In another arbitrary act by the Chavez administration, the Ministry of Tourism today took over the concession of the Avila Magica cable car system, operated under concession by a local consortium. That consortium had a 30 year contract with the Government which was unilaterally rescinded by the Government in violation of the contract itself. There was no due process, no right to defense, the autocratic Government of Hugo Chavez did what it wanted without regards for the rule of law. There was no decision by a judge, no audience, no chance for the operators to defend themselves.
The cable car concession was given out nine years ago. At the time the system did not work and was completely replaced and rebuilt thanks to a credit of US$ 90 million by the company that rebuilt the system. The cable car was built in the 50′s but by the late 60′s it began having difficulties because of the lack of maintenance. One of the companies in the consortium trades in the Caracas Stock Exchange. The Minister said that the Government will not compensate the operator of the concession and that the operators actually owed money to the Government.
Another step by the robolution to guarantee no investment in the country by the private sector.