Last week, I was asked to quantify the extent of the loot at PDVSA during an interview. This site has been processing some figures in that regard. Regardless of the approach, the reign of Rafael Ramírez looks quite bleak. This may be because Ramírez served as both Minister of Energy and General Manager of PDVSA – simultaneously – for most of that period. In other words, Minister Ramírez was responsible for keeping the CEO of PDVSA, Ramírez, in check, which is utterly unfeasible.
PDVSA’s oil sales between 2001 and 2016 totaled $1.305 trillion, with a net profit of $93.1 billion (7%), while expenses—described in audited financial statements as social contributions—amounted to $129 billion (~10%). Ramírez has officially stated that while he led PDVSA, transfers to the state exceeded $480 billion (“While I was at the helm of Petróleos de Venezuela, our company managed to capture and deliver to the state more than $480 billion.”). That’s about 37% of the total oil sales revenue.
The pdf* below highlights oil sales, transfers for social programs (expressed as “contributions for social development / contributions to FONDEN”), and net profit. It is important to note that while $1.3 trillion was received, Ramírez and his team further indebted Venezuela and PDVSA by a sum of, how much, another $180 billion? $1.305 trillion + $180 billion = $1.485 trillion. That’s 14 Marshall Plans; more than three TARP programs.
Can anyone reasonably doubt that this is THE largest corruption scandal the world has ever heard of?
Perhaps financial experts could have a chance to unravel the total revenues, costs, and profits. All the data comes from PDVSA’s finances. In any case, how many state-owned oil conglomerates the size of PDVSA, which had such revenues, find themselves in the dire situation of Venezuela?
Ramírez was dismissed from his diplomatic post at the UN in December 2017, although the structure he established at PDVSA lasted long after his departure in 2014. Ramírez is directly involved in mega-corruption scandals in the US, Andorra, Portugal, Spain, and Switzerland.