[News] Agee - Venezuela Part 2
Anti-Imperialist News
News at freedomarchives.org
Tue Sep 13 09:01:58 EDT 2005
How United States Intervention Against Venezuela Works, part 2 of 3
Use of a Private U.S. Corporate Structure to Disguise a Government Program
Thursday, Sep 08, 2005
http://www.venezuelanalysis.com/print.php?artno=1549
By: Philip Agee
Part 1: <http://www.venezuelanalysis.com/articles.php?artno=1548>How United
States Intervention Against Venezuela Works
Part 2 of 3
C. Venezuela: Some Examples of the Current U.S. Intervention Against the
Bolivarian Revolution
In Venezuela the administration of George W. Bush is intervening in the
political process with a combination of activities very similar to those
the U.S. carried out in Nicaragua in the 1980s, but without a terrorist war
on the scale of the Contras, andat least until mid-2005without an
economic embargo. These activities, with a 2005 budget approaching $10
million, masquerade as civic education, support for the electoral
process, and strengthening the democratic system. In reality, all these
programs, carried out almost silently, support the opposition against
President Chávez and his coalition.
The action agencies of this open support for democracy in Venezuela are
the State Department, the U.S. Agency for International Development (AID),
and the National Endowment for Democracy (NED) with its four associated
foundations. The largest amount of money, some $7 million in 2005, is
channeled by AIDs Office of Transition Initiatives (OTI) through a private
contractor, Development Alternatives Inc. (DAI), a consulting firm based in
Bethesda, Maryland, next to Washington D.C. Additionally the CIA, as
always, has its role in supplying secret funds and providing clandestine
support.
The web page of DAI describes the company, established in 1970, as having
250 employees at its headquarters and about 1500 others working in
international projects. It has carried out development projects in 150
countries, mostly in the Third World, to build fair and effective
government, strengthen local capacity to manage natural resources and
agriculture production, fuel the economic engines that power growth from
micro-finance to enterprise development, and leverage the impact of private
investment in emerging markets. Clients include the U.S. Agency for
International Development, the World Bank, bilateral development agencies,
global corporations, and host country governments. Its projects deal with
agriculture and natural resource management, banking and financial
services, crisis mitigation and recuperation, democracy and governance,
solutions for global businesses and mitigation of the effects of
AIDS. DAI, as we shall be see further on, is an ideal corporate structure
for inserting CIA officers and agents under commercial cover in foreign
countries.
In Washington there is no doubt a high level committee that directs the
operations with a name like the Venezuelan Inter-Agency Working Group. The
representative of the Department of State would normally chair the
committee, and its other members represent AID/OTI, the Pentagon, CIA, NED,
and other interested agencies. Among its various responsibilities, this
committee sets the budgets and decides what mechanisms will be used to
channel the funds. The committee also has to evaluate the effectiveness of
the operations and keep appropriate committees of Congress informed.
The Department of State closely controls the interventionist program in
Venezuela through the U.S. Embassy in Caracas where AID/OTI has an
office. The CIA, as a matter of course, also has an office in the Embassy
under diplomatic cover. Just as in Washington, there will be a
coordinating committee in the Embassy chaired by the Ambassador or the
Deputy Chief of Mission and whose members will include the chief of the
political section, OIT representatives, the CIA station chief, a
representative of the military attachés and perhaps others.
Also in Caracas, but apart from the Embassy and having legal status as
private foreign entities, there are offices of two of the foundations
associated with NED. The International Republican Institute has its office
in Altamira, Second Avenue, between Eighth and Ninth Transversals, Quinta
Retana, ground floor; and the National Democratic Institute (NDI) is at
Avenue Francisco de Miranda, Edificio Torre La Primera, 14th floor, Office
14B, Campo Alegre. Additionally Development Alternatives Inc. (DAI), the
consulting firm, has its office on Guaicaipuro Street, Hener Tower, 2nd
floor, office 2-B, El Rosal. Each of these three operations centers has
U.S.-citizen personnel selected in Washington plus Venezuelan employees
whose employment must receive prior approval in Washington.
The activities of these action agencies in Caracas---IRI, NDI and
DAI---take the form of individual project contracts with activities, cost,
dates of beginning and end, and some, as in the OTI-DAI contract, with
options for extensions. IRI and NDI project descriptions are submitted by
their Washington offices to the Department of State, AID/OTI, or NED for
approval and financing under a contract. The funds are then distributed to
the Caracas offices that pass the money to Venezuelan beneficiary
organizations under sub-contracts, each of which requires approval by the
headquarters of the agency where the funds originated.
The three action agencies with offices in Caracas also have to submit to
their Washington headquarters the résumés of leaders of proposed
beneficiary organizations, undoubtedly so that the CIA may do a background
security check on them, internally and with other security agencies, as
part of the approval process. Additionally, each contract requires that the
executing agency in Caracas submit progress reports every three or six
months plus special reports on important issues. On the whole, this system
of projects, approvals, contracts, and subcontracts are a concrete,
sophisticated mechanism totally controlled by the U.S. government. The
evidence is contained in the hundreds of official documents, including
contracts, obtained since 2003 through the Freedom of Information Act. A
great quantity of documents is published at
<http://www.venezuelafoia.info/>http://www.venezuelafoia.info. These
documents reveal that NED has been directly financing at least 17
Venezuelan non-governmental organizations apart from its financing of many
others through its four associated foundations.
The activities directed and financed by the U.S. have been and are very
diverse, but they all have as their objective the development and
strengthening of the political opposition both in political parties and in
NGOs such as the Venezuelan Workers Confederation (CTV). These include
workshops, seminars and conferences, training courses to develop political
parties, promotion of unity through party coalitions, campaigns to register
voters and to assure that the greatest number vote, establishment of a
parallel non-official list of voters, training of election observers to
detect fraud, close monitoring of the National Electoral Council (CNE) to
denounce irregularities, organizing parallel vote counts, rapid calculation
of results (quick counts) for possible announcement before they are
announced by the CNE. Apart from these specific objectives, the activities
are designed to attract medium and long-term new volunteers to the
electoral process but always in opposition to the Bolivarian
Revolution. The favored parties include Acción Democrática (social
democrats), COPEI (christian democrats), Movimiento al Socialism, Projecto
Venezuela and Primero Justicia.
Among the many beneficiaries of this intervention was the Coordinadora
Democrática,[1] with representatives from business, labor and political
parties, that fulfills a role quite similar to that of the Nicaraguan
Coordinadora Democrática during the 1980s. Another beneficiary is the
organization Súmate that emerged in 2003 at the end of the failed oil
strike to begin the campaign for the recall referendum. This organization
is very similar to Via Cívica in Nicaragua. Finally, the consulting firm
DAI functions just as the Delphi International Group functioned in
Nicaragua, financing the anti-Chavez propaganda campaign called Venezuela:
Initiative to Build Confidence (VICC).
To understand how US political interference functions in Venezuela, it is
well to examine five AID/OTI contracts with the three action agencies that
have offices in Caracas: DAI, IRI and NDI. The following pages analyze: 1)
the OTI contract with DAI set up following the failed coup of April 2002;
2) two contracts with IRI to intervene in the recall referendum of August
2004 and possible elections afterwards; and 3) two contracts with NDI also
to intervene in the referendum. The value of these five contracts in the
two years before the referendum was about US$12 million and the original
texts are published in English at
<http://www.venezuelafoia.info/>www.venezuelafoia.info under USAID Contracts.
1. OTI-DAI Contract to establish Venezuela: Initiative to Build Confidence
(VICC)
OTI/AID began operations in Venezuela as a key player in the U.S.
governments program after the failed coup of April 2002. Until then,
political intervention had been mainly in the hands of NED and its four
associated foundations with an annual cost of about $ 1 million. To run
operations on the ground, IRI had set up an office in Caracas in 2000
followed by NDI in 2001, offices that continue operating to this
day. These two institutes financed various organizations directed by those
who signed the Carmona Decree during the coup that abolished democratic
institutions, and they continued to support the coup plotters after it
failed. However, after the coup, there was an obvious decision taken in
Washington to multiply its efforts in Venezuela with much more money, but
now through OTI/AID and a contracted consulting firm, Development
Alternatives Inc. This firm would act as a branch of OTI/AID under the
guise of a private company.
In June 2002, OTI/AID started this new program in Venezuela by sending two
officials to the U.S. embassy in Caracas to supervise the program. The OTI
web page indicates that this office is in charge of interventions in crisis
areas where there is a transition from war to peace or transition from a
non-democratic government to a democratic system. Apparently, AID/OTI
considers Venezuela to be a country in transition towards democracy
despite the various free and fair elections since the first election of
President Chávez in 1998. The OTI budget in Venezuela for the first year
was $2.2 million, more than double the annual budget that NED then had for
Venezuela.
In August 2002, OTI contracted the consulting firm DAI to establish in
Venezuela programs intended to support democratic institutions and
processes
to ease societal tensions and maintain democratic balance, and
in October of that year DAI opened its office in Caracas.
The budget was USD$5.2 million for the first year and almost USD$4.9
million for the second year of operations. These were quantities much
greater than the annual budgets for NED and its foundations, which were
around $1-2 million. For each year the DAI budget included $3.5 million
for distribution in money or materials among the beneficiary Venezuelan
organizations and the rest was for fixed costs, salaries, transport
investments, communications, computers and other administrative costs plus
DAIs commission, the amount of which was censored in the contract released
under FOIA. As it happened, this program continued during the optional
second year, and the contract has been prolonged until September 2005. In
all probability, it will be extended again through the national elections
in late 2006.
According to the contract, the reasons why OTI decided to establish a
program in Venezuela were:
1) Political tensions have increased dramatically since April when
several protesters were killed outside the presidential palace (no
mention of the coup);
2) The U.S. has a strong interest in ensuring that (democracy) endures in
Venezuela;
3) Venezuelan institutions need support to restore democratic balance
and ensure the protection of human rights and the free expression of
ideas, including, at both at the national and local levels, by the media,
civil society, political parties and the government institutions.
The AID/OTI contract with DAI, dated 30 August 2002, consists of 49 pages
that detail the way in which DAI will have to work in Venezuela. In the
introduction, OTI describes itself as a rapid response force in the face of
social, economic, and political crises as in Kosovo, the Philippines,
Haiti, or Columbia. It describes its programs as fast, flexible,
innovative, tangible, targeted, catalytic, and overtly political. It
adds, OTI is often engaged in the most sensitive political issues of the
U.S. governments priority and high profile countries. Its money comes
from the U.S. International Disaster Assistance Fund, and its programs
normally last one or two years at the end of which OTI generally passes the
operations on to another AID department or they are closed down. The
contract makes it clear that OTI is the equivalent of an international
political fire brigade that is used by the government to bring under
control social and political upheavals that threaten U.S. interests
something similar to the militarys Special Forces.
The types of foreign organizations that OTI supports, according to the
contract, are a list that until the 1980s and the adoption of Project
Democracy, would have been the CIAs list for covert actions: local,
regional and national governments; private, voluntary organizations;
international organizations; indigenous groups; cooperatives, associations
and student groups; informal groups; media, private sector and coalitions
of these groups. Its activities include the promotion of reconciliation;
prevention and resolution of conflicts; promotion of independent media with
training in journalism; legal reform; de-mobilization and re-integration of
ex-combatants; promotion of national messages using television, radio and
the press; reactivating key non-governmental organizations with initial
funding; and promoting governance with electoral support and the
development of a strong civil society.
Specifically in Venezuela, the contract requires DAI to work with labor,
business, political organizations, government, and civil society to
strengthen democratic institutions and processes as well as media
institutions through journalistic training. Furthermore, DAI is required
to work with NGOs that seek to promote dialogue on an inclusive social and
political agenda for Venezuela and open avenues of dialogue currently
closed due to the polarization of the population. The contract stipulates
that the programs will be non-partisan and that no support will be given to
organizations that seek to alter the political order by unconstitutional
means. In fact all financing under this program has gone to the political
opposition, including some who signed the Carmona Decree that abolished
democratic institutions during the failed coup of April 2002.
According to the contract, an official at AID headquarters in Washington,
called the Cognizant Technical Officer (CTO) supervises each OTI program,
and his approval is necessary for every important decision. The CTO, named
in the contract as Russell Porter, works in close coordination with the
Department of State and directs the activities of the OTI staff assigned to
the embassy in Caracas who are designated OTI Field Representatives. These
officers supervise the day-to-day activities financed by OIT and executed
by the IRI, NDI, and DAI offices in Caracas.
According to the contract, DAI has full responsibility for executing the
program, including administrative, logistics, acquisitions, and financial
matters. DAI is required to establish the office, buy office equipment and
vehicles, recruit Venezuelan employees, establish communications and
accounting systems, develop and maintain a database with all the details of
their activities, develop a program to distribute funds via subcontracts
and monitor their effectiveness and impact. The system of disbursing funds
requires that DAI propose funding for NGOs and other Venezuelan
organizations to the Senior Field Representative of the OTI in the Embassy
who can authorize payments up to $100,000. Any proposal greater than that
has to be approved by the CTO at AID/OTIs Washington office.
The contract has several pages of details relating to the responsibilities
of DAI U.S.-citizen personnel both before and after they arrive in
Venezuela. It underlines the speed with which DAI has to organize
equipment and prepare itself to start the program, including preparation of
a list of contacts in Venezuela such as NGOs, government offices, and
international organizations. It is also noteworthy that the contract
demands that distribution of funds should begin as soon as possible after
the team arrives in Caracas. From these requirements it is obvious that
before going to Caracas the DAI team must have had a good understanding of
the previous NED activities and its four foundations so that they can to
begin work immediately in coordination with the IRI and NDI offices in Caracas.
DAI furthermore is required to rent space for offices and obtain furnished
accommodation for its personnel and any OTI personnel assigned to
Caracas. The selection of offices and residences has to comply with
Embassy security requirements and to have prior written approval from the
AID Regional Security Office. The contract states that the office should
be no lower the 3rd floor if it is in an office building. It must have
strong doors and iron bars on the windows if it is on a ground floor. It
must be set back from the street, with secure, well-lit parking spaces and
surrounded with walls or fences. Additionally the contract established
that DAI has to arrange necessary services such as landline telephones,
fax, internet connection, portable radios, radios in the vehicles, cell
phones, satellite telephones, GPS systems, and an in-house computer
network. It also requires that DAI prepare an evacuation plan for the
U.S.-citizen personnel and OTI officials, and it mentions the possibility
of firing personnel for security violations. On the whole these detailed
requirements bind DAI to quickly establish an operation of high security,
self-sufficient, and capable of leaving Venezuela from one minute to the next.
The most interesting aspect of this contract is the designation of the U.S.
personnel for the DAI Caracas office (5 people) plus one coordinator based
in Washington. These 6 people, referred to as Key Personnel, are named
in the contract by OTI, but only by last name and initial: J. McCarthy,
Chief of Party; H. Méndez, L., Blank and G. Díaz, Program Development
Officers; G. Fung, Financial Management Specialist; and J., Jutkowitz,
Local Program Manager in Washington. The contract does not state one word
about who these people are nor where they come from for this urgent and
quickly mounted operation. Obviously each one had to have extensive
knowledge about Venezuela, U.S. policy there, and fluency in Spanish in
order to carry out their duties from the moment they arrived. Under the
contract OTI reserves the right to substitute any one of the six. Thus
DAI, a private consulting company, cannot choose the project
personnel. One cannot dismiss the possibility that these 6 people are CIA
officers placed under commercial cover with DAI. Furthermore, for each
prospective Venezuelan employee, DAI has to submit his/her resume and other
information for approval by the CTO before hiring. It is obvious that with
this contract OTI is simply renting DAIs corporate structure for a wholly
governmental operation, while attempting to disguise it as a private sector
program. And in fact all the OTI requirements in the contract are tasks
that are to be carried out by personnel assigned by OTI, with DAI being
only a commercial cover.
As for the possibility that this OTI and DAI activity is really a CIA
operation, it is convenient to recall what I wrote in Inside the Company:
CIA Diary (1975) about the use of commercial cover for CIA officials in
foreign countries. From its beginnings in 1947, the CIA placed officers
overseas to manage operations under non-governmental cover in order to
separate very sensitive activities from the officers working in embassies
with diplomatic cover. Through the years various U.S. international
corporations cooperated by placing CIA officers in their overseas
operations. However, a CIA officer working in an embassy always had to
back up the non-official cover officer in many ways, and this
administrative task typically took up much, if not too much, time.
During the 1960s, an effort was made to establish small, self-sufficient
groups of officers under commercial cover with direct communications with
CIA headquarters in Langley, Virginia, outside Washington. The goal was to
reduce the demands for so much time from the officers working in the
embassies. That was the case in Mexico City where a group of three CIA
officers established an import business with the code name LILINK. Even
though the CIA officials inside the embassy directed this non-official
cover office, there were secure communications that reduced the need for
personal meetings and other support from the embassy. The DAI office in
Caracas fits perfectly in this pattern, both to give supposedly private and
commercial cover to CIA officers and to try to disconnect embassy officers
from such sensitive intervention in internal Venezuelan politics.
To sum up this contract, after the failed coup of April 2002, the
government of the United States widened its program of intervention in the
Venezuelan political process through the Agency for International
Development (AID) with budgets much greater than those of the National
Endowment for Democracy (NED) and its four associated foundations whose
programs with the opposition nevertheless continued. In August 2002
AID/OTI contracted the consulting firm Development Alternatives, Inc. (DAI)
to develop various programs to support the political opposition with annual
budgets of around $5 million. DAI then established an office in Caracas,
very possibly as a front for and with personnel from the CIA, while passing
as an ordinary subsidiary of a U.S. transnational corporation. In reality,
it is a key office of the U.S. embassy disguised as a private company.
At least 67 projects up to end of 2004 have been financed by the DAI
program called Venezuela: Initiative to Build Confidence. The first
projects started in the fall of 2002 were designed to support the lockout
and sabotage of the oil industry from December 2002 to February 2003. This
support included financing the TV ad campaign in favor of the strike. When
the strike failed, DAI focused its projects on the referendum of August
2004, and among its main beneficiaries was Súmate, the main NGO that
promoted the referendum against Chávez. Parallel to these activities DAI
has financed the development of the oppositions political program against
the Bolivarian Revolution known as Plan Consensus. Some of the
beneficiaries of this project were Queremos Elegir (We want to Choose) and
Liderazgo y Vision (Leadership and Vision). Now, since the victories of
President Chávez in the referendum and in the local and state elections of
October 2004, DAI is focusing on the national elections of 2005 and 2006.
At the end of 2004, OTI had active operations in 11 countries including
Venezuela, Iraq, Afghanistan, Democratic Republic of the Congo, Sudan,
Bolivia, and Haiti. It is noteworthy that on the OTI web page that has a
list of the countries where they have programs, all the countries have a
link to pages that describe the programs, except Venezuela which does not
have a link or a description of the program. As for DAI, at the end of
2004 it had programs in dozens of countries in Africa, Asia, Eastern
Europe, and Latin America. Apart from Venezuela, it had programs in
Bolivia, Colombia, Brazil, Ecuador, El Salvador, Haiti, Honduras, Jamaica,
and Mexico among others). These OTI and DAI programs certainly merit
review to see if they operate under the same conditions as in Venezuela,
that is, as possible fronts and covers for the CIA.
Translated from Spanish by Maria Victor
Next:
Part 3: <http://www.venezuelanalysis.com/articles.php?artno=1550>Analysis
of Four USAID Contracts with with Republican and Democratic Party
Foundations in
Venezuela<http://www.venezuelanalysis.com/articles.php?artno=1550>
[1] Editors note: the Coordinadora Democratica fell apart shortly after
the August 15, 2004 presidential recall referendum.
Original source / relevant link:
<http://www.rebelion.org/noticia.php?id=18132>Rebelión.org
The Freedom Archives
522 Valencia Street
San Francisco, CA 94110
(415) 863-9977
www.freedomarchives.org
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://freedomarchives.org/pipermail/news_freedomarchives.org/attachments/20050913/a7bdf80e/attachment.htm>
More information about the News
mailing list