7 News Belize

The Fiduciary Fuss Over Fair Trade Funds
posted (January 7, 2015)

At the top of the news, we told you about the crop and cash crisis the cane farmers OF the north find themselves in. And in crisis mode, they took a resolution on Sunday to share out 4 million dollars more among themselves to hold them over until the crop uncertainty is dealt with. For 5,300 farmers the payout per farmer would be a little less than 800 dollars each.

As we've told you, the directors of the BSCFA opposed that resolution because Fair Trade funds are there to improve the lives and the farms of the cane farmers – not to serve as hard-time handouts.

And so, if this money is shared out as the farmers demanded on Sunday, then the association will likely be decertified or suspended for non-compliance.

Yesterday, Chairman Cansino called a meeting with his directors to discuss how the Association can convince their membership that this is a bad idea.

At that meeting, the accountant informed the 18 directors that there is only 1.5 million dollars available in the Association's accounts which is not Fair Trade money. The directors then decided that they will try to convince their members to accept this amount instead of touching the Fair Trade funds.

The director tried to convince their members yesterday, but the feedback from farmers is that they approved 4 million dollars, so they want that 4 million, not a cent less. The directors are still trying to appeal to their members to let this issue go, but if they are pushed, then the other 2.5 million will have to be taken out from Fair Trade funds.

Alfredo Ortega, Chairman of the BSCFA's Orange Walk Branch told us that if the farmers push this issue, they will have to live with the negative consequences in dealing with Fair Trade

Alfredo Ortega – Director, BSCFA Orange Walk Branch

"As you know the farmers approved the budget on November 30th for this fiscal year. So now that means that budget has been approved will now need to be cut so that the 4 million can be completed that will be distributed to the farmers. Definitely there will be a negative impact into this situation."

Daniel Ortiz

"Sir, have you guys discuss it amongst yourself since Sunday, what the legal ramifications will be with fair trade knowing that you are threading on dangerous grounds in non compliance issues."

Alfredo Ortega

"Well we had a meeting on Monday, the chairman called a meeting on Monday, especially to deal with this situation in regards to the 4 million dollars and that is where learn that there is only available 1.5 that can be used without harming or reducing the risk in regards to the use for the different projects. Nevertheless, at that meeting almost all 18 branch chairman agreed that they will be going back to their membership at branch level and explain to them the situation as is and what is available to be used. If the farmers accept that then they association will distribute the 1.5; But it didn't happen. I heard afterwards some branch chairman that there farmers have approach them and they don't want to listen to anything, that they want the 4 million to be distributed. That will clearly divert to what the 18 branch chairman had agreed upon, which clearly yes, the general assembly had approved the 4 million but I think in any case we need to look forward on what can be done and what should not be done. If at the far end, the farmers just don't want to listen, well they also need to know that they need to hold responsibility also when time push come to shove, that we get suspended or we get de-certificated and also that the need to take into consideration that they projects could have happen, will no longer happen because there is no fund for it to happen."

Viewers may remember that before the Christmas Holiday, the farmers did the same thing when they passed a resolution to draw down 2.5 million dollars of Fair Trade money.

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