Washington, D.C. — Today, U.S. Senator Adam Schiff (D-Calif.) joined Senate Democratic Leader Chuck Schumer (D-N.Y.) in introducing the Venezuela Oil Proceeds Transparency Act, legislation that would direct the Comptroller General of the non-partisan Government Accountability Office (GAO) to conduct an independent audit of the Trump administration’s secretive financial arrangement using offshore accounts for Venezuelan oil revenue.
At a time when American families are struggling to pay their energy bills as Trump drives up costs and slashes clean energy jobs, the Senators are introducing legislation to direct an independent audit of the Trump administration’s dubious scheme to hide its Venezuelan oil transactions in offshore accounts. The Senators are calling for transparency and are using the legislation to shine a light on the creation, use, and beneficiaries of these offshore accounts and to insist on robust congressional oversight. Without these critical protections, the Trump administration’s arrangement using foreign bank accounts is ripe for corruption and exploitation.
“For months, the Trump administration claimed that its military operations in the Caribbean were about stopping drugs, but the objective is now abundantly clear: this was about seizing Venezuela’s oil and lining the pockets of the oil industry. The President wants to control an unaccountable fund with the proceeds parked in an offshore bank. The American people deserve to know more about this scheme and where the money is going. This independent audit would help deliver answers,” said Senator Schiff.
“Trump claimed to be “America first.” But, it’s clear he is – and will always be – “Trump first.” Energy costs have soared for American families over the past year. Rather than provide real relief, President Trump is waging a war against clean energy that is driving up costs and killing jobs, concocting a scheme in secrecy that paves the way for self-enrichment and corruption of oil companies in rebuilding Venezuela,” said Leader Schumer. “The American people deserve to know what’s happening with the money received from these Venezuelan oil payments and where – and to whom – they are going. There is no reason that Trump should be circumventing the US banking system and lining the pockets of his Big Oil Buddies rather than driving down costs for hardworking Americans.”
Last month, President Trump announced that the United States will be taking over the sale of Venezuelan oil, indicating the U.S. will market and sell Venezuelan oil and deposit proceeds into “U.S.-controlled” offshore accounts. It was later revealed that proceeds from the sale of Venezuelan crude oil and oil products is being placed in bank accounts in Qatar. The administration says it plans to control the dispersal of funds from these accounts to make payments to the Venezuelan regime for the purposes of “increasing oil production, economic opportunity, and the daily quality of life for the Venezuelan people.” Secretary Rubio, during testimony at the Senate Foreign Relations Committee, admitted that an audit process for this arrangement has not been finalized yet. In short, this means there is no oversight of how the money is used once it hits the Qatari account. Additionally, as part of this arrangement, the Treasury Department is selectively rolling back sanctions to enable the transport and sale of Venezuelan crude and oil products to global markets, and it is issuing new licenses for certain companies to import and export Venezuelan oil.
The Senators are demanding that the administration immediately shutter these offshore accounts. The Senators also encourage Senate Republicans to join and pass the Venezuela Oil Proceeds Transparency Act to put in place an independent and objective audit process, led by the Government Accountability Office (GAO), to eliminate waste, fraud, and abuse. The GAO, often called the “congressional watchdog,” is an independent agency that works for Congress and provides timely, fact-based, non-partisan information that can be used to improve government and save taxpayers money.
Last month, Schiff, Schumer, and 12 Senate Democrats called on the White House to disclose the financial stake that senior administration officials have in companies that stand to profit from the extraction and sale of Venezuelan oil under United States control. Unfortunately, the administration has ignored any request for accountability.
Specifically, the Venezuela Oil Proceeds Transparency Act would:
- Direct the Comptroller General of the non-partisan Government Accountability Office (GAO) – often called the “congressional watchdog” – to conduct an independent, objective, fact-based audit of the US-Venezuela energy deal to apply sunlight to this unprecedented financial arrangement to protect Americans from ever rising energy costs at the hands of Trump.
- Ensure transparency around the activities of the Departments of State, Energy, and Treasury in implementing the deal – as well as any contractors or other entities involved in moving these offshore funds.
- Require GAO to initiate the audit within 30 days and to provide an interim briefing on its findings soon after the audit is completed.
- Require GAO to formally report its findings to Congress within 90 days of completing its work. The GAO’s report would include a detailed description of its findings and conclusions regarding the administration’s offshore oil arrangement, and to make recommendations for legislative action.
- Require the Comptroller General to immediately alert Congress if the Trump Administration unreasonably delays or denies GAO’s access to information necessary for the audit.
The full text of the bill is available here.
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