Washington channelled funds to groups that opposed Chavez

The New York Times via SMH ^ | April 26 2002 | Christopher Marquis in Washington

[dead]

In the past year the United States channelled hundreds of thousands of dollars to bodies opposed to the Venezuelan President, Hugo Chavez, including the labour group whose protests led to his brief removal this month.

The funds were provided by the National Endowment for Democracy, a non-profit agency created and financed by Congress. As conditions deteriorated in Venezuela and Mr Chavez clashed with various business, union and media groups, the endowment quadrupled its budget for the country to more than $US877,000 ($1.6million).

While the endowment's expressed goal is to promote democracy around the world, the US State Department's human rights bureau is examining whether any recipients of the money plotted against Mr Chavez. The bureau has put a $US1million grant to the endowment on hold pending that review, an official said.

A State Department spokesman, Philip Reeker, said he was unaware of the proposed grant.

Of particular concern is $US154,377 given by the endowment to the American Centre for International Labour Solidarity, the international arm of the AFL-CIO, the US union umbrella body, to help the main Venezuelan trade union advance labour rights.

The Venezuelan union, the Confederation of Venezuelan Workers, led the work stoppages that galvanised the opposition to Mr Chavez. The union's leader, Carlos Ortega, worked closely with Pedro Carmona Estanga, the businessman who briefly took over from Mr Chavez, in challenging the Government.

The endowment also provided significant resources to the foreign-policy wings of the Republican and Democratic parties for work in Venezuela, which sponsored trips to Washington by critics of Mr Chavez.

The National Democratic Institute for International Affairs was given a $US210,500 grant to promote the accountability of local government. The International Republican Institute, which has an office in Venezuela, received a $US339,998 grant for political party building. Two weeks ago, the day of the takeover, the group hailed Mr Chavez's removal.

"The Venezuelan people rose up to defend democracy in their country," the institute's president, George Folsom, said. "Venezuelans were provoked into action as a result of systematic repression by the government of Hugo Chavez."

The statement drew a sharp rebuke from the endowment president, Carl Gershman, for the openly political stance, which he said would undercut the institute's work in Venezuela.

The institute has close ties to the Bush Administration, which also embraced the short-lived takeover; Lorne Craner, the assistant secretary of state for democracy, human rights and labour, is a former president of the organisation.

The Bush Administration, which has made no secret of its disdain for Mr Chavez - and his relations with countries such as Cuba and Iraq - has turned to the endowment to help the opposition to Mr Chavez.

With an annual budget of $US33million, the endowment disburses hundreds of grants each year to pro-democracy groups from Africa to Asia. Advocates say the agency's independent status enables the US to support democracy where government aid might be cumbersome or unwelcome.

But critics say recipients of endowment aid do not have the same accountability that government programs require, which opens the door for rogue activities and freelancing. They say endowment funds were used to sway the outcomes of votes in Chile in Nicaragua in the late 1980s.

[Cincinatus' Wife]

LINKED to timeline of Chavez - union conflict the last 6 months: Venezuela labor leader warns of potential civil war, disarm supporters, change Cabinet*** Ortega said Chavez should disarm the militant support groups known as "Bolivarian Circles." The president's critics say those are potential paramilitary groups and some of their members were filmed shooting at demonstrators on April 11. "These armed groups are the big question," Ortega said, "because with them present, there is no guarantee of safety for any of us."

Ortega won one of the few political victories over the president by defeating Chavez-backed rivals in a union vote last year. Chavez then refused to recognize the union leaders, who were also upset by several laws he enacted by decree. Ortega on Saturday welcomed Chavez's appointment of Ali Rodriguez, secretary-general of OPEC, as the new head of Venezuela's state oil monopoly. "He has been capable of good work ... we have had a relationship with him in the past," Ortega said. He demanded that the company's yet-to-be-named board of directors be "broad" and include civic leaders. Chavez sparked a crisis in the company, known as PDVSA, by attempting to pack the previous board with supporters and political appointees.

Ortega confirmed that during a recent labor trip to the United States, the subject of dissatisfaction with Chavez came up, but he said U.S. officials said they would not back a coup. "The State Department said they wouldn't support any kind of coup, and that any change that occurred in the country had to come from a democratic viewpoint," Ortega said. He pledged to lead his unions in a traditional May 1 march, but said it would not become the kind of political demonstration held on April 11.***

Hugo Chavez - Venezuela

[Cincinatus' Wife]

Jorge Torotoza, Venezuelan photographer for the daily newspaper 2001, lies fatally injured after being shot during clashes in Caracas April 11, 2002. Venezuelan President Hugo Chavez resigned April 12, 2002, the country's armed forces chief said, after clashes between supporters and opposition left at least 10 dead and 80 injured. REUTERS/Franklin Suarez

Jorge Tortoza is seen in a hospital after being shot during clashes between supporters of President Hugo Chavez and the opposition in Caracas, Venezuela, Thursday, April 11, 2002. Tortoza, a 45-year-old photographer with Diario 2001 newspaper, was shot in the face by a man in civilian clothing while he was covering the protest, said reporter Angel Arraez. Tortoza was listed in critical condition. (AP Photo/Fernando Llano) - Apr 11 10:14 PM ET

Venezuelan journalists march against the killing of a local photographer, Jorge Tortoza, during protests that lead to a failed coup against President Hugo Chavez, in Caracas April 25, 2002. A close ally of Chavez has urged him to replace key members of his cabinet to defuse political tensions with opponents after the coup that briefly deposed the left-wing leader this month. REUTERS/Howard Yanes

[ThreeOfSeven]

The funds were provided by the National Endowment for Democracy, a non-profit agency created and financed by Congress.

In the interest of honest government, it should be renamed the National Endowment to Overthrow Democracy and Install Client Regimes.