On May 29th the Prime Minister said he had never denied signing on as a party to an additional $12 million loan from the Belize Bank to Universal Health Services. That's $12 million in addition to the $33 million that's already committed to in a guarantee document, settlement deed and loan note. And just like the guarantee, the settlement deed and the loan note, this additional $12 million was not taken to Cabinet, at least not according to two former Ministers we've spoken with.
Jules Vasquez,
Mark Espat has said that he did not know about the $12 million subsequent arrangement that the government became a party to on March 29th with Universal. Did you know about that as a member of Cabinet?
Hon. Johnny Briceno, Former Deputy Prime Minister
"No."
And maybe this is why Cabinet wasn't told. A review of Belize Bank President Phillip Johnson's affidavit shows that the loan is for $12 million but it could end up being more than that because the figure isn't capped.
The loan facility document of March 29, 2007 says: "BZ$12 million Belize or such other amount as may be agreed by the bank from time to time in writing." And government is a party to it - as you can see by these signatures of the Prime Minister and the Attorney General.
Now $4 million of the $12 million has already been disbursed to pay the DFC. And from a look at Universal's accounts payables of $7.5 million, it's easy to see where much of the remaining $8 million can very quickly be dissipated.
Also supplied in Johnson's affidavit is a 17th May letter to the government from Allen and Overy, the British law firm for the Belize Bank. It advises government that the bank is serious about recovering the $33 million debt and it will go to British arbitration and appeal any adverse decision all the way to the Privy Council. The letter warns that, "if such appeals...take three years (which would be our estimate of how long the process would take) the principal and interest...would amount to in excess of $55 million."
