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Senate Spars Over Town Council’s Amendment Bill
posted (August 23, 2017)
On Monday, we showed you the main business at last Friday's House Meeting, which was the Town Council's Amendment Bill of 2017.

The Government says that it is trying to put the 7 towns on same level of autonomy of the 2 Cities, by giving them greater financial independence to make loans to finance capital projects.

It is currently illegal for any Town Council to make commercial borrowings, but there is a need to legitimize it since these municipalities may have the same financial needs as the 2 cities.

So, that amendment to standardize things was passed through the House on Friday, with very light debate.

But, that debate turned heated when it went on in the Senate today for over 3 and a half hours. Here are a few snippets of those extended presentations:

Hon. Mark Lizaragga, Business Senator
"The chief concern here has to be the protection of the Belizean tax payers. We don't know what limits are placed on the town councils and how much they can borrow. This piece of legislation sets no such limit and we ask what is there to prevent them from becoming over leverage and indebted to the point that central government and by extension the tax payers again would have to bail these townships out."

Hon. Aldo Salazar, UDP Senator
"I don't know. We are simply trying to create an environment which gives some autonomy to the town councils so that there can be some evolution in the way in which it raises capital to more complex structures in order to meet evolving times."

Hon. Ashley Rocke, Church Senator
"I feel that when we read the bill there is no carte blanche authority given to the town council to do as they please. I take comfort in the fact that the town councils are under the scrutiny of the minister of finance which is the Prime Minister whether it be of this party or any other previous party to come."

Hon. Valerie Woods, PUP Senator
"I am certain that all senators agree that our 7 existing town councils ought to get to that level of greater autonomy."

And from, there debate raged on with the Government and the Opposition presenting points and counter-points on whether to pass the amendment or not. That's until the conversation shifted to the Council of the Town Towns of San Ignacio and Santa Elena. That Town council has the most to gain from the passage of this amendment right now because they are looking to borrow money from the National Bank of Belize to finish their new Town Hall. That can't go forward until it becomes legal for them to do so. But, PUP Senator Valerie Woods pointedly asked about the contractors who are building the Town Council's new office space. It turns out that the owners of the construction company are Works Minister Rene Montero's Brother, and his sister-in-law. Here's the back and forth on that, as well as a few more of the comments from the other Senators:

Hon. Valerie Woods, PUP Senator
"What about that construction? You see greater autonomy will require when you undertake such a project, a capital project of that size that you put it out to bid. Was it put out to bid? Did you get fair price? So naturally I ask who is building it? Well it wasn't put out to bid, who's building it? Johan Construction and Engineering Limited. Such the senate be concerned about any conflict of interest? Why is this thing being rushed?"

"Well if one were to take a look at the registry for business, it's only owned by the brother of the minister of works - 80% shares and 20% by the minister's sister-in-law. No I guess that should not cause any of us to pause. Why should it Mr. President? We accept things like this now apparently. We are good with it."

Hon. Mike Peyrefitte, UDP Senator
"I get real worried when somebody comes to me and say "Mike I don't mean to insult you, but because 10 times out of 10, it leads to them insulting you." I don't mean to dump on the bill. How can we not support a autonomy for local government and then proceed to make every argument why we shouldn't pass the bill today."

"Another one is let's not play politics. Let's not go there Senator Coy, as what Senator Woods just tell Senator Coy. But then Senator Woods you proceed to talk exactly about politics and the minister and the minister's brother and all sorts of things. I wonder though what is the issue that the PUP have with Santa Elena and San Ignacio and Senator Senator Lizarraga. Man, the skies is not always falling in my brother. I mean this may go wrong and that may go wrong, no kidding. All kinds of things could go wrong. It's called life. Of course it could go wrong, but that is why there is a process set up that the minister of finance must approved."

Hon. Eamon Courtenay, PUP Senator
"Senator Peyrefitte, uncharacteristically on one occasion is right. This bill is going in the right direction. Our point is simple. If we are going to do something that is good, let us do it in the right way."

Hon. Steven Duncan - UDP Senator
"I would surely hope that we do not get a situation where approval for such a legislation which is seeking to do something that is right by following the right procedure. That we do not get a situation where approval for such a bill is withheld out of spite."

Hon. Osmany Salas - NGO Senator
"This amendment bill certainly is a step in the right direction. I will not deny that. I will not argue against that. It just provides some benefits. But it needs to be carefully thought out and I will say that I don't believe it has been."

And, the last point that the Senators from the two political parties sparred on was whether or not the National Bank had already put money into the construction of the SISE Town Council's new building. Seen Here on this sign, it says that it is funded by the Council's funds and by the National Bank of Belize. So the PUP Senators accused the Government of trying to fix an irregularity after the fact. Here's the back and forth on that:

Hon. Eamon Courtenay, PUP Senator
"So again, nothing sinister, but we know Mr. President. They are taking as "cunu munu" because we have the picture here which already shows national bank financing the San Ignacio/Santa Elena Town Council building. You all are taking the people of Belize mek "cunu munu" when you put up a sign and say that the national bank is going to finance it and come here and pretend to be so above board and say I am hoping that perhaps in principle they will look at it properly and then pass it."

"The truth of the matter is that it has been done already."

Hon. Dr. Carla Barnett - UDP Senator
"The staff of the bank and the legal advisors of the bank realize that town councils don't have the capacity to borrow, even though other town councils have borrowed in the past, they really don't have the authority to do so under the law. And therefore in order for the San Ignacio Town Council to be able to do what it needed to do for the National Bank to be able to be helpful, there needed to be a provision in the law for borrowing to take place and National Bank made the determination that it would not be advancing any money to the San Ignacio Town Council because the town council had no capacity to borrow."

"So as of today, no money has been advanced by National Bank on this project in any shape or form. Yes there is a sign there and that sign reflects the cooperation and in fact the National Bank staff have been helpful in terms of looking through all of the town councils affairs. That is why you see that sign up. But you don't see anything that says the National Bank has put any money forward as yet, because we can't. That would be illegal. We can't. The San Ignacio/Santa Elena Town, they can't take money."

At the end of the debate, the Opposition called for a division on the passage of the bill, and the vote was 6 to 7 in favor of the passage of the law. All the Social Partner Senators voted against it, except Church Senator Ashley Rocke, who's swing vote in favor allowed for the Government side to get the law passed.

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