Corruption is a significant problem in Venezuela and a systemic culture of corruption exists at most levels of society. Since his ascent to power, Chávez has openly declared a zero tolerance policy towards corruption, which has been demonstrated by several public initiatives. Venezuela has a huge investment and economic growth potential and its natural resource wealth has made it attractive to foreign investors. Nevertheless, political and regulatory uncertainty has seriously discouraged foreign investment in the country. Several factors, such as political instability, heavy bureaucracy and corruption, inhibit the business climate.

Positive developments in relation to corruption and investment:

• Both the executive and legislative branches have shown great interest in fighting corruption through public institutions, which is demonstrated by the creation of a comprehensive legislative framework and several agencies being mandated to deal with cases of corruption.
• During 2010, the Comptroller General's Office administratively disqualified over 50 civil servants, including eight National Assembly candidates, as a result of allegations of misuse of public funds. 
• Venezuela has a well-developed set of regulations governing public procurement, including a government-wide system for registering contractors, setting up new procedures for acquiring goods and services and selecting contractors.
• E-governance is relatively well developed in Venezuela and practically all public ministries have web pages providing information on their work.

Risks of corruption:

• Petty corruption is common, and companies may be extorted in return for expedited processing or favourable treatment.
• The process of obtaining licences is often expedited by facilitation payments and gifts to licensing authorities.
• Government contracts are vulnerable to corruption and the tender process frequently lacks transparency, according to international reports.
• Trade in Venezuela is impeded by customs procedures, which remain largely inefficient. Exporting and importing require much time and paperwork to clear goods at the border, and the process is plagued by corruption and bribery.
• The media reported that seven current or former high-level government officials whom President Chavez had selected as candidates for the National Assembly had pending accusations of corruption in the Comptroller General's Office and the Public Ministry that had not been investigated, prosecuted, or sanctioned.