President Trump has repeatedly referenced the dangers of socialism, both in speeches and on Twitter. Florida, a state critical to the president’s reelection, is home to hundreds of thousands of Cuban, Venezuelan, Central American, and other expats and their loved ones who know all too well how socialism destroys families, businesses, and entire countries.
Trump has often singled out the authoritarian regime in Venezuela — rightly so. But now, his administration is letting Venezuelan dictator Nicolas Maduro off the hook.
The Venezuelan regime routinely steals from its people and businesses. One egregious example is the illegal seizure of the Las Cristinas gold mine in 2011 by Maduro’s predecessor, Hugo Chavez. Crystallex, the mine’s owner, refused to pay illegal bribes as demanded by government officials. At the time, the company had invested more than $500 million into the local economy to finance social and infrastructure projects benefiting the people of Venezuela. The mine was also set to create local jobs for a struggling Venezuelan economy.
A variety of courts have repeatedly ruled that the Venezuelan regime should be held accountable for the theft of private property. The case against Maduro has gone all the way to the United States Supreme Court and a World Bank tribunal. Time after time, courts have held that the Venezuelan government should pay for the property it seized. In order to facilitate the compensation, the U.S. government has the power to liquidate assets belonging to Citgo, an oil company owned by the Venezuelan government. Currently, Venezuela owes Crystallex $1.4 billion.
Despite these court rulings, the Treasury Department has failed to take measures that hold the regime accountable and allow companies such as Crystallex to be compensated for their stolen property. This inaction sets a dangerous precedent.
Recently, the Hispanic Leadership Fund joined 12 other free-market organizations urging Treasury Secretary Steven Mnuchin to stand up for property rights and the rule of law. The letter states, “[W]e share the Trump administration’s desire for freedom and democracy in Venezuela. To achieve it, we believe the protection of private property — and the ability to seek compensation when wronged by socialism — must be honored at every turn.”
If the Treasury Department fails to hold the Maduro regime accountable, the practical effect is that the Trump administration will be allowing socialist dictators to steal private property without consequence. Continued inaction from Washington props up the Maduro regime, giving Maduro and his henchmen a blank check to steal from more businesses, including those owned by Americans. Anyone who recognizes the value of free and open markets and supports property rights should be outraged.
The Hispanic Leadership Fund advocates on behalf of hardworking Hispanic families across the U.S. by lobbying for the ideals of individual liberty and equal opportunity. There are more than 260,000 Venezuelan expats living in the U.S. who have fled from Chavez’s and Maduro’s socialist dictatorships. They came to the U.S. because our government respects property rights and the rule of law — fundamental principles that make it possible to achieve success and prosperity.
Trump would undoubtedly welcome the votes of thousands of Venezuelan Americans in November. Many of these Venezuelan Americans voted for Trump in 2016 because he promised to stand up to socialist dictators, including Maduro. That makes the current failure by the administration to hold the socialist Venezuelan regime accountable particularly disheartening.
It is wrong for the socialist government in Venezuela to steal private property to enrich elite members of the ruling regime. And it is wrong for the U.S. government to ignore the property rights of private companies and court rulings that say those companies should be compensated when their rights are violated.
Trump should order the Treasury Department to hold the socialist Venezuelan regime accountable for its illegal actions and move forward with compensation for the theft of private property.
Mario H. Lopez is president of the Hispanic Leadership Fund.
