“Money talks and bullshit walks,” is a saying that rings true. Sir Frank Williams was quoted by the BBC stating, “Pastor has proven he is not only quick but can also maintain a consistent and strong race pace…” While some may agree, it would have been fascinating to know Williams’ thoughts on Maldonado had he not brought a multimillion-pound sponsorship from PDVSA. Even more intriguing would be to see if Williams would keep Maldonado if the sponsorship money were to suddenly vanish. That was what we anticipated after the investigation into the deal and questioning from Venezuelan Congressman Carlos Ramos. Unfortunately, that appears unlikely for now…
In recent communication, Congressman Ramos informed me that he wouldn’t respond to Claire Williams’ email, which claimed that all Williams’ deals with partners are bound by confidentiality clauses, preventing public comments. As a result, no copy of the contract would be sent to Congressman Ramos, nor any information regarding payments made by PDVSA. Ms. Williams’ absurd argument could have easily been refuted by Congressman Ramos. While preparing a response that will never be sent, he referred to articles 154, 222, 223, and 314 of Venezuela’s Constitution, which invalidate any confidentiality claims made by Williams. In simple terms, any contract with PDVSA must first be approved by its board and Congress. Because PDVSA is entirely owned by the Venezuelan State, its budget must be sanctioned by its board and sole shareholder. Confidentiality clauses are simply not permissible.
Someone must have made a call to Congressman Ramos. Or worse, perhaps someone threatened him or his family. Right after the Brazilian Grand Prix in Sao Paulo, I reached out to Congressman Ramos to ask when he would send me the reply letter for Williams. His response was:
I can’t be seen as an anti-sport Congressman… The fight is against corruption; I can’t personalize it against Pastor… Chavistas are manipulating this… I am fully against corruption, but we need public support for it… In Venezuela, we risk everything…
Attached is the letter that Congressman Ramos intended to send to Williams F1 but didn’t due to pressure, threats, political reasons, or perhaps all of these factors.
Dear Ms. Williams,
I appreciate your swift response to my inquiry regarding the contract between PDVSA and the Williams F1 Team.
However, your response suggests that Williams F1 has not thoroughly examined Venezuela’s legislation concerning public spending.
As you know, PDVSA is an oil conglomerate fully owned by the Venezuelan State. Being the largest contributor of fiscal revenues to the Venezuelan State, its budget requires yearly approval from its board and its sole shareholder—the State. The amount and general expenditures of PDVSA’s budget are, by law, public information. Consequently, Venezuela’s Congress receives an annual detailed account of PDVSA’s expenditures for a crucial reason: the funds earned by PDVSA through its business operations belong to and support the state.
Sponsoring an F1 team is undeniably not a priority for an entity that gains no commercial benefits from such extravagant spending. Keep in mind that PDVSA is not a consumer brand and doesn’t sell anything to the public with its brand, which is now displayed in various places on your race cars. The financial situation of the Williams Formula 1 team likely weighs heavily on its owners, employees, and commercial sponsors. However, there is no justifiable explanation for why 28 million Venezuelans should bear the costs simply to keep Williams afloat. I understand your need for money from any source, but it is impossible for me to justify to my constituents and fellow citizens why we are wasting money on your team. The irony is heightened given that this is happening under a government that claims to be socialist, which has decimated much of the private sector in my country and demonized capitalist practices.
Article 154 of Venezuela’s Constitution states: “Treaties agreed upon by the Republic must be approved by the National Assembly before ratification by the President, except those that execute existing obligations, apply principles recognized by the Republic, conduct ordinary acts in international relations, or exercise powers legally endowed to the National Executive.”
Article 222 of Venezuela’s Constitution states: “The National Assembly is authorized to exercise control through mechanisms such as parliamentary questions, investigations, authorizations, and approvals as provided by this Constitution and by law.”
Article 223 of Venezuela’s Constitution states: “The Assembly or its Committees can conduct any investigation deemed appropriate. Public officials are obligated to appear before such Committees and provide necessary information and documents.”
Article 314 of Venezuela’s Constitution states: “No expense shall be disbursed unless provided for in the budget law. Additional budget credits may be ordered only if the treasury has the resources to cover the expenses.”
According to the law, the Venezuelan Congress was not made aware of the sponsorship contract between Williams F1 Team and PDVSA. Neither in 2010 nor in 2011 was Congress informed by PDVSA of such expenses within its budget. This situation clearly highlights our organizational problems, underscoring the institutional breakdown in our society. The loss of independence in the Legislative Branch and the Executive Branch’s repeated violations of the law are hallmark traits of the so-called “Bolivarian Revolution” that you have so joyfully associated your team with.
Thus, I cannot and will not accept your confidentiality argument. We would expect any parties involved in a public contract in Venezuela to ensure all legalities are followed and maximum transparency is maintained. Your failure to demand this from PDVSA, coupled with your lack of willingness to support the work of the National Assembly, renders the Williams F1 Team complicit in unauthorized spending. From now on, that is precisely how I will treat Williams F1 Team unless you reconsider your unreasonable position and begin cooperating.
Until proof suggests otherwise, we will maintain our suspicion that irregular payments are part of this damaging contract—such practices have become standard in nearly all public contracts under the Chavez administration. Be assured, the contract between Williams F1 Team and PDVSA will not remain a secret; we will relentlessly pursue this issue and seek any means to terminate this contract. We will also ensure that Venezuelan public funds are no longer wasted on unproductive sponsorships.
In closing, I respectfully ask you to reconsider your position and responses, while reiterating my request for: 1) a copy of the original contract; 2) money disbursed to date by PDVSA; 3) evidence of payments made by PDVSA; and 4) names of all PDVSA or Venezuelan government officials who received VIP treatment and box passes from Williams F1 Team for races in the 2011 season.
Sincerely yours,
Congressman Carlos Ramos
Caracas, 18 November 2011