7 News Belize

Another 90 Mil: Crushing and Costly Defeat for GOB at CCJ
posted (November 22, 2017)
90 million more - that's how much the Government of Belize will have to pay the Ashcroft Alliance - after losing another huge case at the Caribbean Court of Justice today. But this time, it has nothing to do with compensation for BTL. This one goes all the way back to 2004, when then Prime Minister Said Musa gave Universal Health Services a secret government guarantee for 35 million dollars in private debt owed to the Belize Bank. When they couldn't pay, the Government guarantee kicked in, and the Musa Administration then came up with a loan note to use public funds to cover the private debt. That was in 2007 - but when the UDP won, they refused to honor it - saying the undertaking to use public funds was made without Parliament's approval and that made it unlawful. But, in 2013, the London Court of International Arbitration held that the Loan note was valid and gave the Belize Bank an award of 37 million dollars.

So, the Barrow Administration went to the Supreme Court of Belize and the Belize Court of appeal which both agreed that the arbitration award could not be enforced in Belize. But, today - in a crushing reversal of fortune for government - the CCJ over-ruled those lower courts and said it can be enforced in Belize, with interest and costs. The total? A staggering 88.9 million Belize dollars. Here's an excerpt of the judgment delivered this morning, and reaction from the attorneys for both sides:...

Hon. Mr. Justice Winston Anderson, CCJ
"We concluded that an order allowing enforcement would not involve any illegality and would not be contrary to public policy. We wherefore ordered that the bank be at liberty to enforce the award and to recover its costs both at this court and in the courts below."

Eamon Courtenay, SC - Attorney - Belize Bank
"This morning the CCJ handed down its judgement saying that the Belize Bank can collect on the award from the government of Belize and, therefore, we're supposed to write the government and the government is supposed to pay. If the government does not pay then we begin the enforcement proceedings against the government."

"There has been an addition of 52 million dollars in interest between 2013 and today. Over 50 million dollars in interest has been added unto the amount because of the government's obstinacy and its decision to fight Mr. Ashcroft."

"I think the bank is very happy that it is now able to recover this amount from the government. And I hope that the government will obey the CCJ."

Jules Vasquez, reporter
"It will be said that it is in fact the inheritance of an immoral and perhaps unlawful undertaking in the first place. And that it's really the PUP's fault."

Eamon Courtenay, SC - Attorney - Belize Bank
"You see, Jules, there is a big difference between politics and the law and once again Belizeans should understand that there was an arbitration hearing. The government started participating and tried to stop the arbitration and when they failed at that, they withdrew. And did not defend the interests of the Belizean people in those arbitration proceedings. When you abdicate your responsibility and when a tribunal moves forward, you cannot in the end say, "oh, it was corrupt." Because when the day was called for you to go there and make your case you ran away like a coward."

"Today is the day of reckoning. Unfortunately for the Belizean people it cost us 52 million dollars in interest, plus legal costs."

Nigel Hawke, Solicitor General
"Well, well, it's always a disappointment when you lose, but it's the final court and we have to respect the decision. That's how our system is designed."

Jules Vasquez, reporter
"What is the indication from the Fin Sec or the Minister of Finance? Will payment be coming forthwith?"

Nigel Hawke, Solicitor General
"Well on that one we'll have to take instruction. Shortly the Honorable Prime minister will issue a statement, I guess, to the effect as to the Government's position."

Jules Vasquez, reporter
"Was it foolhardy to have taken it all these years - ah, we are four years after the award and accumulated so much in interest - over 50 million dollars?"

Nigel Hawke, Solicitor General
"Well, I would say, you know, in hindsight, people might think of a lotta things but, ahm, litigation is always a risk and reality is that we thought we had some formidable arguments in relation to the public policy issues. I think the court's decision, they relied on the Privy Council's judgement on saying that the loan note was valid. Our argument that we were urging is that at the time when that consideration was given, the arbitration award was not out."

Government's official response came shortly after in this statement, saying, quote, "The Government of Belize is extremely disappointed and laments the judgement delivered by the CCJ...With the lower courts being consistent in their rulings, GOB is at a loss to understand this latest decision by the CCJ. To make matters worse, the Belize Bank earlier sold the assets of UHS to Belize Healthcare Partners Limited (another private entity) for approximately $39M Belize dollars, yet still claimed the award money from the people of Belize in the same amount. The Government of Belize will never understand how the Caribbean Court of Justice could have upheld this PUP/Ashcroft ripoff of the Belizean people." end quote.

Strong words against the highest court in the land, and Government makes no commitment to pay. Its statement ends by saying, quote, "GOB is seeking further legal advice as to its options now, on further behalf of the people of Belize."

So, what can the Bank do to enforce the judgement? That's what the press asked Courtenay today:

Reporter
"What would the enforcement proceedings entail? Do you have an idea?"

Eamon Courtenay, SC - Attorney - Belize Bank
"Yes, the enforcement proceedings, first, we would ask the Registrar to issue a certificate in the amount that is due on the award. After that amount is due we would serve it on the financial secretary and he would be required to pay it. If he does not pay it then we would commence proceedings in the court for his imprisonment or the imprisonment of the minister of finance because the CCJ was very clear that the constitution provides in section 115(3) that in circumstances like this there's an obligation on the minister of finance to go to Parliament to get approval to pay the money because the court has ordered that it should be paid. And if they refuse to obey the order of the CCJ then there is no other recourse for us but to commence proceedings for their imprisonment."

As Courtenay said, the obligation is on the minister of finance to go to Parliament to get approval to pay out the funds. And that's crucial. Even though the original agreement never went to Parliament, the fact is that the only way to get this 88.9 million out of the Consolidated Revenue Fund is through an act of Parliament, which is a whole different kettle of fish - since the courts cannot compel parliament.

And while its left to be seen if the very expensive executive gamesmanship will continue - the fact is that, tonight, all government has is 90 million in debt - and nothing to show for it - since the asset at the centre of this entire dispute, the Universal Hospital, now Healthcare Partners - is wholly owned by another group.

Now, to hear the present government tell it, all the blame will be directed at former Prime Minister Said Musa. In fact, today's government release says, quote, "The lawsuit arose from a dispute stemming from one of the most egregious and scandalous acts of the Musa administration...."

But today, Musa, who happened to be in the courtroom for another matter told us he feels vindicated:

Rt. Hon. Said Musa, Former Prime Minister
"But I feel very, fully vindicated today, again, when the Caribbean Court of Justice has ruled that the agreement that was made, the settlement that was made over the UHS debt, that my government signed unto was valid and enforceable."

Jules Vasquez, reporter
"You said you feel vindicated."

Rt. Hon. Said Musa, Former Prime Minister
"Yes, because I remember all that demonstrations and thing and what not. And even an attempt to jail me, you remember that? Yes, aha. Charged for theft, imagine."

Jules Vasquez, reporter
"Would you accept though, the original sin, that, in fact…"

Rt. Hon. Said Musa, Former Prime Minister
"You've gone to Adam now?"

Jules Vasquez, reporter
"The original sin of making a guarantee for private PUP-connected investors for a hospital which Belize still doesn't own, a hospital built in, like a warehouse shed. The structure is not a proper 04:20 concrete edifice."

Rt. Hon. Said Musa, Former Prime Minister
"Now you might say it wasn't worth it at the time but I look at it this way" we were engaged at the time in carrying out a major health reform program. NHI, you remember it?"

"Now, that must be seen in the context in which that guarantee was given, because UHS at the time, now Healthcare Partners, was part of that NHI program, providing healthcare to the Belizean people and that is how I would justify that, ok?"

This evening, the Belize Bank issued a rare statement. First off, while the figures Courtney gave us put the amount owing at 88.9 million, the bank's release says the "total amount due as at 22 November, 2017 is $90.6 million Belize dollars.

The release adds, quote, "The Bank's debt has been confirmed by an international arbitral tribunal, the Privy Council, the courts of the United States, and now the Caribbean Court of Justice. The Bank looks forward to the Government of Belize finally settling this debt after years of unnecessary litigation to recover the funds." End quote.

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