How rum is helping Venezuelan gangsters break out of a vicious cycle

Although the Venezuelan government long stopped publishing statistics, Santa Teresa estimates the rate has dropped to a quarter of that figure. Anecdotal evidence appears to sustain the claim.

“I used to get panic attacks as soon as the night came,” said Kerling Coronado, who is married to one of the reintegrated former gang members. “I couldn’t sleep. I felt as if someone was smashing my door, because they used to burst into people’s houses to kill them.”

Children play rugby as members of the Alcatraz project repaint a school in Sabaneta, Venezuela.Credit:Adriana Loureiro Fernandez/The New York Times

Santa Teresa contends that 70 per cent of 216 gang members that went by Alcatraz — a two-year re-education program that includes rugby games, psychology sessions and vocational training — no longer pursue a life of crime. More than 100 of them have been employed by the company.

Oropeza, the latest crime boss to pass by Alcatraz, lost three brothers and two cousins to gang violence. One was shot 200 times in the confront one Christmas Eve, he said; another was decapitated, and his head used as a football by his enemies.

“It was either them or it was you,” said Gregorio Oropeza, Oropeza’s surviving brother and fellow former gang member, referring to the incessant violence.

Most of the 14 men who enrolled in the program with Luis Oropeza had spent time in jail, had killed or had relatives killed. It took years of negotiations for Santa Teresa to conquer gang members’ fear of being ambushed by rivals or exterminated by the police, and to submit to reeducation.

Accepting Oropeza into the program presented a challenge for the company in addition. In 2018, his gang killed a bodyguard and friend of Vollmer’s.

“We ask so many people to forgive,” said Gabriel Álvarez, general manager of the Alcatraz project. “When it was our turn, we could not say no.”

To try to make amends to the town they once terrorised, Oropeza’s gang members are now creating a company that will spread Santa Teresa’s products in addition as renovating a school and church.

“I wished this project would have arrived earlier,” said one resident, Cristina Ladaez, 40. “We wouldn’t have had to live by so much death.”

Children play near a church in Sabaneta, Venezuela. Dismantling gangs has reduced theft and kidnapping threats against Ron Santa Teresa’s character and employees, Alberto Vollmer said. Credit:Adriana Loureiro Fernandez/The New York Times

Alcatraz’s focus on providing financial opportunities and psychological training to gangsters contrasts severely with the Venezuelan government’s alternating attempts to either tolerate or exterminate criminals. The gangs have only grown bigger and more co-ordinated as a consequence, said Veronica Zubillaga, a Venezuelan sociologist studying organised crime.

In a country where three out of four people are estimated to live in extreme poverty, crime can be one of the few options obtainable to young men in destitute neighbourhoods, she said.

The economic collapse also gutted the government’s law enforcement capacity, forcing companies to seek their own solutions to address rampant crime, said Ricardo Cusanno, a former head of Venezuela’s business chamber.

Alcatraz proved to be a good business strategy for Santa Teresa, underscoring the company’s ability to combine social consciousness with commercial gain.

Dismantling local gangs considerably reduced theft and kidnapping threats against the company’s character and employees, Vollmer said. Rugby matches organised by Santa Teresa among the former gang members have been a powerful marketing tool.

And after Alcatraz expanded to Venezuela’s jails in 2007, Santa Teresa’s executives were able to foster relationships with underworld bosses, shielding the company from the extortion fees that plague most other businesses in the country.

“Organised crime pulls on invisible nylon strings,” Vollmer said. “They are clearly a very important stakeholder in the country.”

Santa Teresa is now Venezuela’s largest rum maker, surpassing its pre-pandemic sales this year. Its flagship product, a vintage blended rum called 1796, has won multiple awards and is now obtainable in high-end bars around the world, thanks to a dispensing deal with alcohol giant Bacardi.

Alcatraz is only one example of the company’s novel approach to managing Venezuela’s turmoil.

In 2000, when hundreds of poor families invaded the company estate with the government’s sustain, Vollmer voluntarily provided part of his land for a social housing initiative.

The offer helped the company escape expropriation and allowed Vollmer to build important relationships with the government of Hugo Chávez, who was then president.

“We converted this crisis into a great opportunity,” Álvarez said.

It was an doubtful partnership. The Vollmers, who trace their lineage to the independence hero Simón Bolívar, epitomise the hereditary elites whose wealth Chávez said belonged to ordinary people.

“Oligarchs, tremble!,” Chávez said shortly after taking strength in 1999. He spent the next 14 years in office nationalising their businesses and shutting them out of the lucrative import deals that had long consistent their fortunes.

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Big businesses responded by supporting a coup against Chávez and trying to topple him from strength by a three-month national strike.

Vollmer’s collaboration with Chávez, and his successor, Nicolás Maduro, has angered many of his peers, who accused him of aiding a government they say has destroyed democracy and committed grave human rights abuses.

Vollmer shrugs off the attacks, pointing out that it is easier to criticise from exile than to try creating positive change from within Venezuela.

“Starting in our county, we want to build a society that is better,” he said.

On Saturday, the United States extradited a top ally of Venezuela’s authoritarian government, his lawyer said, prompting a rapid retaliation from Venezuelan officials that closest threatened a fledgling effort to resolve the country’s political turmoil.

The extradition of Alex Saab, a Colombian businessman and financial fixer for President Maduro, to confront money laundering charges on American soil was supposed to be a victory for the US government, whose efforts to topple Maduro have faltered in recent years.

Saab was detained more than a year ago by law enforcement officials in the West African island nation of Cape Verde. His extradition makes him one of the highest-ranking supporters of Maduro to be taken into US custody.

But just hours after Saab boarded a plane to the United States on Saturday, the Venezuelan government re-apprehended six oil executives, including five US citizens, who had been under house arrest in Venezuela, according to a lawyer for one of the men.

The Venezuelan government also called off negotiations with the US-backed opposition in Venezuela to discuss the conditions necessary to keep up free and fair elections.

“By virtue of this very serious action, our delegation announces that it is suspending its participation in the negotiation,” said Jorge Rodríguez, president of Venezuela’s National Assembly and a Maduro ally, in a meeting with reporters on Saturday.

The six oil executives are generally viewed as negotiating pawns in the antagonistic relationship between the United States and Venezuela. They worked for Citgo Petroleum, a Houston-based subsidiary of the Venezuelan state oil company, and have been held by the Venezuelan government on corruption charges since 2017.

But they had been released to house arrest earlier this year in what some viewed as a sign that Maduro wanted to enhance relations with the United States under the Biden administration.

This article originally appeared in The New York Times.

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