Venezuela President Nicolas Maduro’s request to resume control of fertilizer company Monomeros Colombo Venezolanos, Barranquilla, Colombia, an affiliate of Venezuela’s PDVSA, prompted Colombian regulator Superintendencia de Sociedades to recently seize control of the company, Reuters reports, citing unit’s former Chair Carmen Elisa Hernandez. She said Monomeros suppliers of raw materials stopped selling on generous credit terms after Maduro’s request, and that the company was already having difficulty accessing credit from Colombian banks.
Hernandez, who resigned after the seizure, said on Twitter the action was “the only mechanism to protect Monomeros,” and allow it to overcome problems related to “administrative decisions.” She resigned because she disagreed with the Monomeros Board of Directors, which rejected the Colombian action.
The Board had been appointed by Venezuela opposition leader and President of the National Assembly Juan Guaido in 2019, when Colombia, the U.S., and other nations recognized him as Venezuela’s rightful leader and imposed sanctions against Venezuela. The U.S. lifted sanctions on Monomeros in 2019 (GM June 14, 2019.)
Maduro had been using recent negotiations in Mexico City to try to regain control of the assets. Maduro’s government has now vowed to take legal action to regain control. U.S. refiner Citgo Petroleum Corp. is also under Guaido control.
Guaido has called Maduro’s demand for control “propaganda,” and said the Monomeros Board should be restructured, with both Venezuelan ownership and administration. A replacement for Hernandez has not been named.