It was announced so casually that it seemed almost unreal: but it's true, by the end of the month Lord Michael Ashcroft's Carlisle Group could be back at the helm of BTL as the majority shareholder. How could it have come to this? Well, Prosser never bought Ashcroft's shares; he simply took over the US$57 million loan that the government had taken out to buy the shares. Now the loan is coming due within the next two weeks, and possibly by next Monday, and it appears that Prosser may be unable to pay. That should be his business, but it turns out that it is squarely a matter for the government and people of Belize, in whose name the loan is guaranteed. That's right, contrary to numerous denials, government kept the guarantee on the US$57 million, and now it's payback time.
Tonight, we repeat that grim admission made on Friday, and, for context, the emphatic denial of the same fact made back in July.
What he said then: Original Airdate July 15th 2004 [Click to read entire story]
Hon. Said Musa,
"What I can tell you is that the loan obligation for the government of Belize has been settled when the government sold its shares and Social Security sold its shares. In other words the government does not have a loan obligation to IBOM for that loan; Mr. Prosser has the obligation."
Jules Vasquez,
We are not a guarantor?
Hon. Said Musa,
"No."
What he said Friday: Original Airdate Friday November 12th [Click to read entire story]
Hon. Said Musa,
"They do hold a note yes and the government will then be in a position of having to find that money, yes. Whether we take it from, as you say, another buyer such as the Carlisle Group or whatever but [Pause] that's about he timetable as you rightly said about the end of this month. Yes."
While Ashcroft is an option, government is also looking at the possibility that it can sell the shares to interested Belizeans. Though it looks good on paper, this seems hardly plausible because it is doubtful that the local economy could produce US$57 million in about a week. Of course, the other option would be to let Social Security pay the money and then slowly sell off the shares to Belizeans. But there are two prohibitions to that: first that the Prime Minister has put a ban on all private investments by Social Security and second, that SSB just does not have the money immediately available.