President Hugo Chavez nationalized two banks this week do to banking irregularities and mishandling of bank liquidations. This was in part due to a series of law infractions committed withing the banks, which forced the Venezuelan government to intervene in the affair closed doors.
Chavez mentioned to government and finance officials once the both institutions had been rehabilitated they would become part of the public finance system, according to a news report.
The intervention of Venezuela’s government in the financial sector may be to have more oversight of the private sector, or to avoid any corruption that involves the Bolivarian revolution.
Chavez stated on his weekly program “Aló Presidente” that any banker caught would lose and nationalize private banks that violated regulations. Since his reelection victory and now able to govern indefinitely and setup a new socialist system in the country with no opposition.
In light of the nationalizations, the arrest of Ricardo Fernandez Barrueco sheds light on the events unfolding in Venezuela’s political climate. Barrueco is a wealthy entrepreneur who owned the following banks: Banco Canarias, Banpro, Banco Confederado and Banco Bolívar. All of these were audited by the government and found illicit activities that led to his arrest.
According to a report by EL Universal, Barrueco was instrumental during the 2002 National strike, which paralyzed the country’s economy. Nevertheless, his intervention during this strike helped sustain the president and became a well know business figure for the fifth republic. The government wanted to utilized Barrueco’s financial services and resources in the agriculture sector to compete against the Polar Group, according to the report.
The countries political situation is in turmoil and what is the future? President Chavez is a permanent footprint for generations to come. Whether this is a case of corruption or a lawful justification for the government’s intervention Venezuela is moving away from democracy.
Chavez in 1998 was interviewed by Univision News Anchor Jorge Ramos and asked him what was the political agenda and future for the country. Ramos asked if he would nationalize any institutions and Chavez declined any intentions to do so. In fact, he welcomed foreign investment and economic development. In addition, Chavez assertive and with conviction said he would not openly criticize other governments since they have the right to elect the governments they want to.
A quote that comes to mind in regards to the claims made by President Chavez’s 1998 interview can be illustrated by Abraham Lincoln. Lincoln once said, “You may fool all the people some of the time, you can even fool some of the people all of the time, but you cannot fool all of the people all the time.”
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