And this morning was the first time since the Novelo's Bus Company megalith was plunged into receivership that the two principals behind it brothers David and Tony Novelo faced the media. And while this morning their issue was that the Traffic Department had pulled over two of their buses, the conversation predictably turned to the $30 million of publicly guaranteed debt from the DFC, which is still hanging over the embattled bus company and by extension the taxpayers, who are unwitting guarantors for the debt. So where did the $30 million go? Well, Tony and David didn't tell us but they hinted it didn't go far. In their first interview since the company was "stronged" from them last year the brothers told us they are eagerly awaiting the DFC Commission of Inquiry to set the record straight once and for all on the $30 million.
David Novelo,
"We think that the nation should know the truth. We are willing to face the nation at that point and explain how the venture went about, what were the errors, what were the mistakes, and we feel that at that time we will leave it to the Belizean public to judge whether we deserve a sympathy or whether our company should be chastised for destroying the public national transportation system."
Keith Swift,
You don't feel that David and Tony Novelo are responsible for what happened with the National Bus Company and the $30 million?
David Novelo,
"As I said at this moment I will not make any comment on it. I think that let the record speak for itself. When the loan is opened, when we look at all the particulars, when we look at the venture and how it unfolded, what transpired, and the sequence of events we feel that then it will be (left to) the Belizean people to decide whether we deserve sympathy or whether, as I mentioned to yourself, that we should be condemned. You have to realize that receivership came at hostile mode eventhough we had asked the government and the particular banks at that time to join with us in trying to solve this issue, they chose to take the road of hostility."
Keith Swift,
But Mr. Novelo there was a $30 million loan that was not being serviced. There was a $30 million publicly guaranteed loan that was not being serviced. Was there any other way to take over the company other than hostile?
David Novelo,
"As I indicated when you make a loan from any financial entity, as the borrower you have a duty to pay."
Keith Swift,
But you were not paying.
David Novelo,
"But as the lender you have a duty, on your part, to accommodate the borrower to pay. So the situation is something that we are confident that when the loan is opened, as we think will happen, in the future..."
Keith Swift,
But Mr. Novelo, can I pause you, just a couple weeks ago Channel 7 reported that just months before you went into receivership, you guys were still receiving money from DFC to make it seem that you were paying your loans.
David Novelo,
"Basically as I indicated, at this time I am not in any position to discuss about this because ultimately we'll leave it to a public inquiry that should come about. We're really looking forward to it."
Antonio Novelo,
"We really and truly need to look at that $30 million which is very little bit money for a national industry and we had to improve terminals, we had to improve runs, we brought in equipment that was here, and we developed tourism because we provided security to the cruise lines."
Keith Swift,
Should that have come at a cost of $30 million?
Antonio Novelo,
"The cost is minimal for an industry that creates over US$100 million a year. Secondly, most importantly, and to the whole country that I am saying that attacks the Novelo family, this is the only company when you open the books that has a net asset worth, in real estate that is surpassing the loan. It is properly secured."
"This company belongs to the general public of Belize. I think the public or for those criticizing, are crucifying us brothers like if it's a sin when we gave back terminals, we gave back everything. Whatever we made we gave it back to our industry in the best possible way we can. The general public needs to realize, sit down with us, and work to a better future. We can deliver it. This is the proof here. This receivership has abandoned Ladyville for one year. They abandoned the City Bus where poor people have to walk. The difference with us is that sometimes when the poor had money they traveled and sometimes when they didn't have, they still traveled. We will make a comeback because we believe that there's a cause."
Jules Vasquez,
Is it perverse to hold yourselves up as saviors when many would say you all are the destroyers of the transport system?
David Novelo,
"Well as I said it's all about perception and we feel that eventually when the $30 million loan is opened, we will leave it to the public to be the judge of that."
And while the brothers might want back their company, today the Novelo's Bus Company issued a release saying that after a year under receivership management the company is on the way to being able to meet its financial obligations. The release says that the company will soon be introducing electronic ticketing at terminals and electronic controls on buses. They also claim to have purchased 9 new buses, which will soon hit the road.
