Court rules out Chavez referendum

www.news.com.au By Patrick Moser in Caracas January 24, 2003

VENEZUELA braced for more turmoil as foreign currency trading was halted, a February referendum was suspended and supporters of embattled President Hugo Chavez planned a major demonstration.

Venezuela's Supreme Court ordered the suspension yesterday of a planned February non-binding referendum on the rule of Mr Chavez, dealing a blow to opposition hopes to inflict a symbolic political defeat on the leftist leader.

Electoral authorities had set the referendum for February 2, after the opposition had collected more than two million signatures to request the poll, which would have asked voters whether or not the populist president should resign.

But Mr Chavez's government, which is battling a seven-week opposition strike, objected to the vote as unconstitutional and appealed to the Supreme Court to stop it from going ahead.

Mr Chavez, who was voted into office in 1998 and is refusing opposition calls to step down and hold early elections, had said he would ignore the result of the non-binding referendum, even if he lost by 90 per cent.

He has said the opposition should wait until August 19, half-way through his term, when the constitution allowed for a binding referendum on his current mandate, which is scheduled to last until early 2007.

The government suspended foreign currency trading for five days, but said repayment of public debt would continue.

Traders said the move was motivated by a high demand for cash amid nervousness over the crisis and fears currency controls would be imposed.

The National Electoral Commission said the court ruling merely "froze" the referendum but did not cancel it. "We are shocked and indignant. This demonstrates we are under an authoritarian government," said Antonio Ledezma, a spokesman for the opposition, made up of labour and employer federations as well as largely conservative political parties.

The announcement heightened insecurity on the eve of a major Caracas demonstration by supporters of the beleaguered President, who planned to march through east Caracas, a stronghold of the opposition.

Opposition leaders said they were determined to continue the strike, which has mainly affected the vital oil sector, slashing production and exports.

Top diplomats of the hastily formed Friends of Venezuela group – Brazil, Chile, the US, Mexico, Spain and Portugal – were to meet tomorrow in Washington to seek a peaceful end to the crisis. Secretary of State Colin Powell will represent the US.

Venezuelans were anxiously awaiting the opposition's reaction to former US president Jimmy Carter's proposals for an August 19 referendum or a constitutional amendment followed by early elections.

In exchange, the opposition would have to end its strike immediately. Agence France-Presse