MercoPress. South Atlantic News Agency

Venezuelan corporations protest rash of expropriations

Venezuela's main business association called Tuesday on the National Assembly and the Supreme Court to “restore legal and constitutional order” which is being destroyed by the Executive's expropriation of supposedly “inactive” companies and idle farms.

The statement from the one time all powerful Federation of Business Chambers (Fedecamaras) was made public by its president Jose Luis Betancourt, at the organization's headquarters.

Fedecamaras "demands the immediate end to illegal and arbitrary actions against private property ... (as well as) restoring the affected property to its owners".

Over the last two weeks the administration of President Hugo Chavez has taken over at least three "inactive" industrial facilities and four agricultural estates that either had "doubtful" property rights or were "idle" according to an official spokesman.

Although no specific cases were named Fedecamaras said that the expropriations "attack fundamental values and rights such as freedom and property" and considers that such acts contrary to the Constitution and the rule of law.

However the businesses organization clearly indicated it was intent in "maintaining the necessary dialogue with the purpose of working towards an agreement, an appropriate mechanism of communication with the government, in keeping with the principles of active participation".

Fedecamaras further on warned that expropriations were attempts to "weaken and subjugate private industry", and "Venezuela without a private sector is condemned to hunger and poverty".

Richard Vivas, president of Venezuela's National Institute of Land announced that 317 estates covering three million hectares are under the spotlight since they are considered productively "idle" or have property rights problems.

President Chavez, who believes in a "Socialist, solidarity economic system" and is close friend of Cuba's Fidel Castro, said when the expropriations began, that whoever was not in agreement, could go to court to prove the validity of his property titles or give evidence that the seized assets were productive.

Among the most notorious expropriations already carried out are some belonging to Venezuela's Alimentos Polar (one of the country's largest industrial groups), to U.S. ketchup king H.J.Heinz, Italy's Parmalat and one of the largest cattle ranches belonging to the British Vestey Group Ltd.