Lapatilla

November 03 2024, 18:36

PDV Holding, Inc., CITGO Holding, Inc. and the Boards and management of CITGO Petroleum Corporation (the “Companies”) categorically reject the findings of the report recently published by the Special Commission on the Nicolás Maduro-controlled National Petroleum Corporation. meeting in Venezuela. Specifically, the report alleges the theft of CITGO, which was coordinated by the National Assembly of Venezuela elected in 2015, the special Board of Directors of Petróleos de Venezuela SA (PDVSA), the executives running the Companies, and the US Government. We take this opportunity to clarify the situation and clarify a few important issues regarding the CITGO oil company.

In early 2019, the National Assembly of Venezuela, elected in 2015, appointed PDVSA’s Ad Hoc Board of Directors; this board in turn appointed a new Board of Directors of PDV Holding, Inc. and subsequently appointed directors of its subsidiary, CITGO Holding, Inc. ., and so on. The National Assembly, elected in 2015, is the only authority in Venezuela recognized by the United States, and as a result, the current board members have been recognized by the US courts as legitimate officers and directors of the Companies in question. . Therefore, the allegations in the report that the board members and managers of the companies were appointed unlawfully have no basis.

Since their appointment, the Companies’ different boards of directors and managers have been working tirelessly to ensure that the Companies improve their performance in accordance with applicable laws. When new boards took office in 2019, CITGO was in a critical situation. It had significant debt and suffered from a severe lack of investment. Mismanagement by previous managements appointed by PDVSA under the control of the Chavez and Maduro regimes had affected not only the company’s profitability but also the safety and reliability of its operations. There were also serious allegations of financial irregularities, conflicts of interest, and acts of corruption in past administrations. Threats to CITGO’s assets also continued due to a lawsuit filed against PDVSA and the Government of Venezuela over debts created during the Chavez and Maduro regimes.

The company’s current managers gave CITGO a new direction. Honesty and transparency have been the fundamental principles set by the board members and management since 2019. In this context, CITGO has carried out internal and external audits to ensure financial transparency and combat corruption activities that occurred before 2019. CITGO has also invested significant resources to improve its performance. Corporate governance, including the appointment of the first Chief Ethics and Compliance Officer and the renewal of the Code of Conduct. Additionally, the company has implemented external accountability mechanisms that require the publication of its operational and financial performance on a quarterly and annual basis.

Importantly, CITGO proactively cooperated with the investigation by the U.S. Department of Justice in pursuit of its goal of complying with U.S. laws and acting as a responsible corporate entity. PDV Holding, Inc. and CITGO continues to actively defend its interests in court against creditors seeking to pay off more than $20 billion in debts created by the Chavez and Maduro regimes. Creditors will be required to pay their dues to PDV Holding, Inc., which was ordered by the Delaware District Court in October 2023. It expects this to be done through the sale of its shares.

In summary, the report shows that the theft allegations of CITGO senior management are unfounded. Since 2019, boards and management have increased CITGO’s value by implementing a strategy that promotes operational excellence, commercial excellence and continuous improvements across a range of investments within a framework that prioritizes strong corporate governance, ethics and regulatory compliance and social responsibility. . This resulted in a strong financial performance, reflected in the financial balance sheet, where cash on hand exceeded the company’s debt.

On the other hand, the allegations made in the report about the Simon Bolivar Foundation (“Foundation”), a private non-profit foundation whose sole member is CITGO, are also unfounded. In fact, the Foundation has provided assistance to a large number of people affected by the complex humanitarian emergency unfolding in Venezuela through grants administered by qualified non-profit organizations. Importantly, the Foundation has been subject to internal and external audits and, like CITGO, maintains strict compliance with U.S. federal, state and local laws. Additionally, the Foundation is committed to transparency, as evidenced by the four annual reports on its website. www.simonbolivarfoundation.org.

We would like to emphasize that both the board members and managers of the Companies have a firm purpose in fulfilling their fiduciary obligations towards the Companies and the shareholders. The board of directors, senior management and the entire organization that makes up CITGO are committed to elevating the company to the highest standards in the industry and will continue to do so despite these false allegations.

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