Government Officials
Occupy Store Chain In Venezuela
CARACAS - Venezuelan officials temporarily
took over management of a French-owned chain
of hypermarkets on Tuesday after President
Hugo Chavez announced plans to expropriate
the stores.
Valentina Querales, chief inspector for the
consumer protection agency, said officials
will control the Exito hypermarket chain's
six stores for two days after authorities
detected improper price hikes.
Speaking on state television, Commerce
Minister Eduardo Saman said Exito's workers
would eventually assume management of the
chain and fold it into a network of
state-run companies selling household
appliances and other products at discounted
prices.
To reduce costs, the government plans to
import goods and send them directly to the
stores, avoiding private importers and
intermediaries, he said.
"Starting today, this company becomes a
socialist company," Saman said while
surrounded by Exito employees who support
the expropriation.
Other employees oppose the measure, saying
they fear they could lose their jobs.
Chavez announced Sunday that his government
planned to expropriate the chain,
majority-controlled by France-based Casino
Guichard Perrachon SA.
An employee who answered the phone at
Exito's offices Tuesday said nobody was
available to comment.
A conglomerate of small Colombian companies
holds a minority.
Chavez has repeatedly threatened to seize
businesses that raise prices in response to
the country's first currency devaluation
since 2005. His government is seeking to
contain double-digit inflation.
The socialist leader eliminated the previous
fixed rate of 2.15 bolivars to the dollar on
Jan. 8. His government set a new two-tiered
rate: 2.6 per dollar for priority goods,
such as food and medicine, and 4.3 for
imports of nonessential items, such as air
conditioners and electronics.
The devaluation is widely expected to
further boost inflation that reached 25
percent last year, the highest in Latin
America.
After announcing earlier this week that Cada,
a network of 35 supermarkets partially owned
by Casino, could also be expropriated, Saman
said Tuesday that for now there are no plans
to seize control of the grocery chain.
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