Vega sees problems in buying Shell

[NewsWhore]

Economist Bernardo Vega says that the government's purchase of Shell's shares in the Dominican Refinery (Refidomsa) could become a receptacle for public sector jobs given to political appointees and known as 'botellas'. The former governor of the Central Bank fears that the current payroll of 63 people could balloon to 630 or 6,300 if the government buys Shell's shares. Vega also says that a foreign company should be hired to run the Refinery so that it doesn't just house the members of political parties. Vega said that what is of most concern is the danger of making Venezuela the country's sole petroleum supplier. As reported in Hoy, Vega said that Shell would source fuel from the least costly supplier. He questioned whether Pedevesa, which he says has been politicized and is managed by a relative of President Hugo Chavez, will be able to meet the demand. The DR is a signatory of the Petrocaribe agreement, that enables governments to postpone payments of purchases for 25 years. He explained that Refidomsa under Shell would post tenders for purchases because of the 50,000 barrels Venezuela has committed to supply under Petrocaribe there were usually logistical problems or the fuel was sold at hirer prices than other suppliers would have it available. Vega also said this would increase the influence of Chavez in the country, which he considered a negative.

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