Speaking to bus operators in the Cayo district yesterday, Transport Minister Cordel Hyde told them that the Zabaneh Group which has made a proposal to government to buy over the insolvent Novelo's Company has yet to give government a business plan explaining how it will do business. Hyde told the bus operators and 150 villagers that the plan was due two weeks ago, but still had not arrived. As outlined in Friday's Amandala, the Zabaneh proposal is for a 20 year exclusive franchise, exempting the new group, called National Bus Company, from all duties and taxes including fuel for that time, along with an almost 20% increase in fares and a generous restructuring of the 30 million dollar debt which the company owes the DFC. Minister Hyde told the Amandala that government would Forego 100 million dollars in duties and taxes to recover DFC's 30 Million dollar debt, a trade off which he characterized as impractical.
The Zabaneh proposal is presently before a cabinet subcommittee for review. Though it's only now emerging, 7news has been unto the proposed buyout since July when we put the question to the prime minister asking if there was a "special" deal underway:
Jules Vasquez
"If Euguene Zabaneh were involved, wouldn't it be a perverse sort of term? Being that he is one of the main beneficiaries of the Novelo's buy out money, financing they got from DFC, 30 million. Much of it went to him to buy out his bus line. And now he would in turn, when after the asset defaults, nationalized and is re-privatized he is right there again. It's not even two times its been three times."
Hon. Said Musa – Prime Minister
"Well that's clearly, not only an editorial comment on your part, but clearly a very biased presentation- as you see it no of the issues that transpired."
Jules Vasquez
"Well he was the beneficiary of the… a legitimate buyout."
Hon. Said Musa
"You are saying beneficiary you know. I am saying that when private sector people sit down to make agreements between themselves, if Mr. Eugene Zabaneh agreed to sell…"
Jules Vasquez
"But when they do it with public funds its worrying."
Hon. Said Musa
"Well they borrowed the money."
Jules Vasquez
"They borrowed the money which is now… we are floating as bonds."
Hon. Said Musa
"Yes, but the issue was whether DFC ensured that it had sufficient assets to lend Novelo's the money. That is the real issue. Not whether who were the people selling? Who were the people buying? That was a strictly a private sector matter. So no, we do not exclude anybody in Belize. We will not discriminate against any businessman who is prepared to put his money where his mouth is. If he wants to invest further in the bus transportation issue. We welcome as many investors as possible if a joint venture is to come of it."
Again, that comment was given two months ago. But right now, the situation is that transport minister Hyde today told the bus operators that he would lower the cost of road service permits but insisted that there can be no increase in fares at this time.