The Trump administration has provided around $300 million to the Rodriguez government after seizing tankers and selling oil stockpiled in the country. The funds are being managed through accounts in Qatar and will be subject to audits by US agencies, Rubio told the Senate on Wednesday.
The idea that the US can somehow remote-control its way into a coherent audit of Venezuelan public spending defies imagination. Venezuela has never been an easy place to follow money. Road construction in Venezuela was for much of the 20th century a famous form of campaign finance that bankrolled politicians through well-greased kickback systems. Even in the country’s more prosperous days, public hospitals were notorious rat’s nests of corruption that allowed suppliers of everything from aspirin to X-ray machines to mark up prices for illicit gain and political financing.
Chavismo put this on steroids. Because there has been no alternation of power since Chávez’s 1998 election, no one in a position to audit government books has ever had an incentive to. The government comptroller’s office, once an institutional check on the ruling party, has for decades been used primarily to disqualify opposition politicians from holding office on the basis of fabricated accounting discrepancies.
The Chávez era saw the wholesale unraveling of basic parliamentary oversight of spending. State oil company PDVSA went from being an internationally respected company to a piggy bank used for everything from food imports to housing development. Multibillion-dollar slush funds with no rules about spending and no reporting requirements to the general public came to manage more than parliament. Bilateral financing agreements with China, Russia, and Iran led to secretive and inscrutable financing arrangements that made the country’s borrowing a black box.
Rampant corruption and damaged financial accountability do not mean that outsiders cannot be involved there. When the war in Ukraine broke out, international agencies famously relaxed what had been stringent standards around Ukrainian corruption. Aid agencies and nonprofits working in Haiti have had to quietly make concessions to the realities of operating there. As did the organizations that worked to reduce hunger in Venezuela during the crisis years. Expecting to maintain Swiss-level accounting standards in these types of environments is a recipe for making sure nothing gets done.
Which is a bit of what Rubio is promising by putting the US Export-Import Bank in charge of following every last dollar that Venezuela receives from US-brokered oil sales. Nobody was able to fully follow the money in Venezuela even when they were trying. After almost 30 years of systematically undermining public transparency, a remote-controlled, third-party audit conducted by foreigners from thousands of miles away doesn’t stand a ghost of a chance.
The inevitable conclusion is that the United States will simply have to start turning a blind eye to what actually happens with the money. With clear marching orders to get the economy up and running and oil production moving as fast as possible, there simply won’t be time to stand on accounting formalities. Ask too many questions and the progress will start to slow down. It seems like an unexpected consequence of a transition under tutelage: the Trump administration will quietly become part of the chavista machine.