In the past few days, the Prime Minister has been criticized for not availing himself to the press to answer for decisions he's made and documents he's signed. But with heads of state and government from the Caribbean and Central America coming to Belize this weekend, the PM had to put his house in order before they touched down. So this morning, he put himself in front of the media firing line in a 30 minute press conference. It was held at his Belize City office and the Prime Minister took all questions and even proved punchy when criticized. 7NEWS was front row and here's how it went.
Rt. Hon. Said Musa, Prime Minister
"Well clearly people have been saying on the talk shows, in the media, print and otherwise, that I did something illegal, wrongful, fraudulent, and that I had no authority to do so and that somehow this innuendo is being given that Said Musa benefits from this, or people in his government, and I can categorically state there is no such truth. I acted in good faith in what I considered the best interest of the Belizean people at the time."
And if it was such good faith, and for the common good, why didn't he tell his cabinet when he signed the guarantee in December of 2004.
Rt. Hon. Said Musa,
"As to why I signed the guarantee without going to the Cabinet first, well I did not consider it necessary at the time. They were aware that there was already a guarantee in place by the DFC, which is an agency of the government. So I did not consider it necessary to get another approval for a substitute, if you like, the government's guarantee for the DFC's guarantee."
Ann-Marie Williams, Reporter Newspaper
"Why didn't you tell the Financial Secretary?
Rt. Hon. Said Musa,
"Because I didn't think it was necessary at the time. Maybe as the the question earlier was posed on regret, regretfully maybe I should have. I am prepared to accept that."
But apart from that regret, which is really the regret that the secret guarantee was flushed out and that it's all come flaming aground, the Prime Minister, it seems, had no other regret, not even about signing a loan note and settlement deed which he says was just a provisional document, even though the Belize Bank, by the terms of this letter took it as deadly serious.
Stewart Krohn, News 5
"Obviously by his letter Phil Johnson thought it was indeed a final settlement. Why would you say that was never intended as a final settlement, and if it wasn't, why did you sign it?"
Rt. Hon. Said Musa,
"Well I would turn that question on its head Stewart by saying if the parties felt and believed that this was the final settlement, why is it the Belize Bank is prepared to sit down and continue negotiations with us? It was part of the process of the negotiation. In other words, it was part of the process to freeze the so-called claim that the bank was making on the guarantee and it's simply in that context that that was signed. In other words it was never intended to be the final settlement, that this is what you have to pay.
Now why did the Belize Bank send me that letter, I can only assume that they panicked because of all the things that were being said that government will not honor, government should not pay a penny. Well quite honestly I feel that whatever the figure we settle on in the end, there is an obligation and a responsible government has to honor its obligations. I am not saying the obligation is $33 million, I believe we will be able to negotiate a much better figure than that."
And the Prime Minister was also upbeat about his motivation to enter a guarantee situation for a private company in the first place.
Rt. Hon. Said Musa,
"I was motivated by what was my vision and my party's vision and my party's promise to the Belizean people from 1998 as well as in 2003 to first of all encourage and promote the expansion of private health facilities in our country."
But he also made a promise to party loyalists who were in the market for building a hospital.
Rt. Hon. Said Musa,
"UHS and Belize Medical Associates went about their investments because of commitments given by our government that we would roll out and expand the National Health Insurance scheme."
But government never lived up to its commitment - and when it didn't, well you get to pay the bill for the little $33 million experiment gone wrong. That's our take, but the Prime Minister bristled at that interpretation.
Jules Vasquez,
You said: 'The real truth is that the government owes a debt to the Belize Bank and whichever government is in office will have to settle the debt.' Is it not the truth, sir that you made the founders of Universal, who are supporters of your party, you made a promise to them to build the hospital and 'we will implement the NHI' and 'you will make profit'? You never lived up to your end of the promise because NHI has not been fully implemented, therefore their investment tanked and you, because you made a promise to those investors who are your party supporters, now we have to pay the bill for your broken promises to those investors. Is that not a fair characterization of what the truth really is?
Rt. Hon. Said Musa,
"Jules, why don't you run for elections? I mean really, if you want to debate me get into the Parliament man and then we will have a debate."
But the debate that the Prime Minister has to worry about is within his own government about what's really included in that $33 million.
Rt. Hon. Said Musa,
"At this stage I cannot categorically tell you what exact amount is the principal and what is interest because in the course of banking operations, interest can sometimes capitalize but that information will be made available as soon as we have it."
Jules Vasquez,
But do you accept that there may be included in there some debts which aren't related to the operations of a hospital or some things that may be arguable?
Rt. Hon. Said Musa,
"Well all things are possible and a lot of speculation as been made about that. "
There's also informed speculation about what government will take over once it satisfies that $33 million guarantee.
Rt. Hon. Said Musa,
"We have every right to take over that institution or indeed to decide what we want to do with that facility. In other words we step into the shoes of the bank, once we settle with the bank, on whatever the obligation is that we finally settle on. That is a legal position now when we step into the shoes, you are subrogated, you have all the rights of the bank."
All the rights and all the debts - which are reported at another $11.8 million in payables which are on Universal's books, waiting for the new owner. The Prime Minister didn't disagree.
Rt. Hon. Said Musa,
"That matter is still under scrutiny by the due diligence committee. I am not an accountant. The Minister of Health, fortunately, happens to be one and his team is looking into that whole matter. As far as the DFC part is concerned, you keep saying that there is a $12 million principal and that is not so."
Jules Vasquez,
I can show you audited figures, sir.
Rt. Hon. Said Musa,
"You can call any figures you like. I am saying the principal amount originally was $4 million with interest…we disagree on that."
Jules Vasquez,
But I can show you audited figures.
Rt. Hon. Said Musa,
"I don't care what you say, my understanding is it is $12 million taking into account the principal and interest. I don't know where you got your figures from."
Well we got it from multiple sources - but this is one is in black and white - an audit of DFC loan number 130532 - principal balance outstanding, $12.145 million for Universal Health Services. But on this day, black and white hardly mattered to the PM who was clearly on the defensive, but not unable to defend himself.
Rt. Hon. Said Musa,
"Obviously nobody loves heat, certainly not politicians, although we know we have to live with being in the kitchen all the time."
And judging from the long string of scandals the streaming out of Belmopan, it's clear that the Prime Minister will be in that kitchen for much of the duration of this term of office. But this morning he proved to the press that no matter how hot it gets, he's determined to stick it out.
