Category Archives: government fraud spending collusion

College Education is in a Tailspin, Foreign Made?

Posted on by

November of 2016, this site published a related article: Foreign Spies on our College Campuses

***

Retired Col. Larry Sellin, PhD wrote in part under the title “Replace and Repeal Universities“:

Academic political intolerance or Totalitarianism 101 is both deliberate and as old as the Russian Revolution.

It is based on an essay “Repressive Tolerance” written in 1965 by Herbert Marcuse, an adherent of the Soviet-controlled Frankfurt School, which was the cultural arm of the Communist International founded to undermine western Judeo-Christian democracy from within.

Fred Bauer, in his article “The Left and ‘Discriminating Tolerance,'” captures Marcuse’s inverted logic and identifies the origin of the political intolerance presently practiced at U.S. academic institutions:

“Marcuse argued that, because of the radical repressiveness of Western society, a tolerance for all viewpoints actually contributed to social oppression. A pervasive network of assumptions and biases implicitly privileges the viewpoint of the powerful, so that seemingly ‘equal’ presentations of opposite opinions actually end up benefiting the viewpoint of the powerful. He offered the example of a magazine running a piece criticizing the FBI along with one praising the FBI. Fair and balanced? Not so fast, Marcuse said: ‘the chances are that the positive [story] wins because the image of [the FBI] is deeply engraved in the mind of the people.’ Because of social programming, the inhabitants of a given society automatically favor certain values. The ideological playing field’s lack of levelness means that seemingly equal presentations of ideas are not really equal.” Full article here.

*** Yes this is proven and bad enough, but there is more.

On April 13-15, the King Fahd Center for Middle East Studies at the University of Arkansas held a symposium on so-called “honor violence,” as exemplified by honor killings, forced marriage, and other such delightful acts.

The Center, as its website informs us, “was founded with a $20 million endowment from the Saudi government in the mid-1990s.  An initial endowment of $2 million, dedicated toward language, literary translation and publication was followed by a much larger $18 million gift designed to spark the foundation of a comprehensive Middle East Studies program at the undergraduate and graduate levels.” Read more here.

Okay, then we have this one:

The FBI raided the school 4…..FOUR years ago!

In an exclusive investigation, Fox News reports:

Based just four miles from the Pentagon in northern Virginia is an innocuous-sounding online school for “management and technology” – which a Fox News investigation reveals has been at the center of multiple federal probes about its leadership’s alleged ties to the Chinese military and whether thousands of records from U.S. service members were compromised.

The University of Management and Technology in Rosslyn, Va., which opened in 1998, touts a campus in Beijing and “partnerships” with universities around the world. The U.S. taxpayer-funded school claims to have had 5,000 graduates in the last five years and to be “especially proud of our students stationed in US military bases around the globe.”

However, there is another side to the school’s leadership that drew the attention of the FBI, the Justice Department, the Pentagon, Immigration and Customs Enforcement, and the Naval Criminal Investigative Service (NCIS) since at least 2012 — and perhaps as early as 2009.

In December 2012, the FBI made two very public raids of UMT and the northern Virginia home of university president Yanping Chen Frame and its academic dean, her husband J. Davidson Frame. Documents reviewed by Fox News show it was a counter-intelligence case, known as a “200d,” one of the most highly sensitive categories for a federal probe.

Photos, exclusively obtained by Fox News, appear to show Chen as a young officer in the People’s Liberation Army, the military wing of China’s communist party. Another photo shows Frame saluting his wife, Chen, who is holding a uniform. Three independent experts said it was a Chinese military colonel’s uniform.

Yet since those FBI raids, UMT has continued to collect more than $6 million from Defense Department tuition assistance programs as well as the Department of Veterans Affairs through the post-9/11 GI bill.

“It’s a bad deal for the soldiers, and it’s a bad deal for the taxpayer,” Stephen Rhoads, a military veteran turned whistleblower who says he worked with the FBI on the case, told Fox News in an exclusive interview. “Nobody’s getting what they paid for.”

Rhoads said he worked at UMT recruiting vets when the FBI approached him in 2012 regarding the federal investigation. Emails and other documents reviewed by Fox News corroborate key elements of Rhoads’ story.

“One of the first sentences she [Chen] ever threw out — after she found out I was an Army officer, was, ‘Well … I was a colonel in the army,’” Rhoads explained. “During our first face-to-face encounter, absolutely … she did not deny it.”

Rhoads said he thought Chen meant the U.S. Army, and asked whether she trained in Texas. “She laughed and said, ‘Oh, no, I was in the Chinese army, you know.’”

Chen, 64, came to the United States in 1987 from Beijing on a non-immigrant visa with her daughter Lele Wang. The Chinese government funded Chen’s research at George Washington University where she received a Ph.D. in Public Policy in 1999, the year after UMT was created.

While Rhoads says Chen was upfront about her Chinese military experience, he claimed she hid those ties on immigration applications. Fox News reviewed Chen’s immigration records where she consistently denied ties to the Chinese or any foreign military. When asked, “Have you ever been a member of, or in any way affiliated with, the communist party or any other totalitarian regime?” Chen checked “no.” She would later become a naturalized U.S. citizen.

While there are no U.S. laws preventing a naturalized citizen from running a school like UMT, the Fox News investigation found that Chen’s ties to the Chinese military appear to run deep.

Three outside experts consulted by Fox News confirmed the authenticity of the Chinese uniforms in the photos of Chen and Frame.

“If somebody was wearing that uniform, I would say that there’s a very great likelihood that they were in the People’s Liberation Army,” Dennis Blasko, a leading Chinese military expert said, referring to the photo of what appears to be Chen in uniform.

Asked about the photo of Frame saluting his wife, Blasko observed, “This is a P.L.A. officer’s uniform — active duty — from between 1987 and 2007 … And from the epaulettes, we can see this — three stars and two red stripes would be a full colonel.”

Blasko emphasized that P.L.A. insignia can only be purchased with the permission of the Chinese military, and “you would have to have a certificate from your unit to buy [it.]”

Blasko, a West Point graduate who worked as a military attache in China, wrote “The Chinese Army Today: Tradition and Transformation for the 21st Century,” one of the definitive books about the Chinese military.

In her George Washington University dissertation, Chen thanks her father, a P.L.A. general, who directed arms and technology development. “My father, General Chen Bin, gave me the inspiration to pursue this area of study,” Chen wrote. “As former Chairman of COSTIND (1982-87), he was an important player in supporting and directing the (Chinese) space program.”

In her 2012 FBI interview, Chen denied she ever was a colonel in the P.L.A., emphasizing she had worked as a doctor in the Chinese space program. Chen said it was a “civilian agency.” The interview summary suggests federal agents challenged Chen’s characterization. Outside experts told Fox News the Chinese civilian and military space programs are intertwined.

While Chen’s immigration application is more than a decade old, and past the five-year statute of limitations, there may be a “continuation” of fraud, according to Ray Fournier who worked with the State Department’s office of diplomatic security for more than 20 years. Fournier, an expert on visa and passport fraud, worked for the Joint Terrorism Task Force in San Diego, where his investigative work led to an arrest warrant for the American-born cleric Anwar Awlaki, who was later killed by the CIA.

Fournier said, “If she has marked ‘no’ on the petition, but if in fact, the answer is yes … then we have a false statement. And where that comes into play, most assuredly, is in the arena of passport fraud. It is this application.” With each renewal of Chen’s U.S. passport, Fournier said, investigators should determine whether the falsehood was repeated. “These are issues of inadmissibility,” he said.

While going through the immigration process, Chen was also launching what would become a multi-million-dollar online academy. But that academy’s work would eventually attract the attention of federal investigators, who questioned whether students’ records were remotely accessed from China.

Before the 2012 raid, Chen’s daughter Lele Wang who also works at UMT, told the FBI that “‘Contractors’ in the UMT Beijing Office have [administrator] privileges” to access the student database.

Rhoads said UMT recruited service members who provided their military history when they enrolled. “It got uploaded into an O-drive, they called it … their personal military bio, you know, where they were trained, how they were trained, how long, that could be remotely accessed.”

Rhoads said Chen had a particular interest in Ohio’s Wright-Patterson Air Force Base, which is a research and technology hub.

And there was more. “She wanted me to go out to these remote reserve and National Guard centers, you know … in small-town America and start gettin’ U.S. soldiers from those centers. Get their information, basically. Who’s out there in the woods? How many units we got?”

Rhoads recalled to Fox News that he was instructed by the FBI to tell Chen that he was going to testify before a Virginia grand jury. “They wanted to, I guess see how … she would react.”

At the time, Rhoads said Chen had no idea he was working with the bureau.

He said, “Well, at this point, she didn’t know I was working for them at all. And she’s like, ‘Oh, you don’t tell them anything. We don’t know each other. You don’t … know what you don’t know,’ was her buzz phrase. ‘You don’t — you don’t know I was a colonel in the P.L.A. They’ll never have proof to say that’.”

Emails obtained by Fox News show Rhoads and at least one FBI agent alerted the Defense Department, but another Memorandum of Understanding (MOU) was signed in 2014 through 2019 allowing UMT to collect millions in federal taxpayer aid.

An FBI agent in one email exchange wrote, “I let my management and the AUSAs [assistant U.S. attorneys] know about her renewal with DoD. Incredible.”

Asked about the renewal, as well as whether DoD personnel were warned and additional steps were taken to vet UMT, the DoD chief for Voluntary Education Assistance, Dawn Bilodeau, referred questions to Pentagon spokesperson Laura Ochoa. In an email, Ochoa said, “In light of reports regarding University of Management and Technology (UMT), the Department is reviewing the DoD MOU signed between the institution and the DoD for compliance.”

No one has been charged with any crime in connection with the investigation. Sources told Fox News that Assistant U.S. Attorney for the Eastern District of Virginia James P. Gilllis got the case, but there was a disagreement with the FBI over how to proceed, based on the case law and the extent to which sources and methods would be revealed.

Neither the FBI nor a spokesman for Gillis would comment to Fox News but separately, a spokesman for NCIS said they cannot comment on an “ongoing investigation.” A FOIA request filed by Fox News Senior Executive Producer Pamela Browne confirmed an NCIS investigative file for UMT.

Fox News made repeated requests by phone and via email for interviews with Yanping Chen and J. Davidson Frame. After Chen’s daughter said they were too busy to prepare and traveling out of town, Fox News went to their offices in Rosslyn, Va.

A school representative, who would not identify himself, confirmed Chen and Frame were in the office that day, but after learning Fox News was at the front desk, the couple refused to come out. Fox News’ questions covered how UMT was run, Chen’s suspected military ties, whether service members’ records are secure, and how millions in taxpayer dollars are spent.

Fox News also sent a series of questions to the Chinese embassy in Washington, D.C., but there was no immediate response.

According to UMT, nearly 20,000 students have studied there, while 10,710 have earned degrees.

 

 

 

 

DHS’s Office for Community Partnerships, Stonewalling

Posted on by
Release Date:
September 28, 2015  <– Note Jeh Johnson created this department

DHS: Violent extremism – that which is inspired by foreign terrorist groups and that which is rooted in a range of domestic-based radical ideologies – pose a persistent and unpredictable threat to our homeland. Countering violent extremism has become a key focus of DHS’s work to secure the homeland. Last year I appointed a Department-wide coordinator for our efforts to counter violent extremism. As Secretary of Homeland Security, I am also personally committed to this mission, having traveled to Boston, Chicago, Columbus, Houston, Los Angeles, Minneapolis, New York City, northern Virginia and suburban Maryland to meet with community leaders as part of this effort. We heard many strongly-held views, generated conversations, and built some bridges.

It is now time to take our efforts to the next level.

Today I announce the creation of the DHS Office for Community Partnerships. This Office will be dedicated to the mission of countering violent extremism, but its ultimate mission is as its name suggests – community partnerships. My charge to this Office, to be set forth in a more detailed plan, is to continue to build relationships and promote trust, and, in addition, find innovative ways to support communities that seek to discourage violent extremism and undercut terrorist narratives. More here.

Problem? Either DHS was told to hide documents, not cooperate, there is collusion or the Obama White House applied executive privilege to the documents.

Just before Jeh Johnson left as Secretary of DHS:

For Immediate Release
Office of the Press Secretary
Contact: 202-282-8010

In 2016, Congress answered our call for federal grants, awarded and administered by the Department of Homeland Security, to support local efforts to counter violent extremism. Today, I am pleased to announce the first round of awards of these grants.

A total of 31 proposals, from various organizations in multiple communities, have been accepted to receive some part of the $10 million appropriated by Congress last year. The funding will go for activities that include intervention, developing resilience, challenging the narrative, and building capacity. The organizations approved for grants include local governments, universities, and non-profit organizations, in locations across the country such as Boston, Minneapolis, Los Angeles, Detroit, Nebraska, Houston, Illinois, New Jersey, Texas and New York City. Among the awardees are organizations devoted specifically to countering ISIL’s recruitment efforts in our homeland, and Life After Hate, an organization devoted to the rehabilitation of former neo-Nazis and other domestic extremists in this country. More here.

The lawsuit is found here.

Background:

Philadelphia – May 1, 2017 – The Middle East Forum has filed a lawsuit against the Department of Homeland Security (DHS) to secure the release of documents related to the Obama administration’s Countering Violent Extremism (CVE) grant program.

The grant program, which began last year, is intended to assist “efforts at the community level to counter violent extremist recruitment and radicalization to violence,” but MEF was concerned about U.S. Islamist groups – themselves radicals – receiving CVE funds. Indeed, grant recipients have included the Muslim Public Affairs Council (MPAC), an organization with ties to the Muslim Brotherhood and a long history of sanitizing Islamist terrorism.

On January 10, MEF filed a detailed Freedom of Information Act (FOIA) request with DHS seeking documents about the selection criteria and specific decisions in awarding CVE grants. The request indicated that the documents are mostly located at the DHS Office for Community Partnerships (OCP), headed by George Selim.

Having failed to receive even a response to its request within the 20-day period mandated by law, MEF contacted DHS. Finally, on March 23, DHS FOIA officer Ebony Livingston informed us that the request had been routed to the Federal Emergency Management System (FEMA), which found no pertinent records.

On April 26, MEF filed a lawsuit alleging that DHS violated the law by not only failing to produce the documents, but failing even to conduct a search for the documents.

The complaint, prepared by attorney Matt Hardin, a specialist in FOIA litigation, seeks injunctive relief compelling DHS “to search for and produce all records in its possession responsive to plaintiff’s FOIA request.”

“We filed a detailed FOIA request, specifying the documents we were looking for and where they likely were,” said MEF Director Gregg Roman. “DHS not only failed to produce the documents, it failed even to conduct a search and closed our case without bothering to tell us. This is not just unacceptable but illegal.”

The case has been assigned to Judge Royce C. Lamberth of the United States District Court for the District of Columbia. It bears noting that Judge Lamberth previously handled FOIA litigation concerning former Secretary of State Hillary Clinton’s emails.

“The CVE program should be canceled altogether,” said Sam Westrop, director of MEF’s Islamist Watch project. “And guidelines should be put in place to make sure that extremist groups like MPAC never receive taxpayer money to counter extremism.”

Rep. Steny Hoyer, Million Dollar Porker

Posted on by

CAGW Names Rep. Steny Hoyer April 2017 Porker of the Month  

Citizens Against Government Waste (CAGW) named House Minority Whip Steny Hoyer (D-Md.) its April 2017 Porker of the Month for his ridiculous attack on the most pro-taxpayer budget proposal in decades.

On March 16, 2017, President Donald Trump released his first budget proposal, which recommends the elimination of dozens of wasteful, duplicative, and failing federal programs that CAGW has long felt should be jettisoned.

The same day, Rep. Steny Hoyer appeared on CNBC and uncorked a hefty load of hyperbole and a number of questionable claims about the budget.  He called it “the most irresponsible budget that I’ve seen and the most unrealistic budget that I’ve seen.”  He labeled the budget a “hatchet job” with “irrational” cuts.

By rejecting the budget in such a reckless and melodramatic manner, Rep. Hoyer takes ownership of the wasteful spending he defends, including billions of dollars’ worth of federal programs that have been identified by CAGW in Prime Cuts, the Congressional Pig Book, the Government Accountability Office (GAO), the Congressional Budget Office, and many other sources as not worthy of taxpayer funding.  The following programs are a tiny fraction of those that the Trump budget consolidates or eliminates, and Rep. Hoyer harbors:

  • $3 billion for Community Development Block Grants, where “outcomes [are] difficult to measure and evaluate,” according to the Obama White House.
  • $293 million for the Economic Development Administration, which the GAO found has no effect on employment.
  • $150 million for the Essential Air Service, which subsidizes often empty flights from remote airports.
  • $16.7 million for the East-West Center, which the State Department has tried to eliminate for decades.
  • $10 million for the Denali Commission, which even former President Obama wanted to terminate.

CAGW President Tom Schatz said, “When it comes to spending the taxpayers’ money, Rep. Hoyer has never seen a government program that he wanted to terminate, even if it means squandering billions of dollars.  Defenders of wasteful spending like Rep. Hoyer will exaggerate and muddy the waters, but he cannot obscure the hard truth that hundreds of federal programs simply do not deserve to be funded by taxpayers.”

For his baseless attack on the most pro-taxpayer budget in decades, CAGW names House Minority Whip Steny Hoyer its April 2017 Porker of the Month.

****

Image result for steny hoyer HuffPo

(He is 77 years old….sheesh…go Steny go)

PBS: Trump, who made improving veterans’ care a prominent issue as he campaigned for office, was to issue the order while visiting the VA. It will create a new Office of Accountability and Whistleblower Protection within the department. The eventual head of the office will report directly to VA Secretary David Shulkin.

The office is a byproduct of a 2014 scandal in which as many as 40 veterans died while waiting months for appointments at the VA medical center in Phoenix.

The House has passed a bill to make it easier for the VA to fire, suspend or demote employees for poor performance or bad conduct, and the Senate continues to work on its version of the measure. Shulkin said Trump’s decision to create the office before Congress sends him a bill speaks to his commitment to accountability at the VA.

As President Trump signed an executive order establishing a VA Accountability Office to protect whistleblowers, back in 2014, Steny Hoyer had a disgusting position with regard to Republicans and the VA.

The House‘s No. 2 Democrat accused Republicans of exploiting the scandal that has enveloped the Veterans Affairs Department for political gain and said he is worried that civil servants could be swept up unfairly in a witch hunt.

“I don’t think there’s any doubt about it … that is essentially the tactic that Republicans are trying to employ,” Minority Whip Steny Hoyer of Maryland told reporters.

Hoyer said that while any wrong-doers within the VA must be held accountable, it’s imperative that accused employees be given due process and that innocent federal workers aren’t needlessly punished as a knee-jerk reaction.

“I don’t think that serving veterans is antithetical to making sure that employees of the federal government have the civil service protections that were adopted as long ago as the Pendleton [Civil Service Reform] Act in the 19th Century,” said Hoyer, whose district includes a large number of federal workers.

“Our civil service system is designed not to be a system where people serve at the will of those who win elections. It’s a professional civil service [that is] protected.” More here.

Janet Napolitano Took DC Fraud Tactics With Her

Posted on by

Hello FBI, when you get a chance…how about dispatching a few agents to visit Nappy….got any agents available?

Primer: Using a visa loophole to fire well-paid U.S. information technology workers and replace them with low-paid immigrants from India is despicable enough when it’s done by profit-making companies such as Southern California Edison and Walt Disney Co.

But the latest employer to try this stunt sets a new mark in what might be termed “job laundering.” It’s the University of California. Experts in the abuse of so-called H-1B visas say UC is the first public university to send the jobs of American IT staff offshore. That’s not a distinction UC should wear proudly. More here.

Image result for janet napolitano university of california NBC

The corruption continues –>

Napolitano’s UC hid $175 million while demanding money, audit says

FNC: The University of California hid a stash of $175 million in secret funds while its leaders requested more money from the state, an audit released on Tuesday said.

The San Francisco Chronicle reported that the audit found that the secret fund ballooned due to UC Office of the President overestimating how much is needed to run the school system that includes 10 campuses in the state. Janet Napolitano, the former Department of Homeland Security chief, is in charge of the school system.

Napolitano denied the audit’s claim. She reportedly said the money was held for any unexpected expenses. Her office also denied the amount in the fund.

“The true amount is $38 million, which is roughly 10 percent of (the office’s) operating and administrative budget, a prudent and reasonable amount for unexpected expenses such as cybersecurity threat response and emerging issues like increased support for undocumented students and efforts to prevent sexual violence and sexual harassment,” her office said in a statement.

Elaine Howle, the state auditor who came up with the report, found that from 2012 to 2016 the office looked to raise more funding by inflating estimates. Howle also said that a top staff member in Napolitano’s office improperly screened confidential surveys that were sent to each campus. Howle said answers that were critical of Napolitano’s office were deleted or changed before being sent to auditors.

“I’ve never had a situation like that in my 17 years as state auditor,” Howle said. “My attorneys are looking at whether any improper government activities occurred.”

The UC Board of Regents is now hearing calls to overturn its decision to increase tuition this fall by 2.5 percent.

Howle said Napolitano also overcharged the system’s 10 campuses to fund its operations, paid its employees significantly more than state employees and interfered in the auditing process.

“Taken as a whole, these problems indicate that significant change is necessary to strengthen the public’s trust in the University of California,” Howle wrote in the report.

The audit found that over the course of four years, the UC’s central bureaucracy amassed more than $175 million in reserve funds by spending significantly less than it budgeted for and asking for increases in future funding based on its previous years’ over-estimated budgets rather than its actual expenditures.

“In effect, the Office of the President received more funds than it needed each year, and it amassed millions of dollars in reserves that it spent with little or no oversight,” the report said.

Napolitano argues the amount accounts for 10 percent of the operating and administrative budget. She called it “a modest amount for an organization our size.”

The office argued it did not need to disclose its reserves because the regents had approved the spending in previous years’ budgets. Howle said the undisclosed funds included $32 million collected from campuses that could have been spent for other purposes.

University employees and lawmakers, who requested the audit, expressed outrage over the audit’s findings.

“Today we learned that after squandering millions of public dollars on bloated management and unaccountable ‘initiatives,’ (the Office of the President) has effectively been operating a slush fund that shields hundreds of millions of public dollars from public scrutiny,” Kathryn Lybarger, president of UC’s largest employee union, said in a statement.

She criticized the office’s “skyrocketing executive pay,” a reference to the audit’s finding that the 10 executives in the office were paid a total of $3.7 million in the 2014-15 fiscal year — over $700,000 more than the combined salaries of their highest paid state employee counterparts.

Lt. Gov. Gavin Newsom, a Democrat and member of the UC Board of Regents, said the audit calls into question the university’s decision to raise this fall’s tuition for the first time in six years when it has money available. The decision in January increases the cost of tuition and fees for California residents, who currently pay $12,294 a year, to $12,630.

“It is outrageous and unjust to force tuition hikes on students while the UC hides secret funds, and I call for the tuition decision to come back before the Board of Regents for reconsideration and reversal,” he said.

Among her recommendations for reforms, Howle suggested that state lawmakers should increase oversight of the office.

However, she said the office’s attempt to interfere with the audit process by reviewing surveys auditors sent to the campuses “cast doubt on whether it will make a genuine effort to change.”

In 2012, the director of the California Parks Department resigned after it came to light that the department hid $54 million in parks funding for more than a decade, at the same time the state threatened to close dozens of parks to save money amid a state budget crisis. The state auditor recommended new accounting methods, which were later adopted.

 

The Even Darker side of the Downward Spiral, Venezuela

Posted on by

Primer: It is just a few days ago, that Russia was muscling the United States with regard to policy in Venezuela. Really Moscow?

Image result for venezuela protests ABC

Russia Warns Against US Interference in Venezuela, Calls for Dialogue

Russia’s foreign ministry voiced its concern over violence by right-wing protests in Venezuela while rebuking recent threats by the U.S. Southern Command, saying these would only stoke violence and ultimately act against U.S. interests. More here.

Meanwhile: Venezuela’s state-run oil company, PDVSA, sent a tanker in October to the Caribbean with the expectation that its cargo of crude would fetch about $20 million – money the crisis-stricken nation desperately needs.

Instead, the owner of the tanker, the Russian state-owned shipping conglomerate Sovcomflot, held the oil in hopes of collecting partial payment on $30 million that it says PDVSA owes for unpaid shipping fees.

Despite a longstanding alliance between Venezuela and Russia, Sovcomflot sued PDVSA in St. Maarten, a Dutch island on the northeast end of the Caribbean.

“The ship owners … imposed garnishment on the aforementioned oil cargo,” reads a March decision by the St. Maarten court.

Five months after crossing the Caribbean, the NS Columbus discharged its cargo of crude at a storage terminal on St. Eustatius, an island just south of St. Maarten, under a temporary decision by the court. Another tribunal in England will decide if Sovcomflot will ultimately take the oil.

***

Update: Reuters: A prison riot in Venezuela’s eastern state of Anzoategui has left at least 12 people dead and 11 wounded, a spokesman at the Prisons Ministry said on Wednesday, the latest incident in the crisis-hit country’s overcrowded and violent jail system.

Venezuela’s public prosecutor’s office said it was investigating the deaths of “several” inmates on Tuesday during a shootout between the prisoners at the Jose Antonio Anzoategui prison.

Critics have said that Venezuela’s prisons are controlled by gangs with ready access to machine guns and even hand grenades.

“There are 12 people dead, nine shot, two due to drug overdoses, and one due to multiple injuries,” the spokesman told Reuters, asking not to be identified by name because he was not authorized to speak to media about the riot.

“It’s a prison that was going through a transition … the clashes were between those who wanted it and those who didn’t,” the official said in reference to a government push to end overcrowding and weapons in jails.

Further details were not immediately available. It was not immediately clear if all the dead were inmates.

Venezuela is one of the world’s most violent countries and inmates often plan kidnappings and robberies from their cells.

 Dark Times in Venezuela Signal Bright Future for Organized Crime

Venezuela Today

The social unrest in Venezuela over the last two weeks has been the most widespread since Leopoldo López, the opposition leader, was arrested and subsequently imprisoned by the administration of President Nicolás Maduro in 2015.

The latest anti-government demonstrations were sparked by a decision by the country’s Supreme Court, which is controlled by the regime, to nullify the National Assembly, which is dominated by the opposition. The Supreme Court later backtracked, but it was too late — critics of the regime had been emboldened once again by the audacious move. Luisa Ortega Díaz, the country’s attorney general and traditionally a supporter of Maduro, also condemned the Supreme Court’s attempt to consolidate power, further eroding Maduro’s legitimacy.

Their indignation was stoked by the move a few days later to ban Henrique Capriles, a prominent member of the opposition, from politics for 15 years. Capriles, who has run twice as a presidential candidate, is one of the opposition’s strongest hopes for winning presidential elections against Maduro’s United Socialist Party (Partido Socialista Unido de Venezuela – PSUV) at the end of 2018.

A chronic economic recession in Venezuela has provoked sky-high inflation, shortages of basic foods and goods, and a collapse in the health and education systems. Maduro’s popularity has dropped steadily, yet the Venezuelan people have so far showed incredible tolerance for what many of them have been reduced to — searching for food in the trash, waiting for hours in line to buy basic goods, often at inflated prices, and scouring the country for black market medicines as they watch their family members suffer and even die.

But the current economic and social predicament has had another sinister consequence: It has fed the growth of criminality and organized crime to unprecedented levels.

Venezuela’s homicide rate is one of the highest in the world, and Caracas is now the deadliest city on earth. New forms of organized crime have emerged in the country’s prisons, within its armed forces and on its streets in the form of megabandas since Hugo Chávez took power in 1999. Drug trafficking has penetrated the highest levels of the current regime, all the way up to the family of President Maduro. Armed, civilian groups known as colectivos, which were embraced and nurtured by Chávez as defenders of the revolution, have gone rogue and are increasingly supporting themselves through criminal earnings. Unbridled corruption has allowed for kleptocrats to plunder the country’s public coffers via artificial exchange rates and the state-owned oil company Petróleos de Venezuela (PdVSA).

Below, we look at some possible future scenarios and their implications for organized crime.

The Regime Remains or Renews

Criminal elements within the regime and outside it would like nothing more than to maintain the status quo.

The armed forces are the muscle and political backbone of the sitting government. Out of Maduro’s 32 government ministers, 11 of them are acting or retired military officers. Some have been sanctioned or indicted by the United States for their links to drug trafficking (see graphic below). The armed forces have deepened their role in transnational cocaine trafficking since 1999, in part as a direct result of political decisions by Hugo Chávez, and profit from other criminal incomes such as the sale of government-subsidized contraband petrol on the Colombian border and the process of food distribution, of which they are in charge. The National Guard controls the nation’s borders, airports and ports and has been implicated in some of the biggest cocaine seizures in recent years.

Venezuela-Gov Drugs insightcrime

Criminality isn’t just limited to military members of the government. Vice President Tareck El-Aissami was recently sanctioned by the United States for his alleged role in drug trafficking, dating back to his time as governor of the state of Aragua.

Should Maduro decide to fall on his sword, El Aissami is in line to replace him as president. That could result in a political shakeup and give the regime a chance to renew itself with some internal changes and shifts. If El Aissami changed tack on the regime’s economic policies and reversed some of the damage done in recent years, he could improve the PSUV’s chance of winning presidential elections at the end of next year — something that Maduro almost certainly couldn’t pull off at this stage.

It is unclear, however, which way El Aissami, a party hardliner, would go if he became president, and his status as a suspected drug trafficker might not inspire new confidence in Venezuelans already sick of corruption and the abuse of power within the current system.

For other criminal elements, maintaining the status quo remains the best option. The armed pro-government colectivos, many of which are perceived as violent thugs by those living in territories they control, depend utterly on the socialist regime for their survival. InSight Crime investigations in the 23 de Enero neighborhood of Caracas, once a bastion of Chavismo, show that these groups are increasingly profiting from criminal activities such as extortion and micro-trafficking.

They are also involved in anti-crime raids, known as Operation Liberation and Protection of the People (Operación de Liberación y Protección del Pueblo – OLP), in which they work alongside state security forces to supress criminal groups and megabandas.

Those raids were instigated as the result of the government’s failed “peace zone” policy, which handed swathes of territory over to the criminal gangs that occupied them. In effect, the plan made megabandas the de facto law in those areas, because security forces were prohibited from entering without prior permission. Many of those peace zones still exist. Although the megabandas openly attack patrols and headquarters of Venezuelan security forces, and have been forced to regroup following the elimination of many of their original leaders, they continue to run their criminal economies that include extortion, kidnapping, contract killing and micro-trafficking.

As for the country’s prisons, criminal business has never been so good, even though violence and overcrowding are serious human rights problems. The creation in 2011 of a Ministry of Penitentiary Services effectively handed governance of the country’s jails to the powerful bosses on the inside, known as “pranes,” who now run them like their own fiefdoms. Violence remains one of the main means of maintaining control.

The Regime and the Opposition Form a Joint Government

The decision to reverse the Supreme Court ruling to annul the National Assembly could be a sign that the Maduro administration is faltering. The Miami Herald reported this week that the president has secretly offered the opposition a deal that would result in regional elections supposed to take place this year, in which the opposition looks set to win a strong foothold.

Given the hostility between the government and the opposition, and the failure of Vatican-monitored talks at the end of last year, this seems like the least likely scenario. Should it happen, it is likely to be thwarted by infighting and disagreement between the different sides. The coalition would have to come to an agreement on long-term and fundamental issues such as the role of the military in the country, security, the prison system and economic controls.

In this unlikely scenario, the main casualty could be the colectivos, which the Maduro administration might be forced to call to heel as a condition of a joint government. They may have limits put on their weapons as well as their role as repressors of the media and critical protests. Other than that, there would be little change on the ground in the short term as far as criminal dynamics are concerned.

Armed Forces Stage a Coup or Force Maduro into a Political Transition

The importance of the support of the armed forces for President Maduro and the regime cannot be overstated. But factions have turned against the regime before, as was seen in the failed coup against Hugo Chávez in 2002, which removed him from power for a couple of days.

In the short term, the colectivos and the military itself would be the criminal elements most impacted by a move by parts of the military to force Maduro’s hand. The armed forces would want to assure their place at the table in the new government, and might offer the colectivos — who are despised and feared by the opposition — as a sacrificial lamb.

“Colectivos really imagine themselves as being put on the offing block as sacrificed pawns in a negotiated context,” Alejandro Velasco, author of the book Barrio Rising, told InSight Crime. “They very much imagine that the struggle to come is going to be a struggle, not against the opposition, but really against the military in the context of survival. Both of them are kind of in a maneuvre for survivability in a transition context.”

Should this scenario arise, the political uncertainty it could generate might push the reality on the streets in Venezuela to get worse before improving. It would have little immediate negative impact on the megabandas or the criminal enterprises being run in the prisons. If anything, criminality and impunity would only increase, giving these elements more freedom of movement. Longer-term, an administration capable of governing could take steps to curb their criminal freedoms and fiefdoms.

SEE ALSO: Venezuela News and Profiles

The military, as broker and mediator, would have to make some concessions of its own. Should the armed forces be involved in brokering or forcing this potential transition, implicit in its negotiations would be the continuation of its stewardship of the country’s ports, borders and airports — a fundamental element of its role in profiting from transnational organized crime.

The amount of coca and cocaine being produced in neighboring Colombia is booming, and the network of Venezuelan military officials involved in the drug trade, known loosely as the Cartel of the Suns, would want to keep its interests safe.

But heads would have to roll as part of a change in government, and many on the chopping block would be those military officials seen as being the most corrupt and most loyal to the socialist regime. There is little doubt, however, that they would be replaced with others equally willing to profit from their power and position in this key transit nation in the global cocaine trafficking industry.