The reconfiguration of military companies is an urgent structural task that the Ministry of Defense in Venezuela must undertake to eliminate corruption and institutional inefficiency within these entities of the military sector.
Military sources emphasize to Venezuela Política the need to reorganize the military structure, requiring the establishment of three strategic areas to centralize accountability to the National Executive. They propose a detailed classification of various military entities and companies to determine whether they should be strengthened, merged, or eliminated based on their current functions.
Many of these companies—especially those in communication or construction—are alleged to be used for money laundering or propaganda purposes. In this regard, transferring them to civilian ministries is recommended, alongside a thorough cleanup of the armed forces to free them from criminal activities currently being carried out and to optimize resources allocated for social welfare and military logistics.
Reconfiguration of Military Companies Associated with the FAN
The immediate and urgent restructuring of the National Armed Force (FAN) in Venezuela requires, particularly in the reconfiguration of military companies, the issuance of a necessary diagnosis of institutional dysfunction arising from the infiltration of political-economic-criminal management practices that characterize them.
Military sources from Venezuela Política have identified that various companies, foundations, and institutes have deviated from their original missions to function as mechanisms for money laundering, tools for criminal activities, and “petty cash” for opaque financing.
In this context, they propose a reform based on two central axes:
1. Redesign of the Ministry: Transition to a structure under the command of a civilian minister who will be accountable to the National Executive, organized into three strategic areas:
- Administrative Superior Body,
- Operational Staff, and
- Defense and Security Agencies.
2. Cleansing of Attached Entities: A thorough classification that categorizes entities into two groups:
- those that should be strengthened for their technical or social value, and
- those that should be eliminated or transferred to civilian ministries due to inefficiency, propagandistic nature, or links to illicit activities.
Diagnosis of the Current Situation
Our sources describe the current organizational structure of the National Armed Force as one that has eroded the institution over time. They identify the following critical points:
- Institutional Dysfunction: Attached entities do not meet the objectives for which they were created.
- Criminal Activities: Indicate the use of companies and services as instruments for money laundering and other illicit operations.
- Resource Divergence: Accuse the presence of “petty cash” operations outside standard financial control.
- Politicization and Propaganda: Refer to the use of military media exclusively for propagandistic purposes, unrelated to technical training or national defense.
The Proposed New Structure for the Ministry of Defense
The proposed plan establishes that the Ministry of Defense, located in Fuerte Tiuna, should be led by a civilian minister acting under the direct orders of the President of the Republic.
The ministerial office would be divided into three areas of strategic interest:
a. Administrative Superior Body
This administrative arm will supervise resource management and institutional legality, comprising:
- Deputy Ministry of Administrative Services: Responsible for personnel, education, and logistics, including the General Directorate of Foundations, Institutes, and Services (formerly DIGES).
- Deputy Ministry of Military Planning.
- Deputy Ministry of Military Industrial Development.
- Comptrollership and General Inspection of the FAN.
- Military Justice System: Includes courts, Martial Court, Prosecutor’s Office, and Military Public Defender.
b. Operational Staff
c. Defense and Security Agencies
Classification and Reconfiguration of Military Companies
The reconfiguration proposal for military companies, as well as for foundations and institutes of the FAN, involves conducting a detailed review of the motivation and nature of each entity, resulting in the following action scheme:
Entities to Reorganize and Strengthen
The following are considered military companies vital for the social welfare of personnel, health, culture, and technical maintenance of military equipment.
EntityFunction / PurposeIPSFA and INVERSORA-IPSFASocial Welfare (review the justification for the existence of the Investor).IFAMILAgency for business, corporate, and tourism services.IACFAMilitary circles for social, cultural, and sports recreation.SASFANBAutonomous health service (support for hospitals and outpatient clinics).FUNDACARDIN / FUNDACUESTRESpecialized health (pediatric cardiology and equine programs).SAFAVAeronautical maintenance, cargo transport, and air ambulance.FONFOEFAWelfare fund for employees and workers.UCOCAR / SALMAGUARRepair, maintenance, and construction of vessels and boats.CAVIM / EMSOVENMilitary industrial development and manufacturing of tactical vehicles (Tiuna).COMPLEJO INDUSTRIAL TIUNATextile manufacturing and bottling of water.MUSAFAV / IMPREFANBAerospace museum and graphic arts/printing services.FUNDASMINGeneral social welfare of the FAN.
Entities for Merger, Transfer, or Elimination
The following group includes entities that have failed to deliver results and that are used for propaganda or are suspected of criminal activities.
EntityProposed ActionJustification / DestinationBANFANBTransferPossible money laundering; transfer to the Ministry of Economy.CONSTRUFANBTransferUsed for money laundering; to Minister of Public Works.EMCOFANB / TVFANB / TIUNAFANBTransferPropagandistic media; transfer to university communication schools.EMILTRATransferPossible illicit activates; to Ministry of Transport.AGROFANBTransfer/ReturnLack of results on expropriated lands; return to owners or Ministry of Lands.SEDEFANBEliminateUsed for money laundering.FIMNPSAEliminateInvestment fund on profits from companies.OCHINATransferTransfer to the Ministry of Transport (INEA).OCAMARTransferEvaluate illicit activities; to logistical entities of Executive.SEDESPROPFORN / EMASPROFORNTransferForest management; transfer to Ministry of Environment.SEGUROS HORIZONTEStrengthen/EliminateDisappearance of coverage for human resources.NEUMALBATransfer/EliminateSale of tires and lubricants.CARCOFANB / CAMIMPEGEvaluateMining, oil, and gas activities.
Reconfiguration of Military Companies: A Matter of Security
The proposed reconfiguration of military companies is not merely an administrative measure; it is an institutional security step against ethical and operational degradation.
The most pressing points reveal:
- Inoperability of Social Security: Entities like Seguros Horizonte have stopped providing effective services to military personnel, leading to the disappearance of benefits for human resources.
- Failure of Productive Model: Companies like AGROFANB, dedicated to exploiting expropriated lands, do not produce tangible results.
- Reputational and Legal Risk: The persistence of entities identified for money laundering (BANFANB, CONSTRUFANB, SEDEFANB) and potentially illicit commercial transport (EMILTRA) demands a complete break with the current model to reclaim the integrity of the National Armed Force.