By now you know of government's plans to amalgamate the Karl Heusner Memorial Hospital and Universal Health Services. Government will take control of two thirds of Universal and in so doing it'll be taking on the $32 million which Universal owes to the Belize Bank and on which there is a sovereign guarantee attached. Universal owes the Development Finance Corporation another $12 million. So how will the merger work? Well the information released so far has been vague and broad. The devil is in the details they say and today in his first interview about the merger - Prime Minister Said Musa said that Belizeans won't have to pay for the $32 million owed to the Belize Bank. Why not? Musa told Keith Swift that the Belize Bank has agreed to accept land to cover the debt.
Rt. Hon. Said Musa, Prime Minister
"The proposal, as I have seen it, will result in first of all the DFC getting back some of its money. The debt with the Belize Bank will be squared away by a land transfer which will involve that company or the company that they will be financing making a major investment in Belize of about $150 million."
Keith Swift,
Who will?
Rt. Hon. Said Musa,
"The Belize Bank. In other words the government will not have to pay out any money in order to acquire the Universal facility, two thirds of it anyway."
Keith Swift,
So you're saying that in place of the money that Universal owes the Belize Bank, government is going to give the Belize Bank land?
Rt. Hon. Said Musa,
"The government will take over the debt, if you like, and instead of paying cash for it, they will be a land transfer which will involve another major investment, private sector investment in the country of Belize. The advantage of the government doing it this way is that if we were to leave things to just fall apart and Universal went into bankruptcy, the Belize Bank would end up with Universal and the people will be no better off."
Keith Swift,
But won't concede that Universal should not have been given a sovereign guarantee?
Rt. Hon. Said Musa,
"Well you can go back over the past as much as you like. What I am saying is that we are converting a situation now into a positive. It will bring greater healthcare for the people of Belize."
Keith Swift,
But it could have been prevented.
Rt. Hon. Said Musa,
"Well you want to get an argument. I am telling you what is the situation now and where we are going with it."
Keith Swift,
So what is Belize Bank going to do with the land they will be receiving?
Rt. Hon. Said Musa,
"I am just saying that they will make a substantial investment, I am told it will be as much as a $150 million investment in a hotel project in Belize."
Keith Swift,
Where is the land located?
Rt. Hon. Said Musa,
"It will be North Ambergris."
Musa wouldn't state the size or value of the land on Northern Ambergris Caye. The medical staff at the KHMH have voiced their opposition to the plan and will be meeting with the Minister of Health on the issue later this week.
