<a href=www.vheadline.com>Venezuela's Electronic news Posted: Tuesday, June 10, 2003 By: Patrick J. O'Donoghue

El Universal has published several reports about Venezuela's chaotic Passport & ID Office (Oni-Dex) and renewed the debate on modernization of the thoroughly corrupt system. In February, 2001 then Interior & Justice (MIJ) Minister Luis Miquilena suspended the signing of a modernization contract with South Korean  Hyundai Information Technology Company. 

In the meantime, a report from the Oni-Dex Legal Consultation Department issued on March 13 2003 was allegedly silenced. 

Other columnists claim that rival Spanish Indra Company has been trying to muster support for its tender and entered into contact with opposition deputies. 

Returning to August 2001, the National Assembly (AN) came out against Hyundai for 10 technical reasons, despite freebies for deputies to visit Korea to investigate Hyundai's ability to get the job done.

In 2001 it was Indra Systems subsidiary, IMA-2001 that set the cat among the pigeons providing Miquilena with technical arguments against Hyundai. At the time, columnists alleged that slush funds had been set up as part of the bidding process ... after all, the project itself was worth $227 million for the winner.

In March, 2003 then Oni-Dex president, Alfredo Gil Romero, computer chief, Ademir Carpio and fingerprint department director, Manuel Julian Hernandez traveled to Korea to check out the original 10 AN objections to Hyundai getting the contract and returned with the conclusion that there are no reasons why Hyundai shouldn't get the contract. 

<a href=www.vheadline.com> Posted: Tuesday, June 10, 2003 By: Patrick J. O'Donoghue

Four 16 years-old Venezuelan students have been chosen to represent Venezuela in the 17th Quetzal Route marking out the passage of Christopher Columbus through the Caribbean.  

Reynaldo Fierro, Mariana Barbarito, Maria Gabriela Rodriguez and Valentina Soto won the prize after their compositions about Christopher Columbus and Venezuelan folklore were sorted out and selected by a jury consisting of representatives from the Banco Bilbao Vizcaya Argentaria, Spanish Secretariat of State for International Cooperation and the Foreign Affairs Ministry of Spain. 

Reynaldo received the Venezuelan flag from Spanish Embassy trade attache, Javier Triana and Banco Provincial executive president, Jose Carlos Pla ... the youngster will present the flag to King Juan Carlos on July 15. 

On the Queztal Route, the youngsters will follow the route Columbus took on his fourth voyage, visiting the Dominican Republic, Puerto Rico and of course, Mother Spain. 

The group will join 300 youngsters from Iberia America ending with an academic program at Madrid's University.

<a href=www.vheadline.com>Venezuela's Electronic news Posted: Tuesday, June 10, 2003 By: Patrick J. O'Donoghue

Primero Justicia (PJ)  National Assembly deputy Gerardo Blyde dismisses President Chavez Frias' threat to sue opposition deputies for alleged disruption of parliament as ridiculous. "There is a political objective behind the threats made by the President last Sunday." 

Supreme Tribunal of Justice (TSJ)The constitutional lawyer brands such an action "absurd" and calls the President's bluff saying the move is just a smokescreen to divert attention from what is really happening, namely the dismantling of Venezuela's parliamentary institution by attempting to change the rules of the game which should be clear and "complied with from Assembly president to the least of the deputies." 

Blyde accuses AN president, Francisco Ameliach of violating current AN regulation and insists that it is up to the Supreme Tribunal of Justice (TSJ)  to issue a ruling on the validity of the parliamentary session held outside the Capitolio in El Calvario last Friday during which the majority government bench passed a partial reform bill on the internal debate regulation.

SAO PAULO, Brazil, June 10 (UPI) -- Brazil's President said Tuesday he will visit the Middle East later this year and defended the creation of a Palestinian state.

The exact date for the president's trip was not given, though Brazilian Foreign Minister Celso Amorim is scheduled to head to the region later this month.

The announcement by President Luiz Inacio Lula da Silva comes on the same day the Lebanese prime minister -- in Brazil on an official visit -- endorsed Brazil's appointment to the U.N. Security Council as a permanent member.

Several of Brazil's neighbors have also endorsed its admittance to the council.

Since assuming office in January, Lula has played a much larger role in international affairs than his predecessor, Fernando Henrique Cardoso, playing a role in helping end the general strike in Venezuela and was an outspoken critic of the U.S. decision to invade Iraq without the permission of the Security Council.

Reuters, 06.10.03, 4:52 PM ET By Matthew Robinson CARACAS, Venezuela, (Reuters) - The Venezuelan government's desperate scramble to restart oil production after a crippling two-month strike in December and January could damage the OPEC nation's long-term crude output capacity, industry experts said. State oil company Petroleos de Venezuela, also known by its Spanish acronym PDVSA, fired around 18,000 employees for joining the anti-government strike. The company used troops and replacement workers to restore output to around 2.8 million barrels per day (bpd) by April -- just three months after the strike cut production to below 50,000 bpd. But that hurried restoration may cost PDVSA capacity by the end of 2003 or early 2004. Some western heavy oil fields might not be restarted, forcing PDVSA to pump more from reactivated fields and potentially causing well damage, analysts said. "It would not be surprising to see a fall in Venezuelan capacity, given the complex nature of its reservoirs. After every revolutionary change (in oil-producing countries), we've seen a fall in production," said one analyst with a U.S. oil company, who spoke on condition of anonymity. Without the fired PDVSA staff, who sought to force leftist President Hugo Chavez from office, the state company also lacks expertise to counter common wellhead problems like water encroachment, which can cause capacity losses, experts said. "They did what an oil company would have to do. They got the oil pumping again," an oil-service company official said. "But the best-qualified people are gone and they are short of people who do reservoir planning and management. Without incremental (capacity) increases, it will be difficult to maintain output," he added. Analysts said PDVSA would have trouble countering normal oil capacity depletion rates for Venezuela of around 25 percent per year because losses from the strike forced the company to drastically slash its exploration and production budget. PDVSA's 2003 budget has yet to be finalized. PDVSA President Ali Rodriguez last month gave an optimistic assessment of the company's wellhead management and said some wells were producing better than before the strike. But ex-PDVSA managers say wellhead problems could cause a drop in overall capacity by the end of this year, especially in hundreds of smaller, older oil wells in the west.

SQUEEZING WELLS PDVSA may have to compensate for sliding output at mismanaged fields by squeezing other fields harder and so risk eroding capacity of the world's No. 5 oil exporter to maintain output at current levels. "Venezuela has a theoretical sustainable production capacity of 3.9 million bpd. But that number has never been tested. If their real capacity is higher than that, it buys them some time," said an official with a U.S. company, who also spoke on condition of anonymity. Some analysts have said capacity has already fallen under 3.9 million bpd due to under-investment and strike-related damage. They estimate production well below levels claimed by PDVSA. The government claims oil production has been restored to pre-strike levels of 3.1 million bpd. Analysts and local companies say Venezuela briefly touched production of 3 million bpd after the strike before settling around 200,000 bpd lower. PDVSA has also built up a storage cushion of around 27 million barrels this year, which it can draw down to supply customers. Help in stemming capacity declines could come from foreign companies as PDVSA seeks to increase private participation in the oil sector to compensate for lack of internal investment.