Venezuelan President Nicolás Maduro’s demand for control of Colombian fertilizer producer Monomeros has further upset the company’s finances and contributed to a Colombian regulator’s intervention last week, said Carmen Elisa Hernández, who resigned on Sunday as chair of the company’s board.
By Reuters – Luc Cohen and Brian Ellsworth
Sep 14, 2021
She told Reuters that Maduro’s demand alarmed suppliers of raw materials to the firm and led them to stop selling to Monomeros on generous credit terms, complicating the Venezuelan state-owned company’s finances, which were already compromised by difficulty accessing credit from Colombian banks.
The resulting cash crunch contributed to the decision last week by the Superintendencia de Sociedades to oversee operations at the company, an important supplier to farmers in Colombia, a leading global coffee exporter, Hernandez said.
The board in control of the Colombian company was appointed by Juan Guaido, Venezuelan opposition leader since 2019, when Colombia, the United States and dozens of others recognized him as Venezuela’s rightful leader, labeling Maduro a dictator who rigged his 2018 re-election.
Maduro, asserting the election was fair, remains in office despite U.S. sanctions and diplomatic pressure while international mediators facilitate negotiations to end the political crisis.
Maduro has said he will use the negotiations to demand that Monomeros and U.S. refiner Citgo Petroleum Corp (PDVSAC.UL), also controlled by the opposition, be put under his government’s control.
Hernandez said that while such a scenario was unlikely, the prospect of dealing with a company controlled by the cash-strapped Maduro government led suppliers to request upfront payments for raw materials like urea and phosphates.
“It generated a problem in the market in terms of mistrust and a reduction of risk appetite,” she said in an interview late on Monday.
Maduro and his allies frequently accuse Guaidó of “stealing” Monomeros. Venezuela’s chief prosecutor Tarek William Saab said on Tuesday night his office had opened an investigation into Guaido for possible crimes related to the Monomeros case including treason and asset theft.
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Read More: Reuters – Maduro demand for control crimped finances of Colombia’s Monomeros, ex-chair says
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