In the Crazy days of the PUP administration, the then Prime Minister Said Musa guaranteed a private debt, the Universal Health Services Debt for 33.5 million dollars. Basically the Musa administration took on a private debt owed to the Belize bank. This singular act was emblematic of what the Musa administration was all about, that is to take care of friends and cronies at the expense of the tax-paying public. Well back then the decision was met with severe resistance and on May 18, 2007 it was cause for a riot in Belmopan.
Despite all objections however, the Musa government went on to pay the Universal Health Services debt. Money that was supposed to have been used for the betterment of the lives of Belizeans was used to pay off the debt. 10 million U.S. dollars came from the Venezuelan government’s housing assistance and an additional 10 million U.S. dollars from the Taiwanese government which was actually for the improvement of the health sector in the country. Both payments were made without the knowledge of anyone, it was yet another secret agreement of the Musa regime.
But as the adage goes, things done in darkness must come out to light and soon after the UDP government took office, the offending payments were made public and the government sought to at least return the Venezuelan money for its rightful use. By August of 2008 20 million dollars was returned to the government and people. That however caused the Belize bank to take the government to an arbitration tribunal which decided that the government should pay the debt. Now the Belize Bank is seeking to have the order enforced but the government is resisting.
Attorney for the Government of Belize, Denys Barrow, explained that GOB’s argument is that the arbitral award should not be enforced in Belize since the constitution of Belize prevents the use of public funds without the constitution or legal authority to do so. That was the argument presented on Tuesday September 30 before Justice Shona Griffith. Another ground that the government stands on is that the Caribbean Court of Justice has recently decided that it would be contrary to public policy to do this type of payment since it is illegal to do so and denied an enforcement of the arbitral award.
Barrow went on to explain the quagmire of deals that led to the state of affairs as they now stand. As was previously explained Musa used 10 million U.S. dollars from Venezuela and 10 million U.S. dollars from Taiwan to settle the debt. Now that was to have had government own the UHS but that was never effected and yet with 40 million dollars in their possession, the bank lent Belize Health Care Partners 45 million dollars out of which 39 million dollars was used to purchase UHS assets changing then the ownership of UHS. In actuality those 39 million dollars ought to have been paid to the government since it was the government who actually owned UHS nonetheless those monies went to the Belize Bank, settling that debt. Now even after the debt has been settled by a third party, Health Care Partners, the bank is still seeking, in a manner of speaking to double dip, or collect twice for the same asset and that is what the government is resisting.
A decision will be passed on this matter on December 16.
