Adamant: Hardest metal

OAS General Secretary Cesar Gaviria says too early to announce signing of agreement

<a href=www.vheadline.com>Venezuela's Electronic News Posted: Thursday, May 22, 2003 By: Patrick J. O'Donoghue

Organization of American States (OAS)  general secretary, Cesar Gaviria says he has come to the conclusion that it's a little too early to announce the signing of an agreement between the government and the opposition. 

Making the remark after meeting Venezuelan Executive Vice President Jose Vicente Rangel, Gaviria preferred to keep a low-key approach to solving the problem of the recall referendum.

"We are in the process of discussion with the Vice President and Education Minister Aristobulo Isturiz representing the government in the negotiations trying to agree to a commitment text that would allow us to leave behind some topics." 

Vice President Rangel has reaffirmed that the government has the" best will in the world" to sign an agreement after which negotiations should be transferred to the National Assembly. "Once an agreement has been signed, we believe it's time to end negotiations and transfer all matters concerning dialog to the National Assembly." 

Rangel has let it be known that the text has been reformulated and that the government will only accept the figure of facilitator between the two sides. 

Both Rangel and Gaviria add that they hope the two sides will meet sometime today.

Venezuela's real problem is that NOBODY is willing to work on any real solutions

<a href=www.vheadline.com>venezuela's Electronic News Posted: Thursday, May 22, 2003 By: W. Wingfield

Date: Thu, 22 May 2003 11:54:30 +0000 From: W. Wingfield  will46@att.net To: Editor@VHeadline.com Subject: Reality

Dear Editor: I have read your web site with interest over the past year.  In that time I have read many differing viewpoints from those with diverse backgrounds.  I have hesitated to write more letters since the two that I have written prompted a deluge of negative (some threatening) responses to me.  My wife is Venezuelan and I am in contact with her family in Venezuela on a regular basis.  I know what is happening to the Venezuelan economy and the people: it is a tragedy.

I have read with amusement and sometimes amazement the diatribes and epistles of the "pro government" reporters on your web site.  Too often their editorials focus on the emotionalized political aspects of the struggle in Venezuela between the self-destructive Chavez and the inept opposition.

The reality is that there is no effective opposition in Venezuela.  What opposition exists certainly doesn't have any answers other than to blame all the country's ills on the elected megalomaniac President. 

The Chavez regime certainly can't take all of the blame for Venezuela's problems.  For decades Venezuela was in a political "malaise" and only now has it been "woken up" by Mr. Chavez.  The problem for Venezuela is not simply an entrenched pseudo-democratic dictator.

The real problem is that NOBODY is willing to work on any real solutions.

The reality in Venezuela is that there are shortages ... there is a shortage of honesty, of integrity, of justice, of security, and of food.  Of all the shortages the one that will plunge Venezuela into ultimate chaos is the lack of food.  Every day it is becoming more difficult to obtain foodstuffs from the markets in Venezuela.  Goods (the majority imported) are disappearing off of the store shelves due to the draconian fiscal policies imposed by its embattled regime.

A modern society is integrated with the world and no country can thrive when it isolates itself from that world economy.  All of the political rhetoric and dogma can't change the reality of the Venezuelan situation.

The absolute reality is that Venezuela is on the road to a blood-letting that it has not experienced in its modern history.

All the political garbage about the "Bolivarian" revolution won't matter when the people are hungry and adequate food is unavailable.  The cry of "Valor Venezuela" will be replaced by the cries of hungry children.  Time is running out for the Venezuelan people.

One of your frequent commentators, a Mr. Heck, is fond of reminding the readers that Venezuela's problems can only be solved by Venezuelans.  This is true and the Venezuelan people will find the courage to take the necessary steps to rectify the current situation.

When this happens, then it will not matter how many of the military are receiving "extra monetary compensation" from Mr. Chavez; for even they (the rank and file) will not shoot their family and friends: they most likely will turn their sights on Mr. Chavez and his entourage.

I spoke with some friends in Margarita yesterday.  They have told me that the police are almost non-existent in Porlamar now and that crime is rising at an alarming rate.  They have also that food is becoming more scarce at the market and that the once thriving tourist trade is only now a dream. 

Mr. Editor you say that your site is objective: is it really? *

Whenever I read the fantastic "reports" of Mr. Heck I can only imagine; is he simply a "mouthpiece" for the corrupt regime or does he really believe most of the profuse lies that he regularly submits as editorials?

Venezuela in 2003 is not the Cuba of 1959 and all of the "guidance" that Mr. Chavez receives from his master in Havana will not stop the inevitable.

W. Wingfield will46@att.net

Editor's response: We make no claim in our editorial policy statement other to be "a wholly independent e-publication promoting democracy in its fullest expression and the inalienable right of all Venezuelans to self-determination and the pursuit of sovereign independence without interference." Our declared editorial bias * is pro-democracy and pro-Venezuela.  Oscar Heck expresses his feeely-held opinion in the same way as Gustavo Coronel and other commentators of the Venezuelan scene expresses theirs ... that is the essence of press freedom in that we recognize the freedom of expression of all sides in the Venezuelan debate.  Like you apparently have been, we are also subjected to an effusion of hate-mail and abuse by those unfortunate individuals who are so deeply entrenched in their own bigotries that they do not recognize the possibility of any opinion other than the one to which they religiously cling.  We at VHeadline.com encourage and publish well-formulated editorial opinions provided they are within the usual concepts of upholding the law and recognized forms of democracy.  We have a zero tolerance policy on abuse and hate-mail.

Taxing problems are not restricted to Venezuela alone

<a href=www.vheadline.com>Venezuela's Electronic news Posted: Sunday, May 18, 2003 By: Oliver L. Campbell

VHeadline.com commentarist Oliver L. Campbell writes: I refer to the news that Captain José Vielma is to be the new head of the Venezuelan Tax Office.

One day, when I was in PDVSA, a Tax Inspector asked to see me ... he told me they were going to carry out an audit of the tax paid by PDVSA’s employees. I could not refuse this request, but told him. in no uncertain terms. no one escaped paying tax on his or her salary because the deductions were all computerized as part of the payroll program.

I was sufficiently annoyed to ask him why he did not go round to the Colegio Medico, el Colegio de Abogados, el Colegio de Ingenieros and all the other professional colleges and ask for a list of their members ... they could then check if all those members had all made tax returns and, if so, how much income they had declared.

  • The tax law at that time allowed the Inspector to look at the taxpayer’s lifestyle and make an estimate of his income (estimado de oficio) which the latter could only refute with evidence.

The Inspector, a nice guy, was quite honest with me ... he told me he had to meet a numerical target of inspections and, that by coming to PDVSA, he could increase the number quickly with relatively little effort. He agreed it was unlikely he would find anything amiss with the employees’ tax payments as made by the company.

When I lived in Caracas, I resided in a pleasant urbanization that was in a cul-de-sac. Because it was so small, we knew our neighbors quite well and often socialized, mainly with barbecues or small dinner parties. My neighbors were mostly professional people in private practice and earning much more than myself. However, as we got to know one another better, I soon found out I was paying far more tax than they did. My tax was automatically deducted from salary, whereas they paid ... in fact underpaid ... on the basis of what they declared as their earnings.

This problem is not restricted to Venezuela.

Those in private practice or with their own businesses the world over have ... and take ... the opportunity to under-declare their taxable income. The difference is that most developed countries know this, and the tax inspectors devote more effort to those people than they do to salaried employees.

In the UK, the tax inspector can estimate such peoples’ income from their lifestyle e.g. where they live, what sort of a house they have, if they send their children to private schools, where they spend their holidays, what clubs they belong to, how may cars they have, etc.

The onus is then on the taxpayer to refute his estimate i.e. you are guilty until proven innocent ... this is tough, but it is the only way to make sure they pay their fair share of tax.

I hope Captain Vielma will not mind receiving some advice from one who realizes how important it is the government increase tax collections.

a) Forget about employees in medium and large companies whose tax is deducted through the payroll. Unless the employer is a crook, everyone will pay tax and of the correct amount. b) Do not set targets for checking employees’ tax payments. Make sure effort is directed where extra tax can be collected. c) Go round to all the “colegios” and obtain a list of their members. Check out all members who are not full-time, salaried employees. Do not be afraid to make estimated assessments of their income (estimado de oficio). d) Start keeping statistics of the average gross margins for each type of business. It will soon be possible to see those which are out of line and need to be checked. e) With limited resources, the inspectors must make a list of priorities geared, not to numerical targets of inspections, but to those most likely to increase collections. f) Pay your inspectors a good wage so they are not led into temptation.

Finally I wish Captain Vielma all the best in his most challenging position.

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

Former CNE director says no recall referendum till December 2003 as things are going now

<a href=www.vheadline.com>Venezuela's Electronic News Posted: Sunday, May 18, 2003 By: Patrick J. O'Donoghue   National Electoral College (CNE)Former National Electoral College (CNE) Leonardo Pizani forecasts that there will be no recall referendum until December because of time lapses established in the law.  Pizani had been co-opted to the CNE last year causing a tug of war with the government, which argued that it was illegal and government candidate had more legal right. 

Pizani, member of an opposition civil sector group,  says current circumstances surrounding the appointment of the new CNE members justifies the decision taken when he was incorporated because something is happening that could be been resolved before. 

"The National Assembly (AN) must understand that it must not politicize the selection process because what's needed today is an impartial organ to stop the civil war that has already claimed 100 lives."

Pizani opposes Proyecto Venezuela and other opposition groups' proposal to pass the decision to the Supreme Tribunal of Justice (TSJ) ... "we don't want a judicial dictatorship ... we have seen that in recent events."

Now they say Venezuelan student Diana  Manrique is the smart one...

<a href=www.vheadline.com>venezuela's Electronic News Posted: Thursday, May 15, 2003 By: VHeadline.com Reporters

Charlotte Observer (North Carolina) staff writer Jackie Mah has highlighted the story of Venezuelan immigrant Diana Manrique who arrived in her city in 1993 to learn English and better herself ... "she went home, only to return seven years later to better others."

According to a report in today's Observer, Diana  Manrique (34) graduated last night from Central Piedmont Community College (CPCC) hoping to use her degree in dental hygiene to serve Charlotte's Hispanic community.

When Diana  and her classmates put on a dental clinic during the year for $20 per checkup, Manrique quickly spread the word through Hispanic news outlets to reach what she knew would be an initially hesitant audience ... "they are afraid because they don't speak (English)."

Because the need for Spanish-speaking hygienists is large, Diana says, she has a number of job offers from which to choose.  She doesn't plan on returning to Venezuela, since she believes her mission ... as far as she can see ... is to stay and aid the local Hispanic community.

Some 320 graduates attended Wednesday evening's CPCC ceremony presided over by former US Ambassador Mark Erwin who delivered the keynote address ... about 350 adults had graduated earlier in the day ... "I'm really proud of myself that I did it," Diana Manrique is quoted as saying.  She took English classes at CPCC in 1993 because she had family in the area and returned to the college in 2000 because of an increasingly difficult political situation in Venezuela.

"Studying in a second language was difficult ... but long afternoons in the library didn't faze me ... I gained knowledge of other cultures from my American and international classmates ... they swapped recipes and took day trips, and I made many friends. People thought I was the crazy one when I decided to come to Charlotte because I had to sell everything ... but now they say I am the smart one."

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