Bancamiga Continues Normal Operations After Executives Arrested in PDVSA Corruption Scandal

Venezuela's banking regulator, Sudeban, has confirmed that Bancamiga, the country's sixth-largest bank, is operating normally after the arrest of some of its executives in connection with a corruption scandal at state-owned oil company PDVSA. Sudeban stated that it is monitoring Bancamiga to ensure continued operations and protect customer deposits.

Arrest warrants were issued for Bancamiga's main shareholders, brothers Daniel Jose Levin Salvatore and Carmelo De Grazia Suarez, for their alleged participation in the multi-billion dollar PDVSA-Crypto corruption scheme. The Venezuelan Public Ministry has filed charges against the De Grazia brothers for treason, diversion of public funds, money laundering, and criminal association.

Preliminary investigations indicate that Bancamiga held funds for businessmen who wanted to do business with PDVSA when Tarek El Aissami was in charge of the state oil company. Bancamiga's president, Carmelo De Grazia, was allegedly involved in a scheme to sell and resell PDVSA oil barrels at inflated prices.

Why this matters: The PDVSA corruption scandal, estimated to exceed $16 billion, has led to a major shakeup in Venezuela's oil and financial sectors. The government's actions against those involved aim to recover misappropriated funds and restore confidence in the country's institutions.

The Venezuelan authorities have also intervened in the National Superintendency of Crypto Assets (Sunacrip) due to the corruption scandal, leading to a paralysis of permits for bitcoin and cryptocurrency mining in the country. The government has stated that recovered funds from the corruption scheme have been invested in social programs and missions.

Sudeban has emphasized that operations at Bancamiga are being carried out normally under its supervision. "Sudeban is carrying out a process of accompaniment and monitoring of the institution to guarantee its operation," the regulator said in a statement. Bancamiga holds deposits worth $290 million and is implementing a user deposit protection plan to safeguard customer funds.

Key Takeaways

• Venezuela's 6th-largest bank Bancamiga operating normally under regulator supervision
• Bancamiga's executives arrested for alleged involvement in PDVSA corruption scandal
• Bancamiga held funds for businessmen doing deals with PDVSA under Tarek El Aissami
• PDVSA corruption scandal led to shakeup in Venezuela's oil and financial sectors
• Bancamiga implementing deposit protection plan to safeguard $290M in customer funds