Sunshine Sentinel

The Trump administration is under fire for backing the government of Venezuela against a mining company Crystallex, which seeks restitution for property theft occurring in 2011, when CITGO, a Venezuelan government-owned company, seized Crystallex assets.

In 2019, the Third Circuit ruled that Crystallex is entitled to CITGO’s assets following the government’s 2011 seizure. Despite the ruling, the U.S. government filed a motion on July 16 arguing that the CITGO's assets should be shielded from Crystallex.

The Taxpayers Protection Alliance is now publicly criticizing the Trump administration’s actions.

“By making this legal argument and putting politics before property rights, the Trump administration is sending a dangerous message to property owners around the world. According to this disturbing precedent set, governments around the world can expropriate the earnings of property owners without having to face any consequence,” said David Williams, TPA president. “Millions of individuals and businesses lost their livelihoods over the past two decades in Venezuela, and CITGO’s assets presented a rare opportunity for victims to claim what was stolen from them. But now, the Treasury will sit on these claims rather than pursue justice for the victims of theft.“

Williams pointed out that before the Las Cristinas mine was expropriated, mining companies like Crystallex poured millions into the economy, investing in humanitarian efforts and making the country better.

“Hugo Chavez’s wanton nationalizations brought this progress to a screeching halt by seizing billions of dollars’ worth of assets and forcing companies to leave the country for good. Chavez and later Nicolás Maduro refused to pay restitution to these victims,” Williams said. “In 2016, Crystallex successfully presented its case before the World Bank’s international arbitration facility in Washington and hope abounded that the business would finally get its due. But the Venezuelan government was determined to evade justice and to this day has refused to give the company its investments back or pay back what they had stolen. The federal government’s legal motion today is just the latest setback for justice, property rights, and the rule of law.”

The Trump administration needs to act on behalf of property owners worldwide by supporting the victims of theft and expropriation, Williams concluded.