We report now on another Magistrate's Court case that's been all over the news. Last night, we showed you the latest in the court battle between Caribbean International Brewery Company and the Financial Intelligence Unit. They are asking Magistrate Deborah Rogers to allow them to take the fight over their confiscated 3.1 million dollars to the Supreme Court via a constitutional challenge.
That case has been running its course in the Orange Walk Magistrate's Court. After disagreeing with the Magistrate's ruling yesterday, the company's attorney, Dean Barrow, now wants to take the fight to a higher court. If the Magistrate grants that hotly contested application, the case and the seizure of the funds will remain in detention for many more months.
In all that time, the company's reputation may be damaged by multiple allegations of illegality which Belizean law enforcement brought against them.
Tonight, we take a closer look at the negative impact of these legal troubles on the beer company's brand. Daniel Ortiz has that story:
In January 2021, during the height of the COVID pandemic, when the disease was in its most dangerous state - when businesses were closing down and Belizeans were being laid off from work, Caribbean International Brewery emerged on the Belizean beer market as the new guy.
The market was already very crowded, with many options for consumers, but CIB's owners were convinced that their product would catch on.
Nelsie Campos, Deputy Manager, C.I.B.C.L
"This last weekend, we launched our beer, the pirate beer, and that is the product that we have now."
Daniel Ortiz
"When should customers start to see this particular item at their local shop and grocery stores?"
Nelsie Campos, Deputy Manager, C.I.B.C.L
"They are already in the market, we have agents, and we're working with agents all over Belize."
Before the launch of that product, the company established itself in the market for purified water.
Nelsie Campos, Deputy Manager, C.I.B.C.L
"Caribbean International Brewery started in November 2014, 6 years from now. For the past two years, we have in the market our water, the H2O water, and we have three different sizes of water and pouches. These have been in the market for the north, Corozal, and Orange Walk for the past two years. The company has three shareholders. All of them Belizeans. Their names are Mr. Ken Shin, Kevin Xin, and Jun Zhang. They are investors who have done studies. They are Belizeans. They have been here for a long time, more than 20 years, and they have been doing studies on the Belizean market. They decided that Belize needs a new product, and they have a huge investment in the company."
That entrepreneurial gamble seemed to be paying off because the company later launched other products like "Mine Beer."
They report that September 2022 saw robust sales, and moved a high volume of product.
But then, October 6th arrived, and they found themselves caught up in a multi-agency law enforcement raid.
3.1 million dollars of the company's money, which included the proceeds of their September sales, were confiscated by Police and the Financial Intelligence Unit. Kevin Xin, one of the company's owners, his fiance, Liping Shu, and eight other employees were arrested and charged with immigration offenses.
They continue to assert their innocence.
Kevin Xin, Owner, Caribbean International Brewery Co. Ltd
"I am from the Caribbean International Brewery Company, and I want to tell you that we are always following the law. I am a Belizean, and I love Belize. I have invested my life savings with other Belizean investors to build the Caribbean International Brewery. We are making a lot of work opportunities [available] for over 80 Belizeans and pay a few million in taxes to the Government every year. We established a charity foundation to help people and public institutions in need. I still believe that the law will give me and the Caribbean International Brewery Company justice."
But, in the court of public opinion, Belizeans - who are the consumers of this product - are forming the view that some sort of illegality has taken place.
There are pockets of support and sympathy for the company, its owners, its employees, and their legal difficulties.
But... some viewers seem to think that the law enforcement agencies must have had solid intelligence which they acted on - as the famous Kriol saying goes - "Nobody stone empty mango tree..."
But, the attorney whose job it is to convince the court that the Belizean law enforcement went in half-cocked is Senior Counsel Dean Barrow.
The former 3-term Prime Minister has had his fair share of controversy for the massive awards of damages ordered against his Government and, by extension, you, the Belizean taxpayers.
You'll remember that in 2016, he had to dig deep in his appeal to emotion when he was trying to convince Belizeans that the still-controversial, half-a-billion-dollar settlement between his administration and the Ashcroft Alliance was a win for Belizean telecoms consumers.
His main argument was that his government was removing BTL from the clutches of the Alliance.
Dean Barrow, Former 3-term Prime Minister
"Our takeover of BTL is NOT overpriced and is worth EVERY ounce of resistance we maintained and every penny of the award we will have to pay now. We pay now, once and for all, on our feet. They would have had us pay almost indefinitely on our knees."
This same former Prime Minister is now signaling very early that if the prosecution fails, the government and taxpayers could end up having to pay Caribbean International Brewery Company many millions of dollars in legal damages. In fact, it's part of their reasoning for conceding the money confiscation battle in the Magistrate's Court in favor of a constitutional challenge in the Supreme Court.
Dean Barrow, SC, Attorney for CIB
"No charges have been brought with respect to anything such as money laundering, such as retaining proceeds of crime, such as tax evasion - none. So, these are bare allegations that, in my view, cannot stand up to scrutiny. If the money continues to be withheld, they have to shut down shop completely or even if it is not and even if they do get back the money and they are able to resume - that reputational injury that you spoke about is such that I would imagine there would be at the very least a huge contraction in their business. Those are losses. Those constitute the kind of damage and an extent as to the damage that will underpin, as I said, a huge certainly on their part for an unprecedented award of damages in the supreme court."
But the attorney who Barrow will have to battle in the Supreme Court to make that case is Godfrey Smith, a fellow Senior Counsel - and former Attorney General and High Court Judge in Caribbean judiciaries. He insists that Belizean law enforcement is obliged to investigate any and all reports of crime without prejudice or ill will.
Godfrey Smith, SC, Attorney for the FIU
"I've heard, I think, representatives of the company say this was an attack, a plan - as if somebody sat in an office. I'm not part of the Government, but I can never believe that the Labour Department, the Anti-Trafficking in Persons Unit, the Immigration Department, and Special Branch all did this operation because they didn't like the people. I mean, that's nonsense. They had intelligence that something was going on, and they looked into it. They didn't go looking for the cash. In that investigation, they found the cash, and you know why they were able to detain it? Because Mr. Barrow, when he was Prime Minister, amended the law to include Section 38 in 2016, which he is now challenging. It's he who introduced that to give police - and the other authorities - more leeway to investigate and develop their case."
Daniel Ortiz
"You all made some serious allegations against these defendants that you have reasonable grounds to suspect money laundering, tax evasion, and maybe human trafficking - or trafficking in persons. Those aren't small allegations to make."
Godfrey Smith, SC, Attorney for the FIU
"But hold on, to what end are the allegations directed? They're merely directed to hold the cash to see if it's really related to offenses. It's not - as I keep repeating - it's not about forfeiting the cash. There's a difference. I think earlier I said seizing. This is about detaining rather than forfeiting, meaning the government keeps it as theirs. So, there is no loss to you. There's no prejudice against you. Remember, this isn't about saying definitively that any offense was committed. It was saying we have grounds to suspect, and our suspicion is not fanciful. It's based on certain things. Let us hold on to the cash and see if we can prove [it]. Something might come of it. Nothing might come of it, but that's what this is about."
We'll tell you what the final decision from the Magistrate is on that application for a "case stated." The next court date is tentatively scheduled for November 17th.
