Dutch take Venezuela to court over Fama de America coffee compensation

[naaman fletcher]

Headline News Editor Patrick J. O'Donoghue reports: The Dutch Longreef Investment Group is suing the Venezuelan government for failing to compensate assets nationalized in 2009.

The Group was shareholder in the Venezuelan Fama de America Coffee company.

The complaint has been lodged at the International Center for Settlement of Investment Disputes based in Washington.

A report in El Nacional broadsheet said the investment group seeks to enforce payment for tangible and non-tangible assets.

In April 2009, the government announced that it would only pay 10% of what the coffee company said it was worth.

Longreef claims that the Venezuelan government has violated the expropriation law by refusing to recognize the findings of a valuation committee.

It is not clear from the news piece whether the committee was set up by Fama de America shareholders or the conclusion of a government evaluation team.

The demand is the second in the last few months during which the Mexican Cemex company lodged a compensation case at the Center.

http://www.vheadline.com/readnews.asp?id=100349

So much for the "Chavez always pays" claim that is made here frequently.