I’ve rarely come across a news article as shocking as this piece in El Mundo. I will translate the essential parts; however, if you can manage a bit of Spanish, I recommend checking it out directly. Many contributed to this major investigation, but one notable critique has come from Alek Boyd. Bravo, mate!
Police sources inform El Mundo that a dossier with the Anti-Money Laundering Commission reveals connections to at least three former deputy ministers of Venezuela, the ex-head of intelligence, a former executive from the state oil company PDVSA, and a businessman linked to Chávez, managing funds in Spain allegedly derived from substantial bribes in exchange for contracts with the Venezuelan government.
All these Venezuelan elites are on a list of clients uncovered by the Spanish branch of Banca Privat d’Andorra (BPA), which failed to take necessary steps to prevent money laundering—a serious compliance issue under Spanish law…
This Spanish probe extends beyond the information released Monday by FinCEN, the U.S. anti-money laundering unit, providing specific names that indicate at least part of the Bolivarian regime exploited its authority for personal gain, all while deceiving the populace. The U.S. report mentioned “BPA facilitated transfers amounting to $4.2 billion” linked to public corruption in Venezuela, without naming names.
Among the clients of Banco Madrid, according to police sources, is the former Deputy Minister of Energy Nervis Gerardo Villalobos. The Spanish investigation ties him to companies based in Madeira and the Virgin Islands and considers him close to Venezuela’s current UN ambassador, the ex-president of the massive state oil company, Rafael Ramírez…
The investigation suggests Villalobos received “consulting fees” from the Spanish company Duro Felguera, selected in May 2009 for a €1.5 billion contract to construct a combined-cycle power plant to serve Caracas.
The president overseeing the contract, Electricidad de Caracas, was Javier Alvarado Ochoa… Authorities find it astonishing that Banco Madrid failed to communicate with Sepblac [Spain’s anti-laundering body] or perform rigorous checks on these clients. The bank’s board received reprimands for serious compliance violations [regarding money-laundering suspicions]…
Insurance mogul Omar Farias also features prominently… Farias managed the Spanish operations of the company Inversiones Porbónica.
In Sepblac investigations, Farias emerges as a pivotal figure with potential B accounts at Banco Madrid possibly linked to nefarious foreign operations of the regime. The Spanish entity thwarted a €13 million transaction involving Farias but did not pursue further investigation, according to sources familiar with the Sepblac dossier presented last Monday to Banco Madrid’s board members.
The intertwining of business and regime connections is evident in another Banco Madrid client, Carlos Luis Aguilera Borjas, the ex-director of government security. He manages the firm CLAB-Consultoría Inmobiliaria in Spain and holds significant stakes in Constructora Girardot 53, a company blessed with contracts for the Metro de Caracas during Chávez’s presidency.
The Spanish investigation scrutinizes Aguilera’s relationships with firms that obtained large contracts for the Metro de Caracas. In 2008, a consortium consisting of CAF, Cobra, Constructora Hispánica, and Dimetronic landed a €1.4 billion contract to renovate Line 1 of the capital’s metro…
Also related to Chávez’s security apparatus is another Banco Madrid account holder, former Deputy Minister Alcides Rondón.
This case exemplifies the bank’s failure to uphold its due diligence responsibilities… The same applies to Francisco Rafael Jiménez Villarroel, previously representing PDVSA while Rafael Ramírez was at the helm.
Indeed, those named include Nervis Villalobos, long attributed with ties to multiple companies that overcharged Venezuela for power generation equipment; Duro Felguera, a partner in one of the largest extravagantly funded projects; Javier Alvarado, who, in addition to his leadership at EDC and Bariven, is the father of a Bolichico; and members of the prominent Rondón family, which includes Rafael Ramírez’s wife (Beatriz Sanso Rondón de Ramírez) and Diosdado Cabello Rondón, one of Venezuela’s most powerful figures.
There’s little more to say, except this modest website conducted the sole interview I’ve encountered with Nervis Villalobos, where he was directly questioned about alleged corruption. He denied any wrongdoings. Check it out. (Don’t forget to read the comments.)
Furthermore, the El Mundo article repeatedly references Otto Reich’s lawsuit in the U.S., where he explicitly claimed that Alvarado’s son was involved in corrupt activities related to Derwick Associates, a company that notably thrived in striking deals within the allegedly corrupt electricity sector in Venezuela. Initially skeptical about Reich’s lawsuit, I’m surprised to see it’s proceeding well. Derwick has managed to dismiss some charges, but the case is continuing, unveiling numerous sealed documents. What’s evident is that someone is taking corruption in Venezuela’s electricity domain seriously, and it’s not looking good for those complicit in the multi-billion-dollar extraction of Venezuelan wealth.