A 1,942% Return on Investment, in Three Months

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Say I offered you $2,450 in three months in return for a $120 deposit. Would you take the deal? Of course you would…with Pride!

(I dunno how Setty finds out about this stuff, but he does.)

1 COMMENT

  1. What in helll? im not an indigo child or anything,
    BUT THIS SEEMS BIG!!!! This needs to get out!
    Well it’s not THAT surprising,i mean,you can pretty much speed up or basically do anything with a bribe.ANYTHING.
    A woman i know,accused for scamming with her company of “financiadora de automoviles”(need english word).She was facing quite some time in the joint.
    She sold her super duper car and voila. 120 million to a judge and she’s out.She’ll be in Panama in 1-2 months. While Mazuco,Pirielli and Afiuni will be in jail for the next 20 years.

    I love this country.

  2. Wao!
    That PDVSA director is THE director?
    El rojo-rojito? In any case: it is big. I wonder if many Venezuelans will hear about this, though… I wished we could inform about this to the people who never find out about such things.

  3. Nah, come off it guys. This is far from big.

    I mean, $120,000 ? Pocket change!

    Big? Big is the bribes that get paid for public sector insurance contracts. Or for bank deposits. Big is the bribes that get paid to get SITME bonds adjudicated, and used to get paid for favorable PDVSA dollar sales in the old parallel market. Tens of millions, hundreds of millions of dollars. That’s big!

    But $120,000?! That’s like the operating budget fors one of these guys’ yatchs!

    • Yeah, but does that mean “the” director or a director? I mean: is it red-red Ramírez? Is it Hugo’s cousin? Is it milico Luis Pulido?
      http://www.pdvsa.com/index.php?tpl=interface.en/design/readmenu.tpl.html&newsid_obj_id=6633&newsid_temas=77

      Orellana?

      The thing is to get a clear picture…and yes – why not? – to let people visualize their yacht at Marina El Dorado and their public talks about revolution and not to let the issue fade away as with Jesse Chacón and his brother but to keep pushing. The problem is Venezuela’s press talks about corruption scandals in a similar way as Britons announce heavy showers along West Scotland.

      120k is peanuts for the boliburguesía, but you can buy a lot of medicine one of my doctor friends could use in the public hospital he is working for.

    • I agree it is big… if it’s proven. If I understand the linked document properly (and I know nothing) this is a list of CHARGES, presented by the US Govt, dated November 2010. Setty says “Pride has admitted wrongdoing”. Of what exactly? And where is the record?

      If I were one of the newly-elected oppo AN members, I would be all over this starting Wednesday…

    • Manuel — Pride admitted to the charges and are forbidden from saying anything to cast doubt on their admission of wrongdoing. The record is all nicely linked up at FCPA Professor’s site.

      As far as investigations, yes, this could certainly add to the pile.

  4. Francisco,one things is to speculate.
    And a much different thign is to have proof of something.
    ALWAYS have this in minds.
    Have proof? release it
    Don’t? Investigate

  5. Kepler i love what you said about visualizing the reds talking about the revolution i ntheir yachts.I did and it filled me with anger.The homeless could use $120,000 too.

  6. It’s a worthy post but difficult to get too excited about when this is happening every day in every business in Venezuela, and some undoubtedly on a much bigger scale than this.

  7. Numbers, number´s ,

    A ustedes que entretienen un idioma ausente, aquel que quiso comunicar.

    Se enfrentaron a familiares y amigos, sus dioses e ilusiones.

    Solo por describir promesas y sueños.

    Queriendo ahogar lo que no respira.

    Si, a ustedes blogeros, Feliz Año!, y que bronquios evolucionen!

  8. A 1,942% Return on Investment…

    This assumes that the entire amount of the profit resulted solely from the actions induced by the bribe. According to the linked source, the profits were from a three month extension of the operating contract for the drilling rig Pride Venezuela.

    Was the contract rate at a fair market value? How much of the profits, if any, came from the difference, if any, between the actual contract rate and fair market value? The ratio of that amount to the payoff would be the “return on investment”.

    Then again: was the Pride Venezuela actually needed for those three months? If the contract was to be terminated, then presumably not – drilling must have been completed. (Can one switch rigs during the drilling process?) What use was made of the Pride Venezuela during the contract extension period?

    It seems possible that drilling was completed, and Pride Venezuela was no longer needed – but Pride Intl had no new customer for it. So they bribed the Director of PDVSA to “extend the contract”, covering their operating costs and even generating some “profit”, at the expense of PDVSA.

  9. its wrong but its common. the whole system in venezuela is set up for bribes. why do young people choose the military? to become an officer and recieve payoffs and enbetter their life.

    When you go to the aduana to get a container out, it is almost impossible to do it without paying different people off, and they know and expect it. If you dont play the game, they dont sign their one of 30 pages to be signed and your container sets in customs while you pay storage fees for it.

    when you go to get a document, what do you do? pay someone to get it for you quicker so you dont waste 2-3 days standing in a line.

    a car dealer has no cars available, all on a waiting list, but with a colaboracion, suddenly they find one available.

    at the airport, you cant park in front the police will make you move, but with a colaboracion, they will watch your car for you.

    we all have lots and lots of examples

    the payoff is a deep part of this culture. the only way that will change is to start teaching children that it is not correct and instill morals and values in them. As they grow up they will change the society. It wont happen with adults, adults can adapt but rarely change.

    • Who’s going to teach those children?
      That’s a real question. I don’t know the answer.
      I wonder if there is another way, something like creating mechanisms that bring about real transparency and force people to act in a more proper way.
      Basically, normal users should get the message:
      “in the US/Germany/Chile, car dealers earn XXXXX and cars cost ZZZ, here YYY and YYY2”
      Sort of.

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