There’s an old truism of sports, betting and life which says, “You
win some you lose some” – and government is getting a taste of the
downside of that karmic equation this evening after an adverse ruling from the
London Court of International Arbitration, which is known as the “LCIA.”
Viewers will recall that earlier in the week we told you about a resoundingly
favorable judgment from that same court for government which dismissed claims
made by the Belize Bank against the Government of Belize. It found that the
2008 agreement between the Musa administration and the Belize Bank, to divert
the 10 million US dollars in Venezuelan Grant Funds in settlement of the Universal
Debt was contrary to the Finance Act.
Well now the pendulum has swung back and Lord Ashcroft’s Belize Bank
and its parent company BCB Holdings are the one who should be celebrating a
significant arbitral award against government. In fact, it’s more than
significant; it’s the biggest one yet. A release from those companies
reports that the tribunal has awarded them 22 million US dollars plus damages
and costs. The LCIA found that the Barrow administration breached a 2006 contract
which allowed those companies to with-hold certain tax payments in settlement
of another dispute. We were unable to get Government’s position on the
award.
But whatever the case, these are the damages that Ashcroft-affiliated entities
have gotten awarded against government: first in March of this year, there was
the BTL award for 19 million US dollars and now there’s this one for US$22
million. That’s a combined $82 million Belize that those companies say
Government owes them.
The companies’ release says that they have filed proceedings in the Supreme
Court for enforcement of these debts. With its usual tone of menace and impending
doom, the release notes that “investors, potential investors and sovereign
debt holders should follow this with great interest.”