Procurement Risk:
Critical
Score:
10/100
Government Policy
Q57
0/100
Does the country have legislation covering defence and security procurement with clauses specific to corruption risks, and are any items exempt from these laws?
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This indicator is not assigned a score in the GDI. Venezuela has no specific legislation governing security and defence procurement. Acquisitions and contracts more…
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In Venezuela, there is no specific law regulating the procurement and contracting by the defence and security sector, and there are no regulations issued…
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Given that there is no specific legislation regulating the procurement and contracting in the defence sector – and due to the opacity in public…
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Q58
88/100
Is the defence procurement cycle process, from assessment of needs, through contract implementation and sign-off, all the way to asset disposal, disclosed to the public?
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Venezuela has no specific legislation governing security and defence procurement. Acquisitions and contracts more generally are governed by the Public Procurement Law (LCP), the…
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The public is able to easily access descriptions of procedures regulating the procurement cycle: these are available online [1]. However, it is unclear how…
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This indicator is marked ‘Not Enough Information’. The MPPD issued its strategic plan for 2015-2019, which is a reference document for assessing procurement and…
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Q59
17/100
Are defence procurement oversight mechanisms in place and are these oversight mechanisms active and transparent?
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There are a number of external internal mechanisms that have the function of overseeing defence procurement and contracting. However, recent judicial decisions have limited…
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It is not possible to determine the effectiveness of formal controls, since assesments are not made public for either the internal control conducted by…
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The audits that CONGEFANB is responsible for are not made available to the public; the lack of transparency has worsened as a result of…
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The acquisitions of the defence sector acquisitions are not announced through forward planning; only strategic information is available, demonstrating an explicit intention to acquire…
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In recent years, public notification of acquisitions has occured within the context of presidential speeches or military parades seeking demonstrate the strengthening of National…
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Information on defence procurement is not officially made public. Information on the sector’s acquisitions is rarely available within the context of military speeches or…
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Data are not disclosed by official entities. There are no public information systems or documents showing details of defence procurement. Even the data submitted…
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Capability Gap and Requirements Definition
Q62
0/100
What procedures and standards are companies required to have – such as compliance programmes and business conduct programmes – in order to be able to bid for work for the Ministry of Defence or armed forces?
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The Public Procurement Law (LCP) details the procedures followed by public entities for contracting suppliers of goods and services [1]. In the case of…
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This indicator is marked ‘Not Applicable’. There are no required standards for anti-corruption compliance in defence procurement. There is no evidence with which to…
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Q63
0/100
Are procurement requirements derived from a national defence and security strategy, and are procurement decisions well-audited? Are defence purchases based on clearly identified and quantified requirements?
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The Ministry of the People’s Power for Defence (MPPD) has made strategic guidelines public, in line with the Patria Plan for the development of…
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By law, defence sector acquisitions should be internally supervised by Office of the Comptroller General of the National Bolivarian Armed Forces (CONGEFANB) and by…
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Given that the defence sector’s budget and procurement planning have not been published in recent years, nor have management reports been submitted for the…
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Tender Solicitation, Assessment and Contract Award
Q64
NEI/100
Is defence procurement generally conducted as open competition or is there a significant element of single-sourcing (that is, without competition)?
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This indicator is marked ‘Not Enough Information’. There are currently no records of open tenders on the part of the Ministry of the People’s…
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By law, the choice of procurement methods involving limited competition, such closed tender and direct recruitment, must be justified. However, the controls established in…
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Q65
0/100
Are tender boards subject to regulations and codes of conduct and are their decisions subject to independent audit to ensure due process and fairness?
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Officials of the Defence Sector Procurement Committee (CCSD) are not regulated by any specific regulations other than the Military Discipline Law, the Organic Code…
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This indicator is marked ‘Not Enough Information’. External controls are blocked by a judicial decision which prevents easy access to fiscal control documents and…
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Procurement processes are opaque to the extent that it is impossible to access public information on contracts acquired, procurement methods, and compliance with contractors’…
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External controls have been blocked by a judicial decision which prevents easy access to fiscal control documents and defence sector audits. As such, there…
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Q66
0/100
Does the country have legislation in place to discourage and punish collusion between bidders for defence and security contracts?
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The Public Procurement Law (LCP) and other legal instruments used in public procurement make no explicit reference to measures seeking to prevent the collusion…
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This indicator is marked ‘Not Applicable’. Venezuelan law does not lay out direct penalties for bidder collusion; however, it does provide measures that may…
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This indicator is marked ‘Not Applicable’. The legislation governing public procurement in Venezuela does not impose sanctions on bidder collusion, nor does it recognise…
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Training provided in the area of public procurement is focused on administrative aspects, with no emphasis on the reduction of corruption risks or avoidance…
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Contract Delivery and In-Service Support
Q67
19/100
Are there mechanisms and procedures that ensure that contractors meet their obligations on reporting and delivery?
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According to the Public Procurement Law (LCP), the contractor must ensure compliance with the contract. For this a person must be appointed as responsible…
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Public authorities including the Ministry of the People’s Power for Defence (MPPD) have failed to comply with accountability processes since 2016 [1], external controls…
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While there is a legal requirement for the contracting unit to prepare reports for submission to the CCSD that must be monitored by the…
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Due to the blocking of access to information on contracts awarded by CCSD, and on the management and auditing of these contracts, there is…
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Q68
33/100
Are there mechanisms in place to allow companies to complain about perceived malpractice in procurement, and are companies protected from discrimination when they use these mechanisms?
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The Public Procurement Law (LCP) makes available complaint and clarification mechanisms that can be by participants in a procurement process. According to Article 20,…
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Supreme Court judgment 1.421, dated 15 December 2016, restricts the powers of the CGR over defence finances [1]. Based this decision, oversight of the…
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Although there are no reports of direct denunciations in cases of contracting by the defence sector or other public sectors, it is likely that…
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Article 155 of the Public Procurement Law (LCP) [1] lists behaviours for which contractors could be punished. These include the receipt of bribes, the…
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There is no evidence of investigations or administrative proceedings against companies that provide goods and services to the state. In recent years the CGR…
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There has been no evidence in recent years of the opening of administrative proceedings for cases of corruption in defence sector contracting, even where…
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Offset Contracts
Q70
0/100
When negotiating offset contracts, does the government specifically address corruption risk by imposing anti-corruption due diligence on contractors and third parties?
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From the beginning of Hugo Chávez’s government to the current Maduro administration, Venezuela has signed various military cooperation agreements, primarily with China, Russia and…
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The discretion and opacity with which the last two governments have handled the signing and implementation of agreements and the purchase of weapons [1]…
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Venezuelan legislation does not provide regulations on offset agreements, nor are there any government policies that promote or seek the regulation of cooperation agreements…
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Based on available information on military technical cooperation agreements entered into by the last two Venezuelan governments, none of these agreements qualify as an…
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Military cooperation agreements entered by Venezuela in the last few years do not constitute to offset agreements. However, documents published by the Defence Sector…
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Given that there are no regulations on offset agreements and that current military cooperation agreements cannot be classified as offset agreements, the only regulations…
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Military-technical cooperation agreements made by the Venezuelan government in recent years cannot be classified as offset agreements; these agreements are bilateral and competition for…
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Agents / Brokers
Q73
0/100
How strongly does the government control the company’s use of agents and intermediaries in the procurement cycle?
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Among the different regulations for public procurement [1], administrative procedure laws [2] and anti-corruption laws [3], no regulations have been introduced prohibiting the use…
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This indicator is marked ‘Not Applicable’. Given that there are no regulations prohibiting the use of intermediaries [1, 2, 3], the warnings issued by…
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Financing Package
Q74
0/100
Are the principal aspects of the financing package surrounding major arms deals, (such as payment timelines, interest rates, commercial loans or export credit agreements) made publicly available prior to the signing of contracts?
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Publications on weapons procurement are issued sporadically as part of government propaganda to demonstrate increased defence capabilities [1, 2]. When new acquisitions have been…
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Seller Influence
Q75
NS/100
How common is it for defence acquisition decisions to be based on political influence by selling nations?
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This indicator is not assigned a score in the GDI. Arms purchases in recent years have been solely concentrated on suppliers that have partnerships…
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This indicator is not assigned a score in the GDI. Arms acquisitions are not justified beyond the use of arguments put forward in the…
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This indicator is not assigned a score in the GDI. Although the rearmament plan has been upheld since 2005 [1], arms acquisitions have recently…
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