Thursday, February 6th 2014 - 05:06 UTC

Venezuela business organizations will challenge in court latest measures by Maduro administration

A leading Venezuelan businessman rejected a new presidential decree limiting the profit margins of companies, vowing to take the fight all the way to the country’s Supreme Court. The President of the Venezuelan Federation of Chambers of Commerce and Industry (Fedecámaras) Jorge Roig, announced he had the backing of his organization and other business leaders.

“It is not possible to control the national economy from your desk. It has never been so”, said Roig

 ”We are going to file a request for the 'Law on Costs and Fair Prices' to be annulled as it is 'unconstitutional' and 'discretionary'”, said Jorge Roig.

The law, which was imposed under year-long decree powers given to President Nicolás Maduro toward the end of 2013, sets a maximum 30% profit margin on business by companies and sets possible penalties of huge fines, temporary state takeovers, the closure of companies and the revoking of licenses to carry out business.

“In a meeting of the board of directors, it was unanimously decided to take legal action to request the annulment of the Law on Costs and Fair Prices,” said Roig at a press conference. “Not only it is unconstitutional, but also makes the situation of the country dramatically worse”.

Roig also criticized the government of President Maduro for imposing the law without any consultation with businesses in the country.

“It is not possible to control the national economy from your desk. It has never been so,” he argued, referring to the government.

Maduro, who was elected president in April 2013, announced that starting this week, the law will be applied with absolute rigor, as part of his battle to the “economic offensive” he says is being carried out against the country. He claims the “offensive” is a move by political opponents to turn citizens against him and cause public disorder in the streets.

With inflation reaching 56.2% last year and no prospects to the contrary, the measures implemented by the Maduro administration have had little effect on the country’s economic turmoil.

Venezuela is highly dependent on imports, which account for more than half of the processed food consumed in the country, according to estimates by polling company Datanálisis.

Fedecámaras, which is the largest business association in the country, has been a constant critic of Maduro’s administration and its economic policies.

4 comments Feed

Note: Comments do not reflect MercoPress’ opinions. They are the personal view of our users. We wish to keep this as open and unregulated as possible. However, rude or foul language, discriminative comments (based on ethnicity, religion, gender, nationality, sexual orientation or the sort), spamming or any other offensive or inappropriate behaviour will not be tolerated. Please report any inadequate posts to the editor. Comments must be in English. Thank you.

1 Anglotino (#) Feb 06th, 2014 - 07:23 am Report abuse
They'll so win because the courts are independent...... hang on a minute.
2 ElaineB (#) Feb 06th, 2014 - 10:55 am Report abuse
@1 I suspect they know that but bringing it to court highlights their position in a country with a highly controlled media. JMO
3 Jack Bauer (#) Feb 07th, 2014 - 09:09 pm Report abuse
Win or lose, it'll send a clear message to the other MercoSur partners, so they can't later allege they didn't see it coming.....they should tell VZ to f**k off until they get rid of Maduro and establish a free-market economy...
4 ilsen (#) Feb 09th, 2014 - 03:23 am Report abuse
“just sayin” , as they say....

The courts are owned by the Chavistas, the Press is muzzled, websites are blocked and my family are going without basic goods and foodstuffs...

So, for those in the real world;
A Public Service Announcement * Feb 9, 2014
--- Official Bolivarian ‘Wonderland’ Exchange Rate in Venezuela ---
BCV 6.3Bsf / 1USD (SICAD 11.3Bsf /1 USD)
----Today’s Reality Cheque --- The ‘Lechuga Verde’ or ‘Blue Dollar’
81.15 Bsf / 1 USD
107.44 Bsf / 1 Euro
Brought to you by Ilsen Publications ©2014 (*because website is blocked in Vnzla by the current ‘administration’/dictatorship and the Press are banned from reporting it)
To show how different exchange rates impact normal consumers in Venezuela, Reuters calculated that a McDonald's Big Mac Combo would cost $2 at a black market exchange, $14 at the Sicad rate and $25 at the official exchange rate.
(any comments about a BigMac Diet will be received with derision, as this is merely an Example Index)
world... why aren't you listening? Argentina? Hello? Ecuador? get out now!

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!


Get Email News Reports!

Get our news right on your inbox.
Subscribe Now!