President Chávez 29 July recalled ambassador from Colombia after Bogotá accused Venezuela of illegal arms supply to FARC rebels. Mayor of opposition-controlled Caracas Antonio Ledezma on 1-week hunger strike early month, demanded OAS respond to govt “increasingly eroding constitution and democratic institutions”. National Guard 15 July seized police station in opposition-controlled Miranda state; 8 injured in following clashes between protesters, police. Govt 9 July announced further restrictions on private radio, television broadcasts.

Govt 5 June fined pro-opposition TV-station Globovisión US$2.3m over “media terrorism”; 16 June increased fine to US$4.6m, threatened criminal investigation. Various opposition parties, groups 8 June created “united democratic coalition” to stand against govt.

President Chávez continued policies designed to tighten central govt control. Govt during month seized “idle” farms and foreign-owned factories, nationalised dozens of private oil contractors. National Assembly during month discussed law allowing govt to appoint regional “vice presidents” to oversee governors; opposition criticised as way for govt to usurp powers of elected opposition officials. Congress 5 May approved law placing 96% of Caracas budget in hands of Apr-appointed pro-Chávez “head of govt in Caracas”; budget earlier controlled by elected opposition mayor. Govt ordered investigation of pro-opposition TV station Globovisión over “alarmist” coverage of 4 May earthquake; Human Rights Watch 21 May called investigation “harassment”. Thousands of students, academics 20 May demonstrated against govt cutting university funding by 6%.

President Chávez continued using judiciary to harass political opponents: several opposition figures accused of corruption, “secessionism”. Chávez 15 Apr appointed PSUV ally to new “head of govt in Caracas” position, will assume large part of functions of current elected opposition mayor Antonio Ledezma; opposition criticised as “undemocratic”. Following Feb arrest warrant for corruption, opposition leader and Maracaibo mayor Manuel Rosales granted political asylum in Peru 27 Apr; govt 24 Apr asked Interpol to detain him, 27 Apr recalled ambassador from Peru.

President Chávez continued seizures in food, farming industries: 4 March took over privately-owned U.S., Venezuelan rice processing plants, accused of ignoring govt price controls. National Assembly 18 March passed law placing key infrastructure – including ports, airports – under central govt control; previously administered regionally, often by Chávez opponents; opposition said amounted to “coup d’état”. Attorney general 19 March called for arrest of opposition leader Manuel Rosales, accused of corruption; thousands of opposition supporters protested decision in Maracaibo.

Proposal to remove term limits for all elected officials, including president, approved in 15 Feb referendum with 54% of vote; high 67% turnout. International observers said elections free and fair, but opposition criticised unfair access to media and opposition leader Manuel Rosales 17 Feb accused govt of “repression and violence” during campaign. President Chávez in victory speech said will run for 2012 re-election, hinted will focus on crime rate and inefficient bureaucracy over coming months. Chávez 1 March ordered army to take control of all private rice processing plants, accused of selling at inflated prices.

National Assembly 14 Jan overwhelmingly approved 15 Feb referendum on removing term limits for all elected officials, including president. Opposition questioned legality; student protesters clashed with police throughout country late month, President Chávez ordered security forces to suppress protests. Govt started soliciting bids from Western oil companies in attempt to increase production, generate revenue as effects of falling oil prices more noticeable.

National Assembly 18 Dec preliminarily approved Feb 2009 referendum on abolition of presidential term limits, final approval expected Jan; opposition criticised as “anti-democratic”. State prosecutor 11 Dec charged opposition leader Manuel Rosales with corruption, he claimed politically motivated. President Chávez 27 Dec announced nationalisation of privately held gold mines to supplement state income loss from falling oil prices.

Gains for opposition in 23 Nov local and regional elections: won 5 states, including most populous Zulia and Miranda, and Caracas mayoralty; but President Chávez’s PSUV party kept clear majority, winning 17 of 22 states. High 65% turnout. Chávez accepted result immediately, despite harsh rhetoric against opposition during campaign. Chávez and Russia President Medvedev 27 Nov signed agreement on development of civilian nuclear program; Russian warships 24 Nov arrived in Venezuela for joint naval manoeuvers in Caribbean. Chávez 30 Nov said will seek constitutional amendment to remove presidential term limits, despite rejection in Dec 2007 referendum.

President Chávez stepped up harsh rhetoric ahead of 23 Nov local and regional elections: 25 Oct accused opposition leader Manuel Rosales of ties to terrorism and corruption, threatened “military action” if opposition wins in Zulia state. Govt 28 Oct opened corruption probe into Rosales– he said politically motivated. Analysts warned falling oil prices could severely threaten economy.