Lawyers say cancellation of US SAIC contract was a simple business decision

<a href=www.vheadline.com>Venezuela's Electronic News Posted: Monday, June 23, 2003 By: VHeadline.com Reporters

Venezuela Today's Washington D.C. Bureau reports that Venezuelan lawyers have laid out their full case against Science Applications International Corporation (SAIC) with the government side claiming that SAIC has been involved in "a pattern of half truths and lying in regards to the actions of state oil company Petroleos de Venezuela (PDVSA) as they relate to a now defunct Intesa/SAIC joint venture.  San Diego (California) SAIC is reportedly heading into bankruptcy.

According to lawyers the ending of the contract with SAIC was "a simple business decision ... the work could be done for less" with another company, and the relationship was terminated. Furthermore, the Venezuelan government adds that, in June last year, SAIC had been made fully aware of the decision to end the relationship in order to allow SAIC plenty of time to cease its activities in Venezuela. The lawyers also disputed a SAIC claim that its workers had been locked out of their facilities in Venezuela, unable to claim their personal possessions.

These dispute comes on the heels of another debacle between the Venezuelan government and Canada-based Enbridge Inc. where the government says Enbridge walked out of an agreement which was canceled in clear default.

The Chavez Frias government is adamant that it needs to encourage foreign investment and continues to strive towards maximizing foreign investment while working to use economic investment to help the less fortunate in Venezuelan society. The nation's economy is still recovering from a crippling national stoppage orchestrated by anti-government business and labor sectors ... the stoppage hurt Venezuela to the tune of $4.7 billion and has economic growth back dramatically.