Venezuela: who is Alex Saab
Alex Nain Saab Moran, a Venezuelan businessman, is known for his significant role in facilitating transactions for the Maduro regime, particularly in circumventing U.S. sanctions.
Designated by the U.S. government, Saab has been implicated in various schemes, including the controversial “oil-for-food” program that ultimately delivered food to Venezuela, albeit at inflated prices.
Saab emerged as a key figure in the logistics and supply chain for the Local Supply and Production Committees (CLAP) program, which was established to provide food and basic goods to Venezuelans amid ongoing economic turmoil. His connections with entities like Petróleos de Venezuela Sociedad Anónima (PDVSA) and various Mexican firms have raised serious questions about the quality and delivery of products, often involving low-quality food supplies.
Since at least 2019, the illegitimate Maduro regime and PDVSA have collaborated with Saab and Leal to circumvent these sanctions and facilitate the sale of crude oil from Venezuela. One of their recent tactics involved presenting a so-called “oil-for-food” program that ultimately delivered food to Venezuela. Although food was provided, it was heavily overpriced, particularly for the CLAP program food bags, which was part of a scheme to launder millions of dollars.
Saab and Leal, in conjunction with Mexico-based firms Libre Abordo and Schlager Business Group, managed the resale of over 30 million barrels of crude oil on behalf of PDVSA, accounting for about 40% of the company’s oil exports in April 2020. Despite claims from Libre Abordo and Schlager Business Group that they had contracts with the Venezuelan government to supply corn and water tanker trucks, they failed to deliver the promised corn and sent only around 500 water trucks (half of what was contracted) at significantly inflated prices. This discrepancy does not align with the volume of PDVSA crude oil lifted and resold by these companies, valued at over $300 million.
Libre Abordo, along with its affiliated company Schlager Business Group, which chartered three of the stranded shipments according to PDVSA documentation, has chosen not to comment.
Recently, both companies and their owners were blacklisted by the U.S. Treasury Department for engaging in Venezuelan oil trading through an arrangement they referred to as an oil-for-food agreement.
Illusions of Accountability: The Case of Alex Saab’s Associates
In a feeble attempt to hold accountable those involved in the multi-million dollar scheme supplying low-quality products to Venezuela’s CLAP boxes, Mexican authorities imposed laughable fines and briefly froze accounts back in 2018. They claimed to have sanctioned the Mexican companies participating in this operation, which included suppliers of nutritionally deficient milk powder. However, with the recent arrest of Saab—who orchestrated these operations—in Cape Verde, the inadequacies of what was purported to be a thorough investigation are coming to light. Ultimately, the penalties handed down were inconsequential and failed to provide any real restitution.
The implications of Saab’s arrest resonate across several nations, particularly in Venezuela, where he has conducted business for nearly a decade, and in Colombia, his birthplace, where political ties and a pending trial have reignited scrutiny. Since 2016, Mexico has played a pivotal role in the food supply scheme for the Local Supply and Production Committees (CLAP) program initiated by Nicolás Maduro’s government.
While Mexican authorities began investigating Saab and his partner Alvaro Pulido Vargas in 2018, the probe was largely stifled during the final months of Enrique Peña Nieto’s presidency.
Despite initial allegations against the Colombian businessmen, the inquiry quickly devolved into bureaucratic indifference.
Now, following Saab’s arrest, the investigation’s shortcomings are more apparent than ever, revealing that it not only failed to hold Saab and Pulido accountable but also absolved the Mexican suppliers of responsibility for exporting subpar products to Venezuela.
The behind-the-scenes narrative is filled with neglect, as both Mexican and Venezuelan officials were reportedly aware of the poor quality of the goods for months yet took no action to halt the dubious trade, effectively allowing those responsible to escape punishment. In October 2018, Mexico’s Attorney General’s Office, represented by Deputy Attorney General Israel Lira, revealed that food exports to Venezuela were conducted through a “fraudulent scheme” involving “unusual operations” and overpriced, low-quality products. Lira specifically pointed to Group Grand Limited, the Hong Kong-based shell company controlled by Saab and Pulido, and its Mexican counterpart, which was run by associates of the Colombian duo.
Despite the severity of these allegations, the Mexican authorities’ response was minimal, including a temporary freeze of bank accounts and the suggestion of a “reparatory agreement” with the implicated parties for compensation. Lira announced that the accused would donate approximately $3 million to the United Nations High Commissioner for Refugees (UNHCR) to support their operations in Latin America and the Caribbean.
The questionable nature of this “reparatory agreement” has raised eyebrows, especially considering the vast sums involved in the operation. Santiago Nieto, head of Mexico’s Financial Intelligence Unit (FIU), has criticized the agreement as “unusual,” noting that it allowed the accused to settle for a fraction of the damages—despite a $156 million irregularity—while the funds were directed to UNHCR instead of the federal treasury, as legally mandated.
Evidence of wrongdoing had been accumulating well before the Attorney General’s announcement in October 2018. Reports had already highlighted the involvement of Saab and Pulido in Group Grand Limited and the low nutritional quality of the milk powder shipped in CLAP boxes, as confirmed by laboratory analyses in Venezuela.
The investigation into these irregularities began in June 2018, when the FIU filed complaints with the Attorney General’s Office and the Ministry of Public Administration, identifying several Mexican companies involved in the scheme.
In total, the fines imposed were:
– El Sardinero – Charged and fined $750,000.
– Deshidratados Alimenticios e Industriales (DAI) – Fined as part of a reparatory agreement.
– Empresas Bonobox – Fined $110,000 in a reparatory agreement.
– Jaifar Comercial – Fined as part of the reparatory agreement.
– Grupo Brandon – Fined and linked to the shipment of low-quality milk powder.
– Rice & Beans – Charged $220,000 for products supplied to Mulberry Proje Yatirim.
– Productos Serel – Fined $120,000 for supplying low-quality products.
– Kosmos Group – Linked to the supply of products included in the CLAP program.
In total, $3 million was imposed from multiple companies, including El Sardinero and Rice & Beans, paid to UNHCR. Additionally, $120,000 was charged from Kosmos Group, $700,000 from Almacenes Vaca, and $110,000 from JaifarComercial, Delmar Logística, and Empresas Bonobox.
The total amount from reparatory agreements was a mere fraction of the estimated $156 million in irregularities associated with the scheme.
In the wake of Saab’s arrest, it has become clear that the agreements struck with these companies were insufficient and indicative of a system that allowed them to evade meaningful accountability. As the investigation into Saab’s dealings resumes with renewed vigor, the potential for real accountability remains uncertain. The saga underscores not only the weaknesses inherent in the initial investigations but also the complicity that may linger within the layers of bureaucracy in both Mexico and Venezuela.
In conclusion, the narrative surrounding Alex Saab and his associates highlights a broader issue of accountability in the face of systemic corruption and international sanctions.
The interplay between politics, business, and law enforcement illustrates a complex web that complicates efforts to address wrongdoing, especially in cases involving influential figures and intricate networks. As investigations continue, the hope remains that genuine accountability will be pursued to ensure that those affected by these schemes receive the necessary justice. For the Trump administration, Saab is likely to be a problem since his exchange by the Biden administration after having been tried and convicted in the U.S. comes with a full presidential pardon. Saab is possibly the single Venezuelan cabinet member who is not under U.S. sanctions for criminal warrants. Colombian President Gustavo Petro has expressed his opinion over who Saab really is and has referred to Saab as a modern-day delinquent and narcotrafficker businessman.
Credits: Information sourced from various media outlets including Armando.Info, Excelsior, and the U.S. Treasury Department.
Por,
William Acosta, NYPD (Ret)
Jesus Daniel Romero, USN (Ret)
