6 days ago, we told you about the new quarrel between the Ashcroft Alliance and the Government of Belize over BTL. They're arguing over US dollars, and they can't agree about how exactly the Arbitration Award should be paid.
The Government paid the first half of the nearly half a billion dollar judgment debt, with 40% in US dollars and 60% in Belize dollars. The Ashcroft Alliance is complaining that this wasn't what was agreed to - they want the whole thing in US dollars. So, the Alliance immediately filed suit at the Caribbean Court of Justice asking the court to interpret the decision once and for all, and to make binding orders that the Government will have to abide by.
The Government also has its own counter-claim that the Arbitration Panel used the incorrect math to calculate how much the total Arbitral Award should be. They're contending that the Panel used the wrong rate of exchange to arrive at the compensation figure, and that the calculation of interest is also wrong. The Government says, quote, "Both mistakes by the Tribunal prejudiced GOB and resulted overall in larger sums being awarded than were justified." End Quote.
So, just when everyone thought the fight over BTL was over, the two sides are at it again before Caribbean Court of Justice. The first case management conference for this US Currency fight was held this morning via teleconference.
After the hearing, we spoke with Government attorney Denys Barrow, and we asked why this quarrel is so urgent:
Denys Barrow, SC - Attorney for GOB
"Why we are here is this; the settlement agreement made provision that the sum awarded by the arbitrary tribunal would killed it - would bring to an end the question as to compensation and that award was in fact handed down and everybody agrees as to what is the total. But remember the settlement agreement was made with a provision in it which says that there is a restricted amount and the restricted amount is the amount which the arbitrary tribunal said represented the enhanced value of the shares provided by the accommodation agreement. So the settlement agreement is that that enhanced value, that will be a restricted amount and that will be for the benefit of the people of Belize. The unrestricted amount will be for the benefit of Dunkeld and the other Ashcroft related entities. So the distinction between restricted and unrestricted amount. The expectation when they made the settlement agreement was that the amount per share, which the tribunal would award, would have been greater in favor of the unrestricted amount. Greater in favor of what is to go into Ashcroft's pocket. It turned out to be exactly the opposite. They were expecting that it would be something like 70% to Ashcroft, 30% to the people of Belize. As you now know what the tribunal decided is its 40% to Ashcroft and 60% to the people of Belize. The issue now is that Ashcroft says but the agreement provides that I was to get 50% of the total award upfront. The problem is that if it had gone as was expected 70/30, then you could get 50%, because that would still leave another 20 to go along with the 30 to towards the people of Belize."
Of course, the Ashcroft Alliance doesn't agree with the Government's interpretation, and today, Dunkeld International's Attorney, Eamon Courtenay, explained how this quarrel over US dollars impacts his clients:
Eamon Courtenay, SC - Attorney for Ashcroft Alliance
"Well what has happened is that government agreed under the settlement agreement that was signed last year September that it would pay 50% of the arbitral award within 10 days of the award being published. That was the 13th July. That was to be paid in US dollars and we said there is absolutely no doubt about that in the agreement. The government did not pay it in US dollars. They paid a portion of it in Belize dollars and a portion in US dollars. The companies who are entitled to the payment have come to the Caribbean Court of Justice to say we are asking you to construe the agreement and if you agree with us to made an order that the government pays the balance in US dollars and the Belize dollars portion would then be paid back to government because that was not a part of the agreement."
"This morning the Caribbean Court of Justice commence the hearing and indicated that they want full submissions, they want further evidence and they are going to hear it on the 19th August. The government has indicated essentially that even if the Caribbean Court of Justice orders that, my clients are entitle to be paid in US dollars, but the government is not in a position to make US dollars available. As I understand the government's position the government of Belize does not have the US dollars available to make the payment and the Central Bank is not prepared to sell the government of Belize the US dollars to make the payment."
"So, we are going to have a very historic standoff between a court, if they agree with us saying that you should pay in US dollars and the government saying I don't have it and the Central Bank saying I have but I will not sell it to the government of Belize."
"I would just remind people that this arose out of an acquisition of property and the constitution says you are to be compensated. The government that the arbitrators were to determine it. The government agreed that they would pay 50% in 10 days. They agreed that they would pay it in US dollars and now that the time has come to pay, they are saying we are broke. That does not absolve you of your legal obligations."
As you may have noticed, Courtenay claims that the Government revealed in today's hearing that the Country cannot afford to pay the arbitral award with the amount of US currency that the Ashcroft Alliance is claiming. So, the press asked Denys Barrow if this is true, and he did confirm that. Here's that back and forth:
Reporter
"I was made to understand however that with regards to this particular application the government is essentially saying that it doesn't have the amount being requested in US currency and the Central Bank is not forthcoming with providing government that amount. Correct?"
Denys Barrow, SC - Attorney for GOB
"That is also a significant part of it. But more fundamental is the part which I mentioned. But almost equally significant, is that government says we have gotten from Central Bank, I think 29 million. We have consulted Central Bank and Central Bank has in fact written a letter to the financial secretary setting out I think in 4 pages exactly why they cannot find 70 million or any really other significant portion of money in US dollars to sell to the government now to pay to Ashcroft."
Both sides will make an appearance before the CCJ at their Headquarters in Port of Spain, Trinidad. That hearing takes place on August 19, and we'll tell you how it goes.
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