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Red on Red in Venezuela: Government Seizes H.J. Heinz Processing Plant
Governor Orders Venezuelan Troops to Seize Heinz Tomato Plant, Saying It Abandoned
The Associated Press
Published: Sep 5, 2005

CARACAS, Venezuela (AP) - A state governor allied to leftist President Hugo Chavez has ordered Venezuelan troops to seize an abandoned tomato-processing plant owned by the H.J. Heinz Co., a state official said Monday.
The plant in the eastern state of Monagas still belongs to Heinz but hasn't been used for years, said Angelica Rivero, a spokeswoman for the governor.

"The governor decided to seize the plant so it can be protected from looters and later be put to use," Rivero said.

Monagas Gov. Jose Gregorio Briceno told the state-run Bolivarian News Agency the plant changed hands several times under previous governments before Heinz purchased it in 1997 and later ceased operations.

Debbie Foster, a spokeswoman for the Pittsburgh-based food company, said the plant had not been used for eight to 10 years but gave no other comment.

Officials were expected to expropriate the plant, a move that would require the Venezuelan National Assembly to declare the property to be of "public interest." It wasn't immediately clear whether soldiers were posted at the plant Monday.

Chavez, a close ally of Cuba's Fidel Castro who says he supports socialism, has said the government may expropriate the property of companies whose factories are idle or partially paralyzed in order to put them back to work.

One nearby town, Caicara, suffered because of the actions of the "transnational monopoly," Briceno told the state news agency, known by its Spanish initials ABN.

"At that time I was mayor of that town and I felt impotent, my hands tied, as 30 million kilos (66 million pounds) of tomatoes ... were produced, and the closing of the business led the farm workers to go broke," Briceno told ABN.

Venezuela's constitution says the government will respect private property but that the state may expropriate property if for public use or "social interest," as long as compensation is paid.

So far this year, the government has expropriated the assets of a failed paper company and an industrial valve maker.

The governor's order to seize the tomato plant came as Venezuela's largest food producer, Alimentos Polar, said it was challenging the legality of a military takeover of its storage facilities in the southernwestern state of Barinas.

Will Tar-ay-za tell Hugo to shove it? Is it possible that compensation was paid in advance, say, last year during the election campaign?

Posted by: Atomic Conspiracy 2005-09-05
http://www.rantburg.com/poparticle.php?ID=128694