5.12.09

Mexico mulls over Smartmatic

The email read: "Hi Alek, tomorrow one of the companies in Mexico is presenting a claim against Smartmatic and they need to know if Smartmatic Holding (the one registered in the Netherlands) has modified their statement regarding their activities, where they say they are dedicated to trading real estate. According to your info, in 2005 they formed this holding company, but if they haven't modified it to include the sale and installation of voting equipment and manufacture and sale of ID cards, then they can be banned from the bid. This is what my friend's company wants to do, but they just want to make sure no change has been made to their statement of activities since 2005. Do you think you can help us in this matter? Again, thanks for all your help and patience." Upon reading it, I thought that this was a chance to make Smartmatic come clean. So I did call Amsterdam Register of Companies, and I did find out that Smartmatic has not modified its purpose. As far as records in Amsterdam show, Smartmatic International Holding B.V.'s purpose continues to be "to purchase, develop and manage property and goods."

The granting of the contract to Smartmatic is being challenged in Mexico, almost unanimously: by some of the companies that took place in the tender, by representatives from the major political parties (PRIPAN and PRD), authorities, and by the media, among others. Of particular concern the finding about Smartmatic's possible connection to the authorities granting the contract, a practice in which Smartmatic has engaged in Venezuela, Chicago, Bolivia, and the Philippines.

Furthermore, authorities have postponed signing of contract with Smartmatic, due 3 December, until the Comptroller's Office announces its decision. Worse still, Smartmatic's damage limitation attempt is also being challenged. In light of all this, Mexico would do well in sending Smartmatic packing back to Venezuela.

2.12.09

Venezuela: a lawless country

Rafael grew up in West Caracas, in a low middle class family. Much like the majority of his friends, he never saw the education system as a way to better things in life. On the contrary, they all partook, in one manner or another, in petty crime, dealing and wheeling, and scams of all sorts, to earn some money, when not outright drug dealing, etc. It came a point where Rafael realised that his life was going nowhere, but straight to jail, or worse. So he decided to move away from Caracas. He managed to land a semi decent job in Margarita, as shop manager for an international company, and he started to earn an honest living. Life was good. He saved some money, and was able to buy the very things he had been dreaming with all his life: a 4x4, a motorcycle, an expensive mountain bike... The girlfriend of some time, Gabriela, seeing that Rafael was now a changed man, accepted to marry him, in contradiction to her mother's wishes and advice. They moved together to a very small apartment, owned by the fiancee's father.

But Rafael wanted more. He wanted to have his own place, and now, he thought could afford it. So he saved some more, and, with his father's help, managed to purchase a small plot of land in a beautiful hill, overlooking the sea. This, he believed, was to become his little piece of paradise. Every penny he could save, he would use to buy building bricks, cement, a W.C., then a washing machine, then some furniture, a TV, kitchen ware, etc. He started to fill his little apartment with the things he would put in his new house. Every night he would discuss the plans and lay out with Gabriela. Every day off, he would go to his plot, to level it, to measure it, to prepare and lay the foundations, to envision his dream house.

And so the construction began. Without having a clue about architecture or engineering, Rafael was leading a team, formed by Gabriela and two local helpers, in the construction of his own house. In the meantime, he lost his job. So his father and mother would often come to the rescue, both financially and practically, in the running of the project. This drawback put the breaks on the plan, but with a great deal of personal sacrifice, of pretty much every member of his family, Rafael finished his house. In this period, his wife gave birth to a beautiful daughter, Nina. Rafael felt that he was now whole, he had managed to escape a vicious circle in Caracas, and had now, after three years of hard work, a family, a house and a few bits and bobs, all product of his honest efforts.

But happiness was not meant to last for long. For once Rafael decided to move to his new house, with Gabriela and Nina, the very workers that had assisted him during the project, built a little brick factory in the plot adjacent to his. Needing water for the production of bricks, the workers connected, without permission, a hose to Rafael's water tank. Bothered by the abuse and the noise, Rafael complained to local authorities, who actually came to his place, and made the workers dismantle the factory (built in residential land), repair damages, and were made to sign a caution. This didn't go down well with them.

Two weeks ago, Rafael's dog was ill. Gabriela took it to the veterinary and was told that it had been poisoned. Unfortunately, it was too late when they got there, and the dog died. Last week, Rafael was coming back from work, a new one he had found in the construction industry thanks to the skills acquired in the last three years. When he was approaching his house, he saw three men in his house's doorstep, with machetes, beating Gabriela, who had Nina in her arms. He parked and jumped out of the car and went to them, only to realise that they were his old workers and another brother. There were two other men, keeping a look out, standing in the street: the father and uncle of the workers, a family gang. When the workers, alerted by their father, noticed his arrival, they turned on him, leaving bruised Gabriela and screaming Nina, and, wielding machetes, proceeded to chase him. So Rafael started running away from the house. Luckily, Gabriela reacted very quickly, she took Nina to the car, and drove away to pick Rafael up, who, after dodging machete-swings, had managed to outrun the chasing thugs. Eventually Rafael jumped in the car and they drove away. They went straight to the police, and returned to check things back home with two policemen. None of the neighbours wished to speak about what had happened. The police officers warned him: “you better leave this place. These thugs know when you come and go, next time, you may find your wife and daughter killed. We can't do anything more, for no witnesses are wiling to corroborate your story.”

Rafael and Gabriela are completely distraught. Nina, a very healthy and normal baby, has spent a few nights crying and shaking. They don't know what to do, their efforts of the last three years out of reach. Authorities are not willing to assist them, beyond paid-for visits every now and then. They don't want to stay in Margarita anymore, so not only their home will be lost, also Rafael's only source of income.

The women in his family are advising caution, and forgiveness. The men in his family, and his old time friends from Caracas, are advising him to take things into his own hands, for which they are willing to help, they are urging him to, as they say in Venezuela, “matar la culebra por la cabeza”, which means to finish the gang off, another family let's not forget. Rafael is very confused. On the one hand he wants to avenge the abuses on Gabriela and Nina. He said to his father “every scream of my child, every bruise and nightmare of my wife, every drop of sweat of mine, they will pay me...” The situation has forced him to abandon a project he recently signed, worth a few millions, that would put him back on his feet. However, the most powerful argument of Rafael were “the system in this damned country is the very reason why people turn to violence. For how can it be explained that thugs end up ruling, winning, against all reason, against the law, always? How come authorities declare themselves incapable so quickly and openly? How can I forget and forgive? How can I let this happen to me and my family? Why should we abandon our property, our life, our home, why should we throw to waste so much honest effort? Is this what life is about? Am I meant to let these thugs have their way, just like that? This country is damned. We are all damned, silently condemned to a life of violence, misery, and death.”

Rafael's old friends are ready, and eager, for a bit of gang war. A terrible tragedy could ensue, one that would engross the huge number of unsolved and uninvestigated violent deaths in Venezuela. All because of the lawlessness, all due to the utter uselessness of the judiciary and the police. A country without law, without institutions where aggravated parties can go seek redress, is a damned place indeed.

1.12.09

Smartmatic's PR disaster

Presumably intent in doing damage limitation, Smartmatic dispatched a couple of executives to Mexico City to brief the press about the mounting suspicions regarding its operations, and the way in which it had won a tender for the provision of biometric technology. Robert Cook and Jim Bell, quoted by the Mexican press as Smartmatic's representatives, stated today that the company has "participated in electoral processes in 70 countries... have never been sued by any government... and that President Obama voted using Smartmatic technology." These three statements merit further scrutiny:
  1. It would be great, for Smartmatic's own credibility sake, if Messieurs Cook and Bell can provide a list of the 70 countries in which Smartmatic has, succesffully, participated. Of particular interest, commercial operations in European countries where Smartmatic has been involved, according to Cook.
  2. Smartmatic has never been sued by any government. However, how could one interpret the investigation launched in Chicago in 2006, after local authorities found out that Smartmatic-operated Sequoia machines "did not perform adequately"? Moreover, what to make of Smartmatic's decision to drop Sequoia Voting System to prevent further investigations from CFIUS into its ownership structure, and ties to the Chavez regime?
  3. President Obama voted using Smartmatic technology. Does that mean that Smartmatic continues to provide technology to Sequoia Voting Systems, despite the fact that it announced that is was selling it?

27.11.09

Smartmatic does Mexico

In spite of having won contracts worth millions of dollars in different countries, Smartmatic seems incapable of shaking allegations that mar its reputation. And the reason is quite simple: the more business it gains, the greater the lack of transparency. Take for instance what has recently happened in Mexico, where the government is planning to gather biometric data to produce ID cards. A tender was organised by the Mexican government and the following companies submitted bids: LATIN ID S.A. de C.V., MAINBIT S.A. de C.V.; SOLTIC S.A. de C.V.; and, the grand sounding, Smartmatic International Holding, B.V.

Smartmatic won the tender to provide such technology, despite having submitted the highest bid. Smartmatic mislead Mexican authorities, by presenting itself as a Dutch company. I happen to have dug the records of Smartmatic in the Netherlands some years ago, their activities are described as "to purchase, develop and manage property and goods". There's nothing about provision of biometric devices in there. As a matter of fact, Smartmatic has no track record of having been directly contracted to provide such technology anywhere in the world. In Bolivia, a province of Hugo Chavez, Smartmatic managed to get subcontracted by a company from Argentina, another province of Hugo Chavez, called NEC Argentina, to gather biometric data destined for the electoral roll. But even that process has been marred with irregularities. The Bolivian press reports that Smartmatic's initial offering was rejected due to its participation in fraudulent elections in Venezuela.

But Smartmatic irregularities do not end there. Company records show that, just weeks before Smartmatic won its first contract in Venezuela, Antonio Mugica and the late Alfredo Anzola (Smartmatic and Bizta principals), took Bs.300 million ($187,000) from a subsidiary of a Venezuelan government entity called FONCREI. It is this information which would probably have caused the decision by Smartmatic of 'selling' Sequoia Voting Systems to avoid a proper investigation from CFIUS into its ownership structure. To this day, Smartmatic is to present credible evidence of having repurchased the stock acquired by the Venezuelan government.

Then there's is the issue in the Philippines, where, yet again, Smartmatic misrepresented itself in order to win an electoral contract. In addition, it was revealed that Smartmatic technicians remotely accessed servers during a regional election in Mindanao.

So there's a few simple questions that Mexican citizens should be posing to authorities:
  1. Why is a company that has no record in the provision of biometric technology allowed to enter bids in a public tender organised to that effect?
  2. In light of previous question: why have Mexican authorities granted the contract to the highest and least experienced bidder?
  3. Why has Smartmatic misrepresented itself, alleging that is a Dutch company, when is in fact a Venezuelan one with suspect connections to the Chavez regime?
  4. If it is true that Smartmatic is a Dutch corporation, where are the tax returns from operations in that country?

26.11.09

Gregory Wilpert 'clarifies' position

Gregory Wilpert has written to let me, and my readers, know that he has not misrepresented himself. His 'clarification' follows:
Just to let you and your readers know: To say that I work for Brooklyn College is not a misrepresentation. The Graduate Center for Worker Education is a part of Brooklyn College. My department chair is Sally Bermazohn, of BC's department of Political Science. The people you spoke to merely clarified that the physical location where I teach is not in the Brooklyn College campus, but I am still am employee of CUNY's Brooklyn College. The only reason I do not provide the full name of where I teach is that it's awfully long: Brooklyn College's Graduate Center for Worker Education.
Frankly, I don't know where to begin. Since becoming involved with Venezuela in or around 2002-2003: 
  1. Gregory Wilpert is yet to admit that he is married to a chavista official (Carol Delgado de Wilpert, Hugo Chavez's Consul in NY); 
  2. Gregory Wilpert is yet to admit that he edits a website created by a chavista official (Martin Sanchez, Hugo Chavez Consul in San Francisco, formerly in Chicago). 
  3. Gregory Wilpert is yet to admit that said website is funded with Venezuelan public money. 
  4. Gregory Wilpert is yet to admit that he acts as a propaganda agent for Hugo Chavez in US soil. 
  5. Gregory Wilpert is yet to admit that every single one of his opinions, with regards to Venezuela, is compromised by his marital and professional relations. 
However, Gregory Wilpert wants us to believe that he is not misleading, and that is not misrepresenting himself. Gregory Wilpert wrote to me once saying he was doing what he did "because he believed in it". At my repeated questioning of his true motives, he is a German-American after all, he kept mum about his personal and professional relations with the Chavez regime. That to me is indicative of utter intellectual dishonesty. Besides, I still fail to understand why is it so difficult for these bloody advocates of Chavez to admit their relations to their paymaster, lest of course to maintain a pretence of independence and individuality in order to lend credibility to their propaganda. Were HRW to receive a letter from a bunch of people that, having no official relation to Chavez, are protesting a report that exposes the gross human rights violations that take place in Venezuela, it would surely address it on its merits, as it has done. But that wasn't a letter written out of genuine concern, it was a concerted effort led by propaganda agents, such as Gregory Wilpert, similar to the many instances whereby "upset readers" would write letters to editors of media outlets to criticise coverage, when in fact it was a response to emails sent from the Venezuela Information Office to its "rapid action" team, instructing to do so.


These people are very vocal in their support, but they will deny to the death, unless evidence pops up, that they are in any manner related to Hugo Chavez's regime. This has been the case with Eva Golinger, Michael Shellenberger and his sidekick Ted Norhaus, Roy Carson, Eric Wingerter and all of the propagandists of the now defunct Venezuela Information Office, Ken Livingstone (until evidence emerged that he was working as a consultant for Hugo Chavez), Calvin Tucker, Mark Weisbrot, Joe Kennedy, Sean Penn (until he admitted that he traveled around in PDVSA planes), mind you, all of them deny having anything to do with Chavez, yet the evidence shows that they have all, in one way or another, benefitted from Venezuelan taxpayers money, be it plane rides, salaries, expenses-paid trips, hospitality, funds, donations, energy deals, publishing, publicity, etc.


Is it fear to demonstrate friendship, admiration, and support to a man that calls terrorist Carlos The Jackal a national hero? Is it fear to the maxim "guilty by association" or "tell me who your friends are..."? Do these people dread the conclusions that any rational individual would arrive at, upon discovering their fanaticism about a warmongering, militaristic dictator that supports and befriends terrorists and rogues, has run Venezuela to the ground, and takes his cues from one of the world's most brutal dictators?

25.11.09

Smartmatic a Dutch company?

News don't get anymore surreal than this: Mexico has just granted a $23 million contract to Smartmatic, which is now meant to be a Dutch company, to provide biometric technology needed to produce ID cards. To be frank, I am puzzled at the commercial ability of Antonio Mugica. He seems to share the 'business acumen' of Ricardo Fernandez Barrueco, mind individuals that only a decade ago couldn't afford a roll of toilet paper being awarded now contracts worth millions of dollars everywhere. For the Mexican contract comes after the Filipino one, where Smartmatic was awarded $150 million.

But what strikes as completely ignorant is how Mexican media are describing Smartmatic as a Dutch company, when it is public knowledge that the company decided to dispose of Sequoia, and obstruct a CFIUS investigation into its convoluted ownership structure, after its connections to the Venezuelan regime were exposed. To be certain, Smartmatic is as Dutch as Hugo Chavez. And to go a bit further, Smartmatic is yet to run the first truly transparent and problem-free election -only field in which the corporation does have a record.

24.11.09

Lula hugs Ahmadinejad, proves Olavo de Carvalho right

Just over a month ago I published a long interview to Brazilian journalist and intellectual, Olavo de Carvalho, about the Foro de Sao Paulo, and Lula's interference in other countries affairs, among other things. Lula's latest faux pas -apologists call it Brazil's coming of age in the international scenewas to be seen embracing Iran's dubiously-elected leader Ahmadinejad. But Lula went further, and took Brazil along with him, to join the hardly illustrious group of rogue nations that have supported Iran's nuclear ambitions, against world consensus: Syria, Cuba and Venezuela.

With this action Lula has proven Olavo's opinions right. Furthermore, by supporting such a deranged fundamentalist and Holocaust-denier, as he has done with Chavez and Zelaya, Lula is simply reaffirming that he has no regard whatsoever for democracy, human rights, and peace. Be it Venezuela, Honduras or Iran, victims of State-sponsored terrorism have very little to expect from the  Brazilian president, whose deeds speak louder than words. It's all very well to maintain a business-friendly facade, and dupe the media with Obama type "change we can believe in" jargon. However schmoozing liberals is one thing, supporting a regime bent on annihilating Israel quite another, as leftist but sane Governor of Sao Paulo Jose Serra said.

21.11.09

Cuba: violence unabated, Castros prove HRW and critics right


An inflamed mob of thugs, most probably members of Revolutionary Committees (Comites de Defensa de la Revolucion or CDR), attacked writer Reinaldo Escobar yesterday in Havana, Cuba. Reinaldo, who is Yoani Sanchez's husband, had publicly challenged, to a verbal duel, those who gave a beating to Yoani recently. But it wasn't the official security apparatus that dealt with a disarmed and harmless Reinaldo. No. This time they sent an enraged mob, to carry on a repudiation act (acto de repudio) against Reinaldo. The attack comes merely two days after Human Rights Watch published an extensive report on the brutality and systematic violation of human rights that takes place in Cuba, Fidel at the helm or not. To be certain, in order to repudiate something, or someone, one must have the capacity to think critically and independently. That's not the case of CDR members. They are just following orders, and that's that. For failure to show up upon being summoned to an "acto de repudio" is taken, literally, as demonstration of 'counter-revolutionary' behaviour, the consequences of which Reinaldo can tell us about.

So before actually forgiving their assaulters, a few words of gratitude to the Castros' dictatorship, from both Yoani and Reinaldo, should be in order. Firstly, for having proven, beyond the shadow of a doubt, that the attack on Yoani did happen, as related, and wasn't a flight of her imagination as argued by Castros' many apologists around the world. Secondly, for patently demonstrating that the Cuban dictatorship is absolutely deprived of arguments. For a man that challenges his wife's official attackers to a verbal duel, only to be dealt with more State-sanctioned violence, is testament that everything critics have said about that regime is, in fact, true.

Yoani said to me once that the Castro regime just didn't know how to deal with her. By repeatedly prohibiting Yoani to travel and upping violence against her,  the totalitarian thugs that run Cuba have demonstrated, time and again, a pathetic lack of imagination and creativity at dealing with a citizen, who's intelligent and brave enough to expose their turpitude and barbarism. Now Reinaldo has, forcefully, joined the fray, only to cause reactions that provide even more evidence that civilised debate, human, civil and political rights are simply non existent in Cuba.

With their actions, Reinaldo and Yoani have demonstrated, in a matter of days, the amorality of Fidel Castro, his regime and his legion of sycophants around the world. That would include the UN representatives of 187 nations, that voted recently against the embargo, while not daring to utter a peep about the atrocious human rights situation in Cuba. Their silence is deafening.

19.11.09

Venezuela: Chavez to change GDP measure methodology

Do readers remember the article by Andres Oppenheimer, in October 2005, where he exposed that Venezuela's Statistics Institute managed to decrease poverty levels, after President Hugo Chavez publicly blasted a report that showed a poverty increase of 11% since his ascent to power in 1999? The article was aptly entitled "¿Un milagro en Venezuela?" A true miracle indeed, for Chavez thinks he has the power to order poverty levels to decrease.

Now the Venezuelan caudillo wants to apply the same socialist formula to GDP measurement methodology, after the Central Bank published figures indicating that the country is, officially, in recession, with a GDP contraction of 4,5% in the last quarter. Here's an interesting bit of information, from Goldman Sachs' analyst Alberto Ramos:

The performance of real activity economy continues to deteriorate and the economy is developing growing symptoms of Dutch Disease (atrophy on non-commodity tradable sectors of the economy) and stagflation (inflation continues to accelerate despite the contraction of the economy during 2009). Real GDP declined a larger than expected 4.5% yoy during 3Q2009 (down from -2.4% yoy during 2Q2009); the market consensus was for a decline between -2.0% and -1.0%.. The very poor performance of real GDP during 3Q was driven the large 10.7% yoy decline in domestic demand. Private consumption declined -4.8% yoy during 3Q (from -2.6% yoy during 2Q), and investment spending retrenched a large -14.5% yoy (from -2.8% yoy during 2Q). Public consumption grew 2.6% yoy during 3Q. Private consumption spending continues to slow down as entrenched inflation (core inflation is running above 36% yoy) is eroding real disposable income and credit growth is decelerating fast while investment has been impaired by a business unfriendly policy mix.
Therefore expect a flurry of 'economic analyses' from Mark Weisbrot, and other such apologists, and, certainly, a blast of statements from Chavez and his top minions officials.

17.11.09

Venezuela’s corruption level equal to war-torn nations


The BBC carries today an interesting article about worldwide corruption levels, entitled “War-torn nations ‘most corrupt‘” Venezuela is not officially at war, yet, though Hugo Chavez seems keen on taking the country down that path. As far as corruption is concerned Venezuela, has achieved the distinction of being in the same league as Africa’s most backward nations.

But if one were to take murder rates, largely unpunished owing to a totally useless and careless State that profits from it, then Chavez-land is in a league of its own, not only among war-torn nations, but among any other type. After all, Caracas was defined as the capital murder of the world.