MIJ Minister and BIV must clarify fishy links with new Arab businessmen

<a href=www.vheadline.com>Venezuela's Electronic News Posted: Thursday, March 27, 2003 By: Patrick J. O'Donoghue

Venezuelan business sectors claim that Interior & Justice (MIJ) Minister Diosdado Cabello is mixed up in the purchase of Eveba tuna co bases in Cumana (Sucre).   Eveba deputy president, Majed Khalil denies the charges alleging that the new owners have nothing to do with Cabello and that the purchase was business ... "a business opportunity." 

Rumors have been circulating for several weeks that Minister Cabello and new owner, Arab businessman Khaled Khalil are connected. 

Critics point to the ease with which Khalil received a hefty Banco Industrial de Venezuela (BIV) credit and ... according to media sources ... the Castro family sold Eveba to the Arabs for $30 million, even though its real value is estimated at $10 million. 

The Arabs paid $2 million in cash and the rest was made out through BIV loans.  However,  the BIV gave out $8 million because of liquidity problems but opened a credit line for  the remaining $20 million to be paid in 6 years. 

Khalil denies the loan, saying he paid with" fresh money." Political sectors are now asking the Minister to clarify his and BIV's role in the deal. Eveba is said to have 10-15% of the domestic tuna market.