Skip to comments.Venezuela prepares to nationalize coffee companies (Chavez claims dodging of price control laws)
Posted on 09/18/2009 5:14:17 PM PDT by SeekAndFind
CARACAS, Venezuela -- President Hugo Chavez's government is preparing to nationalize the nation's largest coffee producers, claiming the companies have refused to comply with federal price controls.
Commerce Minister Eduardo Saman said he is recommending the nationalization of coffee plants belonging to Caracas-based companies Fama de America and Cafe Madrid. He did not say when the nationalizations could take place
But Chavez told journalists that his government has not made a final decision on the nationalization of the plants.
"If they give me an excuse, I'll nationalize them," he said.
Saman said the measure had been encouraged by workers displeased with the companies' management.
"They are determined that the plant should be nationalized," Saman said.
Company officials were not immediately available for comment, but Jorge Araque, a manager of Fama de America, told The Associated Press that "the vast majority of the employees are against" the possible nationalization.
"The state is not the best employer," he said. "We are going to stand up and continue fighting for our rights."
Federal authorities temporarily occupied three coffee production facilities last month to determine whether they had illegally smuggled coffee out of Venezuela to circumvent price controls. The three facilities were Cafe Madrid in central Carabobo state, and Fama de America's two plants in Caracas and Carabobo.
Together, the two companies account for 80 percent of the local coffee market.
In recent months, Chavez's government - facing soaring inflation and sporadic shortages - has cracked down on companies suspected of dodging price controls. Venezuela's inflation reached 26.7 percent in August, Latin America's highest.
In March, Chavez's government expropriated a rice-processing plant belonging to Wayzata, Minnesota-based Cargill Inc. in central Portuguesa state for failing to comply with government regulations. In May, authorities also occupied Cargill's pasta-processing plant in central Vargas state.
(Excerpt) Read more at forbes.com ...
My suspicion is that Yugo Chavez is going to get himself killed before long. Only the true believers and the Soviets like him at this point. I suspect that the Brazilians don’t want a power hungry nuclear armed Soviet protege in their neighborhood. They’ll probably knock him off and try to make it look like Obama did it.
More payoffs to the inner circle. And the fam.
Definitely the money quote!
"Keep the money and the poop at home" shouted a group of Commies at the nearest Venezuelan coffee factory ~ "Poop to the people".
Otherwise this stuff goes for $30.00 a cup! Not sure what it'll get after it's processed in the bowels of a Leftwingtard.
It's also like 0bama's strategy to take over health care, in which private insurers are initially demonized as a setup for taking over their business.
Wire the plants with explosives... then tell Chavez that he can suck on a pair of donkey balls.
He’ll nationalize the plants in a heartbeat, but be left with nothing more than smoking ruins.
Of course, make sure to do this while in another country, preferably outside of South America. Spain, perhaps.
Then when the press come a knocking, taunt Chavez ruthlessly. Laugh at his impotence.
“Quality, affordable coffee is a right”
It’s time to go Francisco d’Anconia.
What US companies will be affected?
I was just telling my wife that’s exactly what I’d do when I first read the headline...
L’etat cest moi.
Isn’t Obama plowing this same field?
This is happening right here at home. Pass the law/regulation then confiscate the violator through fines, fees, taxes, bankruptcy or direct state control.
I guess there’s no decent automobile companies in Venezuela to take over?