The Citgo conspiracy: Opposition figures accuse Guaidó officials of ‘scam’ to liquidate Venezuela’s most prized international asset
Venezuela’s opposition has long accused the Bolivarian government of corruption and mismanagement. But with Citgo on the verge of liquidation, Guaidó’s officials are too incompetent — or too devious — to save it.
by Anya Parampil
Part 4 - Caught in yet another lie
Following the July 29 court ruling in favor of Crystallex, José Ignacio Hernández’s past relationship with the company finally surfaced in Venezuelan media.
On July 31, Venezuelan Attorney General Tarek William Saab announced a criminal investigation into Hernández, accusing the lawyer of “a conflict of interest that violates all judicial ethics” and “treason toward his fellow citizens.”
Hernández dismissed the allegations as “false” later that same day, telling TV Venezuela he had recused himself from the Crystallex case back in March.
On July 31, Venezuelan Attorney General Tarek William Saab announced a criminal investigation into Hernández, accusing the lawyer of “a conflict of interest that violates all judicial ethics” and “treason toward his fellow citizens.”
Hernández dismissed the allegations as “false” later that same day, telling TV Venezuela he had recused himself from the Crystallex case back in March.
Yet Crystallex was not the only corporation battling Venezuela’s government that had turned to Hernández for expert testimony. According to documents filed with the World Bank’s arbitration court, the US glassmaker Owens-Illinois also retained Hernández as an expert witness in its case against the Venezuelan government in 2013.
The World Bank ruled in favor of Owens-Illinois in May of 2015, determining Venezuela’s government owed it $371 million for the 2010 nationalization of two plants belonging to the Ohio-based company.
Like Crystallex, Owens-Illinois eventually set its sights on Citgo in order to collect the payment.
The World Bank ruled in favor of Owens-Illinois in May of 2015, determining Venezuela’s government owed it $371 million for the 2010 nationalization of two plants belonging to the Ohio-based company.
Like Crystallex, Owens-Illinois eventually set its sights on Citgo in order to collect the payment.
On February 11, 2019, Owens-Illinois filed a fresh lawsuit against Venezuela’s government, PDVSA, and its US-based subsidiaries. The crux of its complaint was familiar: while PDVSA Holding, Citgo Holding, and Citgo Petroleum were “nominally Delaware corporations,” in reality they were “alter egos, and mere instrumentalities of Venezuela itself”.
Two days later, Guaidó’s National Assembly announced appointments to the board of PDVSA and its three subsidiaries.
Like Crystallex, Owens-Illinois appeared to benefit from Hernández’s failure to ensure that Venezuela’s National Assembly followed proper procedure in its management of PDVSA and Citgo.
Hernández was asked about his testimony on behalf of Owens-Illinois in an interview with Hispano Post. “I was not a lawyer for the company, nor did I promote their interests,” he claimed.
Two days later, Guaidó’s National Assembly announced appointments to the board of PDVSA and its three subsidiaries.
Like Crystallex, Owens-Illinois appeared to benefit from Hernández’s failure to ensure that Venezuela’s National Assembly followed proper procedure in its management of PDVSA and Citgo.
Hernández was asked about his testimony on behalf of Owens-Illinois in an interview with Hispano Post. “I was not a lawyer for the company, nor did I promote their interests,” he claimed.
When Hispano Post pressed the lawyer about any payment he might have received from the company, Hernández rejected the suggestion as “absolutely false.” Owens-Illinois “made a payment, which was not for me, but for the law firm in which I was a partner at that time,” he insisted.
Yet public court documents revealed that Owens-Illinois made a $163,720 payment for the legal expertise it received from Hernández. The filing did not cite any law firm. Instead, it specifically named “José Ignacio Hernández” as the recipient of the money.
Yet public court documents revealed that Owens-Illinois made a $163,720 payment for the legal expertise it received from Hernández. The filing did not cite any law firm. Instead, it specifically named “José Ignacio Hernández” as the recipient of the money.
Hernández’s public statements regarding Owens-Illinois were not the only aspects of his story directly contradicted by official court documents.
“I never analyzed the alter ego thesis nor its merits,” Hernández told Hispano Post, regarding the nature of his Crystallex testimony. He claimed that his court declaration was limited to interpretations of Venezuelan law.
Yet Crystallex characterized his contribution to its case quite differently. In a March 2019 court filing, the company stated that “before assuming his current position, José Ignacio Hernández—Special Counsel to the Venezuelan National Assembly tasked with evaluating creditor claims against Venezuela—provided expert testimony supporting Crystallex’s alter ego arguments.”
“I never analyzed the alter ego thesis nor its merits,” Hernández told Hispano Post, regarding the nature of his Crystallex testimony. He claimed that his court declaration was limited to interpretations of Venezuelan law.
Yet Crystallex characterized his contribution to its case quite differently. In a March 2019 court filing, the company stated that “before assuming his current position, José Ignacio Hernández—Special Counsel to the Venezuelan National Assembly tasked with evaluating creditor claims against Venezuela—provided expert testimony supporting Crystallex’s alter ego arguments.”
Once again, Guaidó’s top prosecutor appeared to be caught in a lie.
Whether Hernández received any payment from Crystallex in exchange for his testimony remains unknown. However, the court documents offer support to those like Jorge Alejandro Rodríguez, who have described Hernández’s actions as a “conflict of reputation.”
“As a lawyer he made statements that were in favor of Crytallex’s position, so as a lawyer, he cannot change his mind,” Rodríguez explained to The Grayzone.
How could Hernández claim to represent the legal interests of the Venezuelan government if he had previously aided its sworn enemies in court?
Whether Hernández received any payment from Crystallex in exchange for his testimony remains unknown. However, the court documents offer support to those like Jorge Alejandro Rodríguez, who have described Hernández’s actions as a “conflict of reputation.”
“As a lawyer he made statements that were in favor of Crytallex’s position, so as a lawyer, he cannot change his mind,” Rodríguez explained to The Grayzone.
How could Hernández claim to represent the legal interests of the Venezuelan government if he had previously aided its sworn enemies in court?
When Rodríguez took that question to Venezuela’s National Assembly, lawmakers confirmed they had not been made aware of Hernández’s questionable relationships during the lawyer’s rushed confirmation hearings earlier this year.
In fact, according to Hernández’s own account, he only disclosed the compromising information to one person. In an interview with Hispano Post on August 9, Hernández said that he had revealed his relationship with Crystallex to one member of Guaidó’s shadow administration several months prior.
In fact, according to Hernández’s own account, he only disclosed the compromising information to one person. In an interview with Hispano Post on August 9, Hernández said that he had revealed his relationship with Crystallex to one member of Guaidó’s shadow administration several months prior.
“When my name started to float as general prosecutor, I spoke with Ambassador Carlos Vecchio,” Hernández maintained, “and I prepared him a memo in which I informed him that until December 2018, I was a partner at a law firm, then I quit and told him of the cases which I knew of, and that I had been an independent witness in cases that were problematic, like that of Crystallex.”
As news of Hernández’s “problematic” dealings publicly surfaced, Vecchio – the ExxonMobil lawyer-turned-Venezuelan opposition leader – suddenly emerged as one of his most prominent defenders.
As news of Hernández’s “problematic” dealings publicly surfaced, Vecchio – the ExxonMobil lawyer-turned-Venezuelan opposition leader – suddenly emerged as one of his most prominent defenders.
Source, links:
https://thegrayzone.com/2019/09/03/the-citgo-conspiracy-opposition-figures-accuse-guaido-officials-of-scam-to-liquidate-venezuelas-most-prized-international-asset/
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