Earlier in the news we showed you judgements from The Court of Appeal for this current session which ended today.
One of their last rulings was in a case brought by the Belize Bank Limited, which is not being allowed to enforce a 36 million dollar arbitration award that has been accruing interest since 2012. You may remember fight over the Belize Healthcare Partners Hospital, which used to be named Universal Health Services.
In 2004, the then Prime Minister Said Musa entered into a 33 million dollar agreement with the Belize Bank over Universal Health Services. The Development Finance Corporation provided funding for UHS, but there was a shortfall, so the Belize Bank was approached to provide additional financing. The Bank agreed, but it wanted a government guarantee, which was given. DFC went bankrupt, and the Government then asked the Belize Bank to take on the entire loan, and again, the Bank agreed. The Government guarantee was cancelled, and the Musa Administration then issued a loan note in 2007. That triggered the ad hoc organization, Association of Concerned Belizeans, who challenged the loan note on the premise that it was another those Musa secret agreements which never got parliamentary approval. They won at the Supreme Court, and the Court of Appeal, and that case went all the way to the Privy Council, which vindicated Said Musa's actions as Prime Minister.
The Belize Bank then continued international arbitration over the loan note which the Barrow Government refused to honour. They won an arbitration award against the Government, which they then attempted to get enforced at the Supreme Court. That attempt failed when the Supreme Court ruled that this award cannot be enforced because it is contrary to public policy. The Ashcroft Alliance made a second attempt at the Court of Appeal, which handed down a ruling today, upholding the Supreme Court Decision. It was a majority decision, with the dissenting Judge, Christopher Blackman, reading his reasons for disagreeing with his brother judges.
It's a defeat for the alliance and a victory for the Government. Belize Bank Attorney Eamon Courtenay gave us a reaction having only heard it in court today:
Eamon Courtenay, Attorney for Belize Bank
"This was an appeal from Madam Justice Griffith in which she refused to allow permission to enforce the arbitral award relating to the UHS financing. You will recall that the Development Finance Corporation provided financing for UHS hospital and it was eventually - that debt, the government of Belize issued a promissory note. You will recall that the Privy Council had ruled that the promissory note was not in violation of the finance and audit reform act and therefore we then came to enforce the award."
"Madam Justice Grifitte refused and said that she will not enforce it because it was contrary to public policy. I have not read the judgement that the court just handed down, but it was a majority decision in which they upheld her decision and one of the judged appears to have given a very strong dissenting judgement from listening to what he said in court just now, but we would have to read it to say anything more about the judgements."
Daniel Ortiz, 7news
"How does this affect your client's position given that enforcement has been refused once again?"
Eamon Courtenay, Attorney for Belize Bank
"Again, just coming out of court, we have to look at the judgements to advise the client, but I would suspect that the CCJ is an option."
This is yet another of those enforcement fights, very much like the BCB fight which went to the Supreme Court just last week. These are disputes where the Ashcroft Alliance has an arbitration award against Belize from the London Court of International Arbitration, but the Barrow Government is resisting its enforcement in the Belizean Courts.
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