On Friday we told you about the prime minister directive to the Solicitor General to instruct the Register of Lands to effect the transfer of the land title for the Data Pro Compound to BTL. That title was assigned to BTL when it covered $19 million of Intelco debt. Now that Intelco has collapsed, social security is left holding a very expensive bag. And now, the Prime Minister says this move is take that bag from Social Security and hand it to BTL. But won't that result in higher phone rates? Not according to the PM.
Jules Vasquez,
What, if anything, is Social Security receiving on this transaction?
Rt. Hon. Said Musa,
"Social Security will be receiving a commitment from BTL to assume the debt. In other words Social Security will not be exposed any longer for that Intelco debt, thirteen point...whatever it is. BTL will assume it."
Jules Vasquez,
Which will go into Michael Ashcroft's cost of investment which will drive up the...
Rt. Hon. Said Musa,
"BTL will assume it and BTL will then take on the Intelco assets."
Jules Vasquez,
Which will drive up rates.
Rt. Hon. Said Musa,
"Why?"
Jules Vasquez,
Because that will go into the cost of investment, he will have a guaranteed rate of return, and the rate of return will include 15% on that. So if you don't pay for it as a Social Security contributor, you pay for it as a rate payer.
Rt. Hon. Said Musa,
"You asked me about SSB exposure, I was dealing with that. What comes down the pipe is something else, we'll have to look at that."
Jules Vasquez,
But looking at it from this perspective.
Rt. Hon. Said Musa,
"Your perspective yes."
Jules Vasquez,
This perspective yes can see that it disserves the interest of the consumers because SSB in March of 2000 made a loan to St. James. Are you answerable for that, is that your mistake? Why would Social Security have loaned St. James money to on lend to Data Pro?
Rt. Hon. Said Musa,
"As I understand it, it was a securitized arrangement. It was under a securitization that SSB was involved in. What is happening now is that instead of SSB, in the case of default by St. James or by Intelco, SSB will no longer be responsible to be paying that debt. That is the important thing right now."
Jules Vasquez,
So SSB is off the hook but rate payers are on the hook?
Rt. Hon. Said Musa,
"Well no, not necessarily. That is the part I don't agree with you on."
The Prime Minister's directive to the Solicitor General to transfer the land title directly without a court order comes only after attorneys for Godfrey's St. James challenged an action by Social Security's attorneys to get a court order. And while the land title has been assigned to Social Security, presently the title is not in Social Security's name and thus it cannot yet be transferred to BTL, at least not legally.
And while that is one unresolved matter, government is staring down the barrel of another equally tempestuous financial and legal tangle. As we've reported, the Port of Belize Limited has made a $7 million claim against government for business lost to the Big Creek Port. That's because the Port of Belize says it was promised to be the sole general cargo port in Belize and now Big Creek, developed originally for banana shipments, is competing with them. Thing is, the Big Creek was also given a license in 2002 for general cargo as well.
The man who granted that license, Former minister Henry Canton told us it was an open and intentional strategy to encourage competition and develop the south. But now, the Port of Belize owners and shareholders, which include Michael Ashcroft's interests, say that Canton acted wrongly. What does the Prime Minister think and how will he get out of this mess? That's what Jules Vasquez asked him yesterday.
Jules Vasquez,
Will you all be decommission or de-authorize Big Creek Port as a general cargo Port? I know the Port of Belize Limited is making a claim against the Government for $7 million.
Rt. Hon. Said Musa,
"We're taking legal advice on this matter and the matter will be handled expeditiously but we have to make sure we do the right thing and I have to receive proper legal advice on this matter."
Jules Vasquez,
How soon will a decision be made?
Rt. Hon. Said Musa,
"Fairly soon. I cannot give you an exact date right now but certainly early in the new year."
Jules Vasquez,
Might government, and by extension taxpayers, end up liable to compensate one of the other, Belize Ports Limited or Big Creek Port for business loss?
Rt. Hon. Said Musa,
"Not necessarily. Again it all depends on who has the legal right. The government will follow the legal path. The put it squarely: if there is a legal obligation under the prospectus for the Belize City Port then we will have to honor that but we'll have to look at the matter in some detail."
Jules Vasquez,
Did your former Minister of Ports act wrongly or without proper authorization to have given a license?
Rt. Hon. Said Musa,
"Well we are going into that matter in some detail."
Jules Vasquez,
But you regret what he did, that he did what we did.
Rt. Hon. Said Musa,
"I regret that it has turned out this way."
The Port of Belize Limited has asked government to close down the general cargo working of the Big Creek port by the middle of next month. The owners of Big Creek reportedly have a legal opinion from the Solicitor General saying that their general cargo license is valid and legal.
