<a href=www.vheadline.com>Venezuela's Elecronic News Posted: Sunday, June 01, 2003 By: Oliver L. Campbell

VHeadline.com commentarist Oliver L. Campbell writes: It was good news to hear doctor Ali Rodriguez agreed to take back some 900 ex-PDVSA employees on the payroll.

I trust they are well qualified, with sound experience and include two or three capable accountants who can finish the preparation of the company’s 2002 accounts. These should have been ready for consideration and approval by the PDVSA Board by 31 March.

The strike delayed the work but ... five months after the year-end ... the accounts should really be ready.

I understand they're unlikely to be finished before July, and this does not reflect well on a company of the size and prestige of PDVSA. If the latter were a private company, the shareholders would have made a great fuss and the Finance Director would have probably resigned.

However, PDVSA’s shareholders ... ultimately all Venezuelan citizens as represented by the Minister for Energy and Mines ... are less demanding and unlikely to make any commotion. This is a pity because we should all take an active interest in knowing how well the company did financially in 2002 or, indeed, in any year.

• After all, PDVSA’s financial results impinge on the whole economy and so affect the individual citizen.

I have said before, that the principles for consolidating the accounts with subsidiaries are simple enough in theory but, when it comes to the practice, PDVSA’S accounts are complicated and require the service of some good accountants.

What is more, the latter must rely on their own expertise since it's unlikely their new bosses will know the first thing about USA accounting standards as set out in the numerous statements issued by the Financial Accounting Standards Board (FASB).

Although the books are kept in bolivares, the accounts are presented in US dollars, which creates a further complication. My plea to doctor Ali Rodriguez is to take back those competent accountants who know about consolidated accounts and are familiar with FASB standards.

PDVSA has successfully restored oil production; now is the time to restore financial credibility.

My second point follows on from the above. May I make a plug for the Annual Report (Informe Anual) which PDVSA produces both in Spanish and English versions. This document starts with the President’s Message and is followed by an excellent commentary on the company’s operations during the previous year. The company’s consolidated accounts appear at the end of the report. The sad fact is few Venezuelans read it, but I believe it should be read by all those who have the interest of their premier company at heart.

People who criticize PDVSA may not always have the full facts.

Certainly by reading the Annual Report they will be better informed about the company’s operations, and also become aware of its many achievements.

In my time at the company, the Report used to appear at the end of May, but in recent years it has not been published till October. By that time, people have forgotten all about the previous year and are only interested in events of the current year.

That is why it is important for the “shareholders,” the Venezuelan people, that the Report comes out again no later than the end of May.

Three years ago I prepared, and sent to PDVSA, a detailed timetable which would achieve this ... they thanked me, but I suspect it was shelved (engavetado) or binned.

Administratively, it is not difficult to meet the target, if you use the carrot and stick approach ... you make one person responsible for the Report and tell him he'll get a bonus if he makes the deadline, but will receive no salary increase if he does not.

The latter will concentrate the mind wonderfully!

A few years ago, PDVSA decided to publish the Report with a black cover, front and back, with just its name and “Annual Report” on the front. Somebody obviously thought this projected PDVSA as a serious company. It entirely missed the point that the Report is a PR document par excellence, intended to attract and inform readers while allowing the company occasionally to pat itself on the back.

Thankfully, they have gone back to placing an impressive photograph on the front cover ... the version in English has readers abroad among those interested in oil matters or the Venezuelan economy.

To summarize my pitch, I strongly feel PDVSA should make much more of its Annual Report and ensure it reaches many more “shareholders” in Venezuela.

The document should aim to foster a closer rapport between Venezuela’s premier company and its citizens.

• At present, few people know the Report exists let alone read it.

So, please get the Report out earlier, distribute it more widely, give it better press coverage, and let us all know how well the company is doing.

The “shareholders” deserve no less.

Oliver L Campbell, MBA, DipM, FCCA, ACMA, MCIM  was born in El Callao in 1931 where his father worked in the gold mining industry.  He spent the WWII years in England, returning to Venezuela in 1953 to work with Shell de Venezuela (CSV), later as Finance Coordinator at Petroleos de Venezuela (PDVSA).  In 1982 he returned to the UK with his family and retired early in 2002.  Campbell returns frequently to Venezuela and maintains an active interest in political affairs: "I am most passionate about changing the education system so that those who are not academically inclined can have the chance to learn a useful skill ... the main goal, of course, is to allow many of the poor to get well paid jobs as artisans and technicians."  You may contact Oliver L Campbell at email: oliver@lbcampbell.com

Reuters, 06.01.03, 11:16 AM ET  

CARACAS, Venezuela, June 1 (Reuters) - Venezuela's annualized inflation climbed to 35 percent in May compared with 18.3 percent a year earlier as the oil-rich nation battled a sharp recession, the Central Bank reported on Sunday.

Monthly inflation registered at 2.3 percent in May compared with 1.1 percent in the same month a year earlier and 1.7 percent in April. Accumulated inflation to May was 13.8 percent compared with 10.5 percent during the same period a year ago.

<a href=www.vheadline.com>Venezuela's Electronic News Posted: Sunday, June 01, 2003 By: Patrick J. O'Donoghue

What is left of the opposition Coordinadora Democratica (CD) ... spear-headed by Accion Democratica (AD) and Christian Socialists (COPEI) ... has proposed three actions to ensure compliance with last Thursday's negotiations agreement. 

CD representatives, Vladimiro Mujica and Jesus Torrealba propose a recall referendum defense committee, campaign to speed up the National Electoral College (CNE) board of directors, and street agitation combined with legal actions. 

The two men say that are "reasonably satisfied" with the agreement and remind followers that the signatures do not guarantee compliance and that the government will continue its offensive and threats, 

Citing the example of telecommunications regulatory body (Conatel) pressure on Globovision to pay its taxes as a government threat, CD plans a series of internal debates and workshops this week to get people fired up till August 20 when signatures demanding the recall referendum should be handed in ... "possibly we will call a march on that day to take the signatures to the CNE." 

Mujica and Torrealba suggest the government will use delaying tactics against the referendum and warns that CD will agitate people to get on to the streets as an immediate reaction to any government placed obstacle.

<a href=www.vheadline.com>Venezuela's Electronic News Posted: Sunday, June 01, 2003 By: Rainbow Sally

Date: Sat, 31 May 2003 09:03:08 -0700 From: Rainbow Sally rainbowsally@zippnet.net To: Editor@VHeadline.com Subject: Two Hard Tests And Only One Shot To Do It

Dear Editor: Here is a copy of the Venezuelan 1999 Constitution which is available at VHeadline. Spanish www.vheadline.com English www.vheadline.com

There are three elements of this on which I would like to comment:

Article 72: All magistrates and other offices filled by popular vote are subject to revocation. Once half of the term of office to which an official* has been elected has elapsed, a number of voters constituting at least 20% of the voters registered in the pertinent circumscription may extend a petition for the calling of a referendum to revoke such official's mandate. When a number of voters* equal to or greater than the number of those who elected the official* vote in favor of revocation, provided that a number of voters* equal to or greater than 25% of the total number of registered voters* have voted in the revocation election, the official's mandate shall be deemed revoked, and immediate action shall be taken to fill the permanent vacancy in accordance with the provided for in this Constitution and by law. The revocation of the mandate for the collegiate bodies shall be performed in accordance with the law. During the term to which the official* was elected, only one petition to recall may be filed.

What can be seen from the above is that referenda are not to be taken lightly and though they must be honored as a non-violent means to redress grievances, they are certainly not to be used to harass an elected official unnecessarily. 1.  One out of five registered voters must endorse the referendum. This is the first of two tough tests. 2.  25% of the registered voters must vote to validate the revocation election AND the number of votes for recall must exceed the number that elected the official. This is also a tough test. 3.  If the petition qualifies, and the recall vote fails, another attempt may not be made until after the next regular election cycle.

If the opposition manages to pass the above two tests, it is clear that their case is valid.

If on the other hand they fail, it will be interesting to see by what margin they fail. I hope all parties involved understand the seriousness of this undertaking and do their best to assure an honest record of the upcoming events is shown in history books for all future Venezuelans to consider in their management of the delicate affairs of state and justice.

If the opposition even gets close, this is an indication of serious problems that are worthy of Venezuela's attention and respect. And the opposition should wait patiently for this respect ... if in fact it is due ... because it will probably take time for everyone to get used to the idea that peace can also be a means to an end.

Good luck everyone! Show the rest of the world how it's done.

Rainbow Sally rainbowsally@zippnet.net

<a href=www.vheadline.com>Venezuela's Electronic News Posted: Sunday, June 01, 2003 By: Patrick J. O'Donoghue

National Assembly (AN) Social Development Committee president, Angel Rodriguez has accused Petroleos de Venezuela (PDVSA) East director, Luis Marin of allowing 300-400 dismissed managers to return to work and rescinding contracts of 56 employees that undertook contingency plans during the national stoppage at San Tome plant in Monagas. 

Last week, a dozen workers initiated a hunger strike outside PDVSA HQ in Caracas and the Energy & Mines (MEM) Ministry  to protest current policy ... previously, the group had staged protests at San Tome and other eastern Venezuelan plants. 

• Rodriguez claims that coupster sectors have been regrouping inside PDVSA and easing out people, who reactivated the industry during the stoppage. 

To prove his claim, Rodriguez produced a video of PDVSA employees in an anti-government protest in December singly out people who had been reinstated ... "workers recognized them and protested forcing the administration to transfer the reinstated to Barinas."

Rodriguez mentions Javier Aranaga, who allegedly was local stoppage spokesman, Juan Bravo, Luis Guilarte, Giovanny Cova and Edson Avila and asks why was Rafael Rios dismissed when he was responsible for guaranteeing the supply of Merey crude to the Puerto La Cruz refinery. 

PDVSA-East has also renewed contracts with 9 contracting companies that adhered to the stoppage: Veracer, Rmyca, Veraica, Cafrica, Conigar, Roysso, Halcon, Yelemo and Fili.