Financial Risk:

Critical

Score:

10/100

Asset Disposals

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Q24 8/100

How effective are controls over the disposal of assets, and is information on these disposals, and the proceeds of their sale, transparent?

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Controls Score: 25 / 100
The process for the disposal of public assets is regulated by the 2014 Organic Law of Public Goods (LOBP). This law regulates the operation…
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Transparency of disposal process Score: 0 / 100
A review of the applicable legislation indicates that there is no transparency whatsoever on planned or unplanned asset disposal, as there is no legal…
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Transparency of financial results of disposals Score: 0 / 100
Financial information on disposals of public assets is not available to the public. Only SUDEBIP management reports are made public, which set out total…
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Q25 8/100

Is independent and transparent scrutiny of asset disposals conducted by defence establishments, and are the reports of such scrutiny publicly available?

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Scrutiny Score: 25 / 100
The legal process for disposals includes an internal audit carried out by the Superintendence of Public Goods (SUDEBIP) directorate for supervision and oversight of…
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Independence Score: 0 / 100
Institutions with the power to oversee and monitor disposal processes are lack independence from the executive or military forces. Although a decentralised entity, the…
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Transparency Score: 0 / 100
Audits on public assets, including asset disposal, must be conducted by law by the SUDEBIP. However, reports are not made public. Likewise, audits carried…
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Secret Budgets

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Q26 0/100

What percentage of defence and security expenditure in the budget year is dedicated to spending on secret items relating to national security and the intelligence services?

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Score: 0 / 100
The latest budget act was published in 2016 [1]; there has been no official information on the distribution of resources since 2016. Although a…
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Q27 0/100

Is the legislature (or the appropriate legislative committee or members of the legislature) given full information for the budget year on the spending of all secret items relating to national security and military intelligence?

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Score: 0 / 100
Taking into account the executive’s lack of awareness of the legislative function of the NA, as of 2017 the NA had not received information…
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Q28 0/100

Are audit reports of the annual accounts of the security sector (the military and intelligence services) subject to parliamentary debate?

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Comprehensiveness Score: 0 / 100
The last instance of accountability to the National Assembly (AN) was in 2016 [1], with the submission of 2015’s budget implementation. As of 2017,…
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Parliamentary scrutiny Score: NA / 100
This indicator is marked ‘Not Applicable’. Given that the defence sector, and the public sector more broadly, does not provide any reports or information…
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Q29 17/100

In law, are off-budget military expenditures permitted, and if so, are they exceptional occurrences that are well-controlled? In practice, are there any off-budget military expenditures? If so, does evidence suggest this involves illicit economic activity?

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Permitted exceptions Score: 0 / 100
In accordance with the Organic Law on Financial Regulation (LORP), the budget act will incorporate a budget appropriation amendment, and additional appropriations may be…
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Recording mechanisms Score: 25 / 100
The LORP indicates that the use of both the budget amendment and additional appropriations should clearly indicate to which sector and project resources were…
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Prevalence Score: 25 / 100
While the budget has increased exponentially over the years, experts agree that this is insufficient to anticipate the hyperinflation that has affected the country…
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Q30 0/100

Are mechanisms for accessing information from the defence sector effective?

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Legal framework Score: 0 / 100
There is no specific regulation regarding access to defence sector information, and there are no public access information systems containing information relating to this…
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Classification of information Score: NS / 100
This indicator is not assigned a score in the GDI. Public administration information available in different data systems is mainly regulated by the Infogovernance…
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Effectiveness Score: 0 / 100
There are no public systems for the publication of information on the defence sector and the existing system is part of the internal functioning…
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Q31 25/100

Do national defence and security institutions have beneficial ownership of commercial businesses? If so, how transparent are details of the operations and finances of such businesses?

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Extent of commercial ventures Score: 0 / 100
Twenty companies are affiliated to the Ministry of the People’s Power for Defence (MPPD). Only one of these – the Venezuelan Military Industries Company…
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Transparency Score: 50 / 100
Military companies are publicly declared and information is published about the percentage of shareholders; each company has a military majority among its shareholders. The…
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Military-owned Businesses

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Q32 13/100

Are military-owned businesses subject to transparent independent scrutiny at a recognised international standard?

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Independent scrutiny Score: 25 / 100
As dependencies of the Ministry of the People’s Power for Defence (MPPD), military businesses can be subject to fiscal controls from the Comptroller General…
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Transparency Score: 0 / 100
While there is some information about audits and technical visits from CONGEFANB to these companies, details of the audits are not made public [1,…
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Illegal Private Enterprise

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Q33 38/100

Is there evidence of unauthorised private enterprise by military or other defence ministry employees? If so, what is the government’s reaction to such enterprise?

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Prohibition Score: 0 / 100
Venezuelan legislation does not outlaw private military companies, and in recent years the government has promoted their development. The law does not set out…
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Prevalence Score: 75 / 100
The creation of private military companies in Venezuela has increased. However, available information indicates that evident that most are of a public nature and…
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Actual Military Spending

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Q77 0/100

Is comprehensive data on actual spending on defence published during the budget year?

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Proactive publication Score: 0 / 100
The Venezuelan constitution establishes a principle of accountability and the right of citizens to be informed about the management of public administration [1]. However,…
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Comprehensiveness Score: NA / 100
This indicator is marked ‘Not Applicable’. No information on defence sector expenditure has been made public since 2015. Unofficial information on defence budget implementation…
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Timeliness Score: NA / 100
This indicator is marked ‘Not Applicable’. No information on defence sector expenditure has been made public since 2015. However, prior to the worsening of…
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Comparison against budget Score: NA / 100
This indicator is marked ‘Not Applicable’. Since no information on the MPPD budget and accountability reports has been officially published since 2016, it is…
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