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Venezuela arrests six top executives from US-based oil company | Venezuela arrests six top executives from US-based oil company |
(35 minutes later) | |
Venezuelan authorities have arrested six executives from a US-based oil refiner, the country’s chief prosecutor has revealed. | |
Reports said authorities arrested Jose Pereira, the acting president of Citgo, a US-based and Venezuelan-owned refinery, during an event at state oil company PDVSA’s headquarters in Caracas. Five other executives from the company were also detained. | |
Reuters said prosecutor Tarek Saab said he was leading a crusade against “organized crime” within PDVSA. Since taking office in August, he has arrested around 50 oil managers in the widening corruption investigation, the news agency said. | |
Mr Pereira was promoted in April as interim president of Citgo, the US refining and marketing unit of the nation’s state oil company PDVSA. | |
Citgo owns three refineries and a network of terminals and pipelines in the United States. | |
He was previously Citgo’s vice president of finance. He replaced Nelson Martinez, who was named as Venezuela’s oil minister in January. | |
The news agency said that in the case of the Citgo arrests, Mr Saab said his office had uncovered a $4bn planned deal with foreign firms that would have seen Citgo “unfairly” indebt itself and even be offered as guarantee for the loan. | |
“This board of directors put Citgo in danger. That’s corruption, corruption of the most rotten nature,” Mr Saab said in a statement. | |
Citgo did not immediately respond to a request for comment. | |
President Nicolas Maduro’s government and PDVSA, which is formally known as Petroleos de Venezuela SA, have repeatedly vowed to take steps to combat corruption. | |
Yet opposition leaders say PDVSA has been crippled by poor management, corruption and under-investment during 18 years of socialist rule. They attribute the arrests to in-fighting among rival government factions. |
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