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Supermarket Chain Denies Venezuela's Charges of Food Hoarding Supermarket Chain Denies Venezuela’s Charges of Food Hoarding
(about 9 hours later)
CARACAS, Venezuela — The head of a supermarket chain taken over by the Venezuelan government rejected on Sunday charges that the company was hoarding foodstuffs to destabilize the economy, arguing that its warehouse had only three days’ supply of basic goods.CARACAS, Venezuela — The head of a supermarket chain taken over by the Venezuelan government rejected on Sunday charges that the company was hoarding foodstuffs to destabilize the economy, arguing that its warehouse had only three days’ supply of basic goods.
“They know there’s a huge issue with food scarcity in Venezuela and they do not want to be responsible,” José Vicente Aguerrevere, the chief executive of the Día Día chain, said of the government.“They know there’s a huge issue with food scarcity in Venezuela and they do not want to be responsible,” José Vicente Aguerrevere, the chief executive of the Día Día chain, said of the government.
He said that he did not know why his company was singled out Friday when President Nicolás Maduro ordered the chain of 35 small supermarkets in 16 cities to be “taken over” by a government-operated network of grocery stores.He said that he did not know why his company was singled out Friday when President Nicolás Maduro ordered the chain of 35 small supermarkets in 16 cities to be “taken over” by a government-operated network of grocery stores.
The takeover was ordered after the government accused private businesses and right-wing enemies of being responsible for the nation’s serious economic problems, which have gotten worse as the price of oil, the country’s only major export, has fallen.The takeover was ordered after the government accused private businesses and right-wing enemies of being responsible for the nation’s serious economic problems, which have gotten worse as the price of oil, the country’s only major export, has fallen.
Most economists say that government policies, like price and foreign currency controls, are a major cause of declining imports, high inflation, shortages of many basic goods and long lines at many stores.Most economists say that government policies, like price and foreign currency controls, are a major cause of declining imports, high inflation, shortages of many basic goods and long lines at many stores.
Over the past several days, Mr. Maduro has ordered the arrest of two executives at the country’s largest pharmacy chain, Farmatodo, and the takeover of Día Día, whose stores are in poorer neighborhoods.Over the past several days, Mr. Maduro has ordered the arrest of two executives at the country’s largest pharmacy chain, Farmatodo, and the takeover of Día Día, whose stores are in poorer neighborhoods.
Government officials who went to a Día Día warehouse last week said they found large amounts of food, and accused the chain of hoarding.Government officials who went to a Día Día warehouse last week said they found large amounts of food, and accused the chain of hoarding.
“The warehouse was full of all kinds of products,” Mr. Maduro said on Friday when he ordered the takeover, accusing the company of “hiding corn flour and cooking oil.”“The warehouse was full of all kinds of products,” Mr. Maduro said on Friday when he ordered the takeover, accusing the company of “hiding corn flour and cooking oil.”
He said that he had no choice but to use an “iron fist” against the company and urged prosecutors to “go all out” in filing criminal charges against the chain’s executives “and to have no pity with these criminals, this mafia that hurts the people.”He said that he had no choice but to use an “iron fist” against the company and urged prosecutors to “go all out” in filing criminal charges against the chain’s executives “and to have no pity with these criminals, this mafia that hurts the people.”
But Mr. Aguerrevere said that the warehouse is the only one the chain has, that it distributes food daily to every store, and has only a three-day supply of basic goods.But Mr. Aguerrevere said that the warehouse is the only one the chain has, that it distributes food daily to every store, and has only a three-day supply of basic goods.
“If you go to our distribution center you go, ‘Wow, it looks like a lot.’ But if you do the math, it’s only three days of inventory” of staple products, he said. He said the warehouse had a seven-day supply of some less essential products.“If you go to our distribution center you go, ‘Wow, it looks like a lot.’ But if you do the math, it’s only three days of inventory” of staple products, he said. He said the warehouse had a seven-day supply of some less essential products.
He also said that a computerized government system keeps track of and authorizes all shipments to and from the warehouse, so officials had no reason to be surprised by what they found.He also said that a computerized government system keeps track of and authorizes all shipments to and from the warehouse, so officials had no reason to be surprised by what they found.
“They knew what I had in my distribution center and they authorized what I have in my distribution center,” said Mr. Aguerrevere, who spoke by telephone from Boston, where he lives.“They knew what I had in my distribution center and they authorized what I have in my distribution center,” said Mr. Aguerrevere, who spoke by telephone from Boston, where he lives.
The government has charged the company’s general director, Manuel Morales, with sabotage and destabilizing the economy. He is being held by the intelligence police.The government has charged the company’s general director, Manuel Morales, with sabotage and destabilizing the economy. He is being held by the intelligence police.
Mr. Aguerrevere also said that Mr. Morales was arrested inside the presidential palace last week after leaving a meeting with a vice president in charge of food supplies.Mr. Aguerrevere also said that Mr. Morales was arrested inside the presidential palace last week after leaving a meeting with a vice president in charge of food supplies.
“He is illegally detained,” said Mr. Aguerrevere, adding that the charges against Mr. Morales carry up to 10 years in prison. “It’s crazy. He’s totally not guilty. It’s not fair to his human rights.”“He is illegally detained,” said Mr. Aguerrevere, adding that the charges against Mr. Morales carry up to 10 years in prison. “It’s crazy. He’s totally not guilty. It’s not fair to his human rights.”