The latest confiscation, Announced on July 30, goes after the nation’s chief food and beverage suppliers – Polar Foods, PepsiCo, and Nestle – to make way for more housing state in the lead-up to this year’s legislative elections.
Members of the Bolivarian National Guard and a judge arrived at Yaguara industrial complex on Wednesday, to inspect the properties and issue the expropriation notices. That included a deadline of 60 days for renting parties to vacate the premises.
Fearing imminent job losses, 2,000 workers employed at the complex protested on Thursday.
Property Rights under Siege
This maneuver is hardly out of the ordinary for the United Socialist Party of Venezuela, Which holds power. ACCORDING to a free-market policy institute based in Caracas, in just the first six months of 2015, the property rights regime violated 799 times.
Freedom CEDICE That reports Between January and February This Year, the government Took over the management of 12 companies, Seized two other establishments, and issued 216 purposes. Were the purposes for Alleged regulatory noncompliance, unapproved prices: such as, but With no right to appeal.
In the following four months, registered an upswing CEDICE With 596 Violations property.That included a revenue-generating crackdown With 523 goals, the expropriation of two hotels in Caracas, 36 company takeovers, and eight seizures company.
The takeovers or “temporary occupations” are administrative Measures, in Which the regime controls the company for a period of time. While the company remains nominally private, the regime Prevents the rightful owners from making managerial decisions.
Andrea Rondon , a member of the Academic Committee of CEDICE and coordinator at the Property Rights Observatory, Said That the regime is “continuing to encircle Measures With additional different Sectors of the economy.”
Rondon Told the PanAm Post That During the second quarter of 2015 the majority of decisions Were attacking property rights targeted at the food industry.
She wanted to highlight, though, esta That policy has-been underway since 2011, When the Venezuelan government Launched ITS crusade against property rights. And back in 2007, the late Hugo Chavez consolidated the legislative framework for expropriations.
ACCORDING TO Rondon, property Violations Have Been Able to grow on account of Both collusion and the shirking of responsibility across the legal, legislative, and executive branches of government. That too she opines under President Nicolas Maduro, the situation has worsened, on account of legislation That limits the rights of shareholders, Including When They can receive dividends.