Report: Cadafe loses US$865mn in 2002-2003

State-owned Venezuelan power utility Cadafe lost over 1.8tn bolívares (US$865mn) in 2002 and 2003, according to a national assembly report cited by newspaper El Universal on Saturday. The report was presented by pro-Chávez lawmaker Carlos Colina Yáñez to his peers at the national assembly's permanent commission on finances. A revision of consolidated financial statements reveals that Cadafe lost 1.2tn bolívares in 2002 and 656bn bolívares in 2003. Unpaid electricity bills totaling US$490mn are one of the main causes of the losses the report said, detailing the federal government and state and city governments as the main culprits. Financial statements for Cadafe have not been audited since 1999 and deficiencies in internal and accountancy controls have not been addressed and have in fact got worse over the years, the article said. Cadafe's focus is on transmission and distribution. The utility covers 80% of the country with over 15,000km of power lines and is presently expanding its generation capacity.