Illicit Revenues: Venezuela Military’s Path to Regime Loyalty

Roots of Corruption in Crisis (Image Credits: I0.wp.com)

Venezuela – Meager salaries have propelled the nation’s armed forces into a web of criminal enterprises, where drug trafficking and illegal gold mining serve as vital lifelines that reinforce loyalty to the Maduro government.

Roots of Corruption in Crisis

Corruption took hold in Venezuela’s military during Hugo Chávez’s tenure from 1999 to 2013, as drug-related activities filled funding shortfalls. Nicolás Maduro’s leadership from 2013 onward amplified this trend amid a devastating economic collapse, marked by the oil industry’s downfall and rampant hyperinflation. Soldiers faced wages too low to sustain families, prompting widespread participation in illicit economies.

A colonel in the Fuerza Armada Nacional Bolivariana earned roughly $170 monthly, including bonuses, while lieutenants took home about $150 and sergeants around $140. Such pay failed to match living costs, making criminal rents indispensable. The regime tacitly endorsed these pursuits, viewing them as a mechanism to maintain troop allegiance. In 2016, authorities established the Compañía Anónima Militar de Industrias Mineras, Petrolíferas y de Gas to formalize military oversight of mining and energy sectors.

A Broadened Criminal Portfolio

The military’s illicit activities extend far beyond narcotics, encompassing a diverse array of revenue streams that permeate border regions and resource-rich areas. Troops in states like Bolívar, Amazonas, and Delta Amacuro imposed “vacunas,” or tolls, on miners for access to sites. They trafficked gold through hidden routes to Colombia and Brazil, often wholesaling large quantities after collecting fees.

Drug trafficking remained central, evolving into the notorious Cartel of the Suns. Fuel smuggling thrived from 2003 to 2017, with soldiers facilitating subsidized gasoline exports before flows reversed. Other ventures included contraband of food, medicine, and livestock at checkpoints, alongside extortion for migrant passage on informal “trochas” trails. Arms trafficking linked Venezuelan weapons to seizures in Colombia and Brazil, while scrap metal permits added further income.

• Illegal gold: Up to 91% of production smuggled, valued at billions annually.
• Drug routes: Coordinated by mid-level officers for cocaine exports.
• Border tolls: Fees per person, vehicle, or load on trochas.
• Protection rackets: Safeguarding mining operations for a cut.
• Fuel and goods: Regulated smuggling with military oversight.

The Pyramid Structure of the Cartel of the Suns

Officially tied to drug trafficking, the Cartel of the Suns under Maduro incorporated broader crimes into a decentralized yet hierarchical operation. Low-ranking soldiers gathered minor tolls at outposts, mid-tier officers managed corridors, and senior commanders struck deals with outsiders for bulk payments. Units functioned as regulators, extracting fees while providing protection.

This system ensured selective enforcement; for instance, troops in Amazonas regulated mining in Yapacana National Park, negotiating with armed groups. Américo de Grazia, a former Bolívar congressman detained in 2024 and released in 2025, observed, “The guerrillas and the army work together. They’re a dynamic duo. The army secures the mine or the operation, and the guerrilla handles the dirty work to push out the criminal groups that oppose the regime.” An anonymous corruption researcher noted, “With thousands of young people earning that salary, with a badge and a gun, you’re generating an entire criminogenic structure within the institution.”

Global Ties and Regime Crackdowns

International networks amplified these operations, with gold laundered via shell companies abroad and collaborations alongside Colombia’s ELN guerrillas. Brazilian routes facilitated aircraft entries and arms flows to groups like Comando Vermelho. Recent events underscored tensions: In November 2024, the United States sanctioned 21 Venezuelan officials for post-election repression, while ten soldiers, including a Guardia Nacional Bolivariana general, faced arrest for treason in Amazonas.

Colombian forces seized FANB-linked weapons in January 2025, and Brazilian police uncovered similar arms in October 2025. These incidents highlighted internal frictions, often over unpaid bribes, yet the criminal portfolio persisted as a loyalty anchor. Military control of the Orinoco Mining Arc solidified dominance over vast territories.

Key Takeaways

• Criminal rents dwarf official salaries, with one gram of gold equaling months of pay.
• Diversification from drugs to mining reduces vulnerability to single-market shifts.
• Pyramid bribes ensure hierarchical buy-in, minimizing desertions.

The fusion of state power and crime has transformed Venezuela’s military into a self-sustaining force, where illicit gains outweigh risks and bind troops to the regime. As economic woes linger, this model endures, challenging external pressures. What do you think about these dynamics? Share in the comments.

Additional reading: InSight Crime investigation