Maduro government "occupies" Venezuela electronics chain

By Deisy Buitrago and Andrew Cawthorne

CARACAS, Nov 9 (Reuters) - Venezuela's President Nicolas Maduro has ordered the "occupation" of a chain of electronic goods stores in a crackdown on what the socialist government views as price-gouging hobbling the country's economy.

Various managers of the five-store, 500-employee Daka chain have been arrested, and the company will now be forced to sell products at "fair prices," Maduro said late on Friday.

State media showed soldiers in one Daka shop, some checking the price tags on large flat-screen TVs.

"We're doing this for the good of the nation," said Maduro, 50, who accuses wealthy businessmen and right-wing political opponents backed by the United States of waging an economic "war" against him.

"I've ordered the immediate occupation of this chain to offer its products to the people at fair prices, everything. Let nothing remain in stock ... We're going to comb the whole nation in the next few days. This robbery of the people has to stop."

The measure, which comes after weeks of warnings from the government of a pre-Christmas push against private businesses to keep prices down, recalled the sweeping takeovers of businesses during the 14-year rule of Maduro's predecessor Hugo Chavez.

Maduro, who took over from Chavez in April after the latter's death from cancer, has stopped short of more outright nationalizations, in this case saying authorities would instead force Daka to sell at state-fixed prices.

Critics say Venezuela's runaway inflation - the annual rate is now 54 percent, the highest since Chavez came to power in 1999 - is due to economic mismanagement and the failure of socialist policies rather than unscrupulous retailers.

Opponents also blame excessive government controls and persecution of the private sector for shortages of basic goods ranging from flour to toilet-paper, and for price distortions and corruption caused by a black-market currency rate nearly 10 times higher the official price.

"This ridiculous show they've mounted with Daka is a not-very-subtle warning to us all," said a Venezuelan businessman who imports electronic goods and is an opposition supporter.

Under price controls set up a decade ago, the state sells a limited amount of dollars at 6.3 bolivars, but given the short supply, some importers complain they are forced into a black market where the price is nearly ten-fold higher.

"Because they don't allow me to buy dollars at the official rate of 6.3, I have to buy goods with black market dollars at about 60 bolivars, so how can I be expected to sell things at a loss? Can my children eat with that?" added the businessman, who asked not to be named.