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Battle against large estates rages

* President Hugo Chávez is to launch two social projects in 6,900 hectares out of a total of 8,490 in La Marqueseña ranch. The Azpúruas, who claim ownership of the property, were offered 1,500 hectares and were reminded that the area is national wasteland.

* During his TV and radio show "Hello, President!" last September 25, the ruler offered the Azpúruas a deal. "Otherwise, they have the right to appeal to court," he clarified.

* He proposed to develop in 2,700 hectares under special management regime, an ecological agricultural project with the participation of residents of Peñalarga village.

* "The project is ready. In accordance with environmental rules, coffee, cocoa, and some fruit plantations, as well as reforestation plans, can be implemented."

* A second project includes a plot of land for genetic agricultural development of seeds and plantation of basic commodities in an area comprising 4,200 hectares.

* "All over the area, a state company called Florentino Genetic Center will be established. Approximately USD 25 million will be invested. A total of USD 10.2 million will be spent the first year. Funding is secured already."

* The government intends to use 2,900 hectares for cattle genetic improvement. In this regard, about USD 6 million will be spent. A portion of 800 hectares will be used for the project concerning seeds, including an investment of USD 583,000. Additionally, 500 hectares will be used to plant commodities for human and animal consumption, for the amount of US 280,000. The investment will be completed with USD 16 million for machines and equipments, and USD 235,000 for inner roads.

* Also, the ruler proposed to use an area in La Marqueseña for army exercises.

* "I will not issue any opinion on legal issues. I talked to Carlos Azpúrua. We do not have any intention whatsoever of running over anybody. I met a Venezuelan willing to join efforts with the government, ready to accept the facts. My regards to Mr. Azpúrua, communication channels are open."

* "I am sure that you (Carlos Azpúrua) and your family will end up winning from the moral, social and economic point of view, because the cattle available is limited. I am sure that if you work along with the genetic center, then you can enlarge it."

* Dozen people answered to the call by the National Front for Political Prisoners' Freedom and rallied in Luis Roche and Francisco de Miranda Avenues, Caracas metropolitan area, to protest strongly at "totalitarian, populist" action concerning land and businesses takeover by the national government.

* During the three-hour rally, opposition followers blew whistles, banged pots and chanted mottos such as "People, grow up, this is a dictatorship!" and "Out with communism!" Some carried placards which read "Venezuela has been seized since August 16th, 2004;" "The recall referendum was also confiscated," and "Marqueseña, do not let yourself to be seized."

* Patricia Poleo, one of the organizers, urged President Hugo Chávez "to listen to the pots" that banged last September 25 to refuse "totalitarian actions" and recommended him to "apportion all wastelands in the government hands."

* "What about giving the people the lands you and your family have?" the journalist wondered.

* Both Antonio Ledezma, the leader of Alianza Bravo Pueblo, and Eddy Ramírez, the representative of Gente del Petróleo, agreed to call "demagogic, populist and unconstitutional" land takeover. The move, in their view, will endanger peasants, producers and consumers.

* At the beginning of the protest, Oscar Pérez, the representative of the Front for Political Prisoners' Freedom, claimed that police officers were infiltrated into the demonstration in order to disrupt it.

* Vicente Brito, former president of the Venezuelan Federation of Chambers of Commerce, claimed that about one hundred people squatted in El Brasil estate, located to the north of Maturín, the capital city of eastern Monagas state.

* Around one kilometer of the belt protecting river Piña was affected by the action. Squatters caused significant damage both in houses and the ecosystem.

* Brito, the estate owner, expressed that the area exceeds 400 hectares; 320 hectares, or 80 percent, are productive.

* He stressed that he sent letters to Monagas governor José Gregorio Briceño, and other local authorities, with no feedback so far. In the meantime, squatting started last September 20 has escalated.

* Brito fears that unresponsiveness of local authorities, may result in material damages, as squatters are getting closer to plantations.

* "It is clear that I am being charged for defending private property and speak up against the government recent actions," Fedecámaras ex president regretted.

* Nationwide seizure endorsed by President Hugo Chávez "is just political handling in the face of next December elections and significant drop in popularity, as evidenced in the official numbers of the National Statistics Institute."

* Henrique Salas Römer, the ex governor of central-northern Carabobo state, thinks that everything points to a new version of the so-called Zamorian Decrees announced at the beginning of 2001.

* "Such decrees violated property in the countryside and were aimed at sparking confrontation in view of hasty weakening of the president's popularity. It is a manner of provoking the opposition reaction. People is fed up with the story of Mr. (US President George W.) Bush. This is just a circumstantial political handling."
 
* On the other hand, the leader of opposition Proyecto Venezuela party explained, seizure has a long-term goal. "It is aimed at taking over all the country's centers. It is the Cuban-style government intended here; a way of governance expected to put the power in the hands of one single man. It is something completely opposed to the western tradition and to the whole progress made in the field of human rights over the last 400 years."

* "We should be vigilant. Private property is at stake. We should take action; otherwise, people may think that we are moving in the opposite direction."

* Engineer Carlos Azpúrua, who claims ownership of "La Marqueseña" ranch, reported that the stockholders of the agricultural and cattle-breeding facilities working there, as well as advisors and employees would be consulted about a government proposal for use of 1,500 hectares out of a total of more than 8,000 hectares.

* "It is not just my own decision, but also the decision of stockholders, and we need to listen to the opinion of workers. The proposals made by the president (Hugo Chávez) and the national government need to be studied," Azpúrua told TV news channel Globovisión.

* The proposal "is not so right, because they (government authorities) were more open-minded. They made reference to a preliminary proposal and were willing to listen to a counteroffer."

* The initiative "will be explored accordingly, but maintaining, as stated so far, that this is private property, and it is productive also."

* Azpúrua announced that they would send the government, through the National Lands Institute, additional documents attesting to land ownership.

* The Venezuelan Federation of Chambers of Commerce (Fedecámaras) asked the government to respect the rule of law, regulations and any procedure concerning due process, regardless of the kind of good subject to seizure.

* Fedecámaras president José Luis Betancourt stated that in the event of any doubt, in-court legitimate defense should be granted. He urged the government to stop recent actions and lay the foundations for dialogue.

* He made reference to Yaracuy state, where "violent attacks on productive farms have been taken place. Such events do not help at all the peaceful environment needed in Venezuela to answer to current social problems," Betancourt said.

* "Such events are despicable and should be strenuously rejected, whatever their origin. No country should be under threat, violence, insecurity."

* He noted that businesspersons are willing to join the government to improve domestic conditions, by the government should provide assurances for the right of property.

* Betancourt insisted on stating that recent takeover over the last few weeks is not under the law, and this damages citizens' security and institutions.

* President Hugo Chávez is to initial a decree to take over an abandoned manufacture in southwestern Barinas state. While he did not give the name, reference was made to Promabasa, property of Polar Companies.

* "Tomorrow (September 26) the Barinas governor will sign a decree to seize an abandoned manufacture in Barinas state, under the legal proceeding. The National Legislature declared for public use and enjoyment a company that was dismantled. They removed the machines and took them to Colombia. This plant can create jobs and is for public use."

* The Barinas legislature, at the request of Promabasa ex workers, resolved to declare the manufacture of corn flour and oil extraction as property for public use. The plant closed early 2002.

* During his TV and radio show "Hello, President!" on September 25, the ruler rebutted claims of violating private property or seizure outside of the law.

* President Chávez referred himself to a headline in El Universal daily last September 25, stating that "Venezuelans back private property." "It is true what is said there, and we also respect private property."

* President Hugo Chávez trumpeted his government's progress "towards a new model of collective property," under which a group of people may exploit a plot of land collectively without expecting individual wealth, but only common well being.

* He made the announcement on September 26, when initialing a cooperation agreement between the Venezuelan Government and the Brazilian landless people (Sem Terra) movement, aimed at undertaking social work in the Madre Vieja agricultural, tourism endogenous development core, located in Chávez' home town Sabaneta de Barinas, southwestern Barinas state.

* On September 25, Chávez claimed he was focusing on this initiative, and invited the Brazilian landless to develop this core, comprising also the Andean towns of Boconó and Trujillo, together with Cuban and Argentinean experts.

* "The devil of capitalism will not get into us and bring the idea that we are going to become rich. When this evil idea of accruing profits gets into a community, human, social sense of people is lost. You do not live happily in wealth," Chávez asserted.

* Carlos Azpúrua, the representative of La Marqueseña estate, will go to the courts to bear witness that the premises in southwestern Barinas state are of private origin.

* "He (President Hugo Chávez) ensured respect for private property, provided that we could prove it in court. And if the National Lands Institute (INTI) is right about declaring the property wasteland, then he promised us a remainder of 1,500 hectares or even more."

* "We put much faith in proving in court that the land is private, as we have all the deeds," he added.

* Should courts prove that the land is not private, Azpúrua is not against takeover in order to develop social projects, as proposed by President Chávez.

* "The president even offered government support for some productive projects that I showed him."

* Lorenzo Mendoza, CEO of Polar Companies, on September 26 on behalf of the board of directors flatly rejected a move by the government of south-western Barinas state to confiscate the assets and premises of plant Barinas I (formerly Promabasa), and ensured that they are going to exercise their legitimate right to legal defense.

* "This is an unfair, baffling and unconstitutional move, in our view. We are going to resort to the only way of defense we have always used: the laws. We are going to seek justice and annulment of this move by the relevant jurisdictional bodies. The rule of law will prove us right."

* Mendoza would not elaborate on the legal actions Polar Companies is to undertake, but he did ensure that "once we are officially appraised (of the confiscation), we are going to conduct the appropriate legal assessments, and resort to the relevant bodies. We are going to ask the relevant institutions, courts, the Supreme Tribunal of Justice for restitution of our rights."

* Polar Companies CEO underscored that "negotiation is a word that does not apply in this case, as Barinas I plant is operating."

* A Polar Companies Marketing Division operates in Barinas I which distributes Polar finished products in Barinas state. Further, the premises comprise silos with storage capacity for 20 million kilograms of corn.

* "These silos were seized as per instructions from the Agriculture and Land Minister (Antonio Albarrán). A few days later, an inspection was conducted and silos were found to be operating. Therefore, an agreement to resume operations was attained. In this way, they had no excuse to continue seizure of the silos. But then, the Barinas Legislative Council decided to declare these assets as "public use" property. This was the first step for expropriation."

* Mendoza conceded that a plant for corn flour processing and corn oil extraction operated at these facilities, but it was closed down in 2002. These operations were taken to two other plants.

* "This was a strategic move intended to optimize resources and improve cost-efficiency. This is a normal measure in industrial activities. We meant to adjust our industrial facilities. Production has increased by 6 percent since then."

* He added that reactivation of the plant for corn flour processing and corn oil extraction that operated in Barinas I is not scheduled. "We are to grow where we deem it more efficient."

* Mendoza insisted that the move to confiscate Barinas I is not to undermine the corporation investment plans. "We have an investment plan prepared for this year, and we are not going to make any changes. Our goal is to continue to supply the Venezuelan market, attain cost-efficiency and be a visionary corporation."

* He added that the firm is deeply concerned about the negative impact expropriation may have on the association of corn producers Asoprai, as this organization rented Barinas I facilities for storage of the current corn harvest.

* "These producers have not taken corn there as they fear they may lose any product they store in these silos. They feel they are at risk."

* "If Polar companies consider that the term 'deal' does not apply in the case of silos takeover, then that is their business," Venezuelan Vice-President José Vicente Rangel commented.

* Reference was made to the statements of Polar CEO Lorenzo Mendoza.

* "The court way is open. The rule of law governs in Venezuela. Anybody who feels affected by a measure can appear to the courts," VP Rangel noted.

* The senior official denied government acknowledgment of Promabasa effectiveness. "There is no acknowledgment in this regard," he admonished.

* "The state will not run over their rights at all. Now, I am sure that (Lorenzo) Mendoza should accept that there is government, State and laws, as well as powers in place," President Hugo Chávez told Polar Trust.

* "I will call you, Lorenzo. Bridges cannot fall down." President Chávez addressed himself to Polar Trust CEO Lorenzo Mendoza, who noted on September 27 that "the term 'deal' does not apply" in the case of silos takeover.

* The president conceded that Polar has the right to claim and defense.

* "He (Mendoza) said that the decree is unconstitutional. In this case, I am certain that facilities will be returned to him. Otherwise, if the Barinas local power is right, seizure will be enforced. In any case, the move is set forth in our laws and there isn't any outrage."

* President Chávez suggested the possibility of standing shoulder to shoulder with Polar to increase corn output. "We are eager for mechanisms in order to produce additional corn, flour."

* He also made reference to the case of La Marqueseña ranch, property of Carlos Azpúrua. "We do not want to rail on anybody. If Azpúrua attests to ownership of La Marqueseña, this will be observed."

* Jhonny Yánez, governor of central western Cojedes state, is to disclose in the next few days a list of properties to be confiscated in this region with a view of "recovery."

* Cojedes solicitor Alexis Ortiz said a survey was conducted on estates and industries that are idle or non-productive, and 330 properties have been identified for expropriation.

* The list is to comprise plots of urban land, warehouses, machinery and other assets idle in Cojedes state.

* "Property will be transferred to the regional government, but the goal is to develop co-management programs under cooperatives. Even private investors could participate."

* Cojedes governor or mayors, as appropriate, are to disburse the funds necessary to pay for the properties confiscated.

* Meanwhile, José Luis Silva, director of the regional unit of the Agriculture and Land Ministry in Cojedes, said other three ranches could be seized in the next few days, as they are large estates. He would not disclose the names of the properties.

* Venezuelan media businessman Gustavo Cisneros asked for "wisdom" following government takeover of property nationwide, with the recent step against Polar, the largest food company in the country.

* "Under the law, private property is as it is, private. We expect that wisdom returns to the country; respect for people's right to property; respect for their estates, their businesses," Cisneros, one of the wealthiest persons in the hemisphere, said during a press conference in the city of Coral Gables, AFP quoted.

* The Cisneros Organization, a trust including business advisors, super markets, video clubs, Latin American Direct TV and a portion of Univisión, the largest Hispanic chain in the United States, has been not affected by seizure, related to presumably wasteland.


On the Cover

Domestic inflation stands at 1.7 percent

01:11 PM. Economy.
Domestic inflation rate in Venezuela was 1.7 percent in January, at the same rate as in December 2009, despite currency devaluation at the start of the year decreed by President Hugo Chávez, a senior government source told Reuters on Tuesday.

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