sg.biz.yahoo.com Thursday March 13, 11:17 PM

CARACAS -(Dow Jones)- Venezuela's National Assembly has authorized the cash-strapped treasury to withdraw $51 million from the Macroeconomic Stabilization Fund, or FIEM, oil windfall account, local daily El Universal reported Thursday.

The withdrawal will wipe out the federal government's balance within the FIEM, leaving the fund with $1.608 billion, of which $208 million is earmarked for state governments and the remainder for state oil company Petroleos de Venezuela SA(E.PVZ), according to the report.

The FIEM is a rainy day fund that, in 2000 and 2001, absorbed half of Venezuela's oil revenues above budgeted levels. The account isn't expected to get any deposits until 2004 as a result of a new law.

Government income was severely affected by a two-month general strike against President Hugo Chavez's leadership that began Dec. 2, which all but shut down Venezuela's vital oil industry, among many other sectors.

Opposition leaders are demanding Chavez agree to early elections, blaming his left-leaning policies for the country's deepening economic crisis.

The economy contracted 8.9% in 2002, amid 17% unemployment and 32% annualized inflation sparked by a 46% devaluation of the bolivar. The currency lost a further 25% this year before currency sales were halted Jan. 21.

Chavez has said the problems are due to an "economic coup" led by his opponents.

El Universal Website: www.eluniversal.com

-By Jehan Senaratna, Dow Jones Newswires; 58212-564-1339; jehan.senaratna@dowjones.com

www.vheadline.com Posted: Thursday, March 13, 2003 By: Robert Rudnicki

According to Venezuelan Executive Vice President Jose Vicente Rangel, the government is pleased with Organization of American States (OAS) secretary general Cesar Gaviria's role as a facilitator and is not keen on him becoming more of a mediator. 

"We see him as a facilitator, because mediation introduces a binding element and we don't believe that Venezuela is in that kind of situation."

Rangel went on to say that the Friends of Venezuela group meeting in Brasilia earlier this week had dealt the opposition three separate blows, firstly because its call for Gaviria to become a mediator was refused, secondly the call for a world forum on Venezuela was denied and thirdly President Hugo Chavez Frias was accepted by the group to be a valid interlocutor.

However, government representative Jorge Valero also failed in his main aim to have several other countries added to the current six man group, including France, Russia and some Caribbean countries.

www.vheadline.com Posted: Wednesday, March 12, 2003 By: David Coleman

7th Appeals Court judges Luis Lecuna, Violeta Gonzalez and Sammer Richani have been recused by the Prosecutor General Office on the eve of a decision to void an earlier court's decision to authorize the house arrest of opposition rebel business leader Carlos Fernandez pending trial.

PGO 6th national attorney Luisa Ortega says the decision will be delayed at least until next week when cause will be heard by another appeals tribunal.

Fedecamaras president Carlos Fernandez is currently detained at his luxury home in Valencia (Carabobo) ... his defense lawyer, Pedro Berrizbeitia, says the PGO action was introduced on claims by Ortega that the three judges had publicly discussed their ruling in advance of  an official court decision.

On February 28, PGO Ortega had appealed a decision by 49th Control Court judge Gisela Hernandez to allow Fernandez house arrest pending trial on a series of charges resulting from a failed 2-month national labor stoppage aimed at toppling President Hugo Chavez Frias' government.  Ortega has insisted that, considering the severity of the charges against him, there was a high risk that Fernandez might flee justice just like his predecessor at the helm of Fedecamaras, Dictator-for-a-Day Pedro Carmona Estanga who now lives in fugitive exile in Colombia after the failed April coup d'etat.

Defense lawyer Berrizbeitia cites a medical report from a State Political & Security (DISIP) police M.O. which says that Fernandez' medical (hypertension) condition is such that his life would be endangered if he were to be remanded to a customary prison regime.

www.vheadline.com Posted: Wednesday, March 12, 2003 By: Robert Rudnicki

Venezuelan Foreign (MRE) Minister Roy Chaderton Matos and his Colombian counterpart Carolina Barco are working to set up a Presidential meeting between Venezuela's President Hugo Chavez Frias and Colombia's Alvaro Uribe.

The purpose of the meeting will primarily be to calm down the rising level of rhetoric between the two countries as tensions have been mounting over claims that Colombian guerilla groups have been allowed to enter Venezuela.

The Venezuelan government has strongly denied these allegations, however it has pointed out that it would be almost impossible to patrol the entire length of the 1,400 kilometer long border.

The date of the meeting is so far unclear, but it does appear that the talks will take place in Venezuela.

www.vheadline.com Posted: Tuesday, March 11, 2003 By: Patrick J. O'Donoghue

A joint Police Detective Branch (CICPC) and National Guard (GN) anti-kidnap operation has ended with the death of 4 persons, accused of kidnapping agricultural producer Tomas Ramirez Vivas (54).

GN Lt. Colonel Luis Viloria Garcia says the incident took place in La Azulito (Merida) .. "it took intelligence gathering to find the tent where the kidnappers had hung out in the jungle area near southern Lake Maracaibo ... 4 men wearing military uniforms shot at the unit ... one detective was wounded."

However, an unconfirmed story suggests that an agreement had been struck between the family and the kidnappers to return the hostage on the condition that they did not notify the police.

The rancher had been held hostage for 63 days and his family said they did not have the money to pay the ransom.