VENEZUELA Country Profile

Public Anti-Corruption Initiatives

  • Legislation: Venezuela has an anti-corruption law, but observers generally agree that its enforcement is very weak. The Anti-Corruption Law 2003 (in Spanish) criminalises passive and active corruption (Art. 60, 61), extortion (Art. 63, 67) and money laundering. Furthermore, it establishes citizens' right to information and obligates the state to publish and make publicly available an account of public goods and expenses three times annually. However, the government does not publish expenditures in a detailed and timely fashion, and according to international observes, such information is difficult to obtain. The law requires public employees to present a sworn declaration of personal assets within 30 days of assuming a post as well as 30 days after leaving it. The law also allows for the extradition of corrupt officials, prohibits them from holding public office in the future and includes a prohibition on officials having secret foreign bank accounts. The Anti-Corruption Law also seeks to maximise penalties. For example, public officials found guilty in smaller corruption charges can receive sanctions ranging from 90 days suspension from office to removal from their position. Public officials found guilty of bribing or receiving commissions from foreign company representatives can be sentenced to between 10 and 20 years in prison. Venezuela has signed and ratified three important international conventions: the UN Convention against Corruption (UNCAC), the OAS Inter-American Convention Against Corruption and the UN Convention against Transnational Organized Crime. For further information on legislation in Venezuela, see the Lexadin World Law Guide.

  • Government Strategies: In principle, fighting corruption is a high priority for the Chávez administration, which is reflected in many of Chávez's speeches, by the creation of a solid legal framework and several public agencies mandated to deal with corruption. At the moment, the Ministry of Economy and Finance/SENIAT is running a 'Zero Tax Evasion' (in Spanish) campaign aimed at increasing Venezuelan tax revenues and reducing tax evasion and a 'Zero Contraband' (in Spanish) campaign intended to strengthen the Venezuelan customs system. However, apart from these initiatives and the creation of anti-corruption legislation and entities, the government's will towards genuinely curbing corruption has been questioned by several international observers and the political opposition. Moreover, the centralisation of power that occured under Chavez's government has eliminated important checks and balances in the state system and thus enhanced Venezuela's overall vulnerability to corruption.

  • Anti-Corruption Agencies: Three public agencies mandated to deal with corruption have been established under a public umbrella organisation called Poder Ciudadano (in Spanish), headed by the Moral Council of the Republic. These agencies are the Public Prosecutor, the Comptroller General and the Human Rights Ombudsman, which are all described in more detail below. Poder Ciudadano was created under the 1999 Constitution as the central political branch to coordinate the fight against corruption. The Organic Law of Poder Ciudadano (in Spanish) provides Poder Ciudadano (through its sub-agencies) with the authority to educate against, prevent, investigate and sanction 'acts against public ethics and moral', including corruption and non-transparency. Furthermore, the law establishes that the Poder Ciudadano and its sub-agencies are independent from other public agencies and that they enjoy functional, financial and administrative autonomy. However, Chávez has tried to interfere in the affairs of Poder Ciudadano by impeding the formulation of effective and clear responses to complaints about corruption submitted by civic organisations and political opposition parties.

  • General Public Prosecutor's Office: As one of the organs under Poder Ciudadano, the Fiscal General de la República (in Spanish) heads the Public Ministry, which is the central entity created to execute legal action under the state. Its main tasks are to handle criminal cases, including corruption. It also provides contact information for its representatives in each state to whom crimes can be reported and who provide for the protection of victims of crime. Its website has several public services, including free hotlines for crime victims who need protection as well as a reporting mechanism to which criminal transgressions and corruption can be reported (see the 'Whistle-Blowing' section below).

  • Comptroller General of the Republic: The Contraloría General de la República (in Spanish), as part of Poder Ciudadano, serves as a watchdog agency by controlling the revenues of and expenses incurred by the government. Although the agency is intended to be politically independent, observers cite that the staff is often appointed on the basis of cronyism and political clientelism. The processing of accusations by the institution is often delayed for more than a year, depending on the charges pressed against the individual responsible for the acts of corruption. According to Global Integrity 2009, the agency is subject to political interference and thus hindered in carrying out its mission.

  • Ombudsman: The Venezuelan Human Rights Ombudsman (in Spanish, Defensor del Pueblo) forms the third agency that makes up Poder Ciudadano. It is responsible for providing suitable legal instruments for the protection of fundamental rights and for compelling the government to adhere to the constitution and rule of law. However, according to Global Integrity 2009, the agency is not independent, but controlled by the ruling party and unable to carry out its mandate without political interference. In 2004, legislation expanded the powers of the Human Rights Ombudsman to include scrutiny of abuse of power and flaws in the provision of services.

  • E-Governance: E-governance is relatively well-developed in Venezuela and practically all public ministries have web pages providing information on their work. For example, foreign investors may find relevant information on customs and tax regulations on the National Customs and Tax Administration Service (in Spanish, SENIAT - Servicio Nacional Integrado de Administracion Tributaria de Venezuela) website, which is headed by the Ministry of Economy and Finance.

  • Public Procurement: In 2008, the government approved the Public Contracting Law and repealed the 2001 Law of Tenders. Transparency International Venezuela has criticised the new Public Contracting Law for including even more exceptions to the principle of open tender, which has given reason for speculations that open bidding will be more the exception than the rule. The law, for example, does not apply to all contracts made in connection with international agreements of cooperation between Venezuela and other countries. The central government agency providing guidance to bidders and sellers is the National Contracting Service (in Spanish only). However, the best source of assistance to foreign companies with no previous experience in Venezuela may be Licitaciones Venezuela (in Spanish only), which is a private entity that provides practical information on the procurement environment in Venezuela. Public tenders are publicised in newspapers and in the website of the contracting institution and of the National Contracting Service. Anyone wanting to participate in public tenders or sell to a Venezuelan governmental agency must be registered in the National Register of Contractors (in Spanish), which is maintained by the Central Office of Statistics and Informatics. The National Register can open sub-registers, normally found in all the ministries and governmental agencies which regularly purchase goods or services. The Public Contracting Law does not have any appeal mechanism; however eventual disputes that arise during the procurement process can be taken to the courts and alternatively a complaint can be made to the Comptroller General.

  • Whistle-Blowing: The General Public Prosecutor's Office has a reporting mechanism on its website where it is stated that any person, victim or not, can report any illegal act. On the website, the link Denuncias (in Spanish only) contains information about how to report and to whom. Filing complaints to the General Public Prosecutor's Office cannot be done anonymously. The Human Rights Ombudsman's Office also has a reporting mechanism (in Spanish only) on its website to which complaints can be filed against the office's officials by e-mail and to which human rights violations and public service complaints can be reported. The Anti-Corruption Law does not contain any provisions on protection of whistleblowers. On the contrary, it declares that those who falsely denounce or accuse another person in the public administration of committing acts of corruption will be punished with a prison sentence of one to three years. As a signatory to the Inter-American Convention against Corruption, Venezuela has yet to enact a law protecting public sector whistleblowers along the lines set down in the Organisation of American States' model anti-corruption statutes.

  • General Comments on the Public Anti-Corruption Initiatives: Both the executive and legislative branches have shown great interest in fighting corruption through public institutions, which is demonstrated by the creation of a comprehensive legislative framework and several agencies mandated to deal with cases of corruption. However, the effectiveness of the agencies has been deemed very low because of the high degree of executive interference in the agencies' affairs. Furthermore, observers generally agree that the Chávez administration has done little to clarify bureaucratic regulations or to reduce the number of direct contact points between public officials and citizens and companies that are known for increasing the possibility for corrupt behaviour. Despite promises to fight corruption, anti-corruption efforts have been sporadic, and there have only been a few high-profile convictions for corruption and embezzlement during Chávez's time in office. According to Freedom House 2008 and other observers, the Anti-Corruption Law 2003 has not improved government transparency. Moreover, the centralisation of power that occurred under Chavez's government has eliminated important checks and balances in the state system and thus enhanced Venezuela's overall vulnerability to corruption.