The Maduro corruption tax = 60%

Jesse Chacón, Minister for Electricity, and the man with the fat checkbook.
Jesse Chacón, Minister for Electricity, and the man with the fat checkbook.

An excellent article from El Nacional on the high cost of building power plants in Venezuela.

Because the government has basically sworn off procurement auctions, and instead resorts to buying stuff “from the rack,” corruption is rife.

The money quote:

“The general norm, says [industry expert] Aguilar, is for combined cycle plants to cost somehwere between 720 and 1,000 dollars per installed kW, but the Luis Zambrano plant alone cost US$2.447 per kW…”

If something costs $2.447, and $1.447 of that is pure corruption, then we’re talking upwards of a 60% “corruption tax” on public procurement.

Of course, this is nothing new. Thank God we now have a President willing to fight corruption or whatever.

HT: Miguel.

Caracas Chronicles is 100% reader-supported. Support independent Venezuelan journalism by making a donation.