Gold in London bank sets off battle between political rivals
CARACAS, Venezuela — The political battle over control of Venezuela has turned to a $1.8 billion stack of gold bars sitting in the Bank of England’s vault in London, where a judge is expected to decide soon on who has the rightful claim to the bullion.
Venezuelan President Nicolás Maduro says he needs the gold to help his cashstarved nation fight the coronavirus pandemic. But the central bank for the United Kingdom, whose government recognizes Venezuelan opposition leader Juan Guaidó as his country’s legitimate leader, has refused to hand it over to Maduro’s socialist administration.
A ruling by Justice Nigel Teare, which is expected possibly within days, could help clarify the question of who is
Venezuela’s legitimate leader — at least in the eyes of one world power, experts say.
“If Maduro is able to get his hands on this money, it weakens a significant tool that the British government has toward implementing its recognition of Guaidó,” said Michael Camilleri, a Venezuela expert at the Washingtonbased InterAmerican Dialogue think tank. “It undermines the strength of that policy.”
The dispute hinges on the British stance toward Venezuela, a country in economic and political crisis where both Maduro and Guaidó have been claiming presidential powers for more than a year.
The United Kingdom recognizes the claim of Guaidó, who heads Venezuela’s congress, as do the United States and about five dozen other governments. Guaidó proclaimed himself the interim president in early 2019, months after Maduro declared victory in an election that his critics say was rigged in his favor.
British Foreign Secretary Jeremy Hunt recognized Guaidó as the constitutional interim president, and Guaidó met with Prime Minister Boris Johnson early this year during a tour through Europe.
Despite its support for Guaidó, the United Kingdom continues to have diplomatic ties with Maduro’s government. Maduro’s ambassador, Rocio Maneiro, is recognized by the British government and has control of the Venezuelan Embassy in London, while British Ambassador Andrew Soper remains in Caracas.
At the same time, the British have not granted diplomatic credentials to the envoy Guaidó has named ambassador to the
United Kingdom.
While Guaidó initially launched his campaign to oust Maduro with thousands of cheering supporters taking to the streets across Venezuela, the socialist president has maintained control over most branches of Venezuela’s government, including the military. Enthusiasm for Guaidó, meanwhile, has been fading.
Guaidó is urging the London court to order the Bank of England to hold the gold and not give it to Maduro’s government, which it says is illegitimate and corrupt. His lawyers reiterated in a recent fourday hearing the argument that the National Assembly leader became Venezuela’s rightful leader under provisions of the country’s constitution. They dismissed as irrelevant the continued diplomatic ties between London and Maduro.