The corruption under Chavismo presents itself in various forms and distinct methods, with the common thread being the irregular, perverse, and opaque nature of these actions. This time, we will focus on one aspect of repression, represented by Humberto Aranda, the “phone-tapper” for Nicolás Maduro.
It’s well known that freedom of expression was one of the first and foremost victims of the Chavista revolution soon after Hugo Chávez seized power in 1999 — following his electoral victory in December 1998, perhaps the only one — thus silencing social media and independent journalism was essential. Not to mention the opposition politicians and any dissenting voices. This policy did not change with Nicolás Maduro’s assumption of the presidency; on the contrary, it intensified as the mechanisms for its execution refined, along with the cruelty involved.
Just as Chavismo stifles press freedom, it also controls communications — including media outlets, phone communications, social networks, etc. — with Humberto Aranda participating as an agent of the regime in this arena.
Who is Humberto Aranda “Chicharito”?
In truth, little is known about him; information regarding his identity is scarce. There are barely a few details, a blurry photograph, and the fact he is of Mexican nationality and a former member of the Mexican Federal Police. He is nicknamed “El Chicharito” and “El Mexicano.”
Humberto Aranda’s arrival in Venezuela is said to have been made possible by the support and protection of former deputy and former director of the General Directorate of Military Counter-Intelligence (DGCIM), Hugo “El Pollo” Carvajal, who also facilitated his entry into Movistar, where he would serve as an agent of Chavismo for implementing censorship and phone spying.
His actions would focus on coordinating and commanding blockades against independent digital media and conducting phone tapping on journalists and democratic opposition politicians.
At Telefónica Venezolana, a subsidiary of Telefónica S.A., the Spanish company, Humberto Aranda held the position of Vice President of Institutional Relations and was responsible for security at Movistar Venezuela.
Sources from Venezuela Política confirm that Aranda is indeed part of Nicolás Maduro’s inner circle, being one of the key figures that the dictator utilizes for technological repression. He is described as cunning and elusive, making it hard to determine his true interests.
They had the “Mexican” in security at @Movistar who was very close to the heads of the DGCIM. Through the Movistar office in Maracay, they allowed the red hacker access to my cell phone on 6/5/2016. Since then, I moved to @Digitel. https://t.co/ZfUfgERPBY
— Nelson Bocaranda Sardi. (@nelsonbocaranda) May 1, 2020
The Bribery Scandal
As previously mentioned, the irregularities reflect the common denominator of Chavista corruption, and Humberto Aranda has also reportedly been a key player in the bribery case involving Telefónica Venezolana paying off regime officials to obtain preferential U.S. dollars in foreign currency auctions conducted by the government during the exchange control period.
Recently, the U.S. Department of Justice revealed the existence of a bribery scheme, which was resolved through an agreement requiring Telefónica Venezolana to pay a USD 85.2 million fine.
Documents from the U.S. Justice Department revealed that the Venezuelan subsidiary of Telefónica S.A. (Spain) entered into a deferred prosecution agreement. The Southern District of New York Prosecutor’s Office accused the company of conspiring to violate the Foreign Corrupt Practices Act (FCPA) regarding anti-bribery provisions.
This agreement established that Telefónica Venezolana received credit from the Justice Department for cooperating with the prosecutor’s investigation by providing information and documentation about the operation, as well as evidence and records related to the scheme.
The Facts
Judicial documents indicated that in 2014, Telefónica Venezolana aimed to secure success during its participation in a foreign currency auction promoted by the Venezuelan government to obtain U.S. dollars in exchange for Venezuelan bolívares.
This was one of many practices implemented by the Chavista regime during the two-decade-long continuation of exchange controls in the country.
Telefónica Venezolana’s plan involved recruiting two suppliers who made corrupt payments of approximately USD 28.9 million to a middleman. This action was taken with the knowledge that the funds would be used to pay commissions to Venezuelan government officials.
In order to conceal these irregular commission payments, Telefónica Venezolana purchased overpriced equipment from the aforementioned two suppliers. This process allowed Telefónica’s Venezuelan subsidiary to obtain more than USD 110 million in the currency auction. The justification recorded with the authorities was the inflated pricing of the equipment purchase.
The Latest
Pedro Cortez Rojas, president of Telefónica Venezuela between 2012 and 2018
Pedro Cortez Rojas presided over Telefónica Venezolana at the time the bribes were paid.
The latest information about the case indicates that Pedro Cortez, who served as the CEO and executive chairman of Telefónica Venezolana from 2012 to 2018, when the bribery operations took place, was dismissed from Telefónica in 2023.
Cortez spent 20 years at the Spanish firm, holding positions in the company’s subsidiaries in Venezuela and Peru. His last position was in Hispam, a unit responsible for operations in Argentina, Chile, Colombia, Ecuador, Mexico, Peru, Uruguay, and Venezuela.
At that time, Telefónica’s parent company was led by the late César Alierta, who was succeeded by José María Álvarez-Pallete — previously the CEO — whereas the Corporate Finance Director was Ángel Vilà. In 2018, under Álvarez-Pallete’s presidency, Pedro Cortez was transferred from Venezuela to Peru.
Cortez’s dismissal was part of the agreements that Telefónica reached with the U.S. Department of Justice, resulting in the payment of the hefty fine. The Spanish company committed to excluding individuals responsible for the bribery payments from its payroll. Álvarez-Pallete and Vilà were cleared of responsibility in the case after an internal audit commissioned by Telefónica.
Pedro Cortez Rojas and his wife, Lorena Diaz Liotta
Terms of the Judicial Agreement
The agreement with Telefónica Venezolana included the company’s commitment to:
Discipline and terminate employees involved in the scheme or who were aware of it.
Strengthen its anti-corruption program, appoint a compliance director with direct access to the Audit Committee of the Board of Directors.
Review its transaction approval process for non-standard pricing and ensure the review of those transactions globally.
Revise, enhance, and test its broader internal controls regarding pricing and other transactions with the assistance of a forensic accounting firm.
Enhance the processes for investigating, hiring, and monitoring third parties, as well as control payments to third parties through proprietary software.
Establish risk assessment and audit processes to periodically review and update the compliance program and mitigate business risks.