Colombia government takes over La Riviera
WHILE PANAMA authorities struggle to decide what steps to take to safeguard jobs of workers in the Waked family conglomerate, Colombia has taken over the group’s 151 duty free La Riviera stores employing over 1,200 people.
“The measure was taken by the The Superintendency of Companies when two officials of the institution conducted an inspection of the stores on May 11 and 24, shortly after measures were imposed by the United States government on its parent company,” said the El Tiempo newspaper
The company said it submitted a request to “ensure transparency in operations in Colombia and provide protection to employees and creditors thereof, pursuant to the provisions of laws and regulations that govern the country.”
La Riviera employs 1,271 people in Colombia, and has assets valued at approximately $130 million and liabilities of $45 million.
The company was one of 68 entities owned by Nidal and Abdul Waked that were included by the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury on the Clinton list for activities related to money laundering and drug trafficking.
In Panama, U.S. Ambassador John Feeley said that “for years, Nidal Waked, Abdul Waked, and his accomplices abused the financial systems of the United States and Panama. Together they led an organization that has laundered money from drug trafficking.”
Nidal Waked was arrested in Bogotá May 4 and is awaiting extradition to the United States, where he will face charges of money laundering and bank fraud in Florida.
The prosecutor is calling for jail sentences totaling 50 years
Initially Thursday, La Riviera announced that it would close its duty free shops in Colombia.
At the same time, media reports said that 20 companies supplying banking services, security and products broke relations with La Riviera.
“The banks were the first to react. Davivienda, Bancolombia, CorpBanca and West Bank notified them of the freezing of their accounts and some gave them a reasonable period of time to remove the balances,” the media reported, adding that the company’s legal representatives and accountants resigned. reported El Tiempo. It also said a number of suppliers cut ties to the company.
