MercoPress. South Atlantic News Agency

Chavez insists with his nationalization ‘rampage’

Venezuelan president Hugo Chavez

President Hugo Chavez announced plans Sunday to take over more private companies in Venezuela and also said his government should review the use of water by trans-national companies like Coca-Cola and Pepsi.

Chavez said during his weekly TV and radio program that he has approved decrees for the “forced acquisition” of two companies: Alentuy CA, which makes aluminium cans and other products, and Envases Internacional SA, which makes containers for the food industry.

Chavez also expressed concern about “water that trans-national companies have privatized,” and he mentioned Coca-Cola and Pepsi. “That must be reviewed quickly,” he said. “That water in the first place belongs to the people. Water is social property.”

Those remarks came in a sometimes-combative talk by Chavez as he defended his government from criticism by private business leaders who say his socialist-inspired policies are ruining the economy, which is now mired in recession.

Chavez toured the state-run dairy company Los Andes in north-western Lara state, where he said production has skyrocketed since it was nationalized.

“This is an example of what socialism is capable of doing,” Chavez said. “The bourgeoisie says that whatever Chavez touches is done for. It's just the opposite.”

Chavez also said the government is expropriating several small food distributors and other companies because authorities say they were violating price controls and hoarding items. He said a major private supermarket chain, Cada, will this week begin to be absorbed into a growing network of state-run markets.

During the past few years, Chavez has nationalized a list of businesses in industries from cement to telecommunications as he moves to transform Venezuela into a socialist economy.

In related news, Chavez said he has approved taking over management of more than 80 businesses that belonged to bankers accused in a scandal last year that led the government to shut down several banks.