Chavez: China will help set up telecom
(AP)
Updated: 2006-08-21 09:45
CARACAS - Venezuela's President Hugo Chavez repeated a warning Sunday that he
will bring Venezuela's largest telecom back under government control if it
doesn't make court-ordered pension payments to ex-employees, and said China will
help build a competing, state-run telecommunications network.
Venezuela's largest publicly traded company, CANTV is the dominant provider
of fixed-line telephone service in Venezuela. Formerly run by the state, it was
privatized in 1991.
In 2005 the Supreme Court ordered the telecom to increase more than 3,400
workers' pensions to take into account currency devaluations, inflation and
minimum wage hikes since 1999.
"If you don't want to pay what is due to CANTV's retirees, I'm going to
nationalize CANTV," Chavez said during his weekly TV and radio program. "Don't
have the slightest doubt."
Chavez first mentioned a possible government takeover of Compania Anonima
Nacional Telefonos de Venezuela, the South American country's largest telecom,
on Tuesday.
Chavez also said on Sunday that China will agree to help Venezuela install a
competing, state-run telecom network, in one of several accords to be signed
this week in Beijing.
"We're going to take away the private monopoly, which is also so expensive,
to provide telecommunications service to all," Chavez said.
CANTV officials were not available for comment.
The company said in February that it was setting aside more than US$55
million (euro43 million) extra to cover pensions. It also has contested part of
the ruling and is awaiting a study of how much it owes the retirees.
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