Venezuela's Maduro appoints to his Cabinet a close ally pardoned by the US in a prisoner swap

CARACAS, Venezuela — Venezuelan President Nicolás Maduro on Friday appointed to his Cabinet a close ally who was pardoned by U.S. President Joe Biden last year as part of a prisoner swap and following assurances that Venezuela would hold a fair presidential election in 2024.

Maduro named Alex Saab minister of industry and national production and tasked him with promoting “the development of the entire industrial system of Venezuela within the framework” of what he called a “new economic model.” Maduro made the announcement on the messaging app Telegram.

Saab returned to Venezuela a free man in December after being in custody since 2020, when authorities in Cape Verde arrested him on a U.S. warrant for money laundering charges. U.S. prosecutors long regarded him as a bagman for Maduro.

The president secured his release and clemency in a deal conducted with the Biden administration. In exchange for Saab, Maduro released 10 Americans and a fugitive defense contractor known as “Fat Leonard” who was wanted for his alleged role at the center of a massive Pentagon bribery scandal.

The largest release of American prisoners in Venezuela’s history took place weeks after the White House granted the South American country a broad reprieve from economic sanctions, following a commitment by Maduro to work with the political opposition toward free and fair conditions for the 2024 presidential election.

The U.S. ended the sanctions relief earlier this year after hopes for a democratic opening faded.

Last month, it responded to Venezuela’s highly disputed July presidential election by sanctioning 16 of Maduro’s allies, accusing them of obstructing the vote and carrying out human rights abuses.

Saab was arrested in 2020 during a fuel stop en route to Iran to negotiate oil deals on behalf of Maduro’s government. The U.S. charges were conspiracy to commit money laundering tied to a bribery scheme that allegedly siphoned off $350 million through state contracts to build affordable housing.

Saab was also sanctioned for allegedly running a scheme that stole hundreds of millions in dollars from food-import contracts at a time of widespread hunger mainly due to shortages in the South American country. After his arrest, Maduro’s government said Saab was a special envoy on a humanitarian mission and was entitled to diplomatic immunity from criminal prosecution under international law.