Venezuela’s “two presidents” are at odds over the country’s gold, which is held in England.

Venezuelan President Nicolás Maduro has been denied access to $1.95 billion (£1.4 billion) in gold held by the Bank of England, according to the UK Supreme Court (BoE).
Mr. Maduro claims that the funds will be utilized to combat Covid-19 in Venezuela.

The Supreme Court overruled a previous Court of Appeal decision, implying that only opposition leader Juan Guaidó, whom the United Kingdom recognizes as the rightful leader, may decide what happens to the gold.

Despite this, the UK works with the Maduro administration in practice.

Mr. Guaidó and Mr. Maduro have selected two different sets of governors to the national bank of Venezuela.

Mr Guaidó, who is recognized as the rightful president by more than 50 countries, wants the gold to remain in the Bank of England’s vaults.

Mr Maduro, who is still in charge of the government, military, and police, has filed a lawsuit against the Bank of England to have the funds released.

In May 2018, Mr Maduro was re-elected to a second six-year term in extremely contentious elections that were boycotted by most opposition parties.

He claims the funds will be sent to the UN Development Programme (UNDP) for the purchase of medical supplies to combat the pandemic.

His detractors accuse him of mismanaging Venezuela’s economy, resulting in a catastrophic humanitarian crisis in which millions of people require assistance owing to deteriorating public services, rising unemployment, and a depreciated local currency.

According to them, Mr. Maduro will use the monies to pay off international allies who back his administration.

Since 2014, a coalition of countries has sanctioned Venezuela for corruption, human rights breaches, and the suppression of democracy, including the United States, the United Kingdom, the European Union, Canada, Switzerland, Panama, and Mexico.

More thought is required.
The Court of Appeal decision overruled a July 2020 UK High Court decision that said the UK government’s recognition of Mr Guaidó as Venezuela’s interim president was “clear and unequivocal.”

The Supreme Court stated on Monday that the Court of Appeal’s decision was “misplaced,” because all British courts must agree that Mr Maduro is not president “for any purpose.”

It has now requested the Commercial Court to consider another issue: whether Mr Guaidó has been recognized by the UK government alone as Venezuela’s head of state, or also as its head of government.

Juan Guaidó declared himself interim president in January 2019, citing the Transition Statute — clauses in the constitution that call for the head of the National Assembly to take in in such instances.

Mr Maduro has since exploited these laws to designate central bank personnel, which he maintains is illegal under Venezuelan law.

On Monday, Mr. Guaidó praised the decision, saying he and his appointees will “continue to be dedicated to the constitutional duty of protecting the Republic’s assets for future generations.”

“Our client looks forward to continuing this case, with a view to showing that the Board of the El Banco Central de Venezuela (BCV) in Caracas is the only validly appointed authority to deal with Venezuela’s foreign assets in the interests of the Venezuelan population,” said Sarosh Zaiwalla, a London-based lawyer representing Venezuela’s central bank.