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And while that's what critics or outsiders may conclude, today the Chairmen of The Social Security Board of Directors and its investment committee held a press conference to say that it is a sound investment - more than that, it is a golden opportunity! Here's how they explained it:

Doug Singh - Chairman, Social Security Board of Directors
"BEL is offering 5 million shares of preferred shares. It's a class of hears that has a guaranteed return of 5%, and it is for a life of 3 years, after which time, BEL will re-purchase those debentures. So, to a great extent, it is a debt instrument. BEL is offering as security for those preferred shares, real estate that it currently holds. It is not unusual for BEL to use its assets as security; in fact, it has used the very assets that it is currently pledging as security for some of the instruments that it's offering, it has used such in the past."

Nestor Vasquez - Chairman, Investment Committee, SSB
"This will be a solid investment, a golden opportunity for the Social Security Board, where we will move - we have money that is earning 1 ¼% and 2%. We have about 26 million dollars of that money; it's easy for us to take 15 million dollars, and get 7% on the debentures, and get 5% on the preferred shares. I mean, that's a golden opportunity, and knowing that BEL is a strong company, it's a monopoly; it cannot fail."

Doug Singh
"In 2012, BEL projecting a profit in excess of 8 million dollars on the prospectus, the most revised prospectus that we've received. That gives us the level of confidence that the kind of returns, and the path and direction of BEL is certainly in a positive path, and it is heading back to the direction of the form of management that BEL had in the past. The Board of Social Security is responsible to get the best possible returns on its investments, so that it can protect the funds. The offer on the table from BEL givs the Social Security Board much better yield, and is attractive, so the Social Security has expressed an interest in participating more in the debt instruments that are being offered by BEL."

Jules Vasquez
"Were you all required to fast-track consideration on this investment?"

Doug Singh
"Not at all, in fact, because of the liquidity in the banking system, BEL has no shortage of banks out there offering to finance them. The question is at what rate. BEL has made the decision, and BEL's Board has made the decision that it will seek financing at the best possible rate. That is why it has sought out institutional investors to try to get the possible rate. Does BEL need the money in short order? I imagine that any institution that uses cash at that rate, always has an immediate need for the cash. Can BEL get by without the cash from Social Security Board, or any other institution, within the very short term period and still function? Absolutely, because the commercial banks are there."

Jules Vasquez
"Now, reading from the inter-office memo, it says that due to time constraints, the valuation of both properties cannot be conducted. What, sir, where those time constraints to have them moving in a rush?"

Dough Singh
"There is not another Social Security Board meeting for several weeks, and Social Security Board determined that in the interest of trying to get the best possible return, to review the proposal in the shortest possible period. It may have inhibited the ability for us to do an independent valuation. Notwithstanding that though, whether or not there were securities for the preferred shares, Social Security would have still invested. In addition to that, BEL had those securities as collateral for their working capital financing needs. All they are saying is that if that, 'if you would supply our working capital financing needs, we are prepared to give you, in addition to the instrument that we're selling to you, we're prepared to take the same security that we've given to the institutions who currently have our working capital financing, to you.' And of course, we're going to say yes."

The press conference was held at the BTL Boardroom where Vasquez is the Executive Chairman and Singh is a Director.

So, with the Social Security Board having approved the investment, it now ahs to be published for two weeks in the gazette - and the money can then be disbursed to BEL after that.

And how did the vote go at the Social Security Board of Directors where there is ample representation from the unions and the business sector? Singh said that one business rep abstained, the other supported it, but asked for more time to consult, as did one labour rep who was present for the vote - making it, in Singh's words - almost unanimous support.

It is worth noting that Social Security owns 27% of BEL.

BEL issued a statement this evening stating that it is being challenged by the high cost of power. The high cost of fuel has been worsened by uncharacteristically low rainfall levels leading to low hydroelectric production.

These factors are coupled with production problems at Belcogen and Hydro Maya Limited, which has forced BEL to buy very expensive additional power from Mexico. How expensive? Try 42.9 cents per kilowatt hour. Compare that to the PUC's regulated cost of 26.2 cents per kilowatt.

BEL adds that it offers its properties including its Corporate Headquarters as security, as security for various loans since 2003.