Venezuela spent more than $1.5 billion in three years to finance dozens of projects in Cuba and other allied countries, including airport expansions in Cuba and replacing light bulbs in Bolivia, although the oil producer has amassed massive debt in the last few years to cover its own commitments, according to a Venezuelan government document.
Eighty-eight percent of disbursements from January 2007 to May 2010 covered Cuban financial projects, said the document from the Economic Social Development Bank of Venezuela (BANDES), which was obtained by El Nuevo Herald.
The veracity of the document was confirmed by Julio Montoya, an opposition member of Congress, who accused the Hugo Chávez administration of putting the country deep in debt while simultaneously financing ally projects.
“It is not possible for Venezuela to continue increasing its external debt to the point of already surpassing $124 billion, while the president continues to finance the governments of Cuba, Nicaragua and Bolivia,” said Montoya, who represents The New Time Party.
“While Venezuela is going through serious problems with its infrastructure and its communications systems are falling apart, President Chávez is financing the repairs of Cuban airports and railroad systems,” he added.
According to the 58-page report, BANDES, through its Autonomous and International Cooperation Fund or FICA granted “solidarity credits” for more than $980 million to 100 Cuban companies participating in a “twin enterprises” program.
The document does not identify the names of the companies nor its activities, simply indicating that they operate within “five industrial sectors” and the financing is part of strengthening the Bolivarian Alternative for the Peoples of our America or ALBA.
Montoya expressed concern over the ease with which Chávez disposes of Venezuelan resources as if they were his own, making disbursements of millions without public knowledge.
“We have to learn about these things only when officials denounce them […]. It’s totally confidential. He [Chávez] doesn’t inform anybody in this country about the manner in which he uses resources,” he said.
The BANDES report shows the existence of disagreements among Cuban and Venezuelan authorities about a disbursement of $150 million given to the island to help it overcome damages from hurricanes Ike and Gustav.
The disbursement was ordered by Chávez in April as “special financing” granted under emergency conditions by the government enterprise Petróleos de Venezuela, S.A., but when BANDES tried to register the transaction as a loan, the authorities in Havana dismissed their request.
“After BANDES repeatedly requested Cuba’s approval of the agreement in July 2009, minister Rodrigo Malmierca of the Cuban Ministry of Foreign Trade, said that the operation was not a loan but a non-refundable grant in accordance with commitments made by the Commander President [Chávez], to which Venezuelan minister Ali Rodríguez said that he had no knowledge of such commitment and the he would make the pertinent consultations,” the document said.
“So far, no such consultation has been made, and the operation remains undocumented. This situation has been repeatedly reported to higher authorities,” it added.
Other Cuban projects financed by Venezuela involve numerous credits disbursed by FICA to finance the railroad sector and other loans for more than $45 million to finance Cuban international airports Juan G. Gómez in Varadero-Matanzas, and José Martí in Havana.
Venezuela also granted various credits to help Cuban expand its electrical grid, most of them in 2007.
