Chavez Orders Confiscation of Private Property
www.newsmax.com Tiana Perez Tuesday, Feb. 18, 2003
Venezuelan President Hugo Chavez announced during his weekly TV program “Aló Presidente” that the military forces would take over factories that do not follow price controls set on about 200 products by the government two weeks ago.
The President stated, “I order the Minister of Defense and his commanders and military headquarters to invade corn flour (basic product in the Venezuelan diet) processing plants if anyone thinks about closing these.”
The bundled price and exchange control measures threaten to force many companies out of business, as margins could become negative amidst the rise in production costs.
Samuel Ruh, the Minister of Consumer Defense and User Education, announced, “The businesses that incurred crimes of price speculation and withholding of merchandise would be fined a maximum penalty of 18 million bolivares,” an equivalent of US $11,200. Additional penalties include 1 to 3 year incarceration for those companies that will not be able to operate within the price control scheme set by the government.
In a move to eliminate all opposition factions, part of which belong to the business sector, Chavez said “not a dollar for the coup-plotters” during a speech held two weeks ago.
Discriminating Against the Opposition
Businesses who are openly opposing Chavez’s presidential term expect to be discriminated against in the sale of preferential dollars. Calculated demand for dollars, estimated at 90 million dollars per trimester, was cut short by the budget for Candivi, the newly formed agency in charge of controlling the sale of dollars, to 40 million dollars.
The Central Bank of Venezuela has announced the exchange control system will remain in place for at least six more months. However the agency’s President believes the control will last until December 2003.
Meanwhile, Venezuelans’ main worry stems from the lack of available products on shelf and not so much from pricing. The absence of mayonnaise, tomato sauce, butter, corn flour, wheat flour, and lentils, among many other products is affecting the middle-classes’ food supplies.
As a response to Chavez’ measures, the opposition is set to file a complaint at the Supreme Courts of Justice aimed at annulling the exchange controls alleging that these were approved unconstitutionally. Decrees, such as this one, need to be approved by a two-thirds majority of Congress unless an economic emergency situation is declared. At the moment, Venezuela still enjoys the benefits of the rule of law.
It is possible that the opposition’s complaint will be considered now that the judges at the Supreme Courts of Justice no longer cater to presidential demands.
Chavez voiced his dissatisfaction with the current judges at the Supreme Courts of Justice. He complained about the judges not having the necessary valor to adopt the necessary measures. He added, “the set of judges need to be replaced by others who would support the project that I conduct,” the so-called Bolivarian Revolution.