Venezuela's Chavez decries businesses that hoard
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| Published on Friday, June 22, 2007 |
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CARACAS, Venezuela (Reuters): Venezuelan President Hugo Chavez threatened on Thursday to expropriate businesses found guilty of hoarding merchandise amid a broad nationalization campaign.
Venezuela in recent months has suffered nagging shortages of basic foodstuffs like chicken and eggs as a result of what Chavez calls speculation by businesses, though critics say it is caused by bad economic policy.
"If it is demonstrated that someone is hoarding, speculating, or violating the law ... immediate expropriation," said Chavez during an evening television broadcast.
Venezuela this year passed a widely criticized anti-hoarding law that calls for fines and even jail time for those found with excess merchandise or violating price controls in place since 2003.
Critics say these regulations, combined with unease created by this year's nationalizations of telecommunications and energy companies, have made it difficult for businesses to keep their shelves stocked.
The oil-rich nation has witnessed booming economic growth but has the highest inflation rate in South America due largely to heavy government spending.
Chavez won a landslide re-election last year thanks in large part to a social development crusade that has built up the political support of the nation's poor majority.
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