Venezuelan President Calls on Public to Combat Corruption

Venezuelan President Nicolas Maduro has called on the nation’s workforce to help combat corruption after six Citgo directors were arrested over irregular contracts with U.S.-based equity fund companies.

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"We have to fight hard for a clean conscience," the president said at the Miraflores Palace in Caracas Tuesday. "I ask for the support of the people and the workforce as I get to the bottom of this corruption."

The government of Venezuela earlier announced the arrest of six board members of Citgo in connection with irregular contracts with U.S. equity fund companies Frontier Management Group (FMG) and Apollo Global Management (AGM).

According to Venezuelan Attorney General Tarek William Saab, the clandestine negotiation "compromised the future of [Citgo] and our nationhood.” Among those detained is Acting President Jose Angel Pereira Ruimwyk, of the PDVSA subsidiary.

Saab said the Citgo officials had signed a contract on June 15 with the two companies to try to refinance US$4 million of the 2014-15 Venezuelan government debt using Citgo as collateral. They did so without the Venezuelan government's authority or knowledge.

The attorney general said the illicit contract created "unfavorable conditions for the industry," and accused FMG and AGM of being "vulture funds," which are among the world's most aggressive financial corporations.

"With these apprehensions, there are now a dozen senior managers deprived of liberty for embezzlement in the Republic of Venezuela."

Saab said that on February 9, 2014, Ruimwyk gave confidential information to the companies about Venezuela's negotiation strategy with ConocoPhillips over a dispute.

He also said the Citgo board had bowed to U.S. political pressure concerning Venezuela, where 90 percent of the economy is based on petroleum extraction and reserves. "This is the most rotten class of corruption," Saab told a press conference. The directors face charges of corruption and money laundering.