RAQUEL BARREIRO C.
EL UNIVERSAL

Lorenzo Mendoza, CEO of Polar Companies, Tuesday on behalf of the board of directors flatly rejected a move by the government of south-western Barinas state to confiscate the assets and premises of plant Barinas I (formerly Promabasa), and ensured that they are going to exercise their legitimate right to legal defense.

"This is an unfair, baffling and unconstitutional move, in our view. We are going to resort to the only way of defense we have always used: the laws. We are going to seek justice and annulment of this move by the relevant jurisdictional bodies. The rule of law will prove us right."

Mendoza would not elaborate on the legal actions Polar Companies is to undertake, but he did ensure that "once we are officially appraised (of the confiscation), we are going to conduct the appropriate legal assessments, and resort to the relevant bodies. We are going to ask the relevant institutions, courts, the Supreme Tribunal of Justice for restitution of our rights."

Polar Companies CEO underscored that "negotiation is a word that does not apply in this case, as Barinas I plant is operating."

A Polar Companies Marketing Division operates in Barinas I which distributes Polar finished products in Barinas state. Further, the premises comprise silos with storage capacity for 20 million kilograms of corn.

"These silos were seized as per instructions from the Agriculture and Land Minister (Antonio Albarrán). A few days later, an inspection was conducted and silos were found to be operating. Therefore, an agreement to resume operations was attained. In this way, they had no excuse to continue seizure of the silos. But then, the Barinas Legislative Council decided to declare these assets as "public use" property. This was the first step for expropriation."

Mendoza conceded that a plant for corn flour processing and corn oil extraction operated at these facilities, but it was closed down in 2002. These operations were taken to two other plants.

"This was a strategic move intended to optimize resources and improve cost-efficiency. This is a normal measure in industrial activities. We meant to adjust our industrial facilities. Production has increased by 6 percent since then."

He added that reactivation of the plant for corn flour processing and corn oil extraction that operated in Barinas I is not scheduled. "We are to grow where we deem it more efficient."

Mendoza insisted that the move to confiscate Barinas I is not to undermine the corporation investment plans. "We have an investment plan prepared for this year, and we are not going to make any changes. Our goal is to continue to supply the Venezuelan market, attain cost-efficiency and be a visionary corporation."

He added that the firm is deeply concerned about the negative impact expropriation may have on the association of corn producers Asoprai, as this organization rented Barinas I facilities for storage of the current corn harvest.

"These producers have not taken corn there as they fear they may lose any product they store in these silos. They feel they are at risk."

Translated by Maryflor Suárez R.