Professional Documents
Culture Documents
As Venezuela is rocked by protests against shortages and corruption, questions are being asked
about a huge food business empire
to be playing. Guests said that spirits were high as the teenagers made
their way to the Grand Ballroom on the sixth floor.
Yet the partys most notable feature was the twin hosts father, Mauro
Libi. This self-described visionary has built a remarkable business
empire over the past two decades. As well as food businesses in
Venezuela, Mr Libi is an owner, shareholder, director or legal
representative of some 30 companies across three continents,
according to public records reviewed by the Financial Times, including
banks in Panama and Spain, a $7m Manhattan apartment and dozens
of Miami-registered companies.
https://www.ft.com/content/25055a2a-6332-11e7-91a7-502f7ee26895#comments 2/16
7/13/2017 How the Bolivarian bourgeoisie profit from empty shelves
Venezuelan businessman Mauro Libi: 'If you work and invest, you are considered an enchufado [a [government insider]. .
But if you close your factory, you are someone against the [government] process
https://www.ft.com/content/25055a2a-6332-11e7-91a7-502f7ee26895#comments 3/16
7/13/2017 How the Bolivarian bourgeoisie profit from empty shelves
from the oil price boom in the previous decade. Of that, two-thirds was
spent on cash transfers and other social benefits. But more than
$300bn was stolen or misappropriated, according to estimates by
Jorge Giordani, a former planning minister. Food fraud alone has
reached $27bn since 2010, according to the National Assembly.
The upper echelons of the military are all in . . . making money with
various schemes, says Russ Dallen, managing partner of Caracas
Capital, a broker. Accusations even stain the ruling family: two
nephews of first lady Cilia Flores await sentencing in a New York court
on charges of smuggling cocaine into the US.
https://www.ft.com/content/25055a2a-6332-11e7-91a7-502f7ee26895#comments 4/16
7/13/2017 How the Bolivarian bourgeoisie profit from empty shelves
***
The oil price boom helped Mr Chvez finance his revolution but also
provided ample opportunities for fraud. In 2013, the comptroller-
general found that Bariven, a subsidiary of the state oil company, spent
$2.3bn on food imports but goods worth only a quarter of that ever
arrived in Venezuela. Three executives were charged with corruption
but later released; two were reinstated in their jobs.
https://www.ft.com/content/25055a2a-6332-11e7-91a7-502f7ee26895#comments 5/16
7/13/2017 How the Bolivarian bourgeoisie profit from empty shelves
Opposition activists block a highway in Caracas in clashes with the police last month AFP
Gen Osorio and Gen Torres, both the subject of separate National
Assembly allegations, rebut such charges as empty accusations by
political opponents.
Venezuelan President Nicols Maduro: Critics fear a July 30 constitutional convention could increase the government's
control by suborning institutions such as the National Assembly Reuters
https://www.ft.com/content/25055a2a-6332-11e7-91a7-502f7ee26895#comments 7/16
7/13/2017 How the Bolivarian bourgeoisie profit from empty shelves
I would not say we were satisfied, although Libi answered all the
questions, Carlos Berrizbeitia, a commission member, told the FT.
***
https://www.ft.com/content/25055a2a-6332-11e7-91a7-502f7ee26895#comments 8/16
7/13/2017 How the Bolivarian bourgeoisie profit from empty shelves
Mr Libi told the FT his success grew out of businesses begun by his
father and that some corruption allegations are simply blackmail, but
he counts them as a cost of being a businessman working in difficult
circumstances.
On that point, everyone agrees. Last year, food imports fell to $2.3bn,
one-third of their 2008 peak. Even Mr Libi admits he has to work with
lean inventories amid the drastic shortages and that one of his
delivery trucks was recently sacked by hungry mobs.
Domestic legal pressures are rising too. On June 15, the National
Assembly opened an investigation into an alleged $207m fraud at a
subsidised food programme, called CLAPs. It said it was continuing
other fraud investigations, including into Mr Libi, and would release
more information soon. (Mr Libi says he never participated in CLAPs
and reopening the assemblys probe lacks logical and legal sense.)
https://www.ft.com/content/25055a2a-6332-11e7-91a7-502f7ee26895#comments 9/16
7/13/2017 How the Bolivarian bourgeoisie profit from empty shelves
Tensions have risen between Venezuelan attorney-general Luisa Ortega Daz and President Nicolas Maduros Socialist
administration AP
Copyright The Financial Times Limited 2017. All rights reserved. You may share using our article tools.
Please don't copy articles from FT.com and redistribute by email or post to the web.
https://www.ft.com/content/25055a2a-6332-11e7-91a7-502f7ee26895#comments 11/16