Energy South America

Bolivian federal prosecutors ordered the offices of Andina, Repsol YPF's Bolivian company, and Petrobras to be searched as part of a fraud investigation into allegations that the two companies have defrauded the Bolivian government. The government also ordered the detention of several Repsol YPF and Petrobras executives, most of whom have already left the country.

The cops also hauled off to jail the local representative of Repsol YPF, Saul Encinas Miranda. He was freed later that night on a judge's order.

This latest spectacle stems from an allegation that Repsol YPF and Petrobras conspired to screw the government out of possibly $160 million US by entering into a secret agreement to control the volatility of gas prices. Brasil is by far the largest buyer of Bolivian gas.

Evo Morales's government is also going after former government officials who are alleged to have been part of the deal.

Just by coincidence, Bolivia is crawling with people from Petroleos de Venezuela, the piggy bank of Hugo Chavez. The same type of thing has been happening in Venezuela, with the government demanding huge amounts of back taxes and fines from the foreign companies operating there. Taking revenge on the ancien regime is a growing trend in Latin America, where most people believe that the French Revolution was the first one. They seem, therefore, to respect the great tradition of Robespierre by chopping off heads whenever they can.