2018: President Maduro and Billionaire CEO Lorenzo Mendoza Reached an Agreement

In 1992, Lorenzo Mendoza became CEO of Empresas Polar, a Company founded by his grandfather. Polar is the largest private company in Venezuela with $7 billion in annual sales. Polar manufactures and distributes PAN, that accounts for about 50% of the national production of pre-cooked corn flour which is used daily by most Venezuelan households to make arepas. Mendoza’s net worth was estimated at $2 billion in 2021.[1]

President Hugo Chavez blamed Mendoza for shortages of PAN and other products in grocery stores. He accused Mendoza of hoarding products to create empty shelves and long grocery store lines. Criticism of Mendoza continued under President Maduro who called Mendoza a “bandit, thief, oligarch, traitor.”

In October 2015, President Maduro called for the prosecution of Mendoza for treason for allegedly holding negotiations with the International Monetary Fund (IMF) about a loan of $40 billion with the aim of surrendering control of the Country to the IMF.[3][1] The National Assembly voted to file charges of conspiracy and “usurpation of state functions” against Mendoza with the Attorney General.[4] Mendoza was never charged and never arrested.

Between 2015 and 2016, 40 Polar managers were arrested.[5] Over a ten-year period, authorities inspected Polar facilities more than 4800 times.[6] In 2016, state intelligence agents were stationed at the gates of Polar’s headquarters. Mendoza said armed and masked officers from the intelligence agency were also stationed outside his residence.[2] Mendoza held press conferences and denounced harassment of his Company and family. On January 20, 2017, the Inter-American Commission on Human Rights (IACHR) granted precautionary measures in favor of Mendoza and his family based on accusations that they were at risk due to accusations and acts of harassment from high state authorities.[5]

In 2017, several surveys showed that Mendoza was the preferred candidate to oppose Maduro in the 2018 Presidential election. Several marches were held to promote his candidacy.[7] In February 2018, Mendoza ruled out running.[7]

Sometime in mid-2018, under pressure from his family, Mendoza sought contact with Tareck El Aissami, Vice President of the Economy.[8] The New York Times published an article in 2020 that reported on the subsequent meeting: [8]

·        “According to five people briefed on the meeting, Mendoza’s efforts culminated in a meeting in 2018 with Cilia Flores, Venezuela’s powerful first lady. The result of this meeting was an informal pact that remains in effect to this day: Mendoza would step out of the public eye and the government would stop harassing the company.  Mendoza then suddenly disappeared from the public eye and Maduro stopped calling him a ‘thief’, a ‘parasite’ and a ‘traitor.’ The government stopped harassing Polar with annoying inspections….”

In 2024, the IACHR lifted the 2017 precautionary measure because “after more than seven years, there is no known occurrence of any type of act related to Lorenzo Mendoza or his family.” [5]


  

1.      Republica, Redaccion La, Who is Lorenzo Mendoza, one of the richest men in Venezuela, and what company does he own? 9/26/2022

2.      Reuters, Venezuela food company Polar denounces harassment by intelligence agents, October 31, 2016.

3.      VOA, Venezuela’s President Calls for Prosecution of Food Magnate, October 19, 2015

4.      Tico Times, Venezuelan beer magnate accused of treason, October 22, 2015.

5.      IACHR, Resolution to Lift Precautionary Measures 97/2024, December 16, 2024

6.      Americas Quarterly, 10 People who will (One Day) Rebuild Venezuela: The Captain of Industry, April 18, 2018.

7.      Reuters, Billionaire businessman Mendoza rules out Venezuelan election run-sources, February 15, 2018.

8.      New York Times, From ‘parasites’ to partners: this is how Venezuelan socialism does business, February 25,2020.

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