Dissenting socialists urge Venezuela to investigate corruption

By Alexandra Ulmer CARACAS (Reuters) - Dissenting and former members of Venezuela's ruling Socialist Party on Wednesday requested the government investigate alleged multi-billion dollar frauds they say have flourished under the South American OPEC country's strict currency controls. Marea Socialista, a small group of leftist intellectuals, as well as fringe members of the Socialist Party, say corrupt companies and complicit officials are gaming a currency system designed to control imports ranging from foods to medicines. Under the complex controls set up in 2003 by the late Venezuelan leader Hugo Chavez, companies and individuals apply for access to dollars at preferential exchange rates. "Many bureaucrats and political operators took advantage of this opportunity to bleed the country dry," said Nicmer Evans, a leader of Marea Socialista, or "Socialist Tide", in front of the comptroller's office in Caracas, where he and other dissenters presented their demands and sought to showcase a new web page for whistleblowers to denounce fraud. The group estimates around $259 billion (£169.1 billion) are unaccounted for since the system's implementation. They say that estimate is based on official data and public denunciations, including a former central bank chief's estimate that as much as $20 billion had been stolen in one year. Pressure is mounting on Venezuelan President Nicolas Maduro to probe illegal activity, amid media reports the United States is investigating senior Venezuelan officials for drug trafficking, and recent allegations that an Andorran bank facilitated about $4.2 billion in transfers related to Venezuelan money laundering. "Andorra represents just the leaves of the problem, we want to get to the root," Evans said. "REVOLUTION AT RISK" Requests for comments from the government went unanswered. Maduro's administration has in the past blamed corruption on so-called "traitors to the revolution" and vowed to eradicate malfeasance. But frustration over the problem, as well as Maduro's perceived lack of leadership amid a biting economic crisis, has only deepened fragmentation within the "Chavista" bloc. Marea Socialista itself recently left the ruling party, though its application to become a separate entity was rejected in May. The group's critics say corruption is inherent to the state-led system Chavez championed, and question why members did not speak up earlier. Socialist dissidents, however, argue that Chavez did his best to eradicate corruption that has long plagued the oil-rich nation, and say they are more vocal now because Maduro is not taking a similarly firm hand. "The republic is at risk" due to corruption, warned Ana Elisa Osorio, a Chavez-era environment minister and member of the Socialist Party who is pushing for investigations. "The revolution is at risk." (Reporting by Alexandra Ulmer; Editing by Andrew Cawthorne and Paul Simao)