Citgo, the American oil company owned by Venezuela’s state-run PDVSA, is facing a $100 million lawsuit from a former executive who was held captive in Venezuela for five years. The executive, Jose Pereira, was arrested in November 2017 on charges of corruption and embezzlement while working as the vice president of finance at Citgo.
Pereira was one of six Citgo executives arrested in Venezuela in 2017, all of whom were accused of embezzlement and corruption. The Venezuelan government claimed that the executives had conspired to sell Citgo’s assets at below-market prices, causing the country to lose billions of dollars in revenue.
Pereira was held in a Venezuelan prison for five years without trial or conviction. He claims that he was subjected to torture, including beatings and electric shocks, during his captivity. In November 2021, he was finally released and returned to the United States.
Now, Pereira is seeking $100 million in damages from Citgo, claiming that the company failed to protect him from the Venezuelan government’s abuses. He alleges that Citgo knew or should have known that its executives were at risk of being arrested and detained in Venezuela, but failed to take adequate measures to protect them.
Citgo has denied Pereira’s allegations and says that it did everything it could to secure his release. The company has also pointed out that it was itself a victim of the Venezuelan government’s actions, as its assets were seized by the government following the arrests of its executives.
The case highlights the risks that companies face when doing business in countries with unstable political environments. Companies must balance the potential rewards of operating in these markets with the risks of political instability, corruption, and human rights abuses.
In recent years, many multinational corporations have faced legal challenges related to their operations in countries with poor human rights records. These cases have raised questions about the responsibility of companies to respect human rights and protect their employees from abuses.
The outcome of Pereira’s lawsuit against Citgo remains to be seen. However, the case serves as a reminder that companies must take seriously their responsibility to protect their employees from harm, even in challenging environments. Failure to do so can result in significant legal and reputational risks.
