The right approach regarding the billions of dollars allegedly schemed by various companies hired to address the electricity crisis in Venezuela is to allow them to express their views. In this sense, I sent some communications yesterday to IMPSA, an Argentine conglomerate whose activities have been pointed out by Venezuelan experts as exhibit A of massive overpricing in public infrastructure projects. A specific case is Tocoma, the fourth dam in a series on the lower Caroní River, under construction by a consortium (Odebrecht, Impregilo & Vinccler) where IMPSA was the chosen contractor to build and install 10 Kaplan turbines. IMPSA claims it will be the largest project of its kind globally, although that remains unspecified. So far, so good for public relations, right?
Without knowing what to make of the corruption allegations against IMPSA and its CEO Enrique Pescarmona, I began to investigate the topic. My first stop was Mabel Renhfeldt, editor of ABC Paraguay, with whom I’ve done some remarkable work in the past. Mabel mentioned that Pescarmona tried to close a dubious deal in Paraguay, and when ABC Paraguay learned of it, an investigation was opened. According to ABC Paraguay, Pescarmona and his conglomerate IMPSA were hired to construct the Aña Cua dam, thanks to the lobbying efforts of the entirely corrupt Minister of Planning and Public Investment of Argentina, Julio de Vido, in a process riddled with corruption. Pescarmona’s business practices include, when questions began to arise, attempting to claim intellectual property rights behind a project in Aña Cua, meaning any subsequent endeavors there would have to be undertaken by his company—IMPSA—or Yacireta would have to compensate him for IP rights if any other contractor took on the work. Not mentioning that Pescarmona mocked that project in Paraguay. However, he didn’t stop there. The project was reportedly valued at $420 million, so Pescarmona made sure to issue legal threats to every single person involved. There are hundreds of allegations against Pescarmona and corruption in ABC Paraguay, which surely merits a look.
The findings in Paraguay led me down other paths. I tried to reach out to IMPSA with questions and initially emailed Carla Paira, the Corporate Communications person at IMPSA. That email bounced back for some reason. But I found another one on a website called leakymails1 that had details of Pescarmona’s meetings with Julio de Vido’s private secretary. To verify that information, I sent an email to that address and voilà! I received some responses.
IMPSA offered to meet with me in person to explain how the Tocoma project was progressing. They wanted my address, phone number, and details about the media I represent. IMPSA also sent me copies of communications supposedly sent to Semana de Colombia and El País de España, refuting my interpretation of expert José Aguilar‘s opinions and claiming that IMPSA obtained its Tocoma contract “through an international public bidding process, backed by the Inter-American Development Bank and the Development Bank of Latin America.” IMPSA further asserts that all works/deliverables are up to date, and when I inquired about what other companies participated in the bidding, IMPSA claimed their turbine model “achieved greater performance and efficiency.” They deny any connection to Guri. IMPSA also disputes any adverse implications regarding the granting of the Tocoma contract—let’s assume here that Pescarmona had nothing to do with Julio de Vido or Guido Antonini, and that he never claimed the Kirchners assisted him in Venezuela.
The communications with me (even through Twitter) and other media (according to received copies) have been quite cordial. But what do I do with the threatening email sent to expert José Aguilar by José Alberto Pérez, IMPSA’s legal advisor, warning him that if he doesn’t retract or correct his opinions within 48 hours, a legal process will be issued? This reeks of Paraguay again. IMPSA’s legal threat did not specify which arguments or claims attributed to expert Aguilar by me are incorrect, false, or defamatory. They urged him to rectify the “truthfulness of the claims” that Fanny Kertzman and I attributed to him. This is really a laugh. I don’t know about expert José Aguilar, but I’ll tell you this: do you want to take me to court, Mr. Pescarmona? Please, go ahead. Choose the place and time (warning: kangaroo courts in Argentina and Venezuela are not valid).
One mistake may be forgiven. Two, maybe. Sadly for Pescarmona and his IMPSA team, there are press reports, from Argentina to Paraguay, through Venezuela, even extending to Malaysia, where another project involving Pescarmona’s IMPSA was labeled—none other than by Transparency International—a “Monument to Corruption.” There is a well-documented trail of corruption and bribery linked to IMPSA. Pescarmona is one of those Latin American “entrepreneurs” whose only skill seems to be exploiting his power relations with high-ranking officials across various governments. We’re not talking about an industry captain here, but a thieving baron. A mercantilist. Someone whose modus operandi is: offer bribes > get corrupt politicians to pressure/grant contracts > profit by inflating prices > if there are criticisms, sue > rinse and repeat. A pattern with such a jacked moral compass that he publicly claims: “the president is the president, he can do whatever he pleases.” In the words of Peter Eigen, chairman of Transparency International, “Corruption in large-scale public projects is an overwhelming obstacle to sustainable development… Corruption in procurement affects both developed and developing countries… When the size of a bribe takes precedence over value for money, the results are poor-quality construction and mismanagement of infrastructure. Corruption wastes money, drives countries into bankruptcy, and costs lives.”
So I suppose I’ll see you in court, huh, Mr. Corruption Pescarmona?