“Money talks and bullshit walks,” goes the saying. Sir Frank Williams is quoted by the BBC saying, “Pastor has demonstrated that he is not only fast, but can also maintain a consistent and strong race pace…” Fair enough, some might say. However, it would have been intriguing to hear Williams’ opinion regarding Maldonado if he hadn’t joined his team with a multimillion-dollar sponsorship deal from PDVSA still undefined. Even more interesting would be to see if Williams would keep Maldonado if PDVSA’s sponsorship money suddenly ran out. That was what we were looking forward to after the investigation of the deal and the questioning by Venezuelan congressman Carlos Ramos. Unfortunately, that’s not going to happen. For now…
In a recent communication, Congressman Ramos told me he wouldn’t respond to the email from Claire Williams, in which she claimed that all deals Williams made with his partners were subject to confidentiality clauses preventing public commentary on them. Therefore, no copy of the contract would be sent to Congressman Ramos, and no information about the payments made to date by PDVSA would be shared. Mrs. Williams’ absurd argument could have been easily addressed by Congressman Ramos. In fact, while preparing the joint response to Williams, which will never be sent, Congressman Ramos mentioned Articles 154, 222, 223, and 314 of the Venezuelan Constitution, which invalidate any claim of confidentiality made by Williams. In short, any contract made by PDVSA must be approved first by its board and then by Congress. The reason is that PDVSA is fully owned by the Venezuelan state, and its budget must be approved by its board and its sole shareholder. PDVSA cannot accept confidentiality clauses. Period.
But someone must have called Congressman Ramos. Or worse, perhaps someone threatened him or his family. Right after the Brazilian Grand Prix on Sunday in Sao Paulo, I contacted Congressman Ramos to ask when he would sign and send a response letter to Williams. And this is what he said:
I can’t be seen as an unsporting congressman… The fight is against corruption; I can’t make it personal against Pastor… The Chavistas are manipulating this… I’m upfront against corruption, but we need public support for this… In Venezuela we play everything…
Attached is the letter that Congressman Ramos would have sent to Williams F1, but he didn’t due to pressure, threats, political reasons, or all of the above.
Dear Mrs. Williams,
Thank you for your prompt response to my communication regarding the contract between PDVSA and the Williams F1 Team.
Your response, however, suggests that Williams F1 has not conducted enough due diligence regarding Venezuelan legislation on public spending.
As you know, PDVSA is an oil conglomerate, fully owned by the Venezuelan state. Since PDVSA is the largest contributor of tax revenue to the Venezuelan state, its budget must be approved annually by its board and its sole shareholder, the state. The amount and overall expenses of PDVSA’s budget are matters of public right. Thus, the Venezuelan Congress receives a detailed account of PDVSA’s expenses once a year for a very important reason: the funds earned by PDVSA in the course of its normal business operations belong to and support the state.
Sponsoring an F1 racing team is definitely not a priority expense for an entity that cannot derive any commercial benefit from such a whimsical disbursement. Note that PDVSA is not a commercial brand and does not sell anything to consumers under its name, which is now painted in various places on its race cars. The financial situation of the Williams Formula 1 team is probably a major concern for its owners, employees, and commercial sponsors. However, there is no acceptable explanation of why 28 million Venezuelans have to foot the bill just to help Williams survive. I understand why you would accept money from someone, though I find it impossible to explain to my constituents and compatriots why the heck we are wasting money on your team. That the government, which self-identifies as socialist, a government that has destroyed much of the private sector in my country and demonized capitalist practices, is doing all this is even more ironic and baffling.
Article 154 of the Venezuelan Constitution: “Treaties agreed upon by the Republic must be approved by the National Assembly before being ratified by the President of the Republic, except for those aimed at fulfilling or perfecting pre-existing obligations of the Republic, applying principles expressly recognized by the Republic, carrying out ordinary acts in international relations, or exercising powers expressly conferred by law to the National Executive.”
Article 222 of the Venezuelan Constitution: “The National Assembly is empowered to exercise its oversight function through the following mechanisms: parliamentary questions, investigations, inquiries, parliamentary authorizations and approvals as indicated in this Constitution and the laws, and any other mechanism established by the laws and their corresponding regulations. In exercising parliamentary oversight, the National Assembly has the authority to declare the political responsibility of public officials and summon the Citizen Power to initiate the necessary actions to enforce that responsibility.”
Article 223 of the Venezuelan Constitution: “The Assembly or its Committees may conduct investigations they deem appropriate regarding matters within their jurisdiction, in accordance with the Regulations. Every public official is obliged, under penalty provided by law, to appear before these Committees and provide the information and documents they require for the performance of their duties. Private individuals are also subject to this obligation, without prejudice to the rights and guarantees enshrined in this Constitution.”
Article 314 of the Venezuelan Constitution: “No expenditure of any kind shall be disbursed unless it has been foreseen by the budget law. Additional appropriations for essential unforeseen expenses or inadequately financed expenses may be ordered only if the treasury has resources to cover the expenses involved, which can only be done with a favorable vote of the Council of Ministers and authorization from the National Assembly or, failing that, from the Delegated Commission.”
The Venezuelan Congress was not informed, according to law, about the sponsorship contract between the Williams F1 Team and PDVSA. Neither in 2010 nor in 2011 was the Venezuelan Congress informed by PDVSA about such an expense within its budget. This is clearly our issue, as it further underscores the institutional collapse of our society. The loss of the independence of the Legislative Power and the repeated violation of the law by the Executive Power are hallmark traits of the so-called “Bolivarian Revolution,” which you have so joyfully tied your team’s future to.
Therefore, I cannot accept nor will I accept your argument of confidentiality. What we would expect from every one of the parties to a public contract in Venezuela is that they pursue and demand the removal of all legal barriers and ensure maximum transparency. Your failure to demand this from PDVSA, along with your unwillingness to facilitate the work of the National Assembly, makes the Williams F1 Team complicit in unauthorized expenditures, and from now on, that is exactly how I intend to treat Williams F1 Team unless, of course, you change your absurd position and begin to collaborate.
Until proven otherwise, we will continue to suspect that irregular payments are an integral part of this ruinous contract, as they have become the norm in almost all public contracts signed by the Chavista administration. Rest assured that the contract between Williams F1 Team and PDVSA will not remain confidential; we will not cease investigating this matter, and we will seek every means to rescind this contract. Likewise, we will ensure that Venezuelan public funds are no longer wasted on such a whimsical and unproductive sponsorship.
In conclusion, I would respectfully ask you to reconsider your position and response, while reiterating my request for: 1) a copy of the original contract; 2) funds paid to date by PDVSA; 3) evidence of payments made to date by PDVSA; and I add 4) the names of all PDVSA or Venezuelan government officials who have obtained from or through the Williams F1 Team, VIP treatment and passes for races in the 2011 F1 season.
Sincerely yours,
Congressman Carlos Ramos
Caracas, November 18, 2011