#BUSINESS NEWS DECEMBER 3, 2017 / 4:40 PM / UPDATED 7 MINUTES AGO

Venezuela Maduro gains control over oil contracts amid purge

Alexandra Ulmer, Deisy Buitrago
3 MIN READ

CARACAS (Reuters) - Venezuela’s President Nicolas Maduro on Sunday gained more powers over the OPEC member’s oil contracts, as a deepening purge looks set to strengthen the leftist leader’s control of the key energy sector amid a debilitating recession.

A months-long crackdown on alleged graft in Venezuela’s oil industry has led to the arrest of some 65 former executives, including two prominent officials who used to lead both the oil ministry and state oil company PDVSA.

Corruption has long plagued Venezuela, home to the world’s biggest crude reserves, but the socialist government usually said “smear campaigns” were behind accusations of widespread graft.

Maduro has recently changed his tack, blaming “thieves” and “traitors” for the country’s imploding economy.

PDVSA’s new boss, former housing minister Major General Manuel Quevedo, said on Sunday that all oil service contracts and executive positions would be reviewed by Maduro as of Monday.

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