So, tonight the new week starts just as the last one ended - with the still unresolved political back and forth over the 90 million payout to Belize Bank for the entire Universal Health Services debacle.
The main issue of contention is that 90 million dollars later and there's nothing to show, no asset owned, and all we have to marvel at is the history of costly decisions, and endless political posturing.
That's how this whole thing started back in 2006 - when it was first revealed that the then Musa Administration had given a secret guarantee to the owners of Universal Health Services. Those investors were PUP friends, and government told them to proceed with the investment because NHI money would be coming through. Well, NHI was never rolled out the way it should have been, and the rest is a very ugly chapter in modern political history.
Perhaps the investment was a pipe dream all along, but the risk was with the taxpayers and that's what we asked one of the principals Dr. Victor Lizarraga about in 2006. That plays out in a classic, stormy interview with Jules Vasquez and we bring back a compressed version of it for you tonight:...
Dr. Victor Lizarraga
"Listen to me, Universal is here because of the policies of the PUP government, of this government, as it regards to health reform, National Health Insurance; that is why it is here. It was facilitated by the policies of the government. So it is only natural that this amalgamation process should happen and should be beneficial to the whole country but in particular to the poor people."
Jules Vasquez, reporter
"But appropriately so because the poor will have to pay."
Dr. Victor Lizarraga
"How will the poor have to pay?"
Jules Vasquez
"Because the government without the public's approval, without any public disclosure, guaranteed the debt that you and your investors privately took on and now that the guarantee stands and you all are unable to service your debts, the taxpayers must stand and those are the poor."
Dr. Victor Lizarraga
"No, that is not resolved. That is still owed to the government and will still be paid to the government."
Jules Vasquez
"You owe DFC $12 million."
Dr. Victor Lizarraga
"That is also going to be paid."
Jules Vasquez
"You owe the Belize Bank $32 million."
Dr. Victor Lizarraga
"That is also going to be paid."
Jules Vasquez
"Who is going to pay it?"
Dr. Victor Lizarraga
"Who is going to be paying? The details of that, you need to ask the government."
Jules Vasquez
"Well if I need to ask the government, that tells me the government will have to pay - and if the government will have to pay..."
Dr. Victor Lizarraga
"Listen to me, I can only talk for Universal and Universal will continue to have an obligation to the government to pay that amount of money."
Jules Vasquez
"But it's not paying it. It has not been current with the DFC debt first of all. It has not been servicing its Belize Bank principal debt of $17 million which has now expanded another $15 million."
Dr. Victor Lizarraga
"I don't think I can agree with those figures but anyway..."
Jules Vasquez
"How wrong are they, you give me yours."
Dr. Victor Lizarraga
"That is our private business. Why should we divulge that?"
Jules Vasquez
"But your private business is now becoming a public responsibility."
Dr. Victor Lizarraga
"Well when it becomes that, then you deal with it."
Jules Vasquez
"But it is afoot, Cabinet has made a decision. I am saying to you Dr. Lizarraga that your wasting investment, your investment that you are unable to service, is now becoming a millstone around the public's neck."
Dr. Victor Lizarraga
"Let's look at that, analyze that critically. I think the financial discussion you are having is unfair Jules. You know why? Because you don't even know the details of this and I don't think it is proper for me to discuss with you any details of my company."
Jules Vasquez
"But your company is now in the..."
Dr. Victor Lizarraga
"When it becomes that then..."
Jules Vasquez
"It is in the DFC hearings, $17 million that the government guaranteed."
Dr. Victor Lizarraga
"That is a hearing, that is not..."
Jules Vasquez
"But that is in the public's domain. This is now a public responsibility. Your company is a millstone around the public's neck now; that is what it is."
Dr. Victor Lizarraga
"Explain that to me, I don't know what you mean by 'millstone around the public's neck.'"
Jules Vasquez
"The government made a guarantee, did they not? The government gave a loan, two realities. The guarantee said that if this gentleman can't pay, because the government believes in improving healthcare, we the government will pay. You cannot pay, you cannot keep current with the loan. The people, who fund the government, have to pay."
Dr. Victor Lizarraga
"We the people."
Jules Vasquez
"The taxpaying public."
Dr. Victor Lizarraga
"You realize that I am a taxpayer just like you? You realize that I generate taxes just like you? I employ 165 people Jules."
Jules Vasquez
"But how are you the investor, we the people didn't stand to make a profit if it worked out. How are you as an investor entitled to a sovereign guarantee and how is it now that that has come flaming aground and we are responsible for it and now it is a private matter?"
Dr. Victor Lizarraga
"It has not become 'flaming aground,' what do you mean by that?"
Jules Vasquez
"It has become flaming aground, we are at this point not to rationalize healthcare, we are at this point because Universal Health Services can no longer amply service its debt and the Belize Bank reasonably wants to call in the money. That is why we are at this point."
Dr. Victor Lizarraga
"So what would be your solution? Let me hear. You can say anything you want. We are where we are so what is your solution to that problem?"
Jules Vasquez
"My job isn't in finding solutions."
Dr. Victor Lizarraga
"Your job is to criticize only and don't find any solutions. I will ask you Jules, find a solution to that problem."
Jules Vasquez
"I didn't create the problem. I didn't give a guarantee that was secret."
Dr. Victor Lizarraga
"There is no secret, the guarantee is a DFC guarantee. So please man, I am not asking you how much money you owe. That is a damn shame Jules. You didn't make the mistake to go public because of the kind of business..."
"I am very pissed off, really and truly with kind of approach. You want to give good news then you give the proper news."
Jules Vasquez
"But I am pissed off with how this is unfolding. I feel that there is no way that the public should be made to pay what was built, I believe, around the illusion of the NHI. This was built all around the illusion of NHI when the government at all times lacked the political will, you know they did, to put a deductory tax to pay for NHI."
Dr. Victor Lizarraga
"Let the government speak for themselves. I can only speak for our organization for our involvement."
Tomorrow we'll have more from our archives on the Universal Health services Debacle.
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