Government accused of attempt to change regime, in legal battle

THE UK Government’s “threat” to recognise opposition leader Juan Guaido as president of Venezuela was an attempt to “coerce a foreign head of state”, the Court of Appeal has heard.

Lawyers representing the board of Banco Central de Venezuela ( BCV) appointed by Venezuelan President Nicolas Maduro accused the Government of recognising Mr Guaido “to achieve regime change in Venezuela”.

The claim was made during a landmark legal battle over the fate of around $ 1bn (£ 800m) of gold bullion held in the vaults of the Bank of England.

The Maduro board of the BCV took legal action earlier this year to release the gold, which it wants to sell to help tackle the country’s coronavirus crisis.

But the Bank of England said it is “caught in the middle” of rival claims from the Maduro board and an “ad hoc” board appointed by Mr Guaido.

In July, the High Court ruled that the UK Government has “unequivocally recognised” Mr Guaido as interim president of Venezuela, and he therefore has the authority to give instructions in relation to the gold.

Mr Justice Teare found a statement by then Foreign Secretary Jeremy Hunt in February 2019 was “a formal statement that Her Majesty’s Government now recognised Mr Guaido as the interim President of Venezuela pending fresh elections”.

But, at a hearing yesterday, lawyers representing the Maduro board argued that the High Court wrongly failed to consider whether the Government also recognised Mr Maduro as “de facto” president.

Nicholas Vineall QC told the court: “In Venezuela, there has been the threat, followed by the use, of a statement of recognition in order to coerce, we say, a foreign head of state and head of government, of whom Her Majesty’s Government disapproves, to act in a particular way.”

He added: “Her Majesty’s Government was using a statement of recognition with the precise object of influencing particular events in a foreign, sovereign nation state, it is crystal clear.”

Mr Maduro, who became president following the death of Hugo

Chavez in 2013, was sworn in for a second term last year amid claims of vote- rigging in the 2018 election, which was boycotted by opposition parties.

Mr Guaido declared himself acting president in January 2019 and, a month later, Mr Hunt said the UK recognised him as “the constitutional interim president of Venezuela until credible presidential elections can be held”.

In a witness statement, Sarosh Zaiwalla, a solicitor with Zaiwalla & Co, which represents the Maduro board, said: “The aim of the February 4, 2019 statement made by Mr Hunt was to achieve regime change in Venezuela.”

But Andrew Fulton, representing the Guaido board, described that claim as “outlandish”.

In written submissions, the barrister said the UK Government has “repeatedly condemned” the Maduro regime “not merely as illegitimate but as ‘ kleptocratic’”. Mr Fulton added: “It is constitutionally inappropriate for the court to question the decision by Her Majesty’s Government in its conduct of foreign policy to recognise interim president Guaido in place of Mr Maduro.”

Last month Human Rights Watch accused the Maduro government of using the pandemic as a cover to crack down on dissenters.

The case continues.

The aim ... was to achieve regime change in Venezuela. Sarosh Zaiwalla, a solicitor with Zaiwalla & Co, which represents the Maduro board.