Ricardo Fernandez Barrueco Venezuelan entrepreneur Date of Birth: 01.01.1965 Country: Venezuela

1. The Rise of Ricardo Fernández Barruecos
2. Expansion and Diversification
3. Cooperation with the Government
4. Acquisitions and Investments
5. Legal Troubles and Nationalization

The Rise of Ricardo Fernández Barruecos

A Venezuelan entrepreneur, Ricardo Fernández Barruecos began his career with modest means, owning a small trucking company. During the 2002-2003 general strike in Venezuela, his fortunes improved significantly as his trucks assisted the government in delivering food to strike-affected areas.

Expansion and Diversification

Barruecco's network of companies grew to include 270 businesses spanning various industries, from fisheries to banking, with an estimated value of $1.6 billion in 2005. His company, 'Proapera Group', became a major supplier to the state-run supermarket chain 'Mercal'.

Cooperation with the Government

Barruecco's collaboration with the government proved both beneficial and dangerous. While his actions helped feed the hungry, they drew threats from opposition figures who saw him as exploiting the situation. Nevertheless, the supply network established during the strike formed the foundation for 'Mercal'.

Acquisitions and Investments

In mid-2009, Fernández acquired 'Digitel GSM' from Oswaldo Cisneros for $800 million. In September-October 2009, a group of investors led by Barruecco gained control of four banks - 'Canarias', 'Confederado', 'Bolívar', and 'BanPro', giving them control of 5.7% of Venezuela's banking sector.

Legal Troubles and Nationalization

In late 2009, Fernández was arrested on charges of financial irregularities related to the bank acquisitions. The investigation is ongoing, and he has since lost control of the contested banks, which were taken over by the government during the 2009-2010 crisis. 'Proapera Group' also came under government control, with the company's share of the national corn flour market estimated at 10% at the time of nationalization. The company is now run by the government's 'Unidades de Produccion Socialistas', with plans to double production.