After 7NEWS broke the story last night that government was paying Intelco's loans at the International Bank of Miami, there's been a flurry of activity and accusations.
First was the opposition which cited sources confirming our report that government had paid US $734,000 to the International Bank of Miami towards a US $12 million loan Intelco has at the bank.
But the opposition goes further; it claims that government has also guaranteed a US $25 million loan at the Royal Merchant Bank of Trinidad and Tobago - again a part of Intelco's private debt. And, the UDP claims GOB has also guaranteed another US $15 million - reportedly through social security funds. All told, the UDP quotes a figure of US $52 million privately borrowed by Intelco and guaranteed with public funds by GOB.
It's a total of Belize $104 million...it's a staggering figure and this evening Finance Minister Ralph Fonseca told us it's just not true. Speaking with 7NEWS Director Jules Vasquez via telephone from his office this evening - Fonseca confirmed our story that government has made two payments to the International Bank of Miami on behalf of Intelco and also confirmed that the figure is US $734,000. But Fonseca denied the allegation that it is a guarantee for default payments; he calls it an institutional arrangement where government has agreed to make payments every two months directly to the International Bank of Miami for telecommunication services Intelco has rendered to the Government of Belize.
So in short, instead of paying Intelco directly, government is paying its banker. And according to Fonseca, that US $750,000 paid for two quarters is only a portion of the money government owes Intelco for the services it provides - which we'll note seems kind of steep considering that Intelco only takes care of a fraction of government's phone services in Belmopan and Belize. But whatever the case, Fonseca says, that so called "institutional arrangement" is the extent of it - the Finance Minister flatly denied any other guarantees - and said that the UDP's allegation of US $52 million in Intelco's private debt backed by the government is, "rubbish."
A UDP representative this evening told 7NEWS that his party will furnish what's described as "grade-A" proof of those guarantees in tomorrow's El Guardian.