Venezuela to incorporate occupied grocery into state system

AP News
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Posted: Feb 06, 2015 11:04 PM
Venezuela to incorporate occupied grocery into state system

CARACAS, Venezuela (AP) — Venezuelan President Nicolas Maduro on Friday announced that an occupied supermarket chain officials accuse of hoarding products will be folded into the state food distribution system.

Maduro said the 35 locations of the Dia a Dia grocery chain will be assimilated into the state grocery agency starting this weekend. He did not say if the change would be permanent, and stopped short of calling it an expropriation.

He accused the chain of "carrying out a war against the people," referring to the government's assertion that right-wing business owners are purposely making shopping a nightmare by hoarding goods to cause the shortages and long lineups that are plaguing Venezuela.

Soldiers had occupied the Dia a Dia chain earlier this week and on Friday the attorney general's office announced the continued detention of Dia a Dia's director.

Earlier, two executives of Venezuela's largest drugstore chain, Farmatodo, were detained as part of an investigation by price-control authorities.

Many economists blame price and currency controls for causing the economic distortions plaguing Venezuela at a time when falling oil prices are battering its revenues.

The Caracas Chamber of Commerce, Industry and Services rejected government accusations that the private sector is the cause of the severe economic crisis, shortages and soaring inflation in Venezuela.

In a statement, it said the economic problems are the result of "an economic model, 21st century socialism, that with its controls and obstacles has devastated the country's private productive capacity."