INDECU discovers 40,000 tonnes of illegally hoarded frozen chickens

<a href=www.vheadline.com>Venezuela's Electronic News Posted: Thursday, May 22, 2003 By: David Coleman

Venezuelan Consumer Protection Agency (INDECU) officials have swooped on an illegal storage unit in southwestern Apure State to seize some 40,000 tonnes of illegally hoarded frozen chickens withheld from by shadowy speculators despite widespread food shortages across sections of the country.  INDECU regional coordinator Ali Uvieda says the legally seized property will be sold at public auction and remaining funds ... less expenses and heavy fines ... will be held in escrow pending a full-blown tax investigation of the businessmen involved in the illegal hoarding.

State news agency VENPRES reports that a similar seizure recently took place in Tejerias (Aragua State) in cooperation with units of the National Guard (GN) to seize and sell 60,000 tonnes of hoarded foodstuffs.

INDECU had earlier issued warnings to Venezuelan cold storage company owners to put merchandise on the market or else... Where they have refused to comply with the law or sought to bribe officials, immediate action has been taken with requisite seize & sell court orders.  The action has caused furore among wealthier members of Venezuela's opposition who see the INDECU operations as repressive government action against what they claim to be free trade principles and private property.

Against widespread opposition claims of food shortages across the country, INDECU inspectors are discovering illegal hoards of foodstuffs on a daily basis.  Under Ministry of Production & Commerce (MPC) regulations, the owners are required to explain why their goods are not put on the market and if no distribution agreement is reached, a court application is made for seizures which are always executed under the inspection of a court-appointed officer and, where necessary, with the enforcement assistance of the GN.

Special attention is being given to storage units close to the capital, Caracas, where large amounts of generic medicines are alleged to have been hoarded pending expected price increases.  The Federation of Pharmacies alleges that shortages in basic medicines are the result of strict foreign exchange regulations but, already, specialist inspectors have turned up quantities of much-needed medicines for chronic illnesses like blood pressure, arthritis, diabetes, hormone treatments, anti-allergy and pediatric conditions which are selling at premium on a sophisticated black market.

Meanwhile, the Chavez Frias government has approved a budget of 3 billion bolivares to complete the decentralization of INDECU to southwestern Merida State where regional coordinator Jesus Briceno says he will be able to concentrate resources on cross-border smuggling operations from Colombia.  Some 400 inspectors are to be taken on nationwide within the next month to complete a process headed by nine regional directors.