(Caracas, Venezuela) Hugo Chavez's government has seized a sugar mill in the state of Portuguesa to conduct a "social audit" and to form a committee of workers and government representatives to oversee production and marketing. The Santa Elena Sugar Mill is accused of creating an "artificial scarcity" in the market by retaining product.
According to Trade Minister Richard Canan,
“We found in the storehouses of this plant more than 4,000 tons of sugar, 80,000 sacks, which should be at the distribution centers, in the packaging plants or on the shelves of the commercial establishments,” the minister told reporters. [...]Therefore, it appears that scarcity is eliminated when the government is in charge. Frankly, I'd disagree. Typically, the government is at the forefront of causing scarcity.
“We’re going to guarantee the operation of these plants so that our people don’t lack sugar anymore,” Canan said.
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