On Wednesday, we told you that the Social Security Board of Directors was looking at a proposal to buy over Universal Health Services.
Well, by Thursday, SSB ‘fessed up in a press release, saying that it was an “investment opportunity” which they were considering.
And by this morning, CEO dr. Luis Zabaneh was all over the radio, making it known that the opportunity had been outright declined.
So what accounts for the sudden change of course?
Well, remember the feasibility study we told you about? Faster than you can say “pronto!”, it’s back. And it was reviewed by the Social Security Board’s Investment Committee late yesterday evening.
And guess what they found? New news: Universal owes 33 million dollars!
In an interview, CEO Dr. Luis Zabaneh shared this and other fun facts with Jules Vasquez today.
Dr. Luis Zabaneh, CEO, Social Security Board
“The independent consultants made their presentation yesterday evening as by law the investment committee must look at all proposals in front of the board and make a recommendation one way or other to the board - before the bigger board, the entire board makes a determination.
"At the investment committee, after listening to the presentation of the initial scan by the independent consultants, the committee decided that there would be no recommendation to make any investment in UHS."
Jules Vasquez, 7News
“Why would the Universal proposal not work?”
Dr. Luis Zabaneh, CEO, Social Security Board
“Well in the first instance, at the initial price they were asking which was 36 million to cover the, the, the debts and so on that they have, it’s a no-fly, straight off, just based on finance, it can’t fly at that, at that price.”
Jules Vasquez, 7News
“Who didn’t know that Universal is carrying around a debt burden of 33 million dollars, at least. If that, if that is the tipping point in the deciding factor, you don’t even need to look at it. Everybody knows that Universal owes 33 million – so why even look at it?”
Dr. Luis Zabaneh, CEO, Social Security Board
“Yes but what we don’t know is that what are they willing to do? They have many assets that are non-core assets, certain things that could probably be sold off that would reduce that price, we wanted to see what the impact would have been if we added on a certain portion of what we spend through NHI, and to look at all of that. We thought that it was our responsibility, well the Board, because remember the Board then instructs the CEO to go forward based on their policies, that it was prudent at this time to do a study so that they could become more educate don that matter. Incredibly, a good deed like that got blown way out of proposition, and, again, we, we welcome this opportunity to explain it. Because if you look at it rationally, you will find that it’s something commendable that the Board asked for a study to be commissioned so that they can understand the setting better.”
Jules Vasquez, 7News
“But I…and I don’t want to be argumentative, you’ve made your point, but your point, it just doesn’t make sense, and why I’m saying it doesn’t make sense is that you’re aware that you’re managing a sensitive organization, one that has had a bad public image, why would you go and even think about touching the most toxic public issue in the last year? Four ministers lost their jobs because of Universal, thousands went to protest, why would you even look at it? It has a 33 million dollar debt, plus…”
Dr. Luis Zabaneh, CEO, Social Security Board
“Well, look at it this way, we have done the analysis and this is our conclusion. So therefore, it is there for us now, we, we know from an independent consultant what the position is and now we look to other investment opportunities, so we can move on form that matter.”
Jules Vasquez, 7News
“You didn’t need a consultant, Doc, I could have told you that Universal has a 33 million dollar debt, and if you touch it, you will suffer a public relations backlash. I would have done that for free. Why do you have to hire a consultant to do what is so plain to see? That thing is toxic as a public issue.”
Dr. Luis Zabaneh, CEO, Social Security Board
“I’m hearing what you’re saying, and, ahm, you know, I respect your opinion on it, but that, I’ve expressed my side of it…
Jules Vasquez, 7News
“What I sense, during this whole thing was that it was being pushed from the government’s side, that government had an itch that only Social Security with its incredible liquidity could scratch. And that it was being pushed by agents or emissaries or the government itself to say, ‘Take this cup.’”
Dr. Luis Zabaneh, CEO, Social Security Board
“And we welcome this opportunity to clarify that because, in fact, that is not how it came to the board. It came to the board - and many other investments are looked at on a regular basis by the board - Board members bring ideas that they feel would be innovative, that would help with securing our fund, that would make our investments stronger.”
Jules Vasquez, 7News
“You put out a release, but because it is an election season and it is such a politically sensitive time, somebody, in Belmopan, in the corridors of power, as they say, somebody says, ‘Ring the alarm’, we are, the PUP government is politically hemorrhaging because of this. Put a stop to it now.”
Dr. Luis Zabaneh, CEO, Social Security Board
“It was a scheduled meeting of the Investment Committee that we had for yesterday evening and we had the consultants lined up for that time. We had a set meeting, we sat down, we listened to the people and we made a determination.”
Jules Vasquez, 7News
“But reasonably, why couldn’t that have been alluded to in the press release? I’m not trying to, to do a textual exegesis of the press release, but the press release says, ‘When we have the information…’, When you all wrote that you knew you’d have the information, if what you’re saying is accurate, you knew you’d have the information in eight hours, can’t you just say, ‘By the end of day, we will know.’
Dr. Luis Zabaneh, CEO, Social Security Board
“We wanted to make sure that the Investment Committee occurred, and the persons came and gave us a presentation. Now that the thing is done, it is done, now we can go and give the information.”
Jules Vasquez, 7News
“But that explanation doesn’t hold water because the release is very general in saying that when we know, you will know, you the public will know.”
Dr. Luis Zabaneh, CEO, Social Security Board
“And isn’t that the case now? Isn’t that the case”
Jules Vasquez, 7News
“Why didn’t it say, why doesn’t it say: “We will know today and you all will know as soon as we know.”
Dr. Luis Zabaneh, CEO, Social Security Board
“We could have done that, I guess it’s a, you know, we could have done it a little better, sure…”
Jules Vasquez, 7News
“But you couldn’t have, done it, I’m arguing, because you didn’t know that the decision would be un-made, because the decision wasn’t un-made by you, it was un-made because it was a political emergency and the government said, ‘Ring the alarm, stop the press!’”
Dr. Luis Zabaneh, CEO, Social Security Board
“That is your position on it. My position on it is that it occurred, that way it occurred yesterday we had a meeting we heard the independent consultant come in we have the information we responsibly came today now, after we have the information to, to let you know. The good viewers out there will decide what they believe.”
Well, we don’t know which story you’re buying, but the Prime Minister has already made his choice.
Running away from this one like it’s a toxic dump, the Prime Minister’s office sent out a press release saying that, “The Prime Minister categorically and emphatically states that he and his government did not direct the SSB Board of Directors to consider the purchase of the UHS.”
And maintaining the line that they’ve held since June, the government re-iterates its position that negotiations continue with what is amorphously described as “the private sector” and will – of course – be concluded shortly. We won’t hold our breaths.
