UK Firm Faces Confiscation of Venezuelan Ranch

The British ownership of a vast ranch in Venezuela has been questioned by the Venezuelan government, it emerged today.

It was the latest development in a series of controversial moves by the country's president, Hugo Chavez, to try to confiscate "idle" land.

The 66,700-acre ranch, in the south-west state of Apure, became the latest property to be added to a list of land that the Venezuelan National Lands Institute says is expected to be turned over to poor farmers eventually.

It is owned by Agropecuaria Flora, the Venezuelan affiliate of the British Vestey Group Ltd. The group, owned by the British tycoon Lord Vestey, encompasses firms including an international food business and ranching interests in both Venezuela and Brazil.

Vestey has not commented publicly on the developments, but Agropecuaria Flora has launched a court appeal over attempts to challenge the ownership of another ranch, El Charcote, in the central state of Cojedes.

El Charcote - a substantial part of which has been taken over by squatters - was one of the first targets of the government's land policy, and is seen as a test of Mr Chazez's policies. Earlier this year, 200 armed troops and police escorted government officials as they examined the estate.

The land agency is investigating dozens of ranches across Venezuela which, although oil rich, suffers widespread poverty.

Agropecuaria Flora, Venezuela's biggest meat producer, owns 14 ranches across the country. Government moves have been made against two of those, and officials are studying the other 12 to ascertain their productivity and whether the company has legal ownership.

The National Lands Institute yesterday said the ranch in Apure was not being adequately used, and claimed documents did not prove legal ownership.

"The case has been open for four months, and more than 45 days have been given for the defence and administrative proceedings," Eliezer Otaiza, the National Lands Institute president, said.

Mr Chavez has declared a "war against the large estates," but denies accusations that his land reforms trample on private property rights. The policies are popular among those who see Vestey's affiliate firm as a front for the English crown.

It has been estimated that fewer than 5% of landowners hold three quarters of Venezuela's agricultural land, and the reforms could allow more than 22m acres to be legally reclaimed by the state.

However, some critics fear for the future of investment in the country because of the policies, which have been described by Venezuela's farmers' federation as unlawful and unconstitutional.

The land reform programme began with the 2001 approval of a law allowing the state to turn over "idle" lands for "public use or social interest".

Mr Chavez said many large ranches and farms had been illegally obtained through corruption, and that the changes would help ensure that land was used more productively.

He gave some assurances that legal rights would be respected, and the land laws include requirements for some level of compensation to be paid.

After winning a referendum in August last year, the president is determined to press towards a "revolution" promised amid slogans harking back to 60s Cuba.

Land redistribution was used in Latin America during the 60s to prevent revolutions. Many subsistence farmers benefited, but many later sold their farms back to landowners and migrated to the cities.