On Friday when the Prime Minister withdrew the Universal loan motion, he averted what may have been a day of fiery contention inside the House and outside, where over a thousand protestors gathered. But new information emerging over the weekend shows that while he may have gotten public sentiment to calm down, he's only invoked the ire of the Belize Bank.
As we predicted Thursday, when the Prime Minister withdrew the motion, the Belize Bank reverted to its original position: that the government owes $33 million at a penalty rate of 17% per annum. But more than that, an affidavit filed by Bank President Phil Johnson makes new disclosures. Johnson filed the affidavit on the bank's behalf in relation to the case filed by the Association of Concerned Belizeans challenging the guarantee. And the contents of that affidavit have given the Opposition a new load of ammunition that Party Leader Dean Barrow says makes a plain legal case against the Prime Minister.
Hon. Dean Barrow, UDP Leader
"This is no longer political, this is legal and constitutional."
And according to the Opposition Leader, the contents of this affidavit signed by Belize Bank President Phil Johnson, show that the Prime Minister has acted illegally and he claims fraudulently:
Hon. Dean Barrow,
"Ladies and gentlemen, I am becoming sick and tired of the Prime Minister's lies."
And Barrow says he lied about the loan note and settlement deed when he said those were simply signed for purposes of negotiation. Here is an excerpt from his May 10th press conference.
Rt. Hon. Said Musa,
[May 10, 2007] "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."
But that's distinctly not what Phil Johnson's affidavit says. Barrow read directly from that document.
Hon. Dean Barrow,
"The March settlement agreement was entered into in full and final settlement of the government's liabilities. There were no negotiational stops along the way, that was the end game."
And more than that, the Prime Minister also agreed that any dispute about this final settlement deed and loan note should go to British arbitration.
Hon. Dean Barrow,
"Why would the Prime Minister sign on to any understanding that says if there is a dispute and if he needs and the government needs to protect the interests of Belize in any legal proceedings, that those legal proceedings will be conducted in England; in London England?"
And 6 days after he signed that loan note and settlement deed, again without the knowledge of his Cabinet, the Prime Minister also committed government to another loan for $12 million from Universal to the Belize Bank.
Hon. Dean Barrow,
"On the 29th March 2007, the bank made a further loan of $12 million available to UHS and that is described as the additional loan facility. The Prime Minister and the Minister of Finance was a party to the additional loan facility. This time ladies and gentlemen, the Finance and Audit Reform Act had already come into force as it was passed in 2005, I believe April it was. So here again is the Prime Minister deliberately, knowingly, willfully, flouting the law, flouting the requirements of the Finance and Audit Reform Act."
According to Barrow, the PM also misrepresented to the bank when he wrote that he was authorized to do that.
Hon. Dean Barrow,
"'That the execution, deliverance, and performance of the agreement have been duly ratified and approved by all necessary constitutional and legal action approving the terms of this agreement.' He is saying that in effect this thing went to the National Assembly. It is a bold faced lie."
And because of that, Johnson in his affidavit makes a clear case for fraud.
Hon. Dean Barrow,
"He has been advised that the bank would then have a case against the government for the full amount due because the March settlement deed, the March loan note, and of course the additional facility, were procured by the fraudulent misrepresentations or misstatements made by the Prime Minister, Minister of Finance, and the Attorney General.
They are saying the Prime Minister and Attorney General of Belize are guilty of fraudulent misrepresentations or misstatements, fraud, and that the bank will therefore seek damages for fraud. But unfortunately, when the bank seeks damages for fraud it won't be against Said Musa as Said Musa or Francis Fonseca as Francis Fonseca, it will be against the government of Belize because they are the Prime Minister and the Attorney General.
How on earth can anyone argue against the only conclusion, the factual conclusion, that the Prime Minister indeed lied when he gave that representation in writing and the Attorney General who signed was a party to the lie."
And that's still not the end of it. How about the Prime Minister's false statement that the renegotiated $29 million Universal debt would simple be passed on to the new investors? Well, not so at least not according to Johnson; his affidavit says that debt reverts to $33 million.
Hon. Dean Barrow,
"The agreement between the government and the bank in this regard was subject to certain terms and conditions which were not fulfilled. It had to be passed through the National Assembly, the good people of Belize turned it back. Mr. Johnson says accordingly, the debt remains as it is stated in the March settlement agreement and the March loan note and interest has accrued and continues to accrue at a default rate on the debt. So it is the full $33 million, $33.5 million, together with interest plus the $12 million, or at least $4 million of it which has been disbursed under the additional facility."
And with all that, Barrow says he must call for the PM to resign - but wants others to join in.
Hon. Dean Barrow,
"The completeness of the case, political and legal, for the Prime Minister to go can no loner have any doubt based on this document. When we call for the Prime Minister to resign, in this context it is not a light or idle call. It is based on what the constitution of this country and our parliamentary system, our democracy says. You can't be caught lying to the House, to the nation, to your commercial partners. You can't have that form the basis of a possible court action against you and be expected that you can continue to proceed along as though nothing has happened.
It must be maintained not only by the UDP but all sectors of society, including the, I have to say, the Chamber of Commerce.
To a large extent how we proceed with respect now to what is our single minded mission, to get the Prime Minister to resign, not because the UDP is so interested in an accelerated election date but because that is the only possible option if we are to honor our constitution and our democracy. That becomes now the single minded mission of the UDP.
We are prepared to say to the Prime Minister: we are going to give you a certain amount of time in which you need to do the only thing possible under the constitution and if you don't, the UDP will take all appropriate action. That means every option can be considered."
While Barrow ended on that cryptic note, he also confirmed that his party will prosecute white collar criminal acts outlined in the Social Security report and what may be named the upcoming DFC report.
