The Fight Over Banco De Venezuela
In 1990, he bought a large block of shares in the prestigious Banco de Venezuela (BdV), a bastion of Caracas's old-money elite, and tried to get on its board of directors. However, according to Castro, he was never accepted in exclusive political and economic circles and was considered unfit by the Venezuelan elite to lead the country’s most important banking institution. At a stockholders' meeting, when Castro wanted a seat on the board, BdV's chairman suspended the meeting and muffled Castro's protest by shutting off his microphone.
Castro now attempted a hostile takeover of BdV, which was bitterly contested by BdV's management. He worked through his subsidiary Grupo Progreso Latinoamericana, supported by Banco Consolidado of José Alvarez Stelling, and Grupo Banco Unión.
A small group of shareholders, all members of the Caracas Country Club, joined with the Banco Provincial, the powerful industrial group Grupo Polar, and Finalven to oppose the takeover. BdV hired Thor Halvorssen Hellum, Special Commissioner for International Narcotic Affairs in the administration of President Carlos Andrés Pérez, to investigate rumors of money laundering by Castro.
Halvorssen concluded that Castro was laundering drug money and was involved in other financial irregularities. He gave his information to friendly members of the Venezualan Congress, who had parliamentary immunity. Castro’s allies started a media campaign to discredit Halvorssen.
Read more about this topic: Orlando Castro Llanes
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