Corruption in Finance Sector Rocks Andorra: $55M Frozen in BPA Accounts
A Network of Corruption Exposed
A shocking report by Andorra’s police has revealed a network of former Venezuelan officials and businessmen, including cousins of President Hugo Chávez, using the tiny European nation to launder millions of dollars in illicit funds.
The Investigation Unfolds
The investigation, which EL PAÍS has accessed, has frozen over $55 million in alleged bribes collected in Andorra by 21 members of the scheme. The funds are believed to come from illegal commissions paid to the network by contractors who received multi-million dollar contracts from Venezuela’s state-owned oil company, Petróleos de Venezuela SA (PDVSA).
High-Profile Individuals Affected
The list of those affected includes:
- Diego Salazar, a cousin of Rafael Ramírez, former head of PDVSA and minister of petroleum, with over $20 million frozen.
- Luis Mariano Rodríguez Cabello, business manager of Salazar, with around $8.6 million blocked.
- José Ramón Arias Lanz, a former technical manager of the Venezuelan Petroleum Corporation, with more than $7.7 million frozen.
- Javier Alvardo, a former deputy minister of Electric Energy and Petroleum, who will not be able to withdraw $6.3 million stashed in Andorra.
The Network’s Modus Operandi
The network is accused of charging illegal commissions of over 10% from subcontractors, mainly Chinese firms, who were later awarded PDVSA contracts. The illicit money was hidden through a complex web of accounts at Banca Privada d’Andorra (BPA), with funds flowing into the country through 30 opaque companies based in tax havens such as Switzerland or Belize.
Andorra’s Crackdown on Corruption
Since 2018, Andorra has prosecuted around 30 members of this Venezuelan money laundering scheme, which has been linked to the country’s banking establishment. The investigation highlights the network’s use of consulting jobs as a cover for their illicit activities, with multi-million dollar incomes camouflaged under the umbrella of these non-existent jobs.
International Implications
The report also reveals that national and international investigations have uncovered a huge business of illegal commissions, with some individuals linked to China being investigated. The investigation is ongoing, with several financial intermediaries and high-profile officials being scrutinized. Those affected include Luis Alejandro Rivero García, with $83,310 frozen; his brother, Leonardo, with $7,630 frozen; and Omar Jesús Farías Luces, known as the “insurance czar,” who has been classified as Diego Salazar’s strategic partner.
A Call for Increased Transparency
As the investigation unfolds, it raises questions about the extent of corruption in Venezuela and its links to Andorra’s banking establishment. The report serves as a reminder of the need for increased transparency and accountability in the financial sector.