Financial Crime World

Andorra Freezes $55 Million in Alleged Bribes from Venezuelan Corruption Scheme

A confidential report by Andorra’s police has revealed that the country has frozen over $55 million in alleged bribes collected by 21 members of a criminal network made up of former Venezuelan government officials and state-owned oil company executives. The funds allegedly come from illegal commissions paid to the network by contractors who received multi-million dollar contracts from PDVSA, Venezuela’s state-owned oil company.

The Network’s Activities

The network, linked to former Vice Presidents under Hugo Chávez, looted over $2.2 billion in public funds between 2007 and 2012. The authorities have frozen the assets of 21 individuals, including high-ranking officials and business leaders, who allegedly laundered the money through Andorra’s banking system.

Notable Individuals

The report highlights that several notable individuals have had their assets frozen by Andorran authorities:

  • Diego Salazar, a businessman and first cousin of Rafael Ramírez, the former head of PDVSA, has had over $20 million frozen.
  • Luis Mariano Rodríguez Cabello, who has about $8.6 million blocked.
  • José Ramón Arias Lanz, a former technical manager of the Venezuelan Petroleum Corporation, with over $7.7 million frozen.
  • Javier Alvardo, a former deputy minister of Electric Energy and Petroleum, with $6.3 million stashed away.

Laundering Methods

The investigation reveals that the network used a convoluted web of accounts at Banca Privada d’Andorra (BPA) to launder the funds, which were disguised as consulting fees or commission payments. The authorities have also identified several shell companies and inactive corporations used by the network to hide their illegal activities.

Ongoing Investigation

In total, Andorran authorities have blocked over $55 million in alleged bribes, with some of the funds coming from illegal commissions paid to the network by contractors who received multi-million dollar contracts from PDVSA. The investigation is ongoing, and it remains unclear how much of the stolen money will be recovered.