Watchdog Slams Government for Undermining Property Rights

For Immediate Release
July 17, 2020
Contact: Grace Morgan
(202-855-4380)

WASHINGTON, D.C. – Today, the Taxpayers Protection Alliance (TPA) criticized the Trump administration for siding with the Venezuelan government against a mining company seeking restitution for property theft. In 2019, the Third Circuit ruled that mining business Crystallex is entitled to the assets of Venezuelan government-owned company CITGO after the Venezuelan government’s seizure of Crystallex’s assets in 2011.  Despite this ruling, the U.S. government filed a legal motion on July 16 arguing that the assets of Venezuelan government-owned CITGO should be shielded from Crystallex.

TPA President David Williams slammed the Trump administration for their legal motion, stating, “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. 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 continued: “Prior to the expropriation of Las Cristinas mine, companies such as Crystallex were pouring millions of dollars into the Venezuelan economy and investing in an array of humanitarian endeavors. 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. 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.”

Williams concluded: “For the sake of property owners around the world, it’s important that the Trump administration gets this right. Crystallex and other victimized companies cannot claim their due without the green light by the Treasury to claim CITGO’s assets. The federal government must do the right thing and support the victims of theft and expropriation. This issue is too important to get wrong.”

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