Venezuela government again accuses ex-oil czar of wrongdoing

CARACAS, Venezuela (AP) — The Venezuelan government is again accusing its former oil czar of wrongdoing while he oversaw the country’s most important industry, this time alleging he was involved in a multi-billion dollar embezzlement operation during the early 2010s that took advantage of a dual currency exchange system.

Venezuela Attorney General Tarek William Saab on Thursday told reporters that Rafael Ramírez, who oversaw the OPEC nation’s oil industry for a decade as oil minister and president of its state-owned oil company, PDVSA, is wanted on various charges including embezzlement, money laundering and racketeering.

Saab’s announcement followed two days in which the country’s current oil minister, Tareck El Aissami, presented to reporters what he characterized as evidence of a nearly $5 billion fraud. The documents included a letter approving a loan to the oil company in Venezuelan bolivars that was repaid in U.S. dollars and nearly 30 payment receipts.

Ramirez told The Associated Press the accusations against him are false.

U.S. prosecutors have long detailed schemes similar to the one that Venezuela’s top prosecutor alleged against Ramirez.

Prosecutors allege that Ramirez and his co-conspirators used the dual official and unofficial exchange rate system to enrich themselves. The system allowed politically connected people to make millions overnight by taking advantage of the huge difference between the rates.

At the official exchange rate, bolivars have a significantly higher value than in the black market. Those who had dollars could purchase bolivars in the black market, then give loans to PDVSA which paid them back at the official exchange rate, resulting in a return in dollars far above what they originally spent to buy Venezuela’s currency.

Prosecutors...