http://www.handsoffvenezuela.org/el_salvador_albaphobia.htm

El Salvador: 
Albaphobia?<http://www.handsoffvenezuela.org/el_salvador_albaphobia.htm>
11 February 2013

Hands Off Venezuela

   - <http://www.handsoffvenezuela.org/el_salvador_albaphobia/print.htm>
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We republish this interesting article by Jay Hartling Chavez about the
campaign the Salvadorean oligarchy has launched against ALBA agreements
with Venezuela.

El Salvador’s right-wing party, ARENA, and its commercial wing, ANEP
(National Association of Private Enterprise) have recently come out
swinging against ALBA Petroleos and its derivative companies, insisting the
mixed company be investigated for money-laundering, corruption, illicit
activities, and breaking various competition and foreign-ownership laws.
The US embassy has stated publicly that they are “observing” the
situation[2]. All of these accusations have been made without providing a
shred of evidence to back them up. “Pot-kettle-black” comes to mind. Two
lawsuits have been launched by ANEP/ARENA – one with the Competition
Bureau, and the other with the Attorney General’s Office – demanding that
ALBA Petroleos be investigated. In response to its publicly-unsubstantiated
accusations, an anti-defamation suit has been brought against the President
of ANEP (Arnoldo Jiménez) by ALBA Petroleos, led by well-respected lawyer
Fabio Castillo.

Let’s be clear – these audacious accusations are occurring in the year
leading up to a presidential election. The sheer hypocrisy of the
statements would be laughable if it wasn’t for the fact that most of the
media, and therefore the message, is controlled by the Salvadorian right.
The media outlets are constantly bombarding the public with dramatic
allegations and half truths. And finally, whatever happened to ARENA/ANEP’s
uncompromising belief in free enterprise, the free market and open
competition?

ALBA Petroleos is essentially a public-private partnership (P3) between
ENEPASA, an inter-municipal non-profit owned by seventeen Salvadorian
municipalities (most of them administered by the FMLN), and Petroleos de
Venezuela – Venezuela’s state-owned oil company. ENEPASA’s slogan is
“Energy for Your Well-Being”, and although its focus is currently
petroleum, they are preparing an investment of $165 in renewables. Gas at
ALBA’s more than 32 service stations is usually anywhere from 3-5 cents or
more below prices at other gas stations (plus, they have nice washrooms).
The petroleum is purchased, not donated, at preferential terms, and stored
at the new ALBA facility in the port of Acajutla. What makes this
public-private partnership different is its philosophy and purpose. ALBA
Petroleos is a child of ALBA (The Bolivarian Alliance for the Americas),
the fair trade organization that unites progressive countries of the south
under the banner of humanism, solidarity, integration, Latin American
cooperation, complementarity and social benefit for the people. ALBA
currently has eight member countries, but others have observer status.
ALBA’s interesting trade strategies, such as doctors for oil, are by now
legendary. What isn’t well understood, however, are the other agreements
and structures that have developed with the support of Venezuela’s enormous
oil reserves.


The objective of ALBA Petroleos is to demonstrate that you can build a
successful business founded on an alternative model, and also have a social
and labour conscience. Yes, the company and its investors want to make a
profit, but a percentage of that profit goes to a social development fund
(Funda-ALBA) that is used for community development purposes across the
country. The beneficiaries of the community development are the poorest
sectors of society (and let’s face it – they’re still the majority in this
tiny country) that have suffered from a history of exclusion by previous
governments. More than $10 million has been invested in social programs
like basic services of water and roads, schools and community recreation
facilities. ALBA Petroleos is a major tax contributor to the state coffers
– having paid $187 million in taxes from the sale, distribution and
commercialization of petroleum products. It has also leveraged another $180
million for other companies.


ENEPASA/ALBA Petroleos has a number of subsidiaries. For example, in 2012,
the company formed ALBA Foods with the goal of reactivating the
agricultural sector, and creating the conditions for food sovereignty. ALBA
Foods is now the country’s number one investor in reactivating small and
medium-sized agricultural business (from the tiny family farm, to more
medium-scale production) – creating 35,000 new jobs in El Salvador. ALBA
Foods is also supporting penitentiary farms in the country with technical
assistance. This year, the company announced ALBA Scholarships, where 3400
students of limited economic means and high academic achievement will
receive scholarships to finish middle and high school, and attend
university. Other subsidiaries are being created to work in the area of
revitalizing transportation, the coffee sector and fisheries.

So what is the big deal with ARENA and ANEP? Why the attacks, and why now?
Well, for one thing – a Special Legislative Commission is about to launch
an exhaustive investigation into previous illicit activities associated
with ARENA governments and the country’s only geo-thermal energy provider
CEL-LaGeo. There are calls for other investigations as well. Secondly, the
worn-out bogie man of foreign interference by (gasp) Venezuela is being
trotted out again, as it always is during election time. If ARENA/ANEP and
the US Embassy are so concerned about Venezuelan foreign ownership, why
aren’t they concerned about the 14,000 CITGO stations in the US? Those are
owned by a subsidiary of Petroleos de Venezuela and operate across the
country. Venezuela also provides heating oil to families and organizations
in need in the US through a public-private partnership (sound familiar?)
with CITGO and Citizens Energy Corporation – a non-profit founded by former
Senator Joseph Kennedy II. This year alone, the P3 will provide low cost or
free heating oil to 100,000 low-income households in the US, including
about 252 Native American communities and 245 homeless shelters.[3] And, if
ARENA/ANEP is truly concerned about corruption, perhaps they would like to
publicly explain what happened to the $40 million that went missing during
their administration for the construction of the Diego de Holguin
Boulevard; or the $30 million that was supposed to be used rebuild the
Women’s Hospital? The list goes on ……

Certainly, if there are illegal activities occurring in ALBA Petroleos, or
any other business for that matter, they should be properly investigated
and evidence brought to light. However, it is widely suspected that what
this is really about, aside from deflecting attention from their own
fraudulent activities in the past, is that the oligarchy has controlled the
economic sphere in El Salvador for a century, and now there’s a new kid in
town, and they seriously don’t like the free market competition! And, it’s
not only the competition for dollars -- ALBA Petroleos has shown that you
can conduct business and compete in the so-called marketplace, but also
make major contributions to the betterment of society – something the
private sector has never done in El Salvador. So, they should watch where
they swing, because the new kid’s got a successful “nocaut”!

Jay Hartling Chavez is an independent journalist and consultant based in
San Salvador.  For more information, [email protected]
------------------------------

[1] Albaphobia is a term coined by the FMLN Mayor of Nuevo Cuscatlán, Nayib
Bukele

[2] http://elmundo.com.sv/ee-uu-observa-el-pleito-de-anep-y-alba-petroleos

[3] http://www.digitaljournal.com/article/342972


[Non-text portions of this message have been removed]



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