The protestors may be taking to the street on Saturday, but the Universal takeover deal is sealed: on Monday a new government appointed Board of Directors will take over the management, operation and assessment of Universal Health Services.
The team is led by former Health Ministry CEO Henry Anderson, and the new Universal CEO will be long time ministry fix-it man Peter Allen. Today, Health Minister Joe Coye held a press briefing to say that the mission for this new board is more than operational; it's also fact finding. In four weeks time it has to tell government how to sustainably manage the 800 pound gorilla that is Universal.
Hon. Jose Coye, Minister of Health
"The Board was set up yesterday. They should begin to operate on Monday and that is what they are supposed to do for us now, to do a feasibility study under various scenarios and then to advise the government as to exactly how Universal can fit in to the health system.
I would like to see it as an institution that can remain viable to pay its debt, to provide the service within the system, in particularly to the working poor of this country. That is what we would like to see. We don't want to make any commitments at this point and say that is it; that is the purpose of setting up the board. The purpose of setting up that board now is to make that determination so we will have a definitive way forward as to what we are going to do with Universal."
Coye confirmed that CEO Troy Gabb and Chairman Dr. Victor Lizarraga are out and will no longer run Universal. As for Dr. Lizarraga, Coye said that he hopes he stays on as a surgeon. As for Gabb though he is heading for the exits because the new owners decided to terminate him, he won't leave empty handed but will be given what we are told is an ample termination package.
And while the formal takeover of the operations is one thing, the settling of the Belize Bank debt is quite another. Coye said he expects that to be settled within the next two days. As we've reported, Universal owes the Belize Bank $33 million, a private debt but a public guarantee. In what may be the mother of all bad deals, the then Minister of Finance, Prime Minister Said Musa, gave the sovereign guarantee on behalf of the DFC with no ceiling on the debt overrun, and no time limit on the guarantee. Kind of like a blank check with no date and no amount, just a platinum signature.
Well now, thousands of acres of government lands have to be swapped with the Belize Bank to settle the debt. How many thousands? We've heard that it is as many as $11,000. Today, Coye would only agree that it's 8,000 and plus what he chose to call a buffer. But the 8,000 falls right beside a government reserve - which tells us that the reserve is on the table. Here's what Coye had to say about it.
Hon. Jose Coye,
"There is a reserve which is right next to it and I understand that they would want to try to get a buffer, not the reserve itself, the reserve is out, but they would want to get a buffer and the eight thousand acres. How much it will be, I am not sure. That is what they are negotiating. The question is that what amount of the reserve. Certainly I don't see how they'll ever be able to get the whole reserve, it's a very large reserve I understand is there. It is a question as to whether they can get a corridor, what I would call a buffer, that's the words used by the Lands Department, I am just using that; something next to it, something immediately next to it."
We note that Coye said "what amount of the reserve they will get" which tells us that part of a government reserve most is in the swap, we note that this is government reserve and not a national park.
And if that didn't quite sweet you enough, what's even sweeter is that if government closes the land swap deal in the next two days as Coye says it will, government will be trading away thousands of acres of state land when, by the strict stipulation of the Finance and Audit Reform Act, it's only allowed to dispose of 500 acres without taking it to the National Assembly for approval. That's illegal, and Coye today acknowledged that there is a ceiling and maybe our pointing it out could slow the imminent closing of the deal.
Hon. Jose Coye,
"I am telling you that they want to bring it to an end and close it because the quicker we can do that, and I made the point earlier that if for some reason they cannot close it tomorrow Mr. Jules has made us aware that we have to go to the House, then we have to say let's wait and go to the House. But we would like to be able to move ahead with the Board."
And while government moves ahead with the board and settles the Belize Bank debt, the truth is it's flying blind. Government has not done a valuation of the assets of Universal; has not seen an audit; and doesn't have a balance sheet. And it probably doesn't matter, because of that blank check that government gave to Universal to be cashed on the taxpayers' account. Coye discussed the financials or lack thereof.
Hon. Jose Coye,
"No, no, I have not seen the financials but what we are doing is that at the time, if they are handing over, the creditor in this case I think will be responsible, the present creditor, to ensure that at least a balance sheet will be given to the new creditor in the handing over. The audit of Universal will be simply to look at the assets that will be taking over and any liabilities, that is the audit that will be done."
Jules Vasquez Reporting,
So do we know how we got to $45 million? Is there anybody crunching that figure?
Hon. Jose Coye,
"I will expect that that should be done Jules by whosoever is doing it and the Ministry of Finance, they should be dealing with that, that's not the health matter for us and I would expect indeed that when they are finalizing the debt with the bank that they will be able to see a figure and say how they arrived at it, I will expect that will happen."
Janelle Chanona, News 5
"Whose your counterpart at the Ministry of Finance that's dealing with this since obviously you're taking care of the health aspect of it?"
Hon. Jose Coye,
"I don't know who all are involved with the Ministry of Finance. I would expect that, I don't know who all are involved in that exercise. I have tried to deal with the health side of it and no attempt..."
Adele Ramos, Amandala Newspaper
"Sir don't you discuss this at Cabinet?"
Hon. Jose Coye,
"Yeah but what I am trying to do is that I cannot be wearing the two hats at the same time. I am taken up with the health aspect of it and at the same time..."
Adele Ramos,
"You are not in discussions..."
Hon. Jose Coye,
"No I have not been dealing with the debt side of it, I have not."
Adele Ramos,
"That's a serious problem sir."
Hon. Jose Coye,
"You would like me to deal with both noh? What I am telling you is that they are in progress, they are dealing with the debt. I cannot also deal with that."
Adele Ramos,
"But you don't know who they are."
Hon. Jose Coye,
"The Ministry of Finance. I don't exactly know who it is, the Prime Minister with the FS or whosoever they are. I am not really into that. I will try to get information to the best of my knowledge on financial matters but I am not the Minister of Finance and I am speaking as the Minister of Health. I don't want the media to take it that because I could not answer them that there is something funny going on and that is what I want to make quite clear, I am not here to answer every question on every matter. I am not that big of a Minister."
And who is that big of a Minister? Well, we'll have to assume that the man dismantling the atomic bomb, is the one who assembled it, former super-minister Ralph Fonseca. And we conclude that because while Coye referred casually to the Financial Secretary as doing the financial analysis, Dr. Carla Barnett today confirmed to us that she has nothing to do with it and that the Ministry of Finance is not involved.
Also not involved is the DFC which Universal owes $12 million. Their debt has not been settled, and from what we've heard so far have not been included in the consideration. Of course, all DFC losses are also guaranteed by taxpayers.
