion just for Tocoma, also managed to enter a project in Guri II (Guri Dam). Aguilar doubts IMPSA has the knowledge and technical capacity to undertake such a project, saying, “I question whether IMPSA has the ability to execute such an extraordinarily complex work as required by Guri, whose characteristics are unique in the world.” Other experts concurred. Despite all the positive public relations surrounding IMPSA’s head, Enrique Pescarmona, the reason IMPSA secured these contracts could be linked to Hugo Chávez‘s friendship with Néstor and Cristina Kirchner. Aguilar believes that Ali Rodríguez Araque’s hands are in all these scams.
What is shocking is that despite having allocated or already spent over $23 billion, the energy situation is nowhere near resolved. While Derwick Associates, IMPSA, and the others have essentially been allowed to pillage Venezuela, Aguilar concludes that the situation can only worsen given the irresponsible manner in which contracts have been awarded to dubious or simply incapable teams lacking technical expertise.