WASHINGTON – Congressman Connie Mack (FL-14), the Ranking Republican of the House Subcommittee on the Western Hemisphere, issued the following statement today after news reports surfaced that Venezuelan leader Hugo Chavez is looking to sell Venezuelan-owned CITGO.

The news reports cited Chavez’s need for money in the lead up to the 2012 presidential elections as the reason for the sale. Due to his crackdowns on private industry in Venezuela, tax revenue has dried up at a time when Chavez needs additional funding for his populist electioneering.

Mack said:

“Hugo Chavez faces potential penalties for expropriating U.S. businesses, and more importantly, because Venezuela will likely be found in violation of U.S. sanctions on Iran. Such actions rightfully jeopardize the success of a Venezuelan government-owned business on U.S. soil.

“While the Obama Administration and the Democratic Leadership in Congress have decided to look the other way, things are about to change in Washington.

“Chavez can see the writing on the wall. As he enthusiastically deepens his cooperation with state sponsors of terrorism across the world, the United States must respond aggressively by enacting the appropriate sanctions against the Chavez regime, including designating Venezuela as a state sponsor of terrorism. This designation must be done while actively engaging with Canada to complete the Keystone XL pipeline, which will bolster oil imports from an important ally and partner of the United States.”

CITGO is a wholly-owned Venezuelan subsidiary operating in the United States that refines the majority of Venezuelan oil and was made well known by former U.S. Representative Joe Kennedy’s supportive commercials in 2007. For years, Hugo Chavez has used the proceeds from CITGO to fund enemies of the United States across the world, subvert democratic principles for his personal gain, and lead his country into a disadvantaged state in complete economic and social disarray.

In 2007 and 2008, CITGO made approximately $1.6 billion and $800 million, respectively. It lost hundreds of millions of dollars during 2009 and the first three months of 2010. Profits from Venezuelan oil are unlikely to increase with the selling of CITGO.

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